VALUE WORL

J U L Y - SEPT. 1979 VOLUME 3 NO. 2

V A L U E A N A L Y S I S INC. 14 t h ANNUAL

V. A . MANAGER'S CONFERENCE

August 9 & 10 — Chieago, U l .

* * * • * * • * • • • • * * • • • • • * • •

TOPICS TO B E DISCUSSED — Application of Techniques, Program Manage­ment, Organizational Analysis, Task Force Team Selection and Interaction, Pro­gram Measurement, Problems and Solutions, F .A .S .T .

CONFERENCE SITE — CARSON INN-NORDIC HILLS (Near O'Hare)

COST — $235 PER PERSON

FOR I N F O R M A T I O N A N D RESERVATIONS CONTACT

V A L U E ANALYSIS INCORPORATED 4029 WESTERLY PLACE SUITE 116 NEWPORT B E A C H , C A L I F O R N I A 92660

Telephone: 714/548-8018 4

FEATURING

W I L L I A M JAMISON DR. ROSEMARY F R A S E R E A R L S E I T Z SIG S T E L L B E R G T E D MOODY P E T E R R E I D GORDON BUST J E R R Y K A U F M A N E R N E S T B O U E Y

John Deer—Dubuque Works Miami University—Oxford Ohio Regina Corporation John Deere—Horicon Works Cessna Aircraft Management Methoden—W. Germany Rockwell International Gardner-Denver Society of American Value Engineers

KEYNOTE SPEAKER — LARRY MILES

INCORPORATED

PUBLISHER

Society of American Value Engineers

SOCIETY OF AMERICAN VALUE ENGINEERS

220 N . Story Rd., Suite 114 Irving, Texas 75061

Managing Editor Carlos Fallon

10 Quail Hollow Drive Southport, N.C.28461

Contributing Editor—ASPI Alex Petchkurow

Collins Radio Group (MS 402-231) Rockwell International

1200 N . Alma Road Richardson, Texas 75080

&

Contributing Editor—NASS K. Dennis Anderson

GTE Sylvania, Incorporated 835 Washington Road

St. Marys, Penn. 15857

Production Editing and Printing Triangle Press P. O. Box 407

Grand Prairie, TX 75051

EDITORIAL ADVISORY BOARD Arnold Skromme Deere & Co. Moline, IL

Oliver Hallett Executive Secretary NASS

David S. Noyes Pacific Gas & Electric

Art Mudge Joy Mfg. Co.

Thomas D. O'Conner West Point, PA

Carpenter Technology Schwinn Bicycle Chicago, IL

VALUE WORLD Volume 3 No. 2 July/Sept 1979

Magazine for

AMERICAN SOCIETY FOR PERFORMANCE IMPROVEMENT* 790 Broad Street, Newark, NJ 07102

and NATIONAL ASSOCIATION OF SUGGESTION SYSTEMS

435 North Michigan Ave., Chicago, IL 60611

and SOCIETY OF AMERICAN VALUE ENGINEERS

220 N . Story Rd., Suite 114 i Irving, Texas 75061

THIS MONTH'S FEATURES: PAGE

Become a Good Communicator Editorial by Carlos Fallon, CVS 2

Management Support For Suggestion Systems by Richard P. Brengel 4

PFA: "Letters You Should Know" by Lawrence D. Miles, CVS 6

What Is Productivity? by Michael Maccoby 7

A Message to the Product Engineer by Walter M. Roll 8

SAVE Past Presidents Tribute to Carlos Fallon 11 (Special Pull-Out Collector's Item)

I Am A Special Promotional Program by Charles E . Mueller, Jr., RSSA 19

Functional Analysis Systems Technique by Tom Cook, CVS 24

SUBSCRIPTIONS—Single Issue S3. Yearly rate: U.S. $12 to SAVE Members, (included in annual membership dues rate). Non-members and Foreign Countries $14. Technical Society and organization bulk rates and overseas air mail rates are available upon request. Make all checks payable to SAVE in U.S. dollars.

I N T H I S I S S U E

Larry Miles

PFA: Letters You Should Know

p. 6

Save Past Presidents

Tribute to Carlos Fallon

p . l l

I Am A Special Promotional Program

Charles Mueller

p. 19

1

Editorial by Carlos Fallon

BECOME A GOOD COMMUNICATOR

Production Editor's Comment: How many times have you been offered the oppor­tunity to put your thoughts down in writing and share a portion of your specialized knowledge with the rest of the world? Whether you may be writing on the subject of Suggestion Systems, Performance Improvement, or Value Engineering, there are certain basic approaches to preparing and presenting an interesting paper or ar­ticle for publication. Our Managing Editor, Carlos Fallon, has graciously prepared this special editorial, "Become a Good Communicator," to share some of his wealth of writing experience with us. As you read it, look at it as a guide to writing for publications, and you will find many useful thoughts contained in the editorial, providing guidance in the preparation of editable, usable copy, properly credited to the source. Carlos Fallon is recognized around the world as a "Master Com­municator". You are encouraged to keep this special editorial in a handy reference file for guidance the next time you begin to write an article for publication.

Get into the habit of rewriting everything you write, and write often. The trouble is that we all use too many words and too roundabout construc­tions. Makes reading a burden.

Anyone who writes terse, clear, readable English gets his material read—whether it is memos or reports. People expect to get something out of what a good writer writes. Our civiliza­tion requires much writing. We have learned a lot in the past 8000 years. People cannot keep it all in their head. Much of it has to be communicated in writing. The physical, written message has certain advantages. I t lasts. I t is not as easily dismissed as a verbal com­munication, and it occupies space. Something has to be done with i t . The written message, i f terse and clear, is a call to action.

How do people get rid of these com­pelling pieces of paper? They handle them! Act upon them. I f that is the case you have already developed the reputation of a skilled communicator, someone worth listening to. How? Everything you wrote was good? No. Everything you sent out was good. I t is seldom good when you write i t the first time. You wil l think of five examples to illustrate a point, and you wi l l write all five of them down. Give it to the

typist to make a rough draft, or write a longhand draft yourself. A day or two later, go over the draft.

As you rewrite your script, delete three of the five examples you had used, leaving only the best ones. In general, f ind shorter, clearer ways of saying what you want to say. Editors often tell their writers, "Fine, now tighten up the whole thing." I f it is an important letter or report, you might make a second draft of your edited copy. The more you work on i t , the shorter it wi l l get and the more impact it wi l l have. I f , as you are creating the first draft, you stop, grope for ideas, and nothing comes. Stop dictating or put your longhand draft aside. The ideas wil l come later, maybe the next day. Something else. When you are try­ing to recast a sentence. Try leaving it out altogether.

I f you have read some of my writing and found it wordy, you were, alas! right. These are the words of an old, blackened pot telling younger kettles how not to get black. The reason? I think we really have something good in the value disciplines—good for us, good for our companies and good for the country. It can be much better if we communicate better. I am going to do my best to help our fine editorial team

at the National Business Office receive more copy f rom the membership. This is one way to do i t .

I t should be good copy. "Scholarly writing is distinguished f rom all other kinds," says Mary-Claire van Leunen in her Handbook for Scholars (Knopf 1978), "by its puntilious acknowledge­ment o f sources." Professional publications should be scholarly. Is SAVE a professional society? Only i f i t maintains professional standards. A basic rule of SAVE publications is not to print anything without the author's permission or the permission of the copyright owner. A reassuring con­scientiousness, on the part of Triangle Press, who do our production editing, is that they never leave out citations for source.

When you send in anything for publication to SAVE, and you didn't write it yourself, make sure you let the National Business Office know who wrote i t , where it appeared, and that you have permission to reprint it. Can save us a lawsuit.

In addition to news items, coming events, and other routine communica­tions, i f you have a good value-improvement accomplishment, write it

Continual on page 3

2

Continued from page 2

up. You can send it to SAVE directly or you can write it first for your house organ and get permission to reprint it in I N T E R A C T I O N S or V A L U E W O R L D . This course of action has the advantage that it establishes you, in the eyes of your peers and your bosses, that you know what you are doing. Know how to keep track of i t , and know how to record i t .

In my brief editorial career, I have experienced two surprises. One is the competence and dependability of SAVE's editorial and printing team at the National Business Office. Very p ro fe s s iona l and excep t iona l ly resourceful. The other surprise is the discovery that I am getting old and can't last forever. Without going into details about my failing health, I think

all material for our publications should go directly to:

SAVE 220 N . Story Rd., Suite 114 Irving, T X 75061

Following are a few hints that should help you publish what you write.

W R I T I N G FOR PUBLICATION Suppose you are an editor, looking

at a pile of manuscripts to be edited. The clock is ticking away toward the inexorable deadline. The first page, a biographical sketch, contains about three times as many facts as most readers would want to know about most authors. Maybe you can edit it down to size. No, you can't. I t is single-spaced. The article itself is single-spaced!

Sadly, you insert it in its stamped,

return envelope with a polite rejection slip.

The first rule is double-space, never more than 27 lines to the page and generous margins. Set them at 10 and 70.

The second rule is standard size white paper. You can be just as economical or as fancy as you want in your personal stationery, but paper ultimately destined for the printer and meant to travel back and forth through the mail should be white, of good quality, and standard letter size. Government size is close enough, but legal size is out. Literally. I t sticks out of both ends of a letter-size folder.

Put yourself in the editor's shoes. Send him timely material and, above all, give him enough space to work in .

ANNOUNCEMENT! 1980 N A T I O N A L C O N F E R E N C E

Presented By The

SOCIETY OF AMERICAN VALUE ENGINEERS

AT

THE SHERATON HOTEL, DALLAS, TEXAS

CALENDAR OF EVENTS

June 15 — Announce Conference - Call For Papers Sept. 30— Close Session Entrees Nov. 10 — Select Final Program Jan. 15 — Final Papers Submitted for Publication Mar. 1 — Conference Program Notice & Advance Registration Apr. 30 — Close of Advance Registration May 13 — Final Registration Begins May 14 — Conference Opening - Outgoing Board Meeting May 15 — Conference - Award Banquet May 16 — Conference - Annual Business Meeting May 17 — Incoming Board Meeting

REGISTRATION FEES

Save Member $225.00

Non Member $265.00 ($40 of the Non Member Fee may be applied to a Save Membership)

Single Day $110.00

1980 NATIONAL CONFERENCE

SOCIETY OF AMERICAN VALUE ENGINEERS Save National Office

220 N. Story Rd. • Suite 114 • Irving, Texas 75061

CONFERENCE STAFF General Conference Chairman:

William F. Lenzer, Value Engineering Inc., Dallas, Tx.

Director of Technical Programs: J. J. Kaufman, Cooper Industries/Gardner-Denver, Dallas, Tx.

3

M A N A G E M E N T S U P P O R T F O R S U G G E S T I O N

S Y S T E M S

W H Y ? . . . F O R P R O D U C T I V I T Y ! by

Richard P. Brengel

Richard P. Brengel was born in Flushing, New York. He is a graduate of Middlebury College, Vermont, with a degree in economics. He entered duty with the Civil Service Commission as an investigator in the New York Region in 1961. He has since served in the Personnel Division, with the Interagency Advisory Group, in the Bureau of Policies and Standards, and in the Bureau of Training in Washington, D. C.

