VALUE ENGINEERING
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
VALUE ENGINEERING
VALUE ENGINEERING A I M S A T
VALUE TO CUSTOMERS Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
VALUE ENGINEERING Which one is high in value ?
1 Kg. Gold
Luxury Car Prof. Madhavan . P Bangalore
1 Plate meal
House
Fame
Education T2W Consultants Sep.’09
VALUE ENGINEERING Efficiency Life Wt./Vol.
Mft. Cost Business Turnover Plan
Utility
Cost
VALUE Time
Esteem Beauty Prof. Madhavan . P Bangalore
Publicity
Place
Prestige T2W Consultants Sep.’09
VALUE ENGINEERING Value increases with Respect to needs both Implicit
Explicit
- Travel (5 persons)with right power, speed, milage, manovarability etc.,
Prof. Madhavan . P Bangalore
-
Styling Colour Size Interiors, AC, Stereo To suit to status etc., T2W Consultants Sep.’09
VALUE ENGINEERING Value Engineering to
-
is Stepwise, organised, creative team work
to
Eliminate or minimise Add value in factors contributing relation to cost poor value In order to In order to due to Poor flow of information over/under specification - Provide value to the over specialisation customer compartmentalisation - Catch up the market
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
VALUE ENGINEERING
Success
VE CAR
. Driver Value Engineering Success Driven by users / beneficiaries
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
Value Engineering Cost Distribution ( Indicative )
25%
43%
Matl. Engg. Process Others
18% 14%
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
Value Engineering Value / Function
Value
=
Function @ lowest Cost.
Function
=
Performance + Reliability
Performance
=
Utility + Esteem + Exchange
Reliablity
=
Perform @ desired place & time without failure.
Lowest Cost
=
Lowest life cycle cost
Life cycle cost =
Prof. Madhavan . P Bangalore
Cost ( Initial + Install + consumable + maintenance )
T2W Consultants Sep.’09
Value Engineering FAST ( Function Analysis System Technique )
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
Value Engineering Value analysis
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
Value engineering Reason for Poor Value
1.
Lack of Information
2.
Poor Communication
3.
Lack of Ideas.
4.
Time Pressure
5.
Temporary Circumstances
6.
Wrong Beliefs
7.
Habits & Attitudes
8.
Lack of perception at higher levels
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
Value engineering Cost Analysis Cost to Customer
=
Sale price + taxes + installation
Sale Price
=
Total Cost + Profit
Total Cost
=
Manufacturing cost + Marketing cost
Manufacturing cost
=
Factory cost = Product cost
=
Material + Labour + Over heads
=
Function costs + Other costs
Does Customer want to pay for the product ? Or for the functions in the product ? Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
Value engineering What you want & For what you pay
Does Customer want the product ? Or the functions in the product ?
Is Customer willing to pay for the product ? Or pay for the functions in the product ?
Do Or
you pay for the sugar ? for the sweetness in the sugar ?
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
Value engineering Determine Cost -Manufacturing cost -Break up of cost elements ( material + labour + overheads ) -Each component / process cost -Each subassembly , assembly , calibration cost -Each function / functional group cost -Proposed changes cost & savings -Pay back period / rate of return -Analyse cost per size/weight/time Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
Value engineering
Cost is the Objective
Function is the Key .
Value is the Customer.
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
Value Engineering APPROACH 1.
TEAM FORMATION
2.
5 PHASES OF VE
3.
-
INFORMATION
-
CREATION
-
EVALUATION
-
INVESTIGATION
-
RECOMMENDATION
- What it is / What it does / Cost
What other simple ways it can be done ? How much will it cost ?
