LEAN Design Webinar on Value Engineering

Salt Lake City Chapter #085
Webinar on
“LEAN Design with Value Engineering”
Presented by
Jim Wixson CMfgE, CVS-Life
CEO Wixson Value Associates, Inc

May 21, 2009

We will begin at 6:00PM MST

Sponsor for tonight’s Webinar
The Member Engagement Initiative of SME
www.sme.org/mei 1

About The Webinar’s Presenter
Jim Wixson
Jim Wixson is the Founder and CEO of Wixson Value Associates, Inc. a
Inc.
consulting company specializing in product and process improvements and
improvements
new product development. He brings over 30 years of industrial
experience in Systems Engineering, Value Engineering, Industrial and
Manufacturing Engineering, Lean-Six Sigma/Process Improvement, and
Lean-
Project Management to his clients, and has worked with/for Fortune 500
Fortune
Companies including INL, The Boeing Company, and Raytheon
Corporation.

Jim has been a featured speaker and author of several papers and articles
for SME, INCOSE, PMI, ASQ, SAVE International, Partners in Business,
Business,
Shingo Prize Operational Excellence Conference and the Systems
Dynamics Society.

For The Society of Manufacturing Engineers, Jim is the current Chapter
Chapter
Chair of the Salt Lake City Chapter #085, and over 20 years of
membership he has held numerous volunteer leadership roles in TheThe
Society as well as other professional associations.

2

Lean Design with
Value Engineering
Jim Wixson, CVS-Life, CMfgE-Life
President, Wixson Value Associates, Inc.
jrwixson@wvasolutions.com
(208) 520-2296
http://wvasolutions.com

Agenda
I. What is Lean Design?
II. How does Value Engineering (VE) facilitate
creative Lean Design?
III. Value of VE. Why use it?
IV. What is Function Analysis and FAST?
V. The benefits of functional thinking.
VI. The VE Job Plan & How it Relates to Lean
Design.
VII. How DFM/A and 3P work with the VE
methodology.
VIII. Questions and Answers

5/21/2009 Wixson Value Associates Inc. 2

Lean Design
Lean Design is applying lean principles to Product Development
Lean Design is achieved through a organized effort by a
interdisciplinary team to develop, or improve a product that
accomplishes the necessary functions that make it work and sell at
the lowest possible lifecycle cost within the constraints of safety to
the user and the environment.
Lean Design focuses on "balanced excellence" in product design by
focusing on the elimination of non-value-added waste in both the
process of development and in the design of the products
themselves. (Technology Perspectives, http://www.design-for-lean.com/lean%20design.html)
Lean Design can be viewed as Value Engineering repackaged with
improvements to the implementation phase using lean principles,
DFM/A, and 3P.
Lean Design requires the application of the VE methodology to be
effectively applied.


Waste in Product Development
Reinvention
Lean Design teams appreciate the value of knowledge, and ensure that
knowledge is easy to capture, reuse and always used to make
decisions, thus avoiding reinvention of key products or features
Excess Requirements
Lean Design teams recognize that every extra feature or performance
enhancement must be designed, produced, maintained and supported –
and customers pay the price in greater complexity and greater risk of
failure (Design to Cost is important).
Overloaded Resources
Lean Design teams know that overloading resources makes them
slower and less flexible, and that task-switching costs engineers
valuable time.
Unintegrated Design
Lean Design teams strive to understand and then manage their designs
in an integrated system, so that they can focus innovation on areas that
improve the market performance of their entire portfolio of products.


Serial Product Evolution
(A Language Problem)

Identify Satisfy
Marketing Engineering Production
opportunity need

Express Conceptualize Produce
Need solution Products


A Failure to Communicate


A Product Definition Process……..
Traditional Product Cycle

Rework Rework Rework Rework Rework
Configuration Design Analyze Build Plan Schedule Build

Co-located Team Environment

Lean Design Product Cycle
TEAM Savings in
Time to market
Product cost
Life Cycle Cost
Configuration Design / Analyze / Build Plan / Schedule Build Etc.