Mr. Brengel transferred to the Office of Incentive Systems in 1969 and was promoted to Director in 1971. As the Federal representative to the Board of Directors of the National Association of Suggestion Systems, he has served as editor of the NASS Suggestion Newsletter for three years, Chairman of the International Papers Competition, Treasurer and Vice Presi­dent.

Mr. Brengel has been certified by the National Association of Suggestion Systems as a Certified Suggestion System Ad­ministrator.

"The views and comments by the author of this article do not necessarily constitute the endorsement or opinion of the office of Personnel Management."

As far back as the history of sugges­tion systems go, those who have ad­ministered suggestion programs have had to deal with the issue of earning the support of top management. Whether small or large, public or private, this issue is at the heart of whether an organization's suggestion program wi l l be successful, grow with changes in the organization, and pro­duce results. Let's consider some fun­damental questions dealing wi th management and suggestion systems.

Why do managers fail to see the potential of suggestion systems? Why don't they become actively involved and allocate time and give priority to them? Some of the reasons include: overloaded with day-to-day problems and emergencies.

Many executives believe they don't even have time for such essential func­tions as suggestion program planning, goal setting or establishing overall con­trols because they barely have time to deal with day-to day, short-span pro­blems. misconceptions about suggestion systems. Some managers believe sug­gestion systems produce ideas of little benefit to the organization; that they are a channel of communication for employee complaints rather than solu­tions to problems; and that the sugges­tion program is a fringe benefit pro­gram or a paper-pushing operation that isn't cost effective.

Why do some managers believe that line managers and their staff profes­sionals do the heavy thinking and employees only carry out instructions?

Many managers in the public and private sector are trained in classical management, or management sciences theory, rather than the newer organiza­tional behavior philosophy. These managers don't believe employees are capable of generating major ideas.

Is management support really necessary to building and maintaining an effective suggestion program?

There is no doubt that demonstrated and credible management support has the following effect:

• Various levels of management and supervision respond to the priorities set by top management

• The program is given credibility ad visibility througout the entire organiza­tion

• Necessary personnel resources are assigned, funds for awards and promo­tional activities are allocated

• The organization knows manage­ment expects program results, has established goals and requires periodic reports to assess progress

• Supervisors realize that manage­ment believes suggestions are an im­portant means of achieving organiza­tional objectives and reflect this in the way they encourage and assist employees to develop ideas, in the time they devote to evaluating suggestions,

and in the promptness with which they respond to requests for evaluations. A study of the reasons for success and failure of suggestion systems in over 700 manufacturing companies, by Pro­fessor Joseph Glasser of the University of Connecticut's School of Business, indicates that". . . lack of top manage­ment support" ranked second among reasons given for program failure (poor administration was ranked first, and insufficient promotion was third). In addition, a recent study released by the General Accounting Office in which the Barriers to the Effective use of the Suggestion Program in the Federal Government were discussed, cited lack of support and commitment by all levels of Federal management as being the principal reason the program in Government is not realizing its f u l l potential. GAO recommended to Con­gress that the new Office of Personnel Management (formerly part of the Civil Service Commission) work with all departments and agencies of the Federal government to set and achieve specific goals and objectives.

During the past year, two Federal agencies have achieved excellent results, attributed largely to the in­terest, support, and involvement o f their Chief executives. At the Veterans Administration, Administrator Max Cleland initiated a "VA—May I Help

Continued on page 5

Continued from page 4

You?" campaign. Ten thousand "May I Help You?" lapel buttons were made, that could be earned by submit­ting a suggestion or as an award for outstanding performance. A monthly letter was printed and distributed to keep everyone informed of the results. Employee response was excellent. A t one location in Tennessee, a request was made for individuals to sign pledge cards volunteering to improve services to Veterans and, as a result, 1,100 cards were signed. Another installation reported that a veteran asked i f he could wait to be served by an employee who was wearing a "May I Help You?" button!

A t the Department of Housing and Urban Development, Secretary Patricia Harris signed messages to all employees, supervisors, and key management staff, announcing their new IDEAS (improving Departmental Efficiency and Services) Program. The results achieved during the first year of operation under the new program have been very good, with submissions up 300% and benefits up more than 115%.

There is no doubt, then, that we need to reinforce management's basic belief that the program provides an im­portant means of achieving organiza­tional goals, and to foster and en¬courage their active and overt support of the program. We can do this in a number of ways. We should, at least annually, assess program results, iden­t i f y p r o b l e m s and p r o g r a m achievements, and point these out to management to get their active support in implementing a well-defined action plan with specific goals and objectives. Program policies, procedures, forms, and p u b l i c i t y s h o u l d be re­viewed periodically, and updated to keep pace with changes. (NASS pro­vides valuable services in both these areas through the annual statistical report and NASSPAK.) We must make management aware of how they can help make the program strong through their active participation—a continu­i n g o r i e n t a t i o n need f o r managers—and, finally, we need to show them the actual results, to see what the impact has been and to give

them the personal satisfaction of par­ticipating in awards ceremonies which recognize the creativity o f their employees.

How do we get management in­terested, committed and actively sup­porting our suggestion programs?

Suggestion systems must be linked with productivity improvement efforts in our organization! Wi th the increased pressure in industry and Government f o r p r o d u c t i v i t y i m p r o v e m e n t , managers generally are receptive to making effective- use of employee creativity through suggestion systems. We have to demonstrate that sugges­tion systems are important because they result in more yield out of resources allocated within organiza­tions and that they are a sound and vital element in any productivity im­provement plan. And we must make sure that the employee creativity and productivity relationship is f i rmly established and understandable to employees and managers.

We have to demonstrate that the suggestion program is an important management tool which helps ac­complish organizational goals and ob­jectives. To do so, we should direct our suggestion program and its plans, goals, objectives, and publicity toward productivity improvement, improved services, better quality (and thus more competitive products), improved safe­ty, and other important objectives. And we should focus employee atten­tion on critical problem areas for im­provement.

We need to stress how the program is helping the organization improve pro­ductivity in our periodic reports to management. This could be through highlighting suggestions which save or conserve resources, personnel , material, space, or equipment that can be used to accomplish other important priorities, or by pointing up the impact the program is having by showing the benefits and citing specific cases to i l ­lustrate them. Don't forget to em­phasize multiple year (or life) savings that suggestions have ( f rom research conducted by NASS, approximately f i v e years) and there fore the cumulative effect , to show the

favorable savings/cost ratio. How can Management Show its Sup­

port? Management actions, rather than

pronounced support, are essential to maintaining an effective suggestion p r o g r a m . M a n a g e m e n t can demonstrate its support by:

• Assuring that the program is organizationally placed at a level which demonstrates its importance

• Investing an adequate portion of the budget in the suggestion program (to pay for necessary cash awards and p r o m o t i o n a l and e d u c a t i o n a l materials)

• Staffing the program to assure ef­ficient administration (persons should be selected who sincerely believe in the value of suggestions to improve pro­ductivity and should be given adequate resources to administer the program)

• Asking for reports of programs results and approving plans for im­provement, which have clearly defined goals.

• Assuring that recognition is timely so that none of the motivational value of the award is lost

• Participating in the presentation of suggestion awards, and, through various written communications to employees

• Requ i r ing tha t supervisors, managers, and evaluators meet their responsibilities for prompt, thorough, and objective suggestion evaluations.

% ̂ Principles of Value Analysis

"Reprinted with permission from PUR­CHASING WORLD magazine. © Copyright 1978 by Technical Publishing Company, A Dun & Bradstreet Company."

By Lawrence D. Miles Certified value specialist

PFA: LETTERS YOU SHOULD KNOW Particle Function Analysis is contributing unexpected earnings to users of both small and large items. The P F A principle says this: A buyer should not pay out any of his employer's money for any particle of material that is not performing some desired function (use or aesthetic).

P F A is simple in theory. It was simple in application once, too, when a single person possessed all knowledge, planned all projects and made all decisions. It is different in application now because purchased items are influenced or con­trolled by many people. Laboratory tests, field tests, marketing tests, underwriters' approvals, specification writers, de­signing engineers and others make the decisions. But even in today's complex working environment, P F A provides a challenging opportunity for a buyer to increase earnings. Let's watch it in action.

A buyer received a requisition calling for 12 rough-machined forgings. Each forging was 30-ft. long and 3-ft. in diam­eter; at one end was a flange, 6-ft. in diameter and a foot thick. Each forging also had a 6-in. diameter hole through the center of the forged shaft.

The search begins

In his search for knowledge, the buyer asked a series of questions about the flange and received some helpful answers.

Q. What is the function of the flanged shaft? A. The flange mounts to a water­wheel. The top part of the shaft mounts a large electric generator. In operation it is vertical with the waterwheel at the bot­tom, forming a large hydro-electric generating unit.

Q. What is the function of the 6-in. hole through the center? A. lt is vital that there be no cracks or hidden defects in the shaft, so the hole allows the en­gineers to pass electronic equipment through to make essential inspections.

Q. What are the functions of the shaft flange? A. To provide mounting for the waterwheel and the generator; to resist deflection; and to transmit torque.

Q. Doesn't the 6-in. core of steel taken out of the center reduce the shaft's ability to accomplish its functions? A. No, the effectiveness of the steel to either trans­mit torque or resist deflection is relatively unaffected by the material in the center of

the shaft. The buyer returned to his office to

think through Particle Function Analysis on the product. To illustrate a cross section of the shaft, he drew a 3-in. circle and in its center a '/2-in. circle. At dif­ferent places within the circles he drew tiny particles and considered their contri­bution to function. He knew that those at the outer surface functioned most and those near the center, although they weighed and cost as much, functioned very little.

Engineering says. . .

Next, the buyer met with the engineer. Q. Since the material near the center functions so little, could we eliminate more of it without any meaningful dif­ference? Why use a 6-in. hole? Why not a 12-in. hole, for instance? A. The 6-in. hole allows the electronic instruments to slide through. The hole was made as small as possible because a larger hole would mean more machining cost. Al­though it is bought rough machined, it would cost more to have four times as much steel machined out.

The buyer asked the engineer to calcu­late just how big the hole could be with­out sacrificing strength, performance or safety. The engineer said that the ideal would be a 15-in. hole because it would eliminate weight.

The buyer was now at the point where he could begin working with his supplier. He asked for quotations on a forged shaft and flange with a 6-in. and a 15-in. hole. The per-pound quotations were identical, about 50c/lb. It seems that no matter what size hole, it was an easy operation for the supplier's trepanning machine.

The end result was that, through P F A , the buyer managed to reduce the cost per shaft by $6,000. On the order for 12 shafts, that added up to $72,000 saved. In addition, he saved many more thousands in reduced freight costs because of their considerably lighter weight.

This would seem to be the end of it, but it wasn't. The buyer's analysis of the flange turned up more "non-performing" material. After all, a 6-ft. flange that was a foot thick represented an enormous amount of steel.

Q. What is the precise function of the flange? A. To provide mounting between the shaft and the waterwheel.

Q. If the flange is six feet in diameter and the shaft only three feet isn't the 18-in. extension around the shaft too much?