IMPLEMENTATION
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING Creation Intensification
VALUE
Information Intensification
Industrialization
Agriculturization
TIME Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING What is Brain Storming ? Ú Storming takes place when there is a sudden release of pressure that is built-up. Ú This release of pressure releases Sound & Light. Ú This is what happened to Archimedes when he shouted ‘Eureka’. Ú Storming drives a person to various possible solutions when the right one is found, there is a big release of pressure. Ú This is one of the Ideas Generation Technique. Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING Why Brain Storming ? Ú The world is changing rapidly. Ú One must adapt to this changes and keep pace with Competition, Technology, Quality & Customers whims & fancies. Ú This requires knowledge, attitude and approach. More than that it require ideas, ideas & ideas to be a winner in changing world. Ú Ideas Galore. Ú For this we depend on Brain Storming as one of the Technique for Generation of Ideas. Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING How to Storm the Brain ? Rules : Ú Do not judge Ú Be wild Ú Give plenty Ú Combine & Improve
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING How to Storm the Brain ? Conditions : Ú Committed Group Ú Diverse Skills in the Group Ú Moderate pressure play.
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING
Value
No Criticism
Free Thoughts
Prof. Madhavan . P Bangalore
1+1= 3
Combine & Improve
Prepare clear objective
Cost
Gather Ideas
Brain Storming Rules
T2W Consultants Sep.’09
BRAIN STORMING 8 Principles of Creativity 1. 2. 3.
4. 5. 6. 7. 8.
Every one is creative. Creativity brings in many opportunities & reduces risks 4 faces of creativity - Socialiser - Neat Organiser - Finance figures - Jack of all One does not leave by data alone (Mix feelings, emotions) One picture is worth more than 1000 words. There are no impossible dreams or problems (only limited dreamers and problem solvers. The sub-conscious is a full partner in creative process. Creative Thinking brings win / win situations.
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING 4 Basic Skills for Creativity Thinking 1.
Divergent Thinking
- The Kid and the Judge
2.
Forcing relationships
- Connecting unrelated ideas Wheels + Chair = Wheel Chair
3.
Become the Angle’s advocate - Looking at the good points in bad situation.
4.
Dissecting Ideas
Prof. Madhavan . P Bangalore
- Generate ideas within ideas.
T2W Consultants Sep.’09
BRAIN STORMING Soft - Kid Metaphor Dream Humour Ambiguity Play Approximate Fantasy Paradox Diffuse Hunch Generalization Child Prof. Madhavan . P Bangalore
Hard - Judge Logic Reason Precision Consistency Work Exact Reality Direct Focused Analysis Specific Adult T2W Consultants Sep.’09
BRAIN STORMING How to Storm the Brain ? Methods : Ú Ú Ú Ú Ú Ú Ú Ú Ú Ú
Set the stage and ambiance of acceptance. Ensure Clarity of goal. Allow free flow of thinking. Mind Map to trigger Ideas. Use flexible thinking. Start collection of Ideas individually & in sub groups. Assign Quotas for Ideas. Call for funniest, stupidest, silliest Ideas. Have humour but no personal criticism. Try Brain writing.
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING IDEAS, IDEAS, IDEAS
IDEA One idea can be a stimulus to generate many ideas. Hence, the Brain Storming is done in a group. Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
COST REDUCTION
WHAT ?
HOW ?
NS
WHO ?
A ME
PE RS O
N
PURPOSE
RECORD
E NC
CE WHY ?
PLA
E QU SE
WHERE ?
WHEN ?
REASON
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
WHY HE ?
HOW ?
WHY THAT WAY ?
WHO ELSE ?
NS
PE
WHO ?
EA M
RS O N
COST REDUCTION
HOW ELSE ?
EXAMINE
WHY THEN ?
Q SE
WHEN ELSE ?
CE N UE
Prof. Madhavan . P Bangalore
WHERE ? WHY THERE ? WHERE ELSE ?
PL AC E
WHEN ?
T2W Consultants Sep.’09
BRAIN STORMING Part be eliminated ?
Part be Combined
Function be eliminated ?
Cheaper Spec. Matl. be used ?
Can any
Other matl. be used ?