What is Value Engineering?
VE is an intensive, interdisciplinary
problem solving activity.

VE is uses an organized approach toward
problem solving.

VE focuses on the functions performed by
products, products, or services and what is
required to perform these functions safely
and at the lowest possible cost consistent
with customer requirements.


What is Value Engineering?
Value Engineering is a proven methodology that
has saved private industry and governmental
agencies $Billions since its inception in 1947.
Value Engineering can be used to generate
significant cost savings and cost avoidance by
identifying potential problems and ways to avoid
these problems before they occur.
The VE approach promotes the philosophy of “Do
It Right the First Time.”


Value Study Methodology
The value team study process matches the “quick-hit”, “small
team” process that Tom Peters and Nancy Austin describe in, A
Passion for Excellence, as a powerful alternative to the “throw
resources at it” approach to problem solving (Peters and Austin,
1985).
The strength of the value team process we use is in the pre-
study phase, especially when the Executive Review Board
(ERB) members include the Customer (Air Force, Army, Navy,
airlines, FAA, etc), and suppliers. (ERB is described in the
attached pre-event paper.)


VM, Six Sigma and Lean?
Doing Things Right
is the main focus of
Lean and Six Sigma
(Process Improvement)
(Customer Satisfaction)
Doing The Right Thing
is the main focus of
Value Methodology
(Function/Cost balance)
(Customer Perceived Value)
Both Are Required
for economic profit


Lean Design - Goals
Resource Efficient – LEAN
Capable of very high yields regardless of
volume
Not affected by process variation: Robust
Lead to a “flawless launch”
Meets Performance Targets (Quality)
Meets Delivery Targets (On Time)
Meets Financial Targets (Target Cost)


Lean Design - Process
Identify Customer requirements
VE, QFD, Critical to Quality (CTQ)
Estimate Baseline
Benchmark, Patent search, Product Scorecard, Process Map, VSM
Determine Functional Requirements
VE, DFMA
Generate, Evaluate, Select Design & Process Concept(s)
VE, 3P, TRIZ, Brainstorm, Ways of Nature, etc.
Optimize Design and Process Concepts
DOE, CAE, FEA, Simulation, Analytical models.
Verify Design and Process
PFMEA, Design Verification Planning and Reporting (DVP&R),
Production Part Approval Process (PPAP)
Maintain the Gains
Control Plan, SPC, Kaizen
(from Superfactory, Lean Enterprise Series)


PPAP
Production Part Approval Process:
The Production Part Approval Process (PPAP) outlines the methods
used for approval of production and service commodities, including
bulk materials, up to and including part submission warrant in the
Advanced Quality Planning process. The purpose of the PPAP
process is to ensure that suppliers of components comply with the
design specification and can run consistently without affecting the
customer line and improving the quality systems. PPAP ensures that
you will achieve the first time quality and will lower down the cost of
quality.


Example Tools Used in the VE Job Plan
Project Implementation
Project Sessions
Planning
Frame Issue Information Speculation Planning/Presentation Post-Sessions
Search Select Investigate Analyze Speculate Evaluate Develop Present Implement Verify
< > < > < > <
Cost
> < >
Question- FAST Cause and FAST Brainstorm Champion Analysis VU Charts SPC
Project
aires Hi-Cost Effect Pareto Cluster GFI-Delphi Benefit/ Flip Charts Check Lists
Mgmt.
Brainstorm Drivers Check Lists Function Nominal Rank and Milestones Question-
Risk MBO
Issues and Mgmt. Scatter Dia. Analysis Group Rate Strategy aires
Control IPT
Concerns Focus Flow Charts Cost Imagineer- Pareto Proposal Histograms
Chart Leadership
Action Log Agendas Cost Model Analysis ing Benchmark ROA/ROI Dev. Control
Brainstorm
Items Impact Problem Histograms Experts Paired VSM Charts
IRR CM
Process Change- Definition Impact Other Comp. Run Charts
Brainstorm Design for
Check ability Cost Change- Creative Multivoting Break-even Avg. and
Assy & Mfg.
Nominal Pareto Targeting ability Thinking Cause and Range
Analysis FAST
Group Histograms Imagineer- Life-Cycle- Techniques Effect Charts
Regression AIW
Scatter Ana. ing Cost Alloc. Impact Lean Event CM
Analysis
Decision Nominal Design for Change- Market
Analysis Group Assy & Mfg ability Survey
Charter Brainstorm Value Stream Histograms Arrow
Document Run Charts mapping DOE Diagram
Avg. and (VSM). FAST Affinity
Range TOC Diagram
Charts Design for Life-Cycle-
QFD Assy & Mfg Cost Ana.
TOC VSM. FAST
VSM

