Transcript PTTE-434, Quality Assurance, Organization and Management

Value Engineering the
Forgotten Lean Technique
University Of Idaho, Industrial Technology
Program, PTTE434, J. R. Wixson, Instructor
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Overview
 What is Value Engineering?
 How is VE Applied?
 When is it used?
 How can it enhance Lean & Six Sigma?
 What are the differences and similarities between VE,
Lean and Six Sigma?
 What is Function Analysis and FAST?
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Lean and Six Sigma Are Not Enough
Cost of Goods Sold
 Historical focus on touch
labor and variable overhead
ignores the largest piece of
the pie.
Variable O.H.
30%
Labor
10%
 Sourcing programs fall short
 Material cost is embedded in
the product design
Materials
60%
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Value Engineering the Forgotten
Lean Technique
Don't look now, but an old discipline (value analysis/value
engineering) is on the comeback trail. Originally called merely VA by
its inventor, Larry Miles, an engineer in GE's purchasing operation in
1947, VA/VE uses a value equation that says value is equal to
function divided by cost. If, for example, the buyer wants to get more
item value, he/she needs to either increase the item's functionality at
the same time he/she is containing cost; or he/she needs to reduce cost
while holding or improving its functionality. Either way, the result is
more value for the customer (Excerpt from Purchasing Magazine "Value Analysis makes a comeback," Jim Morgan, November 20,
2003.").
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Value Engineering the Forgotten Lean Technique
Value Engineering is truly the "Forgotten Lean Technique." However,
over 50 years later, it has gained recognition in private industry and
governmental agencies as an indispensable tool for cost reduction,
improved product development and product re-engineering. It is also
used to improve organizational performance and cost effectiveness as
well. The heart of VA/VE is function analysis and "Function Analysis
Systems Technique" that sets it apart from other lean methodologies by
opening the door to creative problem solving that capitalizes on an
interdisciplinary teams creative juices to arrive at truly value added,
cost effective solutions to problems ranging from design problems,
quality and reliability problems, to organizational problems resulting
in increased value and performance for the customer and the
organization.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Value Engineering the Forgotten Lean Tool
 Value Engineering (VE) is an intensive, interdisciplinary
problem solving activity that focuses on improving the value
of the functions that are required to accomplish the goal, or
objective of any product, process, service, or organization.
 VALUE METHODOLOGY
“The systematic application of recognized techniques
which identify the functions of the product or service,
establish the worth of those functions, and provide the
necessary functions to meet the required performance
at the lowest overall cost.”
John M. Bryant, VM Standard, Society of American Value Engineers, Oct. 1998
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Concept of Value
FUNCTION
VALUE =
COST
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
VE Timeline
VE adopted
by NASA ofc
of facilities.
Larry
Miles
assigned to
cost
reduction
at GE
1947
Navy adds
VE
incentive
clause
1952 1955
VE a success,
training of
employees and
suppliers
begins
VE included
in ASPR for
military
procurements
1959 1962 1964
SAVE
formed in
Wash. DC
on Oct.22,
1959
Army
Corps of
Engineers
begins VE
training
Charles
Bytheway
invents
FAST
Modeling
Larry Miles
takes VE to
Japan.
1969
1970
First VE
incentive
clause
published in
Fed.
Register,
GSA staffs
for VE.
Larry
Miles
dies.
1985
DOE
Order
4010.1
1988 1990 1993
OMB
circular A131
published
requiring all
Federal
Agencies to
use VE to
identify and
reduce nonessential
costs.
Today
OMB
circular A131 passes
“Sunset
Review”
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Video - The Principles of Value
Analysis/Value Engineering
Click here to view video
(Note: For the Fall 2007 class, please contact instructor for
new link)
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
When is VE used
 Value Engineering is used to determine the best design
alternatives for Projects, Processes, Products, or
Services
 Value Engineering is used to reduce cost on existing
Projects, Processes, Products, or Services.
 Value Engineering is used to improve quality, increase
reliability and availability, and customer satisfaction .
 Value Engineering is also used to improve
organizational performance.
 Value Engineering is a powerful tool used to identify
problems and develop recommended solutions.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Some Thoughts on Lean
 The cause of poor performance is wasteful
activity. Lean is a time-based strategy and
uses a narrow definition of waste (nonvalue-adding work) as any task or activity
that does not produce value from the
perspective of the end customer. [1]
Increased competitive advantage comes
from assuring every task is focused on rapid
transformation of raw materials into finished
product.
