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. T ECHNIQU ES OF VALUE ANALYSIS AND ENGINEERING

Univers i ty of Michigan- -Five-Day Course

C O M M E N T S

An inten5ive course for "do- i t" people

4 hours of advanced study and 4 hours of study each night

Fol lowed by u s e of the techniques on products during the day.

Instead of physical products , it would be muitable for s o m e to

study s e r v r c e s . They are m o r e difficult during the learning

period but equally productive.

TECHNIQUES OF VALUE ANALYSIS AND ENUNEERING Univer aity of Michigan- -Five-Day Courae

A D V A N C E P R E P A R A T I O N

Select place - adequate space, acous t ics , w a s h r o o m s , avai l -

ab i l i ty coffee b r eaks .

Tab l e s w h e r e m e n w o r k i n teams of t h r e e .

Vendors ' exhibits .

Have phone nea rby - allow phone cost $10 /man.

H a v e avai lable handbooks and t r a d e d i r e c t o r i e s - -Thomas Reg1 s te r and othvr 5 .

Provide nea rby e e c r e t a r y service.

Provide office machines for copying.

In every c a s e of advance r eg i s t r a t i on , provide textbook with advance

assignment fo r first day.

Endeavor to secure advance reg i s t ra t ion of all s o that all m a y s t a r t

e q u a l l y p r e p a r e d . At l e a s t a full-day's t i m e will be saved by the

advance p r epa ra t i on .

P rovidc guidance i n se lect ion of p ro j ec t s .

T ECHNIQU ES OF VALUE ANALYSIS AND ENGINEERING University of Michigan- -Five-Day Course

P R O G R A M

DAY 1 L. D. Miles

Introduction to philosophy, conc ept s , approaches and techniques .

Amounts of unnecessary cost found - why? - how to find.

Function approach - - naming, division, classification, evaluation

Case h is tor ies .

C a s e studies.

"Specifics - Not Generali t ies" technique.

Clarifying questions - Diacuasion.

DAY 2 L. D. Miles

R evi ew

Clarification a s necessary in techniques 3-1, -2 , -3, -4, - 5 , -6, - 1 3 . ,

C a s e study.

Some group work on some of the i r pro jec ts .

Some individual work on the pro jec ts .

Human involvement aspec ts .

Clarifying questions and discussion.

A r r i v e at reasonable understanding on Approach Selection of techniques U s e of technlquea Application of techniques 1, 2 , 3 4 , 5 , 6 , 13 Significant functions of products Values of some significant functions of some products

PKOGRAM (Cont . )

DAY 3 1 /2 day skil led creativity leader 1/Z day - M r . Johnson's staff - o r to

be selected by him

Clarification of techniques 7 , 8, 9 , 10, 11, 12.

Explanation of s ea rch techniques.

Work with men to get them away f rom the "part" approach, back to the "function". Get them away f rom the "do it o r f igure it out myself" approach, into the "search , find much help f a s t , and use it" approach.

Case h i s to r i e s using sea rch technique and the resulting l a r g e and immediate a s s i s t ance .

Individual work with the m e n on the i r p ro jec ts .

F o u r vendors - previously chosen - who m a y contribute on the p r o j e c t s - - each to have a display table if he wishes and to have seven minutes to tell t h e g r o u p , "this 1s the kind of thing w e do and this i s how w e think it will help you".

Clar i fymg questions and di scus sion.

M r . Johnsont s Staff

R e -emphasize and review functional approach.

Evaluate a function o r two.

P resen t function evaluation by scientific means--conduct cur ren t - t r a n s m i t t o r q u e - -e tc .

Present special knowledge- -use of, importance of, locating o f , developing o f -

Presen t subjective fac tors which prevent objective deci slon making.

H a v e four suppl iers properly selected and instructed a s in DAY 3 .

P r e s s h a r d on project work--causing men to ut3e the techniques to over - c o m e the roadblocks wh ich a r e stopping them.

Clar i fy by questions and discussion.

PROGRAM (Cont . )

D A Y 5 Mr. Johnson1 s staff

P resen t and d iscuss . . . U s e of special is ts ,

Organization,

Motivation,

Measurement ,

Application to purchasing (buy function - not mater ia l ) ,

Retardant B to implementation.

