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Value EngineeringAn Introduction
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# PARTICULARS REMARKS
1 What Ratio of Function to Cost
2 Why To Improve Value toCustomer
3 How Entire Workshop
4 Who Everybody engaged in
creating value chain5 When Concept, Design, Mfg.,
Delivery..Life Cycle
6 Where Value Chain
Typical Questions on Value Engineering
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Objective of this Two Day Program:
Create awareness on VE Methodology
What is VE?
Why VE?
How to apply VE?
Case Studies of
Past
Present
Future
VE
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4Pyramid of Knowledge
Know
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5Pyramid of Knowledge
Know
Understand
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6Pyramid of Knowledge
Know
UnderstandApply
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7Pyramid of Knowledge
Know
Understand
Apply
Analyze
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8Pyramid of Knowledge
Know
Understand
Apply
Analyze
Synthesize
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9Pyramid of Knowledge
Know
Understand
Apply
Analyze
Synthesize
Evaluate
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10Pyramid of Knowledge
Know
Understand
Apply
Analyze
Synthesize
Evaluate
Create
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11Pyramid of Value Engineering
Know
~ Utility
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12Pyramid of Value Engineering
Understand
~ Output
Know
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Wasteful
Spending Excellence
ShoddyWork
Low High
Efficiency
Low
High
Degree of
Achievement
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15Pyramid of Value Engineering
Analyze
~ Quality
Know
Understand
Apply
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16Pyramid of Value Engineering
Synthesize
~ Performance?
Know
Understand
Apply
Analyze
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17Pyramid of Value Engineering
Evaluate
~ Yield
Know
Understand
Apply
Analyze
Synthesize
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18Pyramid of Value Engineering
Know
Understand
Apply
Analyze
Synthesize
Evaluate
Create
~ Function
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The Ultimate in Value Engineering:
There are no ProductsThere are only Functions
Product
What we see
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The Ultimate in Value Engineering:
There are no ProductsThere are only Functions - Anon.
Product
Function
What Value Engineer sees
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Seminar Vs Workshop
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What is Value Engineering?
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What is VE ?
Powerful problem-solving tool that can
1. Value of Product / Service
Performance of Product / Service
2. Costs to customer
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Advantages of VE?
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Advantages of VE?
VE helps organizations compete moreeffectively in local, national andinternational markets by:
1. Decreasing costs - Increasing profits
2. Improving quality -Expanding marketshare
3. Saving time -Solving problems
4. Using resources more effectively..
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Father of Value Engineering?
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Father of Value Engineering?
Lawrence D Miles of GE, USAWho founded GE?
Circumstances leading to VE?
Todays situation?
GE
Logo
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Founder of GE
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193909010815?
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W W II Started at 1939-09-01-08-15?
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Developed VE Concepts During IIWorld War Years
Shortage of materials affectedproduction
Explored how alternative
materials could be considered atlower cost without affectingProduct Functionality /
Performance
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Heavy Wooden Chair
Molded Chair
Molded Stool
Two-legged Walker
Single Legged Chair?!
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US NAVY 1954
Analyze Design before Productionization
Engineering Value during Development
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US Army
US Air ForceUS Department of Defense 1961
Who is the largest buyer in anycountry?
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US Government mandated that all majorpurchases & contracts be covered by an
incentive clause: Gains of VE will be sharedbetween Govt. & Contractor
Private Industry followed suit in Engg. & Mfg.
SAVE (Expansion?) founded in 1958
CVS
SAVE - International
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1993 US Office of Management & BudgetsOMB Circular A-131:
Federal agencies to use VEmethodology as management tool toreduce program & Acquisition costs
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1995 National Highway System DesignationAct USA states:
States to carry out VE analysis for allfederal-aid highway projects withestimated total cost > $25 million
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Definition of VE by SAVE International?
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VESystematic team approach to improve Valuein product or service by using examination of
Function
Definition of VE by SAVE International
VFunction
Team
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Indian Value Engineering Society INVEST1978
Society of Value Management SIVAM - 1990
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VE Definition:
Application of analytical methods & creative
techniques to ensure that the essentialfunctions of a product or service are providedat minimum cost without reducing Quality &
Reliability
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VE =
Achieve essential Functions of Product
@ Minimum Cost
Without compromising Q & R
Apply Analytical methods & Creative Techniques
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Synonyms of Value Engineering?