Wouldn't a 6-in. or 12-in. extension be enough area for bolting? A. The diam­eter and all details of the mounting have been fixed by cooperative work and agreements with the manufacturer.

The buyer's next call was to the water­wheel supplier. He asked for a recalcula­tion of the joining flange. The supplier's answer was speedy.

"We're just as interested in eliminating unneeded costs as you are," said the sup­plier. "And in fact the outet six inches of the flange do not contribute in any way. Our engineers will work out the specs for a more efficient connection between our products."

Under revised specs, the diameter of the flange was reduced from six feet to five feet, meaning that a band of steel 6-in. X 12-in. in cross section and 6-ft. in outside diameter was eliminated. Thou­sands of dollars in lower material and transportation costs were changed to earnings.

It's your job

Is Particle Function Analysis really part of the purchasing job or should it be left to others? The answer is both. Any­thing that is done by others purchasing will not have to do, but purchasing's job is to see that all money paid out brings benefits.

Real benefits in organization planning derive from the realization that the buyer is like a hockey goalie. He doesn't com­pete with his teammates nor does he fault them for their mistakes, but he does have a job to do. When a puck slips through, he stops it. That makes a winning team, and that is purchasing's job in a winning competitive environment. •

Lawrence D. Miles has been practicing and refining value analysis since he originated the techniques as a member of GE's corporate purchasing depart­ment almost 30 years ago. He has written and lectured extensively on VA, and has published two books on the subject: "Cutting Costs by Analyzing Values," and "Techniques of Value Analysis and Engineering." He is a Fellow of the Society of American Value Engineers (SA VE), and served as its first president. And he is a holder of the Distinguished Public Service Award—the highest military honor awardable to a civilian—given him for benefits accrued to the U.S. Navy from the use of VA techniques.

6 Purchasing World. S»p»«fnb«r 1978

Note: We are indebted to United Auto Worker's Vice-President, Irving Bluestone, Director of the UA W General Motors Department, for this article on productivity. GM's efforts to improve productivity go well beyond economics, using in many plants throughout the country the multidiscipline team concept which has proved so successful in the value disciplines. When asked by the Associated Press for his personal views on productivity, he answered, "We are in business to improve conditions for the membership. " Part of the improvement was in the satisfaction derived from the worker's intellectual participation in the work of the company.

When I asked Mr. Bluestone for ideas on making productivity growth more attractive to labor, he put me in touch with Michael Maccoby of Harvard University's Washington DC Project on Technology, Work, and Character, who very kindly prepared for us the article that follows.

W H A T I S P R O D U C T I V I T Y ?

Increased productivity is supposed to strengthen the economy, create more jobs, and improve our lives. But does it?

For the economist, productivity is a measure of output per man-hour, and an increase in productivity results in a decrease in the cost per unit produced.

But neither the general public nor policy makers define productivity in such a limited way. More generally, productivity may mean greater e f f i ­ciency in the use of resources, in­cluding manpower, energy, raw materials, and technology. Productivi­ty may also refer to generativity or creativity as in "productive soi l" or "productive human beings". Do the different definitions of productivity imply the same policies? Is it efficient to use up national resources to main­tain profits in a few companies? Is it efficient to increase productivity and pollute the air and water? Is it efficient to use up workers like so many inter­changeable parts and leave them to the care of welfare agencies? To take an obvious example, i f workers are replac­ed by machines in a company where de­mand is inelastic, and there is no growth, productivity may rise at the ex­pense of jobs. How do people remain productive, i f their jobs disappear.

To avoid discarding the concept of productivity because of the confusion it generates, a distinction might be made between the economist's defini­tion (economic productivity) and social productivity which improves the com­mon good.

The first type of definition might be that increasing social productivity means improving effectiveness in the

by Michael Maccoby

Copyright © by Michael Maccoby 1979

use of resources—including man­power, technology, energy, capital, and raw materials—to produce goods and services wanted by the American people, constrained by four condi­tions:

1. ) Such product ivi ty must not cause harm to people by polluting the atmosphere, endangering the con­sumer's health, or placing the worker in conditions where his physical health and safety cannot be maintained. 2. ) Such productivity must not-

damage the mental and emotional health of workers by subjecting them to dehumanized conditions, where they lack dignity, democratic rights, oppor­tunities for learning and the develop­ment of personality. 3. ) Such productivity must not undu­

ly increase social inequity, injustice and resentment by inordinately in­creasing the personal power of a few individuals, not adequately compen­sating all workers, discriminating against workers on the basis of race, sex, age, beliefs, and inequitably using scarce resources for the benefit of a few. 4. ) Such productivity must not lead

to the inability of workers to f ind useful paid work. This condition as it stands might benefit those generally large or growing companies which can t r a n s f e r worke r s replaced by technology and hurt companies which cannot. To protect individuals and maintain social equity, government must help to develop guaranteed work for all who seek i t . Without job securi­ty, economic productivity may in­evitably be socially unproductive.

Although these constraints are broad and diff icul t to implement, they can be taken as guidelines for building policy. They also follow precedent. Current legal constraints to production such as the Pure Food and Drug Act and Oc­cupational Health and Safety Act are examples of constraints to economic productivity.

A different type of definition of social productivity in terms of positive criteria would identify the goal of pro­ductivity rather than leaving that up to any producer who accepts the rules of the game. The goal of social produc­tivity might be to provide only those goods and services that enhance the lives and strengthen the health of both workers and consumers and therefore American society as a whole. In terms of this definition, both the process of production and products must con­tribute positively to the healthy development of workers, managers, and consumers.

What are the advantages and disad­vantages of each type of definition? The definition of social productivity in terms of positive criteria makes one uneasy, because it would tend to sup­port regressive control over produc­tion. It requires determining whether or not each product or production pro­cess can be justified in positive terms. Who would make this definition? There are clear risks that arbitrary con­trols would dampen the willingness of producers to take risks and invest the capital and energy necessary to develop new products.

Continued on page 8

7

What Is Productivity? Continued from page 7

In contrast, the definition of social productivity in terms of constraints sets limits but does not define what should be produced. Within the con­straints, entrepreneurs and firms can take risks and exercise initiative. Management and unions can also work together to improve technology and work relations.

Of course, constraints also require methods for evaluating possible viola­tions, and these might become overly

repressive or nitpicking; more likely, as in the case of OSHA they would be in­adequately enforced because too little attention is paid to developing methods for reasonable compliance. The creative task of government will be to develop means which protect people without destroying initiative.

The creative task of consumers will be to demand the positive development of those goods and services which enhance their lives.

Instead of a commission with a con­fusing title like the recently abolished "Center for Productivity and the Quality of Working Life", we should establish a National Commission on Social Productivity. Since working people are the ones most in need of social productivity, even without such legislation, unions might take the lead in developing the new definition and the policy it implies.

Note: Here is a fresh look at VA/VE from one of our in-house customers. It is an honest appraisal, for the benefit of his fellow engineers, from Walter W. Roll who previously worked in John Deere's R&D department and then in their new product development activity. New product development is one of the richest fields of VA/VE effort in northwestern Europe. Editor.

A M E S S A G E T O T H E P R O D U C T E N G I N E E R

Those of you who are engaged in product design are in an excellent posi­tion to increase profitability by design­ing for economic manufacture. Your design can be more profitable than average, i f you are willing to take ad­vantage of the best methods that are available to you. What I am suggesting to you is the use of Value Analysis techniques to provide a quality product that is economic to manufacture.

Can Value Analysis really make a difference in product costs? It has become a proven method at John Deere. Since 1970 we have saved a total of more than 24 million dollars through Value Analysis projects. These savings are net first year direct cost savings. That is—savings in material, labor and direct overhead for the first year of production—minus the cost of implementing the change—for such costs as redesign, testing and tooling. I believe you wil l agree that these savings are conservatively stated because they do continue to accrue with successive years of production.

We are justifiably proud of the Value Analysis work which has been done, but we believe we are still realiz­ing only a small portion of the poten­tial—for two reasons: (1) We could be doing a lot more of this kind of work;

by W. M . Roll

and (2) We could be doing it earlier in the design cycle.

Only a very small portion of the pro­duct we manufacture today has been Value Analyzed. Our factory value engineering managers believe that i f a total product design were to be ana­lyzed in its entirety the direct cost of manufacture would be reduced at least 5%. A 5% savings across our entire product line makes the 24 million which we have saved so far through Value Analysis seem like an almost in­significant amount.

The projects that produced the 24 million dollars savings were all done after the products were in production. I f we had done the same type of analysis on these products before they went into production, we could have eliminated the duplicate expenditures for such things as design, testing, manufacturing planning, and tooling. Our factory experience shows that about !/3 of the potential savings of a Value Analysis project is lost to expen­ditures that would have been avoided i f the work had been done prior to pro­duction. We have been moving our projects earlier in the design cycle and we believe the emphasis should be on Value Engineering in the future—that is—value studies conducted before the

product goes into production. This is where we can get the really big payoff, where we still have the opportunity to test and evaluate new ideas on their merits rather than on the many con­straints we encounter after a product goes into production.

One of our projects conducted before release for production recently produced a 22% reduction in direct cost and a 25% reduction in tooling cost. The savings amounted to more than $450 per man hour invested—a very respectable return!

In another project conducted before production release we analyzed the gearboxes used on two similar vehicles. Originally each model had its own gearcase design because of the dif­ferent power levels and different reduc­tion ratios required. Through the Value Engineering* project a common gearcase design was developed which provided the two required ratios with two different gearsets which used com­mon centerlines. The engineer said these changes were very easy to make at this early stage of the project since they required only the use of the eraser. We have a substantial cost avoidance by eliminating the need for duplicate

Continued on page 9

8

Continued from page 8

machine tools and patterns for the sec­ond design. Other unmeasured benefits included the introduction of fewer parts into the factory and the service parts system and increased manufac­turing efficiency with the higher volume.

When should value studies begin? The best answer is "as soon as possi­ble." Value studies should be con­ducted while there is still freedom to seek the best way to achieve the func­tion and still time to test and evaluate new designs. A good time to have teams begin studies of a design is at the point where the first layout is complete enough to show how the machine is to be built. It is also highly desirable to have cost estimates for this initial design in order to see where the high cost areas are and to have a baseline to evaluate alternate designs.

What is actually accomplished in a Value Engineering Project to bring the costs down? Examination of additional projects will provide some of the answer. One of our power steering systems originally used two hydraulic cylinders to actuate the steering linkage. A team study was instrumen­tal in developing a single cylinder design. The single cylinder system eliminated seven parts and also re­duced assembly labor.

In another project a truss rod anchor was changed f rom a three-piece weld-ment to a simple slotted strap. The strap did the same job for less than !4 of the cost.

Another project resulted in the redesign of an idler wheel. It was originally a plastic wheel with a bonded rubber tire and a bearing retained by a snap ring. By changing to a blend of rubber and plastic and molding the bearing in place the cost was nearly cut in half and equal performance was maintained.

The cost in each of these cases was b r o u g h t d o w n by e l i m i n a t i n g something that wasn't essential to the function or finding a lower cost way to achieve the function. The function was accomplished with fewer parts, less material or a lower cost material, fewer

•Lawrence D. Miles, Originator of the

manufacturing operations, or simpler, more reliable, less costly operations, or with less expenditure for machine tools or tooling. These are the things that add up to give us economic manufac­ture. I call this good manufac­turability—a design that wil l enable us to produce a quality product at a com­petitive cost.