Finish a few m o r e hard spots on project B.

Get simple summary sheets in management language a s shown on page 31 prepared.

Stalrct six to ten ( p l u s or minus) pro jec ts for presentation at the closing exrrc i s e s . Limit presentations to four minutes. Provide ass i s tance to t h e p resen te r s in making up rough c h a r t s , etc.

Allow m c n who wish to , in a discussion period, to te l l what they w i l l t r y t o do with t h e s e approaches.

T ell men about Society of Arne r ican Value Engineers.

Suitable diplomas, e tc . , as des i red .

It is finished.

T ECHNIQUES OF VALUE ANALYSIS AND ENGINEERING Univers i ty of Michigan- -F ive-Day Course

A S S I G N M E N T S

L ) A Y 1

Rcad P r e f a c e .

P e r u s e text in one hour- - s o know the tone of what's to come.

R e a d and understand chapters 1 and 2 .

1 ' 2

R e a d and understand chapter 3 . . . i t e m s 1, 2 , 3 , 4 , 5 , 6 , 13.

DAY 3

Read and understand chapter 3 . . . i t e m s 7 , 8 , 9 , 10, 1 1 , 12

U . 4 y 4

P e r u s e chapters 4 and 5

Read and understand chapter 6 -9

LIAY 5

Read and understand chapter 8

Pt ruse chapters 10 and 1 1

T x : : "Techniques of Value Analys is and Engineering" by L. D. M i l e s Published by McGraw -Hill Book Company, New York, 1961

T ECHNIQU ES OF VALUE ANALYSIS AND ENGINEERING University of Michigan- -Five-Day Course

July 8-12 , 1963

A S S I G N M E N T W 3 R K S H E : E T S

I . N a m e ten matured products on which advances in value engineering will control the success of the business venture more than will ad - vances in performance engineering .

2 . I s use value of importance in all products ? Explain.

3 . I s esteem value of importance in all products ? Explain.

4. W h o normally makes the decisions concerning use va lue? On what basis a r e they m d c ?

5 . W h o normally makes the decisions concerning es teem value TI' On what basis arc they m a d e ?

6. What i s meant by a manufac turer ' s statement about h is own product when it says: "Value of this product i s unsatisfactory" ?

As.-ignn-lent Worksheet D a y 1 (Continued)

7 - N a m e five product8 which you consider good value. State why.

8. Describe the effect att i tudes previously accumulated under a variety of cxpt!rlences have on value.

9 . Basically what does a cus tomer real ly want when he buys a product '?

What did you want when you bought your la test pa i r of shoes?

10. Lis t , in order of importance, what you really wanted, o r will want, in selecting a r e f r ige ra to r .

1 1 . Name five products which you have purchased within the past year predominantly for the purpose of accomplishing a use.

12. N a m e five products which you have p u r c h a ~ e d within the past year predominantly for the purpose of conforming to a custom, provlding appearance, providing in teres t , e tc .

13. Look around the room and wri te down the names of five i t cms and indicate their basic functions.

14 . Li st function o r functions of an axe handle and an axe head.

. \+ s ~ g n r n ~ n t Worksheet r>;l)r 1 (Continued)

15, Describe t h e function which a screw dr iver has specifically i n relation to the detai ls of the head of a screw.

1 b . Write down the essent ial s teps in the procedure for action required when a t l r e becomes deflated in driving along the road.

Note the inferior resu l t s and the increased frustrat ion of omitting any step of the proecdure.

17. Select t he step i n the foregoing procedure which could be omitted with the least consequence, and describe the ill effecta, minimized r e su l t s , o r increased effor ts caused by omitting just th i s one step.

1 . Divide the electr ic re f r igera tor into approximately ten "functional a r e a s t t . F o r example, one functional a r e a may be l 'enclosuret ' , a second - "insulation1'.

L. D. Miles 19173

T ECHNIQUES OF VALUE ANALYSIS AND ENGINEERING University of Michigan- -Five-Day Courac

.July 8-12, 1963

A S S I G N M E N T W O R K S H E E T S

DAY 2

1 . Describe the steps you would take in o r d e r t o get away f rom the generality into workable "specifice" in the case of the following statement: "Underwriters require this type of construction. "

2 . The factory you a r e connected with ia making p a r t s which have the following costs:

Material Labor Variable overhead Fixed overhead

Total

Vendor quotations for the same pa r t s a r e $38.