Value Methodology Timeline
Larry Miles VE adopted
assigned to by NASA ofc
cost of facilities. Gov’t
reduction at Bill Allen agencies
GE initiates Charles adopt VE in
Boeing VE Bytheway compliance
Program - invents with OMB C
1958 FAST –
A-131
Navy adds VE included
1968 – ‘69
Jerry
VE in ASPR for
Kaufman
incentive updates
Invents Concept – military Larry Boeing on
clause Larry Miles VE/FAST
Value = Function / procurements Miles
takes VE to - 1989
Cost dies.
Japan.

1947 1952 1955 1959 1962 1964 1969 1985 1988 1990 1993 Today
1970
VE a success, SAVE Army OMB
training of formed in Corps of First VE
OMB circular A-
employees and Wash. DC Engineers incentive
circular A- 131 passes
suppliers on Oct.22, begins VE clause
131 “Sunset
begins 1959 training published in
published Review”
Fed.
Register, requiring all
Boeing VE
GSA staffs Federal
Program Agencies to
for VE.
stopped -
use VE to
1968
identify and
reduce non-
essential
costs. 16
5/21/2009 Wixson Value Associates Inc.

FEDERAL DEPARTMENT OR AGENCY
DOLLARS SAVED BY VALUE ENGINEERING -- FY
95
Agency FY-95 VE Savings
Defense Department $734,385,000.00
Department of Transportation $686,373,874.00
General Services Administration $109,608,453.00
Army Corps of Engineers $59,554,000.00
Department of the Interior $22,427,840.00
Department of Agriculture $8,764,155.00
Justice Department $5,990,387.00
Veterans Affairs $2,270,800.00
Health & Human Services $1,884,464.00
Agency for International Development $800,000.00
State Department $91,721.00
TOTAL $1,632,150,694.00


SUMMARY OF PAST VE SAVINGS
Federal-Aid Highway Program

FY 2007 FY 2006 FY 2005 FY 2004 FY 2003
Number of VE Studies 316 251 300 324 309
Cost of VE Studies Plus Administrative Costs $12.54 Mil $8.15 Mil. $9.80 Mil. $7.67 Mil. $8.42 Mil
Estimated Construction Cost of Projects Studied $24.81 Bil $21.53 Bil. $31.58 Bil. $18.7 Bil. $20.48 Bil.
Total No. of Recommendations 2861 1924 2427 1794 1909
Total Value of Recommendations $4.60 Bil $3.06 Bil. $6.76 Bil. $3.04 Bil. $1.97 Bil.
No. of Approved Recommendations 1233 996 1077 793 794
Value of Approved Recommendations $1.97 Bil. $1.785 Bil. $3.187 Bil. $1.115 Bil. $1.110 Bil.
Return on Investment 157:01 219:01 325:01 145:01 132:01

Avg. project savings: 8%

http://www.fhwa.dot.gov/ve/index.cfm


Thought for the day:

When you always do what you have
always done - you always get what
you have always gotten.
Socrates


Who Casts the Biggest Shadow?
Influence
70%
20% 5%
5%

Overhead
30%
Labor
Material
15%
Design 50%
5% Product Cost

When to do Value Engineering?

