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Value Engineering the Forgotten Lean Technique. University Of Idaho, Industrial Technology Program, PTTE434, J. R. Wixson, Instructor. Left click to advance slides. Overview . What is Value Engineering? How is VE Applied? When is it used? How can it enhance Lean & Six Sigma?

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Value engineering the forgotten lean technique

Value Engineering the Forgotten Lean Technique

University Of Idaho, Industrial Technology Program, PTTE434, J. R. Wixson, Instructor

Left click to advance slides


Overview
Overview

  • What is Value Engineering?

  • How is VE Applied?

  • When is it used?

  • How can it enhance Lean & Six Sigma?

  • What are the differences and similarities between VE, Lean and Six Sigma?

  • What is Function Analysis and FAST?


Lean and six sigma are not enough
Lean and Six Sigma Are Not Enough

  • Historical focus on touch labor and variable overhead ignores the largest piece of the pie.

  • Sourcing programs fall short

  • Material cost is embedded in the product design


Value engineering the forgotten lean technique1
Value Engineering the Forgotten Lean Technique

Don't look now, but an old discipline (value analysis/value engineering) is on the comeback trail. Originally called merely VA by its inventor, Larry Miles, an engineer in GE's purchasing operation in 1947, VA/VE uses a value equation that says value is equal to function divided by cost. If, for example, the buyer wants to get more item value, he/she needs to either increase the item's functionality at the same time he/she is containing cost; or he/she needs to reduce cost while holding or improving its functionality. Either way, the result is more value for the customer (Excerpt from Purchasing Magazine - "Value Analysis makes a comeback," Jim Morgan, November 20, 2003.").


Value engineering the forgotten lean technique2
Value Engineering the Forgotten Lean Technique

Value Engineering is truly the "Forgotten Lean Technique." However, over 50 years later, it has gained recognition in private industry and governmental agencies as an indispensable tool for cost reduction, improved product development and product re-engineering. It is also used to improve organizational performance and cost effectiveness as well. The heart of VA/VE is function analysis and "Function Analysis Systems Technique" that sets it apart from other lean methodologies by opening the door to creative problem solving that capitalizes on an interdisciplinary teams creative juices to arrive at truly value added, cost effective solutions to problems ranging from design problems, quality and reliability problems, to organizational problems resulting in increased value and performance for the customer and the organization.


Value engineering the forgotten lean tool
Value Engineering the Forgotten Lean Tool

  • Value Engineering (VE) is an intensive, interdisciplinary problem solving activity that focuses on improving the value of the functions that are required to accomplish the goal, or objective of any product, process, service, or organization.

  • VALUE METHODOLOGY“The systematic application of recognized techniques which identify the functions of the product or service, establish the worth of those functions, and provide the necessary functions to meet the required performance at the lowest overall cost.”

    John M. Bryant, VM Standard, Society of American Value Engineers, Oct. 1998


Concept of value

FUNCTION

VALUE =

COST

Concept of Value


Ve timeline

VE adopted by NASA ofc of facilities.

Larry Miles takes VE to Japan.

1947

1952

1955

1959

1962

1964

1969

1985

1988

1990

1993

Today

1970

OMB circular A-131 published requiring all Federal Agencies to use VE to identify and reduce non-essential costs.

OMB circular A-131 passes “Sunset Review”

VE Timeline

Larry Miles assigned to cost reduction at GE

Navy adds VE incentive clause

VE included in ASPR for military procurements

DOE Order 4010.1

Larry Miles dies.

VE a success, training of employees and suppliers begins

SAVE formed in Wash. DC on Oct.22, 1959

Army Corps of Engineers begins VE training

First VE incentive clause published in Fed. Register, GSA staffs for VE.

Charles Bytheway invents FAST Modeling


Video the principles of value analysis value engineering
Video - The Principles of Value Analysis/Value Engineering

Click here to view video(Note: For the Fall 2007 class, please contact instructor for new link)


When is ve used
When is VE used

  • Value Engineering is used to determine the best design alternatives for Projects, Processes, Products, or Services

  • Value Engineering is used to reduce cost on existing Projects, Processes, Products, or Services.

  • Value Engineering is used to improve quality, increase reliability and availability, and customer satisfaction .

  • Value Engineering is also used to improve organizational performance.

  • Value Engineering is a powerful tool used to identify problemsanddevelop recommended solutions.


Some thoughts on lean
Some Thoughts on Lean

  • The cause of poor performance is wasteful activity. Lean is a time-based strategy and uses a narrow definition of waste (non-value-adding work) as any task or activity that does not produce value from the perspective of the end customer. [1]Increased competitive advantage comes from assuring every task is focused on rapid transformation of raw materials into finished product.

    [1] James P. Womack, Daniel T. Jones. "Lean Thinking," Simon & Schuster; 1st edition (1996)


Lean strengths
Lean Strengths

  • Provides a strategic approach to integrated improvements through value stream mapping and the focus on maximizing the value-adding-to-waste ratio.

  • Directly promotes and advocates radical breakthrough innovation.

  • Emphasis on fast response to obvious opportunities. (just go do it)

  • Addresses workplace culture and resistance to change through direct team involvement at all levels of the organization.