Developing Alternatives
Can any
Waste matl. Be reduced ? Waste matl. be used ? Prof. Madhavan . P Bangalore
Dimn. be reduced ?
Limit to relaxed ?
Finish be reduced ? Finish be cheaper ? T2W Consultants Sep.’09
BRAIN STORMING Standard part any spl. part ?
Std. Spec. matl. replace any spl. spec. matl.
Std. inferior matl. replace std. superior matl. ?
Can any Developing Alternatives
Other execution be cheaper ? Change in make/ buy decision result in cost redn. ? Prof. Madhavan . P Bangalore
Other supplier supply the part cheaper ?
Other process be cheaper ?
Cheaper matl/part be indigenised/ imported ?
Can any
Tapping be replaced by other fastening ?
Curves/bends be eliminated ? T2W Consultants Sep.’09
BRAIN STORMING
Constructive Dis-satisfaction
Active Knowledge
Prof. Madhavan . P Bangalore
Internal Urge
Techniques for Creativity
Experience
Understanding the problems at their roots
T2W Consultants Sep.’09
BRAIN STORMING THINKING Specific Use
Basic types of Thinking
Focus
Achievement
Challenge
Thinking (reach)
Alternatives
Improvement Thinking (change)
Random Input
Green field Thinking (start)
Structure
Organised Thinking (arrange)
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING THINKING Wear 6 different Thinking Hats of Edward De Bano White
: For collecting Information
Black
: Be a critical Judge
Red
: Spontaneous opinion / feeling
Yellow
: Look for benefits
Green
: Think ideas / alternatives
Blue
: Think process - conclusion
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING Five figures are shown below. Select the one that is different form all the others.
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING Brain Storming Preparations 1. Number of people in the group - 6 to 8 < 6 Limits variety > 6 Not enough air time Disturb inter-personal Power balance. 2. Select forceful imaginative participants - Power people divergent view people The idea users Free flexible Thinkers Positive tangential Thinkers PAC, HRM, RC.., CLP Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING Brain Storming Preparations 3.
Preparation - Create a stage / attitude, hunger for ideas - Invite individually and tell them why their participation is valuable and provide them support data in advance. - Give alternative dates to choose and fix it personally (Personal touch is very important than the office track). - Check physical environment. (Quite place, no telephones) - Fresh air atmosphere. - Large room. - Coffee / Tea, Biscuits availability. - Semi-circle meetings. - Use of Metaplan boards, templates and flip charts.
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING Brain Storming Preparations 4.
Methodology - Brain Storming Intuitive, associative, unpredictable, spontaneous, like a games play, generating plenty of ideas. - Card Method Pull out a card or set of cards from the bunch and use the pictures in them to trigger ideas. - Method 635 6 participants write 3 ideas in 5 minutes and continue the game. - Delphi Method Listening to the views of groups and then working independently of each other generating ideas. - Synetics Deliberate stimulation of creative process which goes on un-consciously.
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING Brain Storming Preparations -
5.
Bionics Examines solutions of nature and their convertibility to the set of problems. SCAMPER Technique. Substitute, Combine, Adapt, Modify, Put to other users, Eleminate Reverse.
Rules for Group Work - Clear definition of problem / objectives. - No criticism in the stage of ideas collection. - Free unfolding of ideas. - One idea can generate many ideas. - Combine and improve ideas. - Do not conclude on ideas, even if it is the best one.
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING 6.
Watch out obstacle for creativity and neutralize them -
Perception blocks due to operating blindness, thinking habits and specialization.
-
Cultural blocks due to style of working, guidelines and procedures And adopting to superiors culture.
-
Emotional blocks due to fear, mis-trust and antipathy
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09
BRAIN STORMING
THANKING YOU & GOOD DAY Contact : Prof. Madhavan .P # 55, 8th B main, 4th C block Koramangala Bangalore – 560 034 Ph: 080 - 5531595
Prof. Madhavan . P Bangalore
T2W Consultants Sep.’09