5% Cost Expended 85% of Cost Committed

Percent of Life-Cycle
100
Cost Committed
90
95
80 85
Percent

70
70
60
50
40
30
30 Percent of Program
20 Cost Expended
Brief Window of Opportunity
10
5
0

Concept Preliminary Detail Production
Development Design Design

Product Development Phase

5/21/2009 Wixson Value Associates Inc.
42 21

When to do VE?
No engineering Document Revision
Change 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.
Engineering
&Production
Concept Design Production
Release


Definition and Scope
Lean Design Life Cycle Scope

Market Conceptual Program Test Delivery In-Service
Research Design Go-ahead Performance

Voice of MDTC/Design to Cost Value Analysis
the Customer

Phase 0 Value Engineering
Value Engineering

Design for Manufacturing & Assembly

Product Development Phase


Creating a Culture for Innovation
Innovation is not a solo sport despite all
the mythology. It requires a team using
a well structured work session.
“Innovation comes far more often from a
diverse team, freely exchanging ideas,
than it does from a solitary genius or an
insulated team with the occasional “aha”
moment along the way.” Jim McNerney


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


VE Task Team
Core Team
Support
Support

Support Support

Support Support

Core team consists of5 to 8 PARTICIPANTS
OPTIMAL


Definitions
Value Study - The overarching objective of a value study is to improve the value of
the project.
Job Plan – Provides the structure for the Value Study which is part of a three-stage
process which includes:
1. Pre-Workshop preparation
2. Value Workshop which applies the Six Phase Job Plan
3. Post-Workshop documentation and implementation
Value Methodology – Provides the process and structure that is used to apply the
Value Job Plan used in the Workshop.
Value Standard – Establishes the specific six-phase sequential Job Plan process
and outlines the objectives of each of those phases. It does not standardize the
specific activities that are used to accomplish each phase.
Value Engineering Study: A study used in the design phases of product
development to establish the functions, target costs, and preferred alternative(s) for a
new, or revised product.
Value Analysis Study: A study on an existing product used to improve product
performance, lower cost or improve reliability and maintainability.
Note: Value Engineering and Value Analysis are often used synonymously and are encompassed
by the term “Value Methodology.”
LDB/P: Lean Design Build Process – An VM study supported by DFMA and 3P.
DFM/A®: Design for Manufacturing and Assembly (DFMA is a registered trademark of Boothroyd Dewhurst Inc.)
3P: The Production Preparation and Planning process.


The Value Job Plan Concept
Systematic guide to ensure everyone is focused on
exactly what they are trying to do
Get knowledge
Develop understanding
Create ideas
Develop and sell innovations

Each phase involves different types of thinking
...each completed exhaustively before the next is begun
...otherwise they will slur back and forth and get little done


The VM Study Methodology
From the General to the Specific

Information & Function Creativity &
Development Implementation Phase
Analysis Phase Evaluation Phases
Phase 0: Identify Develop and Achieve
Get Knowledge / Create
Opportunity Sell Innovations Results
Dev. Understanding Ideas

DEVELOP

IMPLEMENT
PRESENT
PHASE

VERIFY
Generalized,
INVESTIGATE

SPECULATE

EVALUATE
vague
ANALYZE
SEARCH

SELECT

concepts or
problems

nt VM meets customer
Di rge needs by providing
v
Th erge n ve ing
the best value solution
ink nt
ing Co hink for the entire value stream
T
Detailed
CONCEPT PRODUCTION Design &
REQUIREMENTS/
DEVELOPMENT PREPARATION Implementation
OBJECTIVES/
FUNCTIONS
A series of divergent and convergent thought processes that provide a logical path to achieving a solution.