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[1] James
P. Womack, Daniel T. Jones. "Lean Thinking," Simon & Schuster; 1st
University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Lean Strengths
 Provides a strategic approach to integrated
improvements through value stream mapping and the
focus on maximizing the value-adding-to-waste ratio.
 Directly promotes and advocates radical breakthrough
innovation.
 Emphasis on fast response to obvious opportunities.
(just go do it)
 Addresses workplace culture and resistance to change
through direct team involvement at all levels of the
organization.
Stephen W. Thompson - Lean, TOC or Six Sigma: Which tune should a company
dance to?, Lean Directions, Society of Manufacturing Engineers, Aug. 11, 2003
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Lean Weaknesses
 May promote risk taking without reasonable
balance to consequence.
 May not provide sufficient evidence of
business benefit for traditional management
accounting.
 Has a limitation when dealing with complex
interactive and recurring problems (uses trial
and error problem solving).
Stephen W. Thompson - Lean, TOC or Six Sigma: Which tune should a company
dance to?, Lean Directions, Society of Manufacturing Engineers, Aug. 11, 2003
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Some Thoughts on 6s
Six sigma:The cause of poor performance is
variation in process and product quality. Random
variations result in inefficient operations causing
dissatisfaction of customers from unreliable
products and services. [2] Increased competitive
advantage comes from stable and predictable
process allowing increased yields, improved
forecasting and reliable product performance.
[2]
George Eckes. "General Electric's Six Sigma Revolution: How General Electric and Others Turned Process
Into Profits," John Wiley & Sons; 1 edition (2000)
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
6s Strengths
 The rigor and discipline of the statistical
approach resolves complex problems that
cannot be solved by simple intuition or trial and
error.
 The data gathering provides strong business
cases to get management support for
resources.
 The focus on reduction of variation drives down
risk and improves predictability.
Stephen W. Thompson - Lean, TOC or Six Sigma: Which tune should a company
dance to?, Lean Directions, Society of Manufacturing Engineers, Aug. 11, 2003
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
6s Weaknesses
 Statistical methods are not well suited for analysis of
systems integration problems. (sigma can be
calculated for a product specification, but how is
sigma established for process interactions and faults.
 The heavy reliance on statistical methods by its very
nature is reactive, as it requires a repetition of the
process to develop trends and confidence levels.
 The strong focus on stable processes can lead to
total risk aversion and may penalize innovative
approaches that by their nature will be unstable and
variable.
Stephen W. Thompson - Lean, TOC or Six Sigma: Which tune should a company
dance to?, Lean Directions, Society of Manufacturing Engineers, Aug. 11, 2003
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Some Thoughts on VE
 VE uses a interdisciplinary approach to problem
solving.
 VE takes a systems approach to problem
identification and problem solving.
 VE uses function analysis to improve communication
among team members
 The function analysis systems technique (FAST)
promotes a synergistic approach to problem solving
that develops solutions far beyond that which only an
individual could produce.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Value Engineering Strengths
 VE relies on a rigorous interdisciplinary approach to
problem solving.
 VE uses a systems approach to problem identification and
solution.
 VE is function oriented and promotes a “clean-sheet”
approach that supports innovative solutions.
 Creativity is a key component to the VE problem solving
activities that promotes “breakthrough thinking.”
 VE uses a structured “job plan” that promotes consistency in
application and helps assure results.
 Increased competitive advantage comes from the
identification of innovative ways to accomplish key functions
at a lower cost with improved quality and reliability.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
VE’s Weaknesses
 Successful VE results are dependent on the
quality of information brought to the VE workshop
for evaluation.
 Many times, VE is used too late in the product
development cycle to impact the design, and
when changes would be too costly to implement.
 There are many misunderstandings and biases
against VE that have been built up over time due
to misuse of the methodology.



“It cheapens the product without improving it.”
“I’m an engineer. We do VE all the time.”
“VE is only used for cost reduction.”
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
VE Weaknesses Addressed by Lean Six Sigma
 VE weaknesses are addressed by Lean Six
Sigma
 Six sigma can provide the statistical evaluation
necessary to support VE solutions.
 Lean can provide Value Stream information that
can lead to improved quality and throughput.