To quote a senior executive of a ma­jor European automotive manufac­turer, "The automobile has become a relatively low technology product, but making it economically is a high technology operation."

To develop a design which is economic to manufacture requires a joint effort of people skilled in design and manufacturing processes so that the design and the manufacturing pro­cesses can be developed simultaneous­ly. Too often the manufacturing pro­cess assistance is dependent on the in­itiative of the designer and the good will of the manufacturing engineer. What is needed is a routine means of getting the right team of people as­signed to the project initially.

This is where Value Engineering comes into the picture. It provides a mechan i sm f o r o r g a n i z i n g multidiscipline teams of capable people to conduct analyses of designs as need­ed. It is a means of assuring that the proper manpower wil l be assigned to your project at the right time.

Why does the Value Engineering technique work so well? It works well because it is a multidiscipline effort . Teams are typically made up of 3 to 5 people. The typical team has one per­son f rom Product Engineering and one f r o m Manufactur ing Engineering. Other team members come f rom In­dus t r i a l Engineer ing , Mater ia l s Engineering, Reliability, Purchasing, Production, etc., according to the needs of the design. It works well because it is a systematic approach which forces definition of the function and brings about cost visibility. I t also works because of group dynamics. People are assigned the job and they develop a dedication to get it done and are able to build on one another's

:ipline, defined Value Engineering as Value Analy

ideas.

One very important side benefit comes f rom your use of a Value Engineering team. Other departments become in fo rmed and involved through their participation in the pro­ject. Their attitude changes f rom one of "your problem" to "our problem" and they become supportive of the results of the project since they have played a part in i t .

Another point I would like to make is that the Value Engineering technique can be used for a variety of problems that involve matters other than cost. It can be used to solve functional pro­blems, quality problems, process pro­blems and software problems.

I f you are going to take advantage of Value Engineering and the benefits it can offer you, you need to plan for the studies in your product design pro­gram. You need to allow time for com­pletion of the studies and implementa­tion of the results. I f you have a Value Engineering program in your com­pany, I would recommend that you review every new design program plan with your Value Engineering manager so that he can help you to determine the best points to conduct studies. I f you don't have a program, now is the time to organize one!

What advantages does Value Engineering offer you? I t brings addi­tional creative effort to your project, it helps bring the cost down, it can enhance quality, it improves accep­tance of Manufacturing Engineering and shop people, it uses proven technology and it insures that the func­tion wil l be maintained or improved.

Value Engineering is a potent techni­que which uses existing resources and personnel with some special organiza­tion and training to accomplish above average results f r o m better than average methods. I believe that i f you make effective use of value studies in your product design program you wil l contribute even more significantly to the profitability of your company.

when practiced in the engineering sphere.

9

1979 H O N O R S A N D A W A R D S

*FELLOW AWARD James E . Ferguson, Jr., CVS — Huntsville, Alabama

C. P. Smith, CVS — Dallas, Texas Thomas J . Snodgrass, CVS — Madison, Wisconsin

Tony Tocco, CVS — Houston, Texas

•DISTINGUISHED SERVICE AWARDS EDUCATION — Glen D. Hart, CVS — Azusa, California

INDUSTRY — Eugene R. Smith, CVS — Speedway, Indiana GOVERNMENT (Municipal) — Maurice J. Gelpi, CVS — Baltimore, Maryland

SAVE — J. Horton Mathews — Brighton, Michigan

•HONORARY MEMBER Mrs. Virginia Brown, Head Librarian

Miami University Middletown, Ohio

•OUTSTANDING ACHIEVEMENT IN MANAGEMENT Robert O. Black

U. S. Army Missile Research & Development Command Redstone Arsenal, Alabama

William R. Moseley Day and Zimmerman, Inc. — Philadelphia, Pa.

•HONORARY VICE PRESIDENT Mitsugi Kanaya — Corporate Vice President

Matsushita Electrical Works, Ltd. Japan

Robert W. Truxell — Vice President, General Motors General Manager, Truck and Coach Division

•PRESIDENTIAL CITATION Ichiro Ueno — President, SANNO Institute of Business Administration

President of SJVE Japan

VALUE JULY - SEPT. 1979

VOLUME 3 NO. 2

WORLD T E C H N I C A L P U B L I C A T I O N FOR

n

SAVE PAST PRESIDENTS TRIBUTE TO

CARLOS FALLON We have the honor with this issue of

"Value W o r l d " to pay special tribute to Carlos Fallon. Carlos wi l l retire as Managing Editor of SAVE Publica­tions with this issue due to his weak­ened health condition. We truly hope this release f r o m the pressure of the Managing Editor position may assist in his continuous efforts, in conjunction with his doctors, to maintain the level of health he does have.

As we pay tribute to such a colorful and world-wide renouned gentleman as Carlos Fallon, we note that he means many things to many people.

To provide our readers with a good cross-section o f thoughts and memories of present and past associa­tion with Carlos, we have prepared this special tribute to Carlos, using material supplied by the Past Presidents of the Society of American Value Engineers. We hope you enjoy i t , and may also benefit by reading i t . This Tribute is published in an easily removed center-section of "Value W o r l d " , to facilitate retention in your personal files.

My first association with Carlos was during the early days of SAVE Na­tional Conferences. Initial impressions of Carlos were those of a very colorful, entertaining, and informative public speaker. I t wasn't long before the highlight of SAVE Conference attend­ance was to enjoy and benefit f rom the sparkling speeches and subsequent per­sonal conversations of Carlos. As the years passed I was also privileged to

Carlos Fallon Save president 1971-1972

serve on the SAVE National Board of Directors with Carlos. Here, I had a wonderful first hand opportunity to observe the Master Diplomat in f u l l operation. We all learned much about the delicate art of getting along with your fellow man. Carlos never puts anybody down—he always finds some good in everybody he meets—and he has the unique skill and talent to bring that good out of people for the benefit of all concerned. The height of my ser­vice to SAVE was to have the honor of following Carlos Fallon as President. Not only was Carlos an outstanding personality to follow, but he provided much counsel and guidance in a con­structive and welcome manner as only Carlos can do. Most recently we have been blessed on the SAVE National scene with Carlos in his capacity as Managing Editor. His contributions in the position have been outstanding! Although he now leaves this post, we have his personal assurance that we may still look forward to his beautiful writings, thought provoking articles, and timely editorials.

Carlos, we love you, and are truly honored to have this opportunity to pay tribute to you in our "Value W o r l d " .

C.P.Smith SAVE President 1972-74

Dear " C P " and Others; Today we salute a great man,

CARLOS F A L L O N , a superior com­bination of Wisdom and Wi t , of Creativity and Judgement, of Thought and Action. His contribution to the economic success o f thousands through communicating and improv­ing Value Engineering Techniques, wi l l continue for decades.

Carlos is endowed with the four essentials for great achievement in business and professional work.

Mental brilliance, ability to learn, sort, store, create and select.

Decisiveness, ability to make good decisions fast.

Activeness, practice of "doing something about i t " .

Sensitivity of the needs of all associates.

Quality shows through, beginning in the early l ife of this great achiever. As a youth, growing up in Bogota, Col­umbia, he joined the Columbian Navy. He rose to the Chief-Of-Staff. He moved to New Orleans. WW-2 broke out. He enlisted as a private in the US army. He rose to Captain in Ai r Force Intelligence.

He lectured. He wrote. His 1950 book A VARIETY OF F A L L O N brought entertainment, wit and humor to thousands. His lectures brought ' ' sell-out'' audiences.

Naturally, when he came across Value Analysis, his mind grasped it at once, and, to the benefit of us all , his enormous contributions followed.

I am honored to express great thankfulness and appreciation f r o m thousands, to Carlos.

Wi th Much Affect ion, Larry Miles Founding SAVE President

12

Dear Carlos, I know of no more appropriate

tribute to you that SAVE could pay than to recreate through the memories of your peers some of the memorable events, outstanding contributions and warm personal touches o f your remarkable career. I wish I possessed your unique talent with words to pro­perly express my feelings and gratitude for the opportunity to have known and worked with you.

Your individual is t ic talent i n translating life's events to bring home concepts and motivate people wi l l live forever in the hearts and minds of your audiences, as well as, those of us for­tunate enough to call ourselves your friends and associates. Value Engineer­ing as an effective discipline and a pro­fessional career has been greatly enhanced by your contribution.

You may recall those companionable days in olde England when you took part in the I E I Seminar. To help bring back the memories I have enclosed a couple of brochure front covers. One in which you participated in person and the second one they used your pic­ture with a team. That was a rather in­teresting project, you may recall, —a syphon assembly f rom one of Mr . Crapper's inventions. Which just goes to prove V.E. wi l l f ind a way to cut the cost of getting r id of a lot of C .

Harriet and I think back fondly of the good times we had in that small hotel in London and the good places we went to eat, like the Budapest and that Spanish restaurant you introduced us to.

We wish you all the best, Carlos, and congratulations on receiving the " V . E . Citizen of the W o r l d " honor. You're the greatest and we'll always love you.

Sincerely,

Fred S. Sherwin SAVE President 1964-65

Dear C P . : Thank you for inviting me to par­

ticipate in the tribute to Carlos Fallon. Certainly, no serious student of the history of our Society could fai l to recognize the contributions of our "Master Story Teller," Carlos. To know Carlos is to appreciate his warmth and humor and to respect his dedication and contribution to our profession.

Sincerely,

C. W. "Smokey" Doyle President 1965-1966/1966-1967 Society of American Value Engineers

Dear Smitty, I ' m going through cassette tapes and photos of Carlos. Have already found tape of Carlos' last Board Meeting. Should have photo of him on his motorcycle. W i l l try to mail to you before I leave for GE at Appliance Park.

Best regards,

Frank Johnson SAVE President 1967-69

Dear Carlos, ( f rom an old friend in Value)

Please forgive me for taking so long to write for all the nice memories you gave me. Also, please forgive me for not taking more of your advice—on how to approach my value Eng. work, or more in general, on how to deal with people.

After your seminar, our V .E . pro­gram took hold. I got the ten different disciplines (men) I asked for and, for three or four years, we were one of the most successful contractors in DOD. However, the way we accomplished it was my ultimate downfall. I read more, and studied more about laws, rules and regulations than anyone else in the country. Equipped with this knowledge and an absolute burning desire to save money and to be "no. 1 " , I bullied, cajoled, prodded, sold, etc. to get there. I never developed, nor tried to develop, what you consistently exemplified, i.e. giving other people the credit and doing your work in such a manner that they, themselves, think they did i t all by themselves.

Before it was over, most of the Engineers within my company treated me with some respect but a lot of hate. I had messed up their projects. I had gotten their "fr iends" within the government upset with them. " H o w could a project that they and their government counterparts worked on for several years, contain so much fat (as they called it) that me and my group could come in and save so much money? Had the engineer deliberately padded the project and made the government folks (up to the general) look like fools?" Of course they hadn't, but the thought was there. To make a long story short, the generals and contracting officers turned on my company, and very naturally, my com­pany turned on me. I got "retired." After selling $60 million in VECP's and making the company close to $7 million in fees, I got "ret ired" because I made certain government folks, as well as our own, mad.