Study Job Plan
Study
Information Phase
• Data Collection & Analysis
• Issues
• Requirements
• System models

Creative Phase
Pre-Study • Create Quantity of Ideas by Function
Select Project Evaluation Phase
Define Problem/Opportunity • Rank and Rate Alternative Ideas Post-study
Establish Goals/Constraints • Select Ideas for Development
Determine Evaluation Metrics Validate Changes
Scope the Study Commit changes
Development Phase
Determine Team Implement Changes
• Conduct Benefit Analysis
Study Preparation Plan Monitor Status
• Complete Technical Data Package
• Create Implementation Plan
• Prepare Final Proposals

Presentation Phase
• Present Oral Report
• Obtain Commitments for Implementation


Pre-Study
Identify Project
Frame Project (Team pre-event option, 1 to 2 days)
Define Problem/Opportunity
Set Goals
Establish Proposal Metrics
Identify Perceived Constraints
Scope Project
Establish Study Team Structure
Develop Study Action Plan
Brief Executive Review Board (ERB) for Commitment

Event Preparation
Collect data
Event Logistics


PROFIT

COST
PROFIT

Product Performance Profile
PROFIT
COST COST

alue
Concerns/Expectations alue
Management
Displaying Attributes alue
Scaling Attributes
Management Management
A. Recurring Cost
H. Additional Imposed B. ROLT Attributes should be scaleable, rather than binary.
Requirements Cost
• Identify opportunities to shrink lead time from product introduction
Attributes 1 2 3 4 5 6 7 8 9 10
• Remove installation problems
• Surface supplier/contractor issues to drive down costs, lower A. Recurring Cost ($) +.4K Today * -1.5K -4.5K -6.9K
rejection rates that impact contractor quality impacts G. All Rejects C. Flow Time
16*
B. Re-order Lead Time 33wks 4
• Determine how contractor requirements impact the suppliers
• Win/win/win for contractor , supplier and Airlines C. Flow Time (mdays) 30* 15 3 1 0
• Gain a better perspective of the supplier F. Reliability D. Implementation Time D. Implementation Time 18 mo 6 4 2*
• Reduce rejection tags Score 408
PRODUCT Bleed Ducts E. Non-Recurring Exp. 20% 30% 50% *
• Reduce the flow time in the engineering & mfg. sides of the house Target 650 E. NRE
• Continue to meet certification requirements Attribute Cost ROLT Flow Time Impl NRE Reli abili ty Rejects Rqmts Total F. Reliability
A Weighting Factor 22 14 12 15 2 15 20 100
• System that does degrade over time - a robust system B Available Points 220 140 120 150 20 150 200 1000 G. All Rejects 5% 3% .003% 0
• Get the best product at the best price C Baseline Score (1-10) 3 5 1 10 10 6 *
D Baseline Score (Weighte d) 66 70 12 150 20 0 90 0 408
• Have good feelings about the contractual process with supplier E De lta (B - D) 154 70 108 0 0 0 60 200 592 H. Add. Reqmt’s Cost *-15% -34%
F Proposal Score (1-10)
• See VE be used throughout company - Expand VE opportunities G Proposal Score (Weighte d) 0 0 0 0 0 0 0 0 0 * Product Benchmark
H De lta (B - G) 220 140 120 150 20 0 150 200 1000
J. J. Kaufman Assoc, Inc.

PROFIT
PROFIT
COST PROFIT
COST
COST

alue Problem Definition alue
alue
Management
Weighting Attributes
Management Management