 In combination with VE, Lean and Six Sigma
provide a suite of tools that can lead to superior
value through innovative solutions to problems in
design, quality, and productivity.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Comparing VE to Lean
 VE is not limited to areas of high volume or high dollar
value (e.g., aircraft).
 VE can be used by organizations with great effect in a
variety of situations, including VE analysis of
product/item design, packaging, industrial and
logistical processes, and other areas of high cost.
 Lean principles and practices offer no direct method of
addressing product design.
 Up to 80% of a product’s final cost could set at the time
of concept approval. This leaves Lean with only 20% of
vehicle cost available for Lean to improve.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Comparing VE to Lean (Cont’d)
 Lean is a strategic decision, while organizations can
choose to use VE successfully and effectively in a
tactical manner.
 VE can work well as an isolated study event – it does not
require the encompassing and pervasive level of support
that an effective Lean effort requires.
 Lean will reduce waste over time. VE, on the other
hand, will find and fix wasteful effort very quickly, but it
will generally (not necessarily) do so on an episodic
basis, not a continuous or systematic basis.
 VE’s value approach and tools help teams focus on the
high payoff areas first and will generate larger savings
sooner than you might otherwise get in Lean.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Lean and VE Similarities
 Both VE and Lean rely extensively on transforming
operations into alternative forms of visual information.
 In Lean, a Kaizen team will consider using a variety of
visual analytical tools to identify waste.
 Spaghetti diagrams, flow diagrams, bar charts, standard
work sheets, and production control boards, are all part
of the Lean analytical lexicon.
 VE uses function analysis and FAST diagramming to
describe the functional relationship of the product,
process, or service and identify functions where the
team should focus on improving value.
 Creating by function is the high-octane fuel generating
VE performance and success.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Formula for Superior Continuous
Improvement
3
(CI) =
Lean
Six Sigma
x
Value
Engineering
x
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Six Sigma Process Define the
Problem
Measure
Analyze
Click Here
 A) Identify what the customer wants.
 B) Organize an improvement team.
 C) Create a process flow chart - (SIPOC)




A) Select “Critical to Quality Characteristic” metrics.
B) Define Performance Standards.
C) Validate the measurement System.
D) Establish baseline performance in terms of Sigma Capability - Defects per
Million Opportunities.
 A) Identify significant characteristics and establish process capability.
 B) Define performance targets for significant characteristics.
 C) Identify root cause of process variation.
 A) Identify and evaluate potential solutions.
Improve
Control
End
 B) Implement short-term countermeasures.
 C) Implement long term corrective actions.
 D) Identify systemic indirect effects and unintended consequences of
improvement ideas.
 E) Establish operating tolerances for new process.
 A) Verify corrective actions and validate new measurement systems.
 B) Determine process capability.
 C) Establish and implement control plan.
 Move on to next highest priority process.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Value Engineering/Value Analysis - Why is
it important?
 Last 3 years (FY2000 – 2003), 2.7 million
manufacturing jobs left the U.S.
 The U.S. is loosing the battle to foreign competition.
 Labor costs $12 to $30 per hour in U.S., less than
$1 elsewhere.
 Fewer and fewer people will be required to produce
the world’s goods.
 Lean and Six Sigma alone are not enough!
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Competitive Advantage
 Quality is defined as “conformance to
specification.”
 Value is defined as:
Function
Cost
 You can’t have one without the other!
 Competitive Advantage = Quality + Value
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Six Step Value Engineering Job Plan
Information
Phase
Clearly identify the problem(s) to be solved, and
gather information on the background, functions and
requirements of the product, process, or system.
Creativity
Phase
Brainstorm ideas on how to improve the high cost,
broken, or inadequately performed key functions.
Evaluation
Phase
Screen ideas for acceptance, score remaining ideas
on a scale and group ideas into categories. Develop
design scenarios, and selection criteria. Rate and
rank ideas.
Planning
Phase
Plan how to sell ideas to management, identify key
recommendations, plan management presentation.
Reporting
Phase
Give oral presentation to management, or develop
written report.
Implementation
Phase
Get management approval for go-ahead, make
management plan, make assignments, implement,28
follow-up.
Mapping VE to 6s
University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
VA/VE
 Value-based
decision
process
 Uses functional
approach
 Follows a very
structured,
organized plan
Information
Phase
Creativity
Phase
Evaluation
Phase
6s
Define the
Problem
Value-based
decision process
Measure
 Uses statistical
approach
Analyze
Planning
Phase
Focus on maximum Reporting
Phase
possible solution
based on creativity
techniques.