S f V l E i i (VE)?
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Synonyms of Value Engineering (VE)?
1. Value Assurance
2. Value Buying
3. Value Control
4. Value Engineering
5. Value Improvement
6. Value Management
7. Value Methodology
8. Value Research
VE Forerunner of
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VE - Forerunner of
1. DFMA - DFX
2. FMEA
3. FTA
4. Imagineering
5. Kanos Model
6. Six Sigma
7. Lateral Thinking
8. Lean Thinking
9. Taguchi Methodology
10. TQM
11. TRIZ
12. QFD.
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DFMA - DFX
VE - FA
Forerunner of
Boothroyd & Dewhurst
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DFMA - DFX Imagineering
VE - FA
Forerunner of
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DFMA - DFX
Kano Model
VE - FA
ImagineeringForerunner of
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DFMA - DFX
Lateral ThinkingVE - FA
Kanos Model
ImagineeringForerunner of
1970
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DFMA - DFX
Lean Thinking
VE - FA Lateral Thinking
Kanos Model
Imagineering
ToyotaProductionSystem
Forerunner of
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DFMA - DFX
VE - FA
FMEA
DFMA - DFX
Lean Thinking
Lateral Thinking
Kanos Model
ImagineeringForerunner of
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DFMA - DFX
VE - FA
Lean Thinking
Lateral Thinking
Kanos Model
Imagineering
FMEA
FTA
Forerunner of
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DFMA - DFX
VE - FA
FTASix Sigma
Lean Thinking
Lateral Thinking
Kanos Model
Imagineering
FMEA
Forerunner of
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DFMA - DFX
VE - FA
TaguchiLean Thinking
Lateral Thinking
Kanos Model
Imagineering
FMEA
FTASix Sigma
Forerunner of
Picture
F f
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DFMA - DFX
VE - FA
TaguchiLean Thinking
Lateral Thinking
Kanos Model
Imagineering
FMEA
FTASix Sigma
TQM
Forerunner of
Forerunner of
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DFMA - DFX
VE - FA
TaguchiLean Thinking
Lateral Thinking
Kanos Model
Imagineering
FMEA
FTASix Sigma
TQM
TRIZ
Forerunner of
Picture Altschuller
Forerunner of
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DFMA - DFX
VE - FA
TaguchiLean Thinking
Lateral Thinking
Kanos Model
Imagineering
FMEA
FTASix Sigma
TQM
TRIZ
QFD
Forerunner of
Picture
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58Application of ?
DFMA - DFX
VE - FA
TaguchiLean Thinking
Lateral Thinking
Kanos Model
Imagineering
FMEA
FTASix Sigma
TQM
TRIZ
QFD
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59Application of common sense!
DFMA - DFX
VE - FA
TaguchiLean Thinking
Lateral Thinking
Kanos Model
Imagineering
FMEA
FTASix Sigma
TQM
TRIZ
QFD
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Newton & 2 Cats
A f A li ti f VE?
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Areas of Application of VE?
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Can we apply VE to English Language?
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Miles conceived
Value = (Performance cost)
Value to customer of any productincreases if you
Increase Numerator
Reduce Denominator
Or?
Mil i d
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Miles conceived
Value = (Performance cost)
Value to customer of any productincreases if you
Increase Numerator
Reduce Denominator
Do both
People extended VE over time from
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People extended VE over time fromProducts to
Service
Project
Programvirtually anything where thereexists customer - supplier
relationship
A l i E i thi i d t il t
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VA = Examine Value thoroughly to knowmore about itscomposition
Analysis = Examine something in detail todiscover more about it
Ex: Chemical Analysis
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Value
VA = Examine Value thoroughly to knowmore about its composition
Engineering = Design & Build something
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Engineering = Design & Build somethingusing scientific principles
VE = Apply Value for Design
Value Engineered
house..