What is the problem (or opportunity) we are about to resolve? Attributes are prioritized and graded using a “Paired Comparison” processes.
The cost/price of the part does not the allow supplier to make an adequate profit
margin, contractor to meet product price objectives, and an acceptable cost - of-
B C D E F G H I J Attribute Score Weight
ownership for the airlines.
A A1 C1 A3 A2 0 G2 A3 A. Recurring Cost 9 22%
Why do you consider this a problem (or opportunity) ?
Producibility and design improvements will allow for less expensive parts. PRE- B B2 B2 B1
C C3 C1
0 G2 H3
0 G1 H3
B. Re-order Lead Time
C. Flow Time
6
5
14%
12%
Why do we believe a solution is necessary? -OR- D D3 0 D2 D1 D. Implementation Time 6 15%
(What is the consequence of not solving the problem?)
• Customers demand that contractor hold or reduce our costs.
STUDY E 0 G1 H1
F 0 0
E. Non-Recurring Exp.
F. Reliability
1
0
2%
0%
• Supplier may choose to not renew its contract after 3 years G H1 G. All Rejects 6 15%
• New supplier qualification costs. Weighting H. Add. Reqmt’s Cost 8 20%
H
• Supports contractor in meeting its business plan Factors I
• Retain a valuable supplier
1. Low J
• Boeing want to build a strong supplier base 2. Medium Total 41 100%
• Enable faster delivery of airplanes (reduce A/P flow time) 3. High

PROFIT
PROFIT
COST COST

alue Goals COST
PROFIT

alue Attribute Definitions
Management
alue
Constraints Management

Management
• Recurring Cost - Total manufacturing cost (material & labor) measured
• Unit cost reduction > 21% in $/unit
• Maintain or reduce cost-of-ownership TBD • Meet certification requirements • Re-order Lead time-ROLT - Total time from order receipt to on-dock
(to airlines-spares) delivery measured in M-days
• First article inspection test - September, 1998 (?) • Flow Time - Product received on dock from supplier until product is
consumed (installed in engine) M-days
• Reorder lead time <16 weeks • First delivery is January 1, 1999
• Implementation Time - (to install changes) Time to plan, make and qualify
(80 m-days) (parts built and delivered) engineering changes measured in calendar
• Target costs days
• All changes incorporated by 1 Jan 99 • Major interfaces and envelop must remain the same • Non-recurring costs - Total cost (contractor & supplier) to develop and
implement change measured in % of return in 1 year.
Form, fit, function - transparent
• All rejections - Number of part discrepancies for workmanship, quality,
• Point of use delivery of parts 100% • Engine interface loads fit, form, function issues. Measured in % of rejections per year .
• Additional Imposed Requirements Costs - The additional costs to
• Meet current operating envelope of engine manufacture the parts in accordance with the drawings measured in %
reduction.
• 100% radiographic inspection

The Processing of Information
FACT FINDING
• What do you need to know about the problem that
you don’t know now?
• What facts are known?
• Are these facts, opinions, assumptions, or
prejudices?
• Where, or how can information be obtained?

RECORD ALL INFORMATION
J. J. Kaufman Associates, Inc.


THREE KEY QUESTIONS
PROBLEM DEFINITION - TEAM BUILDING

1. What is the problem/opportunity we are
about to discuss?

2. Why do you consider this a problem, or
opportunity?

3. Why do you believe a solution is
necessary?


The Value Methodology
Value Method Value Method
Value Management is a methodology, …. a structured, step-by-step
PRE- procedure for solving Planning, Process, Business and Engineering
PRE-STUDY ORGANIZATION POST THE IMPLEMENTATION PHASE
STUDY problems and capturing opportunities. STUDY
It is not a tool. … It is made-up of a
• Brief Management Assure implementation of proposals
Set of tools that complement common initiatives.
• Select Project • Complete changes
The VM process takes multi-disciplined project representatives,
• Structure Team molds them into a high performance team, and quickly (1 to 3 • Implement changes

• Gather Information weeks) guides the team to the resolution of the project issues. • Monitor status
The Process is particularly applicable for both “small” projects, as • FOLLOW-UP
• Plan Workshop
well as resolving key issues within much larger projects.
• Confirm Commitment (The Society of American Value Engineers (SAVE) has recently change their name to SAVE Success is achieved after
International, The Value Society, and the name of the VA/VE Process to “Value Methodology” verification
rather than “Value Analysis/Value Engineering” due to emerging broader application of the
process. The term “Value Management” is being used when an organization employs the Value
Methodology for “Managing Value”.)