Implementation
Phase
Improve
 Follows a very
structured,
organized plan
 Focus on maximum
possible solution based
on analytical
optimization techniques.
Control
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Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA
University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Application of 6s Tools
6s
5s
4s
3s
2s
0%
20%
40%
60%
80%
100%
% Usage
Basic Tools
Statistical Tools
Design for 6s and Innovation w/VE
Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA
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VE Job Plan with 6s
University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
How and When is Value Engineering
Applied?
How
 Interdisciplinary Team
 Formal Job Plan
 Trained Facilitators
 Function Analysis/FAST
 Documentation
When
 Problem Solving/Decision
Analysis
 Strategic Planning
 New Product Development
 Re-engineering efforts
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Potential Savings from VE
No engineering
Change Revision
Document Revision
Re-Test/Re-qualification
Drawings Released
Tooling Changes
Net Savings from VE
Total Cost of VE Implementation
VE Implementation
beyond this point
results in a net loss.
Concept
Design
Engineering
&Production
Release
Production
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Why use Value Engineering?
Save
Save
Build
Improve
Satisfy
Time
Money
Teamwork
Quality
Customer
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
FEDERAL DEPARTMENT OR AGENCY
DOLLARS SAVAD BY VALUE ENGINEERING -- FY 95
Agency
FY-95 VE Savings
$734,385,000.00
Defense Department
$686,373,874.00
Department of Transportation
$109,608,453.00
General Services Administration
$59,554,000.00
Army Corps of Engineers
$22,427,840.00
Department of the Interior
$8,764,155.00
Department of Agriculture
$5,990,387.00
Justice Department
$2,270,800.00
Veterans Affairs
$1,884,464.00
Health & Human Services
$800,000.00
Agency for International Development
$91,721.00
State Department
TOTAL $1,632,150,694.00
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
SUMMARY OF PAST VE SAVINGS
Federal-Aid Highway Program
Number of VE Studies
Cost of VE Studies Plus
Administrative Costs
Estimated Construction Cost of
Projects Studied
Total No. of Recommendations
Total Value of Recommendations
No. of Approved Recommendations
Value of Approved
Recommendations
Return on Investment
FY 2003
344
FY 2002
377
FY 2001
378
FY 2000
388
8.45 Mil
$9.02 Mil.
$7.29 Mil.
$7.78 Mil.
19,241 Mil $20,607 Mil. $18,882 Mil.
$16,240 Mil.
2144
3,163 Mil
2344
2,013
2,017
$3,050 Mil. $2,375 Mil.
$3,483 Mil.
914
969
1017
1057
1,016 Mil
$1,043 Mil.
$865 Mil.
$1,128 Mil.
120:1
116:1
119:1
145:1
http://www.fhwa.dot.gov/ve/index.htm
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
A Failure to Communicate
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Sacred Cow
A non-functional constraint or perceived
restriction
SACRED COWS MAKE GREAT STEAKS
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
VE Task Team/Quality Process Improvement
Team
Core Team
Support
Support
Support
Support
Support
Support
5 to 8 PARTICIPANTS
OPTIMAL
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
The Synergistic Effect of
Value Analysis/Value Engineering
INFORMATION HELD BY ONE
MEMBER ONLY
INFORMATION HELD BY TWO
OR MORE MEMBERS
INFORMATION OR EXPERIENCE
COMMON TO ALL
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Concepts of Value - Desirable
Ideal
Value =
Good
Function
Cost
Acceptable
Passable
Function
Cost
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Concepts of Value - Undesirable
Undesirable but Passable
(cheapening the
product)
Value =
Function
Cost
Function
Cost
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Information Phase
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Fact Finding
 What do you need to know about the problem
that you don’t know now?
What facts are known?
What are the requirements of the system?
Are these facts, opinions, assumptions, or
prejudices?
 Where or how can information be obtained?
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Function Analysis
 Function Analysis is the key to understanding
the problem.
 Start with defining the mission of the product,
process, service, or organization.
 Then, brainstorm all possible functions
necessary to accomplish the mission.
 Next, build a FAST Model to help identify any
missing functions and show dependencies.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Function Analysis
 Functions - Describe what something does
 Functions - Use active verb and measurable noun
 FAST (Function Analysis System Technique) - A logic
diagram to describe how a system works.