I became very bitter for a while and am not quite over it yet.

However, as I look back in retrospect and listen to you once again through your book and my beautiful memories of our conversations, I ' m starting to see things, I hope, in a truer

perspective. Your old friend X 13

DEMONSTRATION

CASE STUDIES

CARLOS FALLON Descended from legendary Irish and Castdian fore­

fathers who were active in the Conquest and War of Inde­pendence of Colombia, Carlos Fallon was brought up in Bogota and in New Orleans, where his father served as consul. Mr. Fallon spent ten years in the Colombian Navy, commanding modern war vessels and trail-blazing in the last frontier of tropical South America. In 1941 he resigned as Chief of Staff of the Colombian Navy and returned to the United States to lecture. After Pearl Harbor, the former Staff Chief enlisted as a Private in the U . S. Army. Rising to the rank of Captain in the Air Force Intelligence Division, he served as Instructor in International Relations in the high level staff courses for American and Allied senior officers. At the end of the war, after extensive travel, he resumed his lecturing and is today one of the most successful lecturers on the American platform.

14 Carlos & Maureen at head table — S A V E Conference, Dallas, Texas — 1970

J

A V A R I E T Y O F F A L L O N

By Carlos Fallon Little, Brown and Company • Boston • 1950

C A R L O S F A L L O N

Descended f rom legendary Irish and Castilian forefathers who were active in the Conquest and War of In­dependence of Colombia, Carlos Fallon was brought up in Bogata and in New Orleans, where his father served as consul. Mr . Fallon spent ten years in the Colombian Navy, com­manding modern war vessels and trail-blazing in the last frontier of tropical South America. In 1941 he resigned as Chief of Staff of the Colombian Navy and returned to the United States to lecture. Af te r Pearl Harbor, the former Staff Chief enlisted as a Private in the U . S. Army. Rising to the rank of Captain in the Ai r Force Intelligence Division, he served as Instructor in In­ternational Relations in the high level staff courses for American and Allied senior officers. A t the end of the war, after extensive travel, he resumed his lecturing and is today one of the most successful lecturers on the American platform.

TO

Dona Blanca Convers Codazzi de Fallon, a great lady and a wonderful mother, in memory of the treasured moments spent under the folds of her cloak listening to tales of knights, ghosts, and pirates and learning the meaning of honor and liberty.

A Variety of Fallon

By CARLOS FALLON There are as many varieties of Fallon

in Carlos's family as one might expect f rom the descendants of an Irishman who came to Colombia in the eigh­teenth century to search for emeralds and remained to marry a beautiful Col­ombian aristocrat.

The Irishman was his great­grandfa ther Thomas, who was educated in France as the ward of the French Ambassador to the Court of St. James, F r anco i s V i s c o u n t Chateaubriand. But much further back in the family legends there was the great conquistador Don Gonzalo de Quesada and the beautiful Indian gir l , Mariquita. "Don Gonzalo," as Mami explained, "was the noblest of your ancestors, even i f he did not go through the formality of marrying the lady who made it possible for him to be an ancestor."

To the many thousands who have heard Carlos Fallon on the lecture plat­form it wil l be no news that he is one of the most delightful of raconteurs. And what a wealth of fascinating stories he has to tell, whether of his happy childhood in Bogota or of those wonderful family skeletons-in-the-closet like Great-uncle Gregorio, who became a Carthusian monk when he was wrongfully accused of murdering the bishop; whether of his very American boyhood in New Orleans, where his father was Colombian con­sul, or of his first encounter with British naval etiquette when he was ser­

ving as lieutenant commander in his country's navy; whether of his grand­mother, Dona Amalia Luque y Lizar-ralde de Fallon, whose supremacy as the head of the family was never ques­tioned, or of his brother Eduardo who had a lady friend in every port to see to Carlos's comforts.

Papi Fallon was an anthropologist and he wanted to refuse his appoint­ment as Consul to New Orleans because, as he said, he hadn't the pro­per clothes. But his wife insisted; she wanted to live in the great Republic to the north where elections were won by ballots instead of bullets. She took the whole family and several more on the first raft trip to be made down the Magdalena within living memory, in order to reach the New Orleans boat.

But i t would be foolish to try to tell the reader of all that happened on that exciting trip or thereafter, when Carlos Fallon is here to tell i t in his own in­imitable way. How, for instance, as secret agent for the Colombian Navy he found that his code name was also the name of all the other secret agents. Or how, when he became a U.S. citizen and then a liaison officer in the A i r Force, in World War I I , it was his duty to take care of romantic Latin American generals who insisted on buying complete trousseaus for the W A C chauffeurs.

I f you enjoy reading for sheer color­f u l entertainment, you wil l relish every moment wi th A V A R I E T Y OF F A L L O N .

16

Dear Larry: I was in the recovery room of the

hospital (the 2nd operation worked well-we expect to go home Saturday) when I received the enclosed letter f rom one of the most effective value managers I ever worked with. I think you would like to have the members of the Standards Committee read the let­ter and my answer as my input to the group now meeting in Paradise on the matter of definitions. I want Don Parker to use this material i f he thinks it wi l l do the Society any good.

Because of my own ailments, I was about to give up on further writing when the letter came in describing a problem that is all too prevalent, so I wrote this stuff up.

Sincerely and affectionately,

Carlos

Dear Old Friend: I am in the hospital again—

something we expected because all of the original tumor never really came out. As it grew again, the old symp­toms reappeared and we came back to the hospital as scheduled for repairs and maintenance. They are actually solving the problem by allowing more room inside the whole brain so the tumor can grow without harm. This has been done by drilling a small hole on top of the skull and leading a 1/8" or 3/16" tube into the central cavity of whole swelling was creating the present problem, and leading the tube (inside the body—a number of incisions) directly into the stomach itself so that the excess f lu id is released and digested. Miraculously (!) it is work­ing. I am much better now.

Now for your problem. I t is typical of what happens to many of the best persons in our society. As long as we consider reducing cost or saving money the only purpose of value work, we are going to be running an unbalanced operation that leaves many product characteristics, and their sponsors, dangling in the fringes, shaken or sullen. I f the value of the entire pro­duct appears to be greatly increased by the cost reduction people alone, the sponsors of other disciplines, such as reliability, product engineering, design

engineering, purchasing, manufactur­ing, etc. etc. are left in an awkward position.

No company-wide, multi-discipline effor t was carried out in their behalf. Their participation was limited to allowing certain changes to be made, yet the cost reduction people get the credit for the f u l l improvement. There are two major causes of this problem. One is the appalling inter-departmental hostility that bedevils the U.S. and two is the mental attitude, prevalent among most value people, that value can best be improved by working on cost reduc­tion alone. This has to do with the very definition of economic value as used in our work. As long as we consider cost reduction as an end in itself, indepen­dent of the company's other goals, our people wi l l be relegated to the role of little helpers outside the mainstream of management; they wil l be bunched together in peripheral support groups with other narrow specialists and kept out of total product decisions.

Our task is (a) to improve timely communications and reduce hostility among the various disciplines that con­tribute most directly to product value, and (b) to improve the value itself of the company's products or services.

The need to think of every aspect of the product or service calls for a defini­tion of value in line with general economics. I submit that value is a relationship between the sum total of what a product or service wil l do for the customer (utility) and the sum total of everything he has to give up or spend in order to acquire the product or service. Value can be improved by improving the utility for a given cost, reducing the cost for a given level of utility or, through the reduction of waste, doing both—providing greater utility at lower cost. When a blue rib­bon group is organized to work on a product or service, it is a crying shame to limit them to working on cost alone. In the same way that savings can be given real meaning by having the finance people develop the numbers, other improvements become real when say, engineering improvements are ac­tually accomplished by the responsible engineering personnel who, in turn, are given f u l l credit for the improvement. Not "make them think it is their idea," "make it be their idea by getting some

of their own sweat into it early in the

game." About jobs. In one of the bad job

slumps in the 60's, I succeeded in plac­ing a couple of guys with this pitch. I recommend it as a course of action rather than just a pitch. It makes very successful non-government V A / V E .

Competition today is even fiercer in the field of new products and improved products than it is in price.

I am a specialist in doing product im­provement and cost reduction at the same time. (This was the key sentence that got the jobs.) Yes. " A t the same t ime." Using the standard methods of V A / V E you can accomplish—or get others to accomplish—substantial pro­duct improvements, often at lower cost.)

Remember: Share the credit or pass all of it on to the people who could have done it in the first place i f given the time. Now that they have had the time and cooperation of related disciplines they have come up with the improvement. Engineering ideas are c redi ted to eng inee r ing—of ten presented by the p a r t i c i p a t i n g engineer; manufacturing ideas to manufacturing, etc.

Good luck! — Carlos

Jimmie Carter Save President 1976-78

Dear Jimmie:

Thank you for the beautiful chrysan­themum plants sent mc f r o m the Con­ference. I saw them in the living room and Maureen said, "Look , f rom Jim­mie Carter."

A l l the card said was, "From the SAVE National Conference," but whenever a ship sent me a present I always thanked the captain, knowing that he would buck the letter down to the right person; besides, I have a lot of faith in Maureen's intuition.

Thanks also for the excellent con­ference. I've had all kinds o f favorable feedback. More power to you.

Sincerely, — Carlos Fallon

17

Dear Jimmie:

Thank you for sharing with me the material on the Dream-Come-True value course at Arizona State Universi­ty. First of all let me say that this ex­cellent course deserves the unstinted support of the Society. More, the value disciplines themselves deserve such a course and support for such course.

I had to travel all over northwestern Europe and much of the United States to discover what Dr. Adams obviously knows, that the value disciplines must

Pre-occupation with status symbols is symp­tomatic of insecurity. The professional Value Engineer achieves real status through recognition of the quality of his performance. I f he is dedicated to his work, his pride in a job well done and an adequate salary provide his rewards. He derives emotional and social satisfactions from his work, but these do not constitute his major motivations. Conscious identification with stated non-personal goals, in this case the goals of his particular employment, generates the current of his activity. This is the difference be­tween the professional V.E. and an assigned par­ticipant in performing the functions of Value Engineering/Analysis. What are other dif­ferences?

1. Mastery of the knowledge of his field. 2. Acquisition of relevant skills and tools. 3. Formulation of a theory, philosophy,

point of view. 4. Employment of a consistent set of prac­

tices and techniques. 5. Accumulation of resources. 6. Objectivity in perspective and process. 7. Character of motivation. 8. Role as an enabler. 9. Relationship to associate staff.

10. Style of work, level of personal conduct. 11. Type of dedication.

The Value Engineer, to be a professional, should be thoroughly familiar with the field in which he practices. As a professional he must continually enlarge and augment his knowledge, continually study to perfect himself. The person assigned the responsibility for VE/VA, engaged in other areas of responsibility, has neither the time nor the inclination to become "expert" in total value management. He depends on the pro­fessional for facts, interpretation, suggested techniques, a statement of practices, in short, for information and guidance. This the professional must be prepared to furnish to the best of his ability and integrity.