Value Method
THE VALUE METHODOLOGY
PRE- JOB PLAN THE PRESENTATION PHASE
THE INFORMATION PHASE POST
STUDY
STUDY
• Analyze Information • Package Proposals
• Define Problem
• Develop Sales Strategy
• Set Targets
• Assess Attributes SUCCESS • Plan Presentation
INFORMATION
• Identify Constraints PRESENTATION • Present Proposal
• Isolate Functions
• Develop FAST Model • CLOSE
• Dimension FAST Model
CREATIVE
DEVELOPMENT

EVALUATION

Value Method
THE CREATIVE PHASE THE DEVELOPMENT PHASE
THE EVALUATION PHASE
• Brainstorm Functions • Develop Potential Proposals
• Cluster Ideas
• Generate Ideas (not solutions) • Perform Benefit/Risk Analysis
• Identify Champions • Score Attributes
• Record Ideas
• Screen Ideas • Determine Pay-Back
• Avoid Roadblocks
• Rank and Select Ideas • Validate Assumptions
• Suspend Judgment
• Expand Surviving Ideas • Create Implementation Plan

Value Management presentation developed by W. Marlo Stebner in cooperation with J.J. Kaufman, Associates, Inc.

Value Engineering
Gather Value Engineering (VE) - is a
systematic activity used during
Information product development to reduce
costs without loss of product
Define the performance. The scope of value
engineering includes design cost
Function(s) reduction, process improvements
and supplier cost reductions
Brainstorm

Evaluate

Investigate

Recommend

Lean Design Methodologies
Core • Process Costing – ability to provide visibility & analysis of
Tools costs by business or manufacturing process

• Component Costing – frequently used with VE to determine
where cost drivers & CERs are within the design, manufacture
or assembly of a part(s)

• Feature to Function Costing – determines if a customer’s
features can be satisfied by the function(s) of a product and,
if so, is it within the customer’s price expectations

• Design for Manufacturability and Assembly (DFM/A) – strives
for the most effective process to make & assemble parts
• Benchmarking – comparative cost or process performance data
• Multiyear product/profit plan matrix – integrates data on revenues,
spending, & investment over a multiple year time period
• Cost Tables – sources of detailed cost information
• Value Engineering/Value Analysis (VE/VA) – organized efforts
directed at analyzing the functions of products, processes, & services
to achieve the lowest overall costs with no reduction in performance

• Quality Function Deployment (QFD)/ Voice of the Customer(VOC)
- ranked & rated customer & tech design rqmts. that can be measured
& controlled by the integrated product & process development team


TOOLS

DFMA

FAST

3P
QFD
VSM

TRIZ
Barriers

METHODOLOGY
Lean Design
w/VE

SUCCESS

The Value Methodology Process

Sponsor $ Opportunity
1 2 3 PROJECT
Team PLAN
Implementation
4
7
=
5
8
0
6
9
=
Event

Collect Identify Analyze & Prepare Present Approval &
Pre-Study Proposal
Information Alternatives Screen Proposals Funding
Plan
Brainstorm
How Why

J. J. Kaufman Associates,
Inc.


Cost vs. Performance

Cost
Tolerance
Zone Project Cost
C
O
Target Cost
S
T
Performance
Tolerance
Zone

Performance


Target Allocation Workshop
The IDEAL - Linkage to Customer Requirements

Voice of the Customer Approach
• Customer requirements

• Estimated cost distribution

• Correlation of requirements to components (QFD)

• Evaluation of Value Index

• Target setting to value

IPT’s need to focus cost reduction on “value matching”


Concept of Value

FUNCTION
VALUE =
COST


Concept of Value

Esteem + Exchange + Utility
Value =
Cost


Concepts of Value - Desirable
Ideal Good Acceptable Passable

Function Function
Value =
Cost
Cost


Concepts of Value - Undesirable

Undesirable but Passable
(cheapening the
product)

Function Function
Value =
Cost
Cost

Function Analysis
Function Analysis is the key to understanding
the problem.