 Examples of Verbs and Nouns:
Active Verbs
Transmit
Irradiate
Project
Dissipate
Generate
Convert
Receive
Reflect
Provide (passive!)
Nouns
Signal
Information
Data
Heat
Radiation
Current
Light
Image
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
The Technical FAST Model
HOW?
WHY?
INDEPENDENT
FUNCTION
(SUPPORTING)
DEPENDENT
FUNCTION
OBJECTIVES OR
SPECIFICATIONS
MINOR CRITICAL PATH
INDEPENDENT
FUNCTION
OUTPUT
INPUT
B
(concept)
MISSION,
OBJECTIVE, OR
HIGHER ORDER
FUNCTION
BASIC
FUNCTION
DEPENDENT
FUNCTION
A
(concept)
W
H
E
N
D
(AND)
C
ACTIVITY
1
E
LOWEST
ORDER
FUNCTION
ACTIVITY
2
MAJOR CRITICAL PATH
SCOPE OF THE PROBLEM UNDER STUDY
LOWER ORDER FUNCTIONS
HIGHER ORDER FUNCTIONS
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
FAST Example - Overhead Projector
HOW?
WHY?
F.A.S.T MODEL
OVERHEAD PROJECTOR
FACILITATE
PORTABILITY
OBJECTIVES OR
SPECIFICATIONS
ALLOW
SAFETY
OUTPUT
W
H
E
N
CONVEY
Information
INPUT
(concept)
PROJECT
IMAGE
FOCUS
IMAGE
SUPPORT
IMAGE
AMPLIFY
IMAGE
GENERATE
LIGHT
(concept)
CONVERT
ENERGY
RECEIVE
CURRENT
TRANSMIT
CURRENT
GENERATE
HEAT
DISSIPATE
HEAT
GENERATE
NOISE
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Customer Oriented FAST Model
Vacuum Cleaner
WHY
HOW
Basic Functions
Receive Air
Move
Air
Accelerate Air
Clean Air
Loosen Dirt
Clean
Surface
Remove
Dirt
Entrain Dirt
Convey Dirt
Store
Dirt
Entrap Dirt
Collect Dirt
Supporting Functions
Display Directions
Simplify Directions
Furnish Instructions
Clean Exterior
Assure
Convenience
Facilitate Upkeep
Clean filter
Dispose Dirt
Signal Bag Change
Aid Service
Minimize Storage
Enhance Portability
Assure
Dependability
Satisfy
User
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
FAST Model of 737/757 Autopilot
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Pit 9 FAST Model
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Other tools that can work with VE





Activity Based Costing (ABC)
Cost Function Matrix
Failure Modes and Effects Analysis (FMEA)
Risk Analysis Tools
Other traditional quality tools such as pareto analysis,
ishakawa diagrams, scatter diagrams, etc.
Function analysis is the key to understanding the
system and what it does. Function analysis enables
you to analyze the problem from a system
perspective.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Cost/Function Matrix
Position critical path functions on the
top of the matrix.
Use costed activities that relate to the
functions.
Allocate cost to each function.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
54
University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Creativity Phase
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
CREATIVITY DEFINITION
Creativity is the art of
bringing something new
into existence.
It has the art of making,
inventing, or producing
something new and
different.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
CREATIVITY & INNOVATION
RELATIONSHIP
You must blast before
you can create.
Blow apart the
misconceptions,
skeptics, and
naysayers. Blow-up
the preconceived
ideas and common
theories of how
things should be
done. Rather, focus
on possibilities.
J. R. Wixson - 2004
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
IMAGINATION
Imagination is more important than
knowledge, for knowledge is limited,
while imagination embraces the entire
world.
 Albert Einstein
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Thought for the day:
When you always do what you have
always done - you always get what you
have always gotten.
 Socrates
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
IDEA vs. SOLUTION
 A solution requires justification & validation,
and idea needs no justification.
 A solution is an end point, an idea is just the
beginning.
 A solution is solid and self supporting, an idea
is tender and must be built upon.
DON’T KILL IDEAS WITH
ROADBLOCKS!!
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
PROBLEM SOLVING
An organized effort for developing
UNIQUE and RELEVANT
resolutions for opportunities
or
undesirable situations
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Creative and Judicial Ability Development
Predominately
creative
Predominately
judicial
0
12 56
17 24
Age
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
What do you see?