Communication of knowledge requires tools and skills. He must know how to do well the many things required of him in his work, and must have mastered as many tools as possible to give scope to his skills. If there is need to organize a committee, task force or seminar, he must know how to do so, and know how to con­vey the use of information. The more skills the professional has, the more tools (including those of interpersonal and public relations) he knows how to use, the more effective a Value Engineer he becomes.

18

have a truly professional base to make possible effective interaction with other professional disciplines in business and industry.

A n ASU value specialist, well grounded in economics, finance, and marketing can be an asset to any in­dustrial organization, particularly in the field of new products and better ways of rendering services.

Sincerely,

Carlos Fallon

But his implementations are directionless unless he founds them on the theory, philosophy, a conscious awareness of goals, a defined point of view, which is continually controlled by and oriented to this background, knowledge and training.

The "assigned" Value Engineer, on the other hand, no matter how knowledgeable, does not tend to involve himself in the agony of thought and discipline required of such a "commitment". Unless the Value Engineer seeks consciously to work out his philosophy for the field, studiously arrives at and understands the theory, and purposefully achieves a crystallized attitude toward his work, so that he knows why as he does, he is no more than a technician. There is nothing wrong with being a technician. But a technician is not a professional.

In the forest of Value Management details, of interpersonal activities, it is easy for the Value Engineer to lose the long view, to fall from the mount of objectivity into the bog of aimlessness and confusion. This, at all costs he must not per­mit. To continue as a professional he must retain objectivity in all situations involving his work. This does not mean that he does not identify with the goals to which he works; it does mean that he cannot allow himself to become involved in the personality aspects of a situation. This does not mean that he does not follow through on details. It does mean that he does not get lost among these details. As for the "personality aspects of a situation" —he does not take sides with people. He takes sides with a point of view. He does not politic. He indicates direction. What is good for the company in which he is employed, is the overriding consideration in his actions.

The professional does not seek acceptance, recognition, new experiences, status, etc., for their own sake. These fulfillments accrue to him as rewards secondary to the satisfaction of achieving his goals, his company's objectives. On the other hand, minor irritations such as per­sonal defeat, do not deter him. He does nof 'quit" if a study is rejected or a project he sponsors is tabled. He takes things in his stride with the full knowledge that higher management issues or priority problems have precedence over his immediate concerns. In short, the nobility of his conscious motivations structures his morale and sublimates his inner drives and character.

How he allows himself to be used depends on his understanding of the Value Engineer­ing/Analysis function. There are many occasions

C P .

When I wrote this, Carlos Fallon was the model. It was relatively easy to study this man, and f rom his life style, establish the criteria for the Profes­sional Value Engineer.

Perhaps i t is worth reprinting in this special issue to "the man".

Jerry Kaufman Save President 1974-76

when the V.E. does personal services for his pro­gram. But he does not become t̂heir "expediter". As a professional he best serves his program by helping them to help themselves. To borrow a word from the social work field, he is an "enabler". When he discusses with a manager information, resource materials, an indication of procedures, a statement of objectives, and then stands by to help the manager use them only when the manager requires such help. The pro­fessional does not "take over", should the manager be less skilled or informed than he. He does not "run the show". The V.E. must always remember that credit belongs to the people who are directly responsible for implementation. V.E.'s who boast, " I saved thousands of dollars", are usually misstating facts, and are guilty of a disregard for the ethics and practices of their profession.

Of course there are areas for which the Value Engineer is directly responsible. One of them is for performance against his goals, and sometimes program personnel. Another is the personal contact with personnel, the "image" leadership. But the Value Engineer does not make policy, he recommends and implements it. He does not "lead" in the indigenous sense, he "enables" leadership.

How well he adapts to, helps and works with his associates from day to day, determines his value. With the Program Director, Factory Manager, Designer, Buyer, he is a colleague; respecting the others' spheres of work, influence, funct ion, authority; coordinating and cooperating with them. The professional's ap­proach to his colleagues must always be one only of respect, appreciation, cooperation, if he in turn is to anticipate and receive the same.

Much of this reflected recognition depends on the style, conduct and method of the service he renders. It is certainly distinct from that required of the assigned participant. The Value Engineer must conduct himself according to a set of high standards and within a set of strict disciplines. He must be dignified because dignity is a profes­sional tool. He must be ethical not only because it is required of him, but because he cannot prac­tice as a professional with professional results ex­cept on an ethical level. This separates him from the participant, the technician. This distinguishes him as a professional.

J. J. Kaufman President — SAVE

Characteristics of A Professional Value Engineer

Charles E . Mueller, Jr . , RSSA

Note: In VA/VE we are always talking about higher order func­tions. In the kind of inflation we are having, the highest order func­tion is to get full use out of all our resources, including the initiative and imagination of all our workers. VA/VE, Work Simplification, and other team-oriented, innovative disciplines combine and train workers in group innovative techniques. The Suggestion System provides a random opportunity for harvesting the ideas of these workers at other times, thus contributing to our general effort to use the brainpower of the entire work force.

The article that follows is from one of this country's most pro­gressive municipalities. Obviously, they don't want any wasted brainpower in their city government.

Charles E. Mueller, Jr., got his BA at Blackburn College in Il­linois. He has been Suggestion Programs Coordinator for the City of San Diego since 1972. He is a Registered Suggestion System Ad­ministrator (RSSA) and has a good track record in motivating employees to make beneficial suggestions.

I A M A S P E C I A L P R O M O T I O N A L P R O G R A M by

Charles E . Mueller, Jr . , RSSA

I am a Special Promotional Pro­gram, and I can be one of the most ef­fective tools available to suggestion system administrators. Let me explain. Advertising is a multi-million dollar business. Advertising has successfully been used to market everything f rom underwear to candidates for highest public office. Advertising leaves im­pressions indelibly etched on the human mind. I am a form of advertis­

ing, and the product being advertised is the suggestion system.

In my opinion, there are five basic types of suggesters. There is the sug­gester who is completely and utterly sold on the suggestion system. He or she needs a minimum amount of en­couragement, and the suggestion system administrator can rely on this kind of suggester to send in several ideas annually. I f all suggesters were

this type of suggester, I would be unemployed.

Another type of suggester is what I call the occasional suggester. This kind of suggester is also sold on the sugges­tion system, but he or she has a dif­ferent approach. They suggest because they are convinced, for one reason or another, that their idea wi l l be accep­table to management. These suggesters

Continued on page 20 19

Continued from page 19

have a slower frequency, and they have a tendency to over-justify their ideas. I can be effective with this type of sug­gester.

The third type of suggester I call the well-meaning suggester. This is the employee that always has a good idea, and means to turn i t in , but never seems to get around to doing it until management has already adopted i t . I t is surprising how many employees are this kind of suggester. A l l this employee needs is a little push. I can be extremely effective with this type of suggester.

I think that I was designed for the next type of suggester. Have you ever talked with an employee of your com­pany who has been around for several years, but has never heard about the suggestion system? Unfortunately, every suggestion system has a surpris­ing number of this type of suggester. I really don't know what thoughts run through this kind of suggester's mind. I would wager, however, that this type of employee concentrates so ful ly on performing his or her job that other things don't reach in to his or her at­tention span. Such employees are great sources of cost reduction ideas i f you can just reach them. I can be effectiv with this kind of suggester.

The final type of suggester is aware of the suggestion system. In fact, he or she thinks that the suggestion system is a waste of time, or designed for the p a r t i c i p a t i o n o f management ' s favorites only, or doesn't pay enough, or is too slow, etc. Somewhere along the line, he or she may have had a bad experience with a suggestion system. Believe it or not, this type of suggester wil l even encourage fellow employees not to participate. I can even have some affect on this type of suggester, even i f i t is only to make his or her voice less deafening to the other types of suggesters.

Despite the fact that I have just set all suggesters into five basic groups, still I have to admit that this is an over­simplification. Many suggesters may not f i t into any of the five groups, and many suggesters may f i t into all of the five groups. My point is that suggesters need encouragement and reminders. I

can provide both. Sometimes sug­gesters need a little something different to stimulate their creative juices. I can provide that. This is how I go about doing i t .

A suggestion system is not going to go anywhere unless top management supports the program. The number of suggestions w i l l jump when top management corresponds directly with the employee. The communication can be prepared by the suggestion system administrator. The communication should have some basic elements. The past record of the suggestion system should be mentioned in terms readily understandable by the work force. Whether the total number of sugges­tions received is used or a ratio stated must be determined by the suggestion system administrator as to what wi l l have the greatest impact. Often times it is both permissible and effective to state things more than one way in order to assure communicating with as many employees as possible. Savings, or some other effectiveness measure, should also be examined. Once perfor­mance has been stated, i t is possible to ask for more participation. Once greater participation has been asked for , you should tell the employee what benefits are in it for him. Cash awards, recognition, etc. are all good benefits. But you also must tell the employee what benefits accrue to the company. Not to do so is an act of omission, and employees tend to snicker behind their hands i f the top management throws the suggestion system to them like a benefit bone without telling them, of course, the company benefits too.

Once the communication is written and signed, the easiest thing to do is put i t with the employees' paychecks. I have never seen anyone in a bod mood on payday. Hopefully the employee wil l be receptive to the message at that time. But it never hurts to make sure that the message gets up on every bulletin board reachable. Don' t be sur­prised when you walk past a waste paper basket and f ind it f u l l of the handout. I t is both natural and gratify­ing to throw away a piece of paper once you have read i t . The message gets through anyway. I f you expect the

employee to take the letter home, frame i t , and hang it in the den, you are bound to be disappointed in l ife .

Now, as a suggestion system ad­ministrator, you are gratified at the in­crease in suggestions over a one or two week period. By the third week, things are getting back to normal. Don't fa l l out of your chair. Do the same thing all over again, but this time prepare the letters for separate department heads' signatures. Many suggesters can not identify with the top executive officer of the company. I t is a little easier to identify with a department or division head. Include the saqje statistics that you did in the first letter, but with one difference. Tell the department/divi­sion how they did personally. I f the department/division head wil l let you, set a goal for the agency during the next period. This in itself wi l l give you several opportunities to contact that group of employees within the period. Again, try to insure that each and every employee receives the notice, as well as seeing that every bulletin board has at least one copy of the communication.

Now, presumably you have top level management supporting the system. A l l employees are well aware that management supports the program. But, i f we are to be honest, no one other than the suggestion system ad­ministrator thinks about the suggestion system every day. So the administrator has to come up with a method or methods to bring the suggestion system to the attention of as many employees as possible as often as possible. I f there is an employee newsletter in your com­pany, make sure that the suggestion awards winners are publicized in the newsletter. I f you don't have a newslet­ter, or i f the newsletter can not be adapted for that use, develop your own Employee Suggestion Report. A l l you need do is briefly summarize each sug­gestion , say v/hat the award was, and, i f you want to give your evaluators a little charge, print their names as well as the suggester's. This wi l l give you a convenient vehicle with which to reach your audience more frequently. I f

Continued on page 21

20

Continued from page 21

there is extra space on the Report, you can place a little inspirational message to encourage potential suggesters.