On the basis of the curve for organized action in make-or -buy dec i s ions , at approximately what percentage of factory loading should the item bc changed from a "maket1 part to a "buyt' par t?

3 . State the main purpose of the "blastt1 portion of the technique, "Blast. c rea te , refine".

4 . Describe your interpretat ion of creativity. What is the basic diff - erence between the crea t ive approach and the analytical approach ?

5. Sketch a dozen shapes for the operating handle on a toggle switch and suggest a dozen mate r i a l s which might be used for i t . Also suggest a dozen processes w h c h might be u s e d in fabricating the material for the handle,

As slgnment Worksheet D . L ~ L (Continued)

b . W r i t e a l i s t of twenty-f ive typical questions which might come up i n c.onnc.c:tion with the des ign and manufacture of an e lectr ic i r o n .

7 . State s o m e of the f i r s t actions you might take in order to overcome the roadblock: "Theremust be a good reason for it or w e would not have made it that w a y . "

T E;CHNIQU ES OF VALU E ANALYSIS AND ENGINEERING Univers i ty of Michigan- - F i v e - D a y C o u r s e

J u l y 8 - 1 2 , 1963

A S S I G N M E N T W O R K S H E E T S

1 . bf.~ktb a l i s t i l f f i f tccn dliftarent areas of i m p o r t a n c e t o a d c s l g n e r or m;indfacturer of e l c c t r i c m o t o r s i n which h e might benefit by extrtanlt~ p rnc t r a t ion o f knowledge thrvugh locating t h e bes t poss ib le sou rc t : o f

J p c : c i ~ l i z e d knowledge.

2 . Is the c o s t of each t o l e r a n c e d e t e r m i n a b l e ?

3 . I - the funct ion a c c o m p l i s h e d by each tolerance d i s c e r n i b l e ?

1. W h o n o r m a l l y d e t e r m i n e s t o l e r a n c e s ?

5. .41-(t t h e cos t s p roduced t)y each t o l e r a n c e n o r m a l l y p rov idcd :o tht.

!14,1~.r;inc:c. s e t t c r b c f o r c he m a k e s h i s d e c i s i o n ?

. N ; i n ~ t : f i v e rcaFons w h y v e n d o r s ' available functional p roduc t s circ ot'ttar: ; lot u s e d thven t h o u g h they would a c c o m p l i s h t h ~ > f~ :nc t io r : rtl l labl: a n d ; i m p l y at a m u c h lower c o s t .

-7 Nanl t l t h r e e ways of paving vendors f o r the use of t h e i r specia l ized sk i l l s a n d knowltbdge.

h . Start. s o m e a p p r o a c h e 3 you might t ake t o d e t e r m i n e whe ther t h e r v i n ( f c . 4 e x l s t s a n appl icable p r o c e s s t o accomplish your p u r p o s e .

.A , . . . , :~:rlcnt W orkshect I? 1: 3 ( C L , n t i n u e d )

9 . How a r e to lerances normally determined for a specialty p r o c e s s ?

'I ' 3 1 3c r ib t . h o r n t i c i t - cu rns t ances under which the u s e of s t a n d a r d s cos t .-. t h x t r ; ~

1 1 . List 3onlc safeguards which might b e establ ished to protect again .>t :ndi sc r i rn ina te ly establishing special i t e m s , ideas , o r proccbs s c s

w h e n t h e r e in fact exist s tandard dt-.cs which constitute the hrb t answc r ,

! 2 Yuu ~ r - 1 . now l ~ s i n g one mil l ion small a lnico magnets per y tBar i n a t a t . Name the techniques you are l ike ly to u s e t o idc.ntiiy :.nrlchcc.s s a r y c o s t s .

'I- LClINIQU ES OF VALUE A!!ALYSIS AND ENGINEERING Univt!r s i ty of Michigan- -Five-Day C o u r s e ,

J u l y 8 -12 , 1963

A S S I G N M E N T W O R K S H E E T S

1 . D t . 5 ~ r i b e t h e cbnvironrnent which can be promoted by the a t t i tude of t he ptirchnbirrg agent to generally m i n i m i z e the pe rsona l l o s s of h i s b u y c r s . ~ n f i p r o m o t e dec i s ions mos t beneficial to h i s employer .