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
What is the next symbol in sequence?
64
University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
What is the next symbol in sequence?
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
To Creative Thinking and Action
 FEAR of making mistakes
 FEAR of the risk of pioneering
 Latching onto the first idea
 Desire to conform . . . To “belong”
 Belief that fantasizing . . . (imagining) . . . Is a
waste of time, and childish
 Difficulty in defining the problem
 Inflexibility
 The erroneous belief, “I am not a creative
person”
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
INFORMATION FOR SKEPTICS
 What is believed to be "common knowledge" is
NOT ALWAYS truly "correct" in the long run.
 Consider the following quotes denying the
existence of, or impact of, innovations and
discoveries of their time.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
INFORMATION FOR SKEPTICS
INNOVATION
"... after a few more flashes in the pan, we shall hear very little more of
Edison or his electric lamp. Every claim he makes has been tested and
proved impracticable."
[New York Times, January 16, 1880]
AEROSPACE
“Professor Goddard ... does not know the relation of action to reaction ...
he only seems to lack the knowledge ladled out daily in our high schools"
[New York Times, January 13, 1920]
"Heavier-than-air flying machines are impossible."
[Lord Kelvin, president, Royal Society, 1895]
"Airplanes are interesting toys but of no military value."
[Marechal Ferdinand Foch, Professor of Strategy, Ecole Superieure de Guerre]
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
COMPUTATIONAL SYSTEMS
"I think there is a world market for maybe five computers."
[Thomas Watson, chairman IBM, 1943]
"There is no reason anyone would want a computer in their home."
[Ken Olson, Chairman and founder Digital Equipment Corp., 1977]
"640K ought to be enough for anybody."
[Bill Gates, 1981]
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
ENERGY
"Fooling around with alternating current is just a waste of time.
Nobody will use it, ever." [Thomas Edison, 1889]
"There is not the slightest indication that nuclear energy will ever be
obtainable. It would mean that the atom would have to be shattered at
will."
[Albert Einstein, 1932]
"The energy produced by the atom is a very poor kind of thing. Anyone
who expects a source of power from the transformation of these atoms
is talking Moonshine."
[Ernst Rutherford, 1933]
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
MUSIC
"We don't like their sound, and guitar music is on the way
out."
[Decca Recording Co. turning down the Beatles, 1962]
ASTRONOMY
"I would sooner believe that two Yankee professors lied, than that
stones fell from the sky"
[Thomas Jefferson, on hearing the report of a meteorite fall]
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
MEDICINE
"Louis Pasteur's theory of germs is ridiculous fiction."
[Pierre Pachet, Professor of Physiology at Toulouse, 1872]
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
CREATIVITY TECHNIQUES
Brainstorming
Synectics
Morphological Analysis
Force Fit/Forced Relationships
Brainwriting
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
CREATIVITY TECHNIQUES (continued)
Visualization/Visual Brainstorming
Listing
Lateral Thinking
Divergent Thinking
For more information on creativity, click
here.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Rules for Brainstorming
 Generate a large number of ideas - quantity, not
quality.
 Free-wheeling is encouraged - Listen and improve
on the ideas of others.
 Don’t criticize - No evaluation of ideas
 Encourage everyone to participate
 Record all ideas presented
 Time to let ideas “incubate” should be allowed.
 Select an appropriate meeting place
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Brainstorming Concept
Best Solutions combination of ideas
100 +
75 - 80
Off - the - wall ideas
15 - 20
Traditional Answers
TIME
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Evaluation Phase
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Evaluation Phase - Idea Screening
GO, NO-GO
1 st
CHAMPION
2 nd
GFI (Killer Trade)
3 rd
FORMAL TRADE-OFF STUDY
(NGT, PAIRWISE COMPARISON,
ETC.) MOCKUP AND PROTO
TYPES IF NECESSARY
4 th
5 th
CUSTOMER
ACCEPTANCE
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Evaluating Ideas
 GO - NO GO
 Scratch ideas that hold no interest.
 CHAMPION
 Who will speak for the ideas and support them?
 GFI
 Discuss pro/con and vote. GFI is team average.
 Combine ideas; add new ideas.
 Record all assumptions when voting.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Evaluating Ideas
 Trade Study



Quantify performance characteristics.
Select top candidates using NGT, Pair-wise Comparison,
etc.
Could use software such as Expert Choice®, or Criterium
Decision Plus®
 Record all assumptions when voting.