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Management = Plan, Organize, Control,.
towards success (Objectives)
VM = Manage Value
Every human activity involving expenditure of
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Every human activity involving expenditure ofmoney can be viewed through ValueParadigm
Value
ROI that public & private organizations derive
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ROI that public & private organizations derivefrom implementing VM programs averages 10 to 1
For every dollar invested in VM study - $10 in netsavings results.
- S.A.V.E. International
Expenditure for two days of Workshop?
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What do we see here?
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What do we see here?
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What do we see here?
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Japanese Mantra to succeed in Market
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Q
C
D
How?
Japanese Mantra to succeed in Market
What?
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VE
Q
C
D
How?
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How Does VE Work?
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How Does VE Work?
Through VE study
Brings together multidisciplinary team ofpeople who own problem & haveexpertise to identify & solve it
VE study team works under direction offacilitator who follows VE job plan
To review project
Making sure team understandscustomer requirements
Develops a cost-effective solution
U S Embassy
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US Embassy NairobiBudget Cost: $80 Million
(VE Savings $4.4 M)
U.S. EmbassyDar es Salaam
Budget Cost: $50 Million(VE Savings $2.2 M)
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Rock Line Original Grade
Standard RockExcavation Face
10M Clear Zone
Original Design
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Rock Line Original Grade
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g
Rock Line Original Grade
Standard RockExcavation Face
VE Proposed RockExcavation Face
Earth Fill Over Rock Face
10m Clear Zone
10m Clear Zone
VE Proposed Design
(Net Savings $4 Million Accident Loss Reduction)
Original Design
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By VE, Make it
1. Greener2. Cheaper
3. Legal4. Refined
5. Reliable
6. Win
MIRA, UK
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# PARTICULARS VA VE
1
2
3
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# PARTICULARS VA VE
1 Cost Reduction Avoidance
2 For Products During Design
&Development
Already in
Production
3 Savings Less More
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Value Engineered English
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Value Engineering (VE) term coined by
Lawrence D Miles of General Electric USA
He developed VE Concept during Post IIWorld War Years, when shortage of material
affected GE production
Miles explored how alternative materials
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could be considered at lower cost withoutaffecting product performance
He conceived, Value = (Performance Cost)
Value to customer of any productincreased
If you improve performance at samecost
Reduce cost retaining sameperformance
People extended VE over time from Products
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pto
1.Service2.Project3.Program4.Virtually anything where there exists
customer supplier relationship !5.Why not to English?
Purpose of this presentation to show VE
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p papplicability to written English also
Value of written Message = (Effectiveness)(word count)
We improve Value by minimizing wordcount
Principles (Syntax & Semantics) of Value
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p ( y )Engineered English:
Rule # 1
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Use minimum words to convey meaning conciselyGrammar classifies words as one of 8 Parts of
Speech: Verb, Noun, Pronoun, Adjective, Adverb,Preposition, Conjunction & InterjectionWe can totally get rid of verbs like is, was, am, are,were in most places without any loss of meaning!Such verbs - better understood with a hyphenplaced, where they need to occur (If not convinced,kindly read passage above, written by following this
rule)Avoid use of articles a, an, the wherever possible
Rule # 2Conserve space by universally understood Symbols:
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Conserve space by universally understood Symbols:
# SYMBOL MEANING(REPLACES
WORD)
EXAMPLE
1 & And -
2 Therefore -
3 Invert Because -4 / Or Give me Orange
/ Apple
5 Divided By -
6 % Percentage -
7 Actual Numbers Numerals 5 Soldiers
8 > Greater than A > B
9 < Less than C < D
Rule # 3
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Rule # 3
Bulleted sentences do not require full stopsat ends
Rule # 4
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To improve Effectiveness, Nouns wherevernecessary written with capital letters
Conclusion:
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This value engineered write up contains 300words
Same written in conventional text would take
400 words!
Saving in written matter ~ 33%!
Improving communication Effectiveness
The rules are not God-given but are only
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man-made
You can add & modify rules
Please inform us of any such improvements
Please Remember
VE generic Problem solving Tool
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Thank You
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