2 . i ) t : . ~ c r l b c o r q ~ o t e thL. o ~ m r n c n t s which you, as a m a n a g c r , might ;ippr<;y r id tc ly makc t o c a u s e m o r e d e c i s i o n s f o r improving va1l.c to b t . madta m o r e p r o n ~ p t l y in t h e fol lowing c i r c u m s t a n c e s :

'bur purchab ing agent h a s w o r k e d with a cas t ing supp1it.r in b u p n g $1 U , 000 -worth of p a t t e r n s and m o l d s , helping to e a t ~ b l i - h inbpection r o u t i n e s , t e s t ing and approv ing s a m p l e s of producti(br: . e t ~ . . and has just qual i f ied this s u p p l i e r f o r furnishing $100 , 000 w o r t h of malleable cas t ings per y e a r . He t h e n goes to a conver l t lon

whc-re he c o m e s into contact with a n o t h e r supp l ie r who has a n a ~ . t o m a t i c f a c t o r y fo r making c a s t i n g s and w b , f o r a c o s t of $1 5 , 0 0 0 f o r m o l d s , p a t t e r n s , and tooling would supply t h e rthq1iirt:d c a s t i n g s for $50,000 p e r y e a r .

Your tool eng lneer has just p u r c h a s e d a $1000 mach ine which i s in the p r o c e s s of ins ta l l a t ion . T o d a y he d i s c o v e r s that a d i i f tm-nt type of tool which , al though a l s o ava i l ab le , w a s not

xncovc:rcd in h i s at?arch p r i o r t o t h e placing of the ordt ! r . It wou ld p r o d u c e the i t e m s with the same r e l i a b ~ l i t y at $5000 p r y t - ~ r l e s s c o s t . The new tool would cos t $3000. He now ;lrop~:?;(.c : 3 -.,top ins ta l l a t ion , s c r a p t h e p u r c h a s e d too l , buy :ne new t o o l , and have. ~t i n > t a l l e d .

.I 1 ,nment Worksheet :!,,.: -4 (Continued)

Your draf t sman has just completed a month's work of drawing and detailing the p a r t s of a product you expect to manufacture . Ht: c o m e s to you and advise5 that he can now see how to use a n enti re ly diff crent approach employing totally diffe rent re1 - at ive shapes. Thia would necess i ta te spending another month redoing dl1 of ills work but would resul t in an equally reliable product f o r half the cos t .

3 . List in approximate o rde r of impor tance ten t r a i t s o r cha rac t e r i s t i c s o r qua1~:icstions of a good value analyst .

4 . What mrlst be included i n the t ra in ing of p rac t i t ioners ?

T ECHNIQU ES OF VALUE ANALYSIS AND ENGINEERING University of Michigan - -Five-Day Course

July 8 - 1 2 , 19b3

A S S I G N M E N T W O R K S H E E T S

DAY 5

1 . List f ivc* objrctives of a value engineering program.

2 : List f ive s teps in organizing and administering a program.

3 . Why would a nttw value consultant'have to do a very m u c h m o r e complete job of integration than he would do i f he were n e w in somc other job, such as purchasing agent, design engineer, o r accountant '

4 . Namc some of the uncertainties and fears which w ~ l l exist to some extent in t h e mind of a design engineer when he finds that a valut. analyst o r value consultant is starting in h i s area.

5 . What does value appraisal mean t o you?

6 . Dcscribe severa l lmportant actions a management may take which unrn i s t akably show emphasis on value work.

A - ilgnrnent Worksheet D,iy 5 (Cont inued)

7 . Descr lbe the manner in whlch emphas i s i s applied to a des ign- engineering project .

8 . Desc r l bc the manner in which emphasis i s applied to shipments of eq~l iprnent manufactured.

? De:-icribr measurement s y s t e m s which might bc used to measGre thc d p g r e e of s u c c e s s with which sales work i s accomplished.

10. Dtbscribt . how you would endeavor to determine (measure)whether dr not the correct n u m b e r of people are engaged in value work.