 Customer Acceptance
 Determine & quantify customer acceptance criteria.


Rate surviving ideas against norm & risk.
Develop proposal scenarios.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Criteria Weighting - Paired Comparison
CRITERIA
A. Safety
B. Reliability
C. Portability
D. Machineabilty
E. Constructabilty
F. Frangability
G. Maintainability
H. Serviceability
A
B
C
B
D
A
4
E
A
5
B
5
D
5
F
A
5
C
3
B
B
4
4
4
E
C
G
4
E
1
F
5
B
5
C
4
D
2
E
0
F
1
G
3
H
I
0
I
F
5
A
D
D
E
3
2
I
3
3
CRITERIA
B
5
3
4
F
5
4
G
D
I
I
B
G
3
5
H
A
5
4
C
E
2
G
A
F
4
H
H
0
I
I. Ergonomic Compatibility
I
TOTAL
The team arrives at consensus on the scores for each criteria. For example, the
team decides which is better, A - Safety, or B - Reliability. In this case, B Reliability wins by 4 points. Next, which is better A, or C- Portability. Winner - A
by 5,
SCORING
scale - 0 to 5
0 = No Difference in Importance
5 = Major Difference in Importance
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
RATE AND RANK OF ALTERNATIVES
ALTERNATIVES
CRITERIA
A. Safety
WEIGHT
20.3
A
B
4
5
101.6
B. Reliability
22.0
4
6.5
4
13.0
D. Machineabilty
13.0
7.3
4
12.2
61.0
G. Maintainability
8.1
40.7
H. Serviceability
0.8
4
3
I. Ergonomic
Compatibility
9.8
TOTAL
100
COST
Value Index
$
1,450.00
0.28
1,711.00
0.19
5
2.4
19.5
4.1
1,000.00
0.25
4
29.3
252.8
$
16.3
3
2
327.6
$
32.5
1.6
9.8
36.6
2
3
2.4
404.9
36.6
24.4
1
36.6
3
3
2
29.3
5
4
40.7
3.3
52.0
29.3
61.0
3
3
4
4
5
19.5
39.0
29.3
24.4
5
5
3
26.0
7.3
2
5
13.0
4
1
109.8
3
2
2
101.6
5
87.8
6.5
26.0
29.3
F. Frangability
4
1
2
3
5
61.0
43.9
26.0
39.0
E. Constructabilty
2
109.8
E
3
40.7
5
2
D
2
81.3
87.8
C. Portability
C
39.0
330.9
$
1,250.00
0.26
415.4
$
2,100.00
0.20
best value
Each alternative is scored against how well it satisfies the various criteria. Once the scores are
assigned, they are multiplied by the weight of the criteria and summed for a total score. Then, a
value Index is calculated by dividing the total score by the implementation cost.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Planning and
Reporting Phases
Left Click to advance to next slide
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
The Planning & Reporting Phases
Planning
 What
is recommended?
 Who has to approve it?
 What is the implementation plan?
 Are mockups or prototypes required to verify
final decisions?
 What are the cost, schedule, and
deliverables?
 ROI?
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
ACTION PLAN GUIDELINES
 “What needs to be done?”

Identify the actions needed to “solidify” the
proposals.
 “Who should be assigned the action?”


Assign a team member.
Assign a completion date for the action.
 “When should the task be completed?”


Plan regular team status meetings.
Anticipate 4-6 weeks to complete the actions.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Anticipate Roadblocks And
Plan For Them
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Implementation Planning
Ideas must be planned and managed to
ensure implementation.
Proposed actions should be managed
like a project with specific end products,
defined start and end dates, and
funding limits.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
The Planning & Reporting Phase
Reporting
 Give oral presentation.
 Support it with written executive brief.
 Be clear, concise, and positive.
 Anticipate roadblocks
 Use good human relations.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Ve Workshop Follow-up Activities
 Recognize the participants.
 Publicize the results.
 Audit the performance of the implemented
actions.
 Close out the project.
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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor
Lean, Six Sigma and VE Synergy Final
Thoughts
 VE is a powerful design methodology that
harnesses existing organizational creativity and
knowledge resulting in superior innovative
products with unique customer benefits
 Together, Lean, Six Sigma, and VE Increase
customer value by optimizing costs, quality and
delivery.
 Lean dramatically reduces time to market
execution.
Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA
90