Chances are you have now reached every type of suggester in your com­pany. However, some suggesters are more stubborn than others. Although the number of suggestions has in­creased after each promotion, sooner or later, the number of suggestions re­ceived has retreated to its old level. You have also noticed that your budget has retreated to its old level, nothing. There are a few very simple things you can do to maintain some of the in­crease you have experienced due to your special promotions. These things may be done at an extemely low cost, and they may serve you well unti l your next allocation. Out of budgetary nec-cesity, these operations are aimed at employees who have already suggested, and employees who have never sug­gested before.

A l l suggestion system administrators have at their disposal one of the simplest ways to make sure that sug­gesters always have an available supply of suggestion forms. When you com­municate with suggesters who have had an award approved, send him or her another suggestion form. Winning, or having your idea approved by manage­ment, is an extremely heady feeling. Make use of that feeling of success by immediately supplying another sugges­tion fo rm. By the same token, not hav­ing your idea accepted can be a very depressing moment. What better chance to say to the employee i f at first you don't succeed, try, try again. Send a new suggestion form with the denial letter as well as the statement that the employee's efforts are greatly ap­preciated. I t is possible to turn what would otherwise be a negative situation into a positive opportunity.

Every company suffers a certain amount of turnover. As new employees enter the company, why not send them a welcome aboard letter telling them the marvelous opportunity available to them through the suggestion system. There is no better time to contact an employee than when he or she enters the company with a fresh outlook. You can tap an endless source of new ideas

by introducing the employee to the sug­gestion system at that time. What has worked for the new employee's former employer may, indeed, work for you.

As two final examples of how effec­tive a tool I can be for suggestion system administrators, I wi l l explain two promotional programs run by the City of San Diego.

The City's Suggestion Awards Pro­gram publishes a fiscal/annual calen­dar every year. On this calendar, all Ci­ty holidays are shown, as well as paydays, ends of payperiods, numbers of payperiods remaining, numbers of weeks elapsed, etc. The calendar is very much in demand, although it was originally designed for use by payroll clerks. The calendar is a promotion in itself. However, each year a different suggestion system slogan is printed at the bottom of the calendar. The Sug­gestion Awards Coordinator was the person designated to come up with a slogan year after year. As most of you know, it is not always easy to come up with a little witty saying year after year without running out of ideas. In a f i t of desperation, the Suggestion Awards Coordinator went up to his boss and said, "Why not run a slogan contest rather than have me try and think of a slogan again this year." I t was hard to say who was happier about the idea, the Suggestion Awards Coordinator or his boss. I t was decided to announce the contest using a paycheck handout. The handout itself was printed on a half sheet of colored paper to draw at­tention to i t . The award was a check for $25 and the pleasure of seeing your slogan in every office in the City along with your name. The Suggestion Awards Committee was the judge of the slogans.

Since this was the first time anything like this had been tried in the City of San Diego, both the Coordinator and his boss were more than a littel ap­prehensive. Fortunately I gave them a little help. The contest lasted three weeks. After the end of the first two weeks, a reminder was placed in the employee newsletter to remind sug­gesters and management that there was one week left in the contest. Notices were also sent to all bulletin boards in

the City. Over 250 slogans were re­ceived. The resonse was pleasing to both the Coordinator and his boss. In­cidentally, the slogan contest entries were counted separately and not in­cluded as part of the normal Sugges­tion Awards Program statistics. The money for the award came out of pro­motional monies and not out of monies set aside for cost saving suggestions.

The normal question to ask at this point is: " H o w were the numbers of cost savings ideas affected?" Since the contest was spread over two months, the table below shows the five year average for the number of cost saving ideas received in the two months of the contest, the actual number received during the contest, and the percentage difference f rom the five year average.

Five Year Average Contest Difference

June 24 21 -13% July 29 35 +21%

TOTAL 53 56 +6%

Now is an excellent time to talk about one of the side effects of a special promotional program. Below is the same type of table for the five months following the promotional pro­gram.

Five Year Post Average Contest Difference

August 27 36 + 33% September 23 43 + 87% October 30 36 + 20% November 31 43 + 39% December 32 24 -25%

TOTAL 143 182 + 27%

I t is readily apparent that the in­crease in the months following the con­test was more dramatic than the in­crease during the contest. I t was a moral victory to have the number of cost savings ideas increase slightly dur­ing the contest, but a 6% increase is not conclusive. A 27% increase is con­clusive. No more promotions were run during the five month period following the contest than were held during the preceding five year span.

I t was not too diff icul t a step f rom this promotion to the next. I f this type

Continued on page 22

21

Continued from page 21

of result was achieved utilizing a non-cost-saving promotion, what can be done utilizing a cost saving promotion? The following January the City Manager's Suggestion Awards Pro­gram Participation Contest was an­nounced.

Very careful planning went into the participation contest. It was decided that two plaques would be given to the two departments or divisions, one with more than 100 employees and one with less than 100 employees, with the greatest participation. Duplicate ideas were disqualified in the count. The greatest participation was to be deter­mined by dividing the number of new ideas received by the total number of employees in the department. The regular Suggestion Awards Program rules were in force for the contest. In­dividual employees received no special compensation either for adopted ideas or for participating. The contest was based purely on the spirit of competi­tion between departments and divi­sions.

Several days prior to the beginning of the contest, a memorandum from the City Manager went out to all department and division heads explain­ing the contest rules. The current record of the Suggestion Awards Pro­gram was included, as well as the cur­rent participation rate for the City as a whole. Each department and division head was asked to support the par­ticipation contest and to give his or her immediate attention to the evaluation of those suggestions the contest en­couraged. The services of the Sugges­tion Awards Coordinator were offered either in promoting the contest or in the evalution of the suggestions.

The first day of the contest, all employees received a half-sheet hand out with their paychecks. Again, the handout was on colored paper in order to draw employees' attention to it. The emphasis in this handout was placed on the recognition both the employee and his or her department or division would achieve should their participa­tion be the greatest. Two weeks later, a contest promotion was run in the employee newsletter. The point stressed was that there was only three

weeks left in the contest. Two weeks after that, a promotion was run in the newsletter again stressing that there was only one week left in the contest. At the same time, the original handout to all employees was sent again to all the bulletin boards in the City. Since the participation contest was five weeks in duration, the two months' statistics for the contest are listed below in the same manner as the slogan contest statistics.

Five Y e a r

Average Contest Difference

January 36 57 +58% February 38 83 + 118%

TOTAL 74 140 +89%

Once again, the experience for the two months following the contest re­mained well above the average for the five preceding years.

Five Y e a r Post

Average Contest Dif ference

March 37 47 +27% April 34 70 +106% TOTAL 71 117 +65%

Whenever there is a contest, there must also be contest results. Although everyone else wanted to post the con­test results in the employee newsletter, that didn't satisfy me in the least. I feel that if the contest was good enough to send all employees a notice at the beginning, it was good enough to send each employee a notice of the results. And since the results took only one side of the paper, I convinced the Sugges­tion Awards Coordinator to print a facsimile of the suggestion form on the other side. I also made sure that he in­cluded this statement on the handout: "Although the Participation Contest is over, the need to cut costs continues. Your suggestions are needed." Below are the statistics for the month of the publishing of the results and the month after.

Post Five Year Contest Average Results Difference

May 35 98 + 180% June 23 95 + 313%

TOTAL 58 193 + 233%

These statistics are all well and good, you say. What about savings? I have

always admired people who are not easily sold. Once you convert them, they become your strongest supporters. Listed below are the average savings over the past five years, the savings of the year both the contests explained above were held, and the difference.

Five Y e a r Average Contests Difference

$129,226 $720,204 +457%

In conclusion, every suggestion system needs to actively seek ways to insure that employees are aware of the benefits offered by the suggestion system, both to them as individuals and to the company as a whole. The suggestion system administrator needs to show that the suggestion system is supported by top level management. The administrator must utilize every method available to keep the sugges­tion system in the minds of the employees who come up with the cost saving ideas. Thus, when the ad­ministrator runs a promotional contest or promotional materials, he or she must make sure that no stone is left un­turned in getting materials to the sug­gester. The administrator must also keep careful records in order to deter­mine when a promotion is effective. This in turn will sell other promotions to management. Special promotional programs must be individualized for a specific company or agency. This may require the administrator to keep his or her fingers not only on the pulse of the company, but also on the pulse of the community as a whole. Many promo­tional successes may be based on the local fair or apple festival. Special community holidays may also be an ex­cellent source of promotional pro­grams. All it takes from the suggestion system administrator is to be as in­novative as the suggesters he or she en­courages.

Yes, I am a Special Promotional Program. If you use me properly, I can reach any suggester you have in your company. All you have to do is call me. With your ingenuity and my ex­perience, we can have those sugestions, and those savings, rolling in. I don't really understand why companies won't use me more often.

22

N A T I O N A L O F F I C E P . O . B O X 210887 D A L L A S , T E X A S 75211

[mm

B O O K S T O R E

1979 SAVE ENCYCLOPEDIA OF VALUE - ADDENDUM No. 1

This information filled 1 6 page booklet [8V2 x 1 1), is now available for immediate purchase from your SAVE Book store. The Addendum to the SAVE Encyclopedia of Value contains information on all bran­ches of knowledge in Value Engineering as presented in the Society of American Value Engineers Annual Conference Proceedings from 1977 and 1978. Contents are presented in abstract form arranged alphabetically by subject.

To aid in the search for knowledge in Value Engineering, a primary subject index is provided for reference in identifying the works of various authors published under these major subject headings in the SAVE Annual Conference Proceedings. Abstracts include author identification, proceedings year of publication, and page number of the proceedings where full text of the referenced paper is presented.

Recognition and thanks is given to SAVE member O.J. Vogl of the SAVE Los Angeles Chapter who prepared the Abstracts for Addendum No. 1. This publication presents abstracts of over 65 papers con­tained in the 1 977 and 1978 SAVE Annual Conference Proceedings.

ORDER YOUR PERSONAL C O P Y T O D A Y FOR ONLY $ 4 . 9 5 INCLUDING P O S T A G E

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in the amount of S S E N D C O M P L E T E D O R D E R F O R M T O : S O C I E T Y O F A M E R I C A N V A L U E E N G I N E E R S . I N C .

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23

FUNCTION ANALYSIS SYSTEMS TECHNIQUE Task Oriented FAST Diagram

(After Ted Fowler and Tom Snodgrass) by Thomas F . Cook, CVS

Thomas Cook Associates, Inc.

INTRODUCTION Fast as first conceived by Charles W. Bytheway in 1965,

is a method of stimulating organized thinking about any subject by asking thought-provoking questions. In these questions, the subject is expressed by a verb and noun together with an occasional modifier. This verb-noun com­bination is called a Function. As the answers are agreed upon, they are arranged in a unique "how-why" logic relative to each other on a diagram. The diagram thus formed is called a FAST diagram. FAST diagrams then are graphic representations of function logic developed by in-depth function investigation of the topic undergoing study.

The greatest value of a completed FAST diagram lies in the thinking and creativity performed during its develop­ment. It demonstrates that the study team has completely analyzed the subject or problem.

Today, there are essentially two versions of FAST in common, accepted use with a host of variations. The two are called Technically Oriented and TASK Oriented FAST. They differ somewhat in point-of-view and intended use but in either case both work very well.

