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A Framework for Synergy, Collaboration, Exploration, Creativity, Discovery & Innovation. A Team activity to balance need, function & cost. [email protected] www.workbench20.com
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Improving Product Development with Value Engineering
http://www.linkedin.com/in/brucesauter
A Framework for Synergy, Collaboration, Exploration, Discovery & Innovation
Customer / Consumer ValueCustomer/End-User Value
What the customer got
What it cost the customer=
got =Product, Delivery, Service, Fast Response, Programs, Merchandising, Credit, Relationship, Accuracy, Reliable Information, Problem Solving, Technical Assistance, Sales Person/Rep, Cheerfulness, Sympathy
cost =Price, Problems, Hassle, Time, Confusion, Misunderstanding, Fear, Frustration, Unnecessary Repeat Phone Calls, Processing Deductions, Returnable Product.
Material Overhead Labor Product Design
50%
20%30%
5% 5%15%
5%
70%Cost %
Influence %
Product design accounts for only 5% of a product’s total cost, however, it dictates about 70% of the products total accounted manufacturing cost.
Product Design Influence
Customer / Consumer Focused Value Engineering
Multi-Functional Team approach
Methodology for solving problems and/or reducing costs
Achieves cost effective results and avoids unnecessary costs
Improves performance of products, processes and services
Improve competitiveness
Reduce risks and increases possibility of success
Function
User Demands
Products & Parts
Physical Properties Functional Properties
Function Definition
Design
Converting User Requirements into Physical Products
Customer / Consumer Focused Value Engineering
Value Engineering Methodology
Function Cost
Creative Problem Solving
Value Engineering Methodology
Function Cost
Identify Function Cost ReductionIdentify Opportunity
Creative Problem Solving
Value Engineering Methodology
Function Cost
Identify Function
Criteria & Constraints
Cost Reduction
Obtain Costs
Identify Opportunity
Fact Finding
Creative Problem Solving
Value Engineering Methodology
Function Cost
Identify Function
Criteria & Constraints
Alternate Methods
Cost Reduction
Obtain Costs
Compare Costs
Identify Opportunity
Fact Finding
Ideation
Creative Problem Solving
Value Engineering Methodology
Function Cost
Identify Function
Criteria & Constraints
Alternate Methods
Ideas vs. Criteria
Cost Reduction
Obtain Costs
Compare Costs
Evaluate Cost
Identify Opportunity
Fact Finding
Ideation
Judgement & Selection
Creative Problem Solving
Development of Ideas
Value Engineering Methodology
Function Cost
Identify Function
Criteria & Constraints
Alternate Methods
Ideas vs. Criteria
Cost Reduction
Obtain Costs
Compare Costs
Evaluate Cost
Identify Opportunity
Fact Finding
Ideation
Judgement & Selection
Creative Problem Solving
Development of Ideas
Technical Review
Team Review
Improving Product Development with Value EngineeringA Framework for Synergy, Collaboration, Exploration, Discovery & Innovation
http://www.linkedin.com/in/brucesauter