The first step is to brainstorm all possible
functions of the product/process/system.

Next, build a FAST Model to help identify any
missing functions.


Fast Modeling


Benefits of Functional Thinking
The function analysis system technique process (FAST) helps
task teams plan projects, develop technical and business
processes and procedures, and modify organizations for leaner,
more effective performance.
FAST displays functionally what has to be done and identifies
dependent functions (how) and the reason for selecting those
functions (why).
Thinking functionally shifts paradigms and helps task teams
innovate by changing the way they normally think about solving
problems and capturing opportunities.
Two basic questions are at the heart of FAST
Why? and How?
If ask strategically they will open the door to a wealth of information
hidden under levels of assumptions and misinformation
Once learned, thinking and speaking functionally allows team
members to communicate with anyone, regardless of their
technical or professional background.

Synergism


FAST
A Logically Diagramed Function Relationship

FAST

FAST
FAST
FAST


Concepts of Function


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 Nouns
Transmit Signal
Irradiate Information
Project Data
Dissipate Heat
Generate Radiation
Convert Current
Receive Light
Reflect Image

FAST Diagramming
Function Analysis System Technique
Developed in 1964 by Charles W. Bytheway
Applies intuitive logic to test functions
Displays functions in a diagram or model form
Identifies dependence between functions
Creates common language for team
Tests validity of functions
No “correct” FAST model - team consensus


Function Analysis
Intuitive Logic
HOW WHY

FUNCTION FUNCTION FUNCTION

(GOAL) (METHOD)


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 Nouns
Transmit Signal
Irradiate Information
Project Data
Dissipate Heat
Generate Radiation
Convert Current
Receive Light
Reflect Image

FAST Diagramming
Function Analysis System Technique
Developed in 1964 by Charles W. Bytheway
Applies intuitive logic to test functions
Displays functions in a diagram or model form
Identifies dependence between functions
Creates common language for team
Tests validity of functions
No “correct” FAST model - team consensus


Basic FAST Model
HOW Minor Logic Path WHY
Objective Independent
WHEN

or (Support)
Specification Function
Major Logic Path
Concept
Objective Independent
or (Support)
Specification Function

Higher Dependent Lower
Basic Order
Order Function (Secondary)
Function Function (AND) (OR) Function

Concept
Activity
Left Scope Line
Right Scope Line
Scope of the Problem

RESPONSIBILITY/COST MATRIX

Symbol


FAST Example - Overhead Projector
HOW? WHY?
F.A.S.T MODEL
OVERHEAD PROJECTOR

FACILITATE
PORTABILITY
OBJECTIVES OR
SPECIFICATIONS
ALLOW
SAFETY
OUTPUT INPUT
(concept)

W CONVEY PROJECT GENERATE CONVERT RECEIVE TRANSMIT
Information IMAGE LIGHT ENERGY CURRENT CURRENT
H
E
GENERATE
N FOCUS (concept) HEAT
IMAGE

SUPPORT DISSIPATE
IMAGE HEAT

AMPLIFY
IMAGE GENERATE
NOISE


IMAGINATION
Imagination is more important than
knowledge, for knowledge is
limited, while imagination embraces
the entire world.
Albert Einstein


Lean Design and 3P Integration
Production Preparation
Lean Design = VE + DFMA
Process 3P
Robust requirements validation Flowing production with high
quality (Poke yoke) that is reliable
Functional analysis of product and predictable
Requirements and function Moonshine and rapid prototyping
linkage to components to validate product / production
Design to production/program design
attributes Simulation of to be fabrication and
Innovative and creative concepts assy processes
Less parts Product flow – Fishbone Diagram
Fewer steps in Mfg and Assy Right sized assets
Reduces design and mfg rework Equipment
Determine production processes Tooling
Design to enable takt time and People
poka-yoke Production paced to Takt Time
Lead time reduction Standard work and work in
process
Lead time reduction


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