PHILOSOPHY In this User/Customer Oriented version of Function

Analysis Systems Technique, attention is directed to an over-all view of the total product, service, process or organization as perceived by the User/Customer/Owner. The so-called "sel l" type functions are given equal em­phasis with the so-called " w o r k " type functions.

Charles Kettering once said "Let the job be the boss." I f value can only be determined by comparison, that system which better allows for direct comparison of your total product with your competitors product in the market-place would be the system to use. I f in addition, that same system better allowed for Evaluation-By-Comparison of User Function Attitudes to Function Costs thus insuring high User Acceptance at low cost; that is the system to use.

The decision to use this version of FAST would be in­fluenced i f one considers the following concepts:

1. As a general rule with some exciting excep­tions, greater opportunity exists for the collec­t ion , interpretation and response to user/customer need in the market-place than f rom scientific breakthrough.

2. The all important buy-decision is seldom in­fluenced by basic functions. Rather, it is in the supporting or so-called "sell" functions where the bulk of total cost lie that the battle for market-share corporate profi t is won or lost.

3. There is NO relationship between selling price and cost to manufacturer.

This version of FAST addresses these concepts without in any way suggesting that other versions do not have equal merit — "Let the job be the boss".

PROCEDURES This section establishes general guidance for preparing a user/customer/owner oriented FAST diagramme.

Step 1 Select A Subject For F . A . S . T . Diagramming (a) Must be a product, system, service or pro­

cedure for which a user/customer can be defined and whose needs and attitudes can be measured.

(b) A n expert source must be available for ac­curately defining or confirming the definition of the functions of the product.

Step 2 Collect Functions (a) Record on small cards all functions per­

formed by all parts or elements of the product (or all elements of the service, system or pro­cedure). Simply ask, "What does it do?" or better still, "What does it do for the user?" Answer with one VERB and one N O U N .

(b) T H E VERB should be an "act ion" verb, demonstrable on a non-verbal level such as:

Continued on page 25

24

Continued from page 24

Absorb Control Ignite Minimize Satisfy

Actuate Convert Impart Mount Seal

Aid Create Impede Move Secure

Allow Direct Induce Open Shield

Amplify Ease Instruct Position Shorten

Apply Emit Insulate Preserve Space

Assist Emphasize Insure Prevent Standardize

Assure Enclose Interrupt Promulgate Steer

Avoid Establish Inject Protect Support

Change Fasten Limit Receive Suspend

Close Facilitate Locate Rectify Time

Collect Filter Maintain Reduce Tolerate

Comfort Guard Modulate Repel Transmit

Conduct Hold Maximize Resist

Contain Hide Mesh Rotate

(c) T H E N O U N should, where possible, be a parameter or measurable quantity such as:

Access Density Flux Noise Task

Aesthetics Decoration Force Odor Time

Bargain Dependability Friction Oxidation Torque

Care Deterioration Heat Pressure Uniformity

Circuit Direction Horsepower Protection User

Color Dust Image Radiation Variation

Contacts Emission Information Repair Vibration

Corrosion Energy Insulation Rust Voltage

Current Flow Injury Stability Volume

Damage Fluid Light Status Weight

NOTE: In defining functions, maintain the same frame-of-reference. That is, do not allow yourself to slip from what the item does to what the item's user does.

If possible avoid "passive" or indirect verbs such as Provide, Supply, or Be as these verbs are void of creative opportunity.

Try if you can to avoid using the "name" of the part as the verb or noun. For instance, "Hold Bracket" implies that a bracket must be supplied where in actuality it may not.

You will find that a copy of Roger's Thesarus and The Dictionary will be of much assistance in sorting out the ex­act verb or noun to use.

(d) Display cards in a visible storage area such as a magnetic display board.

Step 3 Divide Functions Between Basic and Supporting Functions A t this point, i t is necessary to separate the func­tion cards between basic and supporting func­tions using the following definitions: (a) Basic Function: They perform actions

necessary to the task—usually tend to be physically oriented, relate to the user's basic needs, and frequently called "Work" func­tions.

(b) Supporting Functions: Those functions not necessary to accomplish the task but necessary to increase product acceptance by satisfying and fulfilling the emotional needs of the user. —They usually form the basis for the user's

"buying decisions" — Are the user's method of determining how

well the product performs the task — Are primarily intangible and subjective — Are related to user's attitudes and emotions

Step 4 Select Product Task When all functions appear to have been defined, start the diagram by choosing the one function f rom the storage area which appears to be the TASK and place it on the diagram as indicated in Figure 1.

TASK: "That function which fulfills or meets the overall need of the user. That is, the overall reason for the product's existance in the eyes of the user. Users do not buy parts or assemblies. They buy the entire product to fulfill a need. Often TASK identification is diff icul t for a team to agree on in the early stages of a diagramming session, as this requires a high level of abstract thinking. As an example, the TASK of a lawn mower is not what everyone thinks it does (cut grass) but rather what the user/customer "needs" (groom property). Cut grass is a primary basic function.

Step 5 Identify Primary Basic Functions Note: In all versions of FAST diagramming a Why? and How? direction is established. To answer the question, " H o w does the pro­duct/design/system accomplish that function?, move to the right. To answer the question, " W h y does the product/design/system perform that function?", move to the left .

Choose f rom the storage area the basic function or functions necessary to accomplish the TASK. These are functions which precisely describe how the product accomplishes the TASK and can be determined by answering the question " H o w does it (insert TASK)?

Place these functions at the Primary Basic Func­tion level as indicated in Figure 1.

Continued on page 26

25

R

Step 6 Identify Primary Supporting Functions (a) From experience Primary Supporting Func­

tions are always four in number and are described as follows:

ASSURE DEPENDABILITY

ASSURE CONVENIENCE

SATISFY USER

A T T R A C T USER

If these four do not appear on the cards already prepared, then enter each on a card and place them in the column below the Primary Basic functions as indicated in Figure 1.

(b) The types of things that go into these four (4) Supporting Functions are as follows:

— Assure Dependability: Added strength; corrosion protection; protection of persons or product; reliability of operation; protection of environment; etc.

— Assure Convenience: Instructions on how to use the product; spatial relationships; aids in cleaning/servicing/repair­ing.

— Satisfy User: Modifications of basic functions such as faster, smaller, lighter, variations; degrees of physical comfort; appeals to status; life-cycle cost con­siderations; etc.

— Attract User: The visual aspects only; overall appearance; decorations; implied performance such as sturdy or fast; etc.

Step 7 Expand Diagram To Secondary Level Expand the structure to the right of the Primary column by asking of each Primary function, the question " H o w does IT (insert function)? I f the answer(s) are already displayed in storage, place them on the diagram to the right of the function being expanded. I f not, write them on new cards and place them on the diagram. Continue to expand the diagram to the right until all "branches" reach a point where cost can clear­ly be allocated or until the answer to the " H o w " question forces you to use the physical parts or labor for the noun.

Note: I t is pointless in this version of FAST to continue expansion after branching is complete. A non-branching network is simply a string of redefinitions of a single function at different levels of abstract thinking.

Step 8 Verify The Diagram

Verify the structure of the diagram by moving f rom right to left . That is toward the "higher level" functions, asking of each function, "Why does it (enter function)?" Now reverse the pro­cess by asking, " H o w does it (enter function)?" This wil l move you to the right. The answer to either the HOW? or the WHY? question must completely answer the question, I N BOTH DIRECTIONS, with no conditioning phrases to bridge the gap. I f either question is not completely answered by the two word function already displayed, either an intermediary func­tion is missing or the function definition is incor­rect.

GENERAL INSTRUCTIONS 1. Do not discard function definitions which appear in­correct or unusable. Write new ones and continue to store the original cards in a visible location until the diagram is complete. Discard them at that time only i f it is determined that either (a) the same precise function is already on the diagram, even though defined differently, or, (b) it is an incorrect function definition.

2. Keep in mind the primary benefits of FAST diagram­ming are:

a. as a communication link between an expert on Value Engineering and experts on the problem to be solved,

b. as a method to force the correct definition of functions in verifiable and repeatable form

c. the creativity and thinking that is performed during its development

d. the assurance that the study team has COM­PLETELY analyzed the subject or problem.

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28

Society oi^rwe/tican^aCuefingincG/tg N A T I O N A L O F F I C E 220 N. Story Rd., Suite 114, Irving, Tx. 75061

B O O K S T O R E

Your SAVE bookstore proudly announces the availability of three outstanding hard cover publications on "Value in Construction1' authored by members of the Society of American Value Engineers. If you are engaged in the field of construction, these books are a must for daily usage in creative management problem-solving opportunities.

C-l Value Management for Con­struction

by Manuel C. Macedo, Jr., 1978

Paul V. Dobrow Joseph J. O'Rourke

Provides a balanced compromise of the value management concept to both practitioners and students. It is designed for those involved with the planning, design, construction, operation and financing of building projects—as well as upper level graduates and those taking graduate and professional courses.

Non-Member Member*

25.00 23.00

C-2 V.E. in Construction Industry

by DeHTsola, A. J., 1973 Presents a proven, organized ap­

proach to reduce cost of ownership of construction projects -educational facilities, hospitals, offices, apart­ments, laboratories. Applicable to public works projects - roads, sewage treatment plants, transpor­tation systems, dams.

C-3 Value Analysis in Design and Construction

by O'Brien, James J., 1976

A realistic no-nonsense guide to the enormous time and money saving opportunities made possible by ap­plying value analysis throughout the entire cycle of any construction pro­ject.

Non-Member Member*

18.75 16.35

18.50 17.00

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COMPENDIUM OF VALUE

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A d m i n i s t r a t i o n 1 65 S 4.75

A p p l i c a t i o n 5 210 12.85

A p p l i c a t i o n s ( U n i q u e ) 3 I3< 9.75

C o m m e r c i a l 4 47 4.25

C o m p u t e r 5 69 4.75

C o n s t r u c t i o n 6 575 17.50

C o n t r a c t u a l A s p e c t s 7 r - !() 2,5

C o s t . D e s i g n T o 8 60 4 7<

C o s t E f f e c t i v e n e s s ') 130 <> <n

C o s t to P r o d u c e 10 25 1 so C r e a t i v i t y 11 94 6.25

D a t a S o u r c e s 12 25 3 50

D e p a r t m e n t o f D e f e n s e 13 92 6.25

D e s i g n !4 52 5 75

E d u c a t i o n 15 104 6.50

1 ast l « 79 5 50

f u n c t i o n n 57 4.75

1 u n d a m e n l a l s o l V t I S 11 3 50

C i o v c r n m c n l \ g c n c i e s ( O t h e r than D o D ) 19 <8 4 75

I n t c r d t s c i p h n c 20 4S 4 25

I n t e r n a t i o n a l :i 85 5" 75

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1 i l e C y c l e C ost 22 15 J.Jo

M a i n t e n a n c e 23 10 3.75

M a n a g e m e n t 24 !2f i 12 95 M a n u f a c t u r i n g 25 no 5 75

M a r k e t i n g 26 62 4.75

N e w P r o d u c t s 27 33 3 75

O r g a n i z a t i o n 28 62 4.75

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T e c h n i q u e s 39 298 14 25

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