Stephen W. Thompson - Lean, TOC or Six Sigma: Which tune should a company dance to?, Lean Directions, Society of Manufacturing Engineers, Aug. 11, 2003


Lean weaknesses
Lean Weaknesses

  • May promote risk taking without reasonable balance to consequence.

  • May not provide sufficient evidence of business benefit for traditional management accounting.

  • Has a limitation when dealing with complex interactive and recurring problems (uses trial and error problem solving).

Stephen W. Thompson - Lean, TOC or Six Sigma: Which tune should a company dance to?, Lean Directions, Society of Manufacturing Engineers, Aug. 11, 2003


Some thoughts on 6 s
Some Thoughts on 6s

Six sigma:The cause of poor performance is variation in process and product quality. Random variations result in inefficient operations causing dissatisfaction of customers from unreliable products and services. [2]Increased competitive advantage comes from stable and predictable process allowing increased yields, improved forecasting and reliable product performance.

[2]George Eckes. "General Electric's Six Sigma Revolution: How General Electric and Others Turned Process Into Profits," John Wiley & Sons; 1 edition (2000)


6 s strengths
6s Strengths

  • The rigor and discipline of the statistical approach resolves complex problems that cannot be solved by simple intuition or trial and error.

  • The data gathering provides strong business cases to get management support for resources.

  • The focus on reduction of variation drives down risk and improves predictability.

Stephen W. Thompson - Lean, TOC or Six Sigma: Which tune should a company dance to?, Lean Directions, Society of Manufacturing Engineers, Aug. 11, 2003


6 s weaknesses
6s Weaknesses

  • Statistical methods are not well suited for analysis of systems integration problems. (sigma can be calculated for a product specification, but how is sigma established for process interactions and faults.

  • The heavy reliance on statistical methods by its very nature is reactive, as it requires a repetition of the process to develop trends and confidence levels.

  • The strong focus on stable processes can lead to total risk aversion and may penalize innovative approaches that by their nature will be unstable and variable.

Stephen W. Thompson - Lean, TOC or Six Sigma: Which tune should a company dance to?, Lean Directions, Society of Manufacturing Engineers, Aug. 11, 2003


Some thoughts on ve
Some Thoughts on VE

  • VE uses a interdisciplinary approach to problem solving.

  • VE takes a systems approach to problem identification and problem solving.

  • VE uses function analysis to improve communication among team members

  • The function analysis systems technique (FAST) promotes a synergistic approach to problem solving that develops solutions far beyond that which only an individual could produce.


Value engineering strengths
Value Engineering Strengths

  • VE relies on a rigorous interdisciplinary approach to problem solving.

  • VE uses a systems approach to problem identification and solution.

  • VE is function oriented and promotes a “clean-sheet” approach that supports innovative solutions.

  • Creativity is a key component to the VE problem solving activities that promotes “breakthrough thinking.”

  • VE uses a structured “job plan” that promotes consistency in application and helps assure results.

  • Increased competitive advantage comes from the identification of innovative ways to accomplish key functions at a lower cost with improved quality and reliability.


Ve s weaknesses
VE’s Weaknesses

  • Successful VE results are dependent on the quality of information brought to the VE workshop for evaluation.

  • Many times, VE is used too late in the product development cycle to impact the design, and when changes would be too costly to implement.

  • There are many misunderstandings and biases against VE that have been built up over time due to misuse of the methodology.

    • “It cheapens the product without improving it.”

    • “I’m an engineer. We do VE all the time.”

    • “VE is only used for cost reduction.”


Ve weaknesses addressed by lean six sigma
VE Weaknesses Addressed by Lean Six Sigma

  • VE weaknesses are addressed by Lean Six Sigma

  • Six sigma can provide the statistical evaluation necessary to support VE solutions.

  • Lean can provide Value Stream information that can lead to improved quality and throughput.

  • In combination with VE, Lean and Six Sigma provide a suite of tools that can lead to superior value through innovative solutions to problems in design, quality, and productivity.


Comparing ve to lean
Comparing VE to Lean

  • VE is not limited to areas of high volume or high dollar value (e.g., aircraft).

  • VE can be used by organizations with great effect in a variety of situations, including VE analysis of product/item design, packaging, industrial and logistical processes, and other areas of high cost.

  • Lean principles and practices offer no direct method of addressing product design.

  • Up to 80% of a product’s final cost could set at the time of concept approval. This leaves Lean with only 20% of vehicle cost available for Lean to improve.


Comparing ve to lean cont d
Comparing VE to Lean (Cont’d)

  • Lean is a strategic decision, while organizations can choose to use VE successfully and effectively in a tactical manner.

  • VE can work well as an isolated study event – it does not require the encompassing and pervasive level of support that an effective Lean effort requires.

  • Lean will reduce waste over time. VE, on the other hand, will find and fix wasteful effort very quickly, but it will generally (not necessarily) do so on an episodic basis, not a continuous or systematic basis.

  • VE’s value approach and tools help teams focus on the high payoff areas first and will generate larger savings sooner than you might otherwise get in Lean.


Lean and ve similarities
Lean and VE Similarities

  • Both VE and Lean rely extensively on transforming operations into alternative forms of visual information.

  • In Lean, a Kaizen team will consider using a variety of visual analytical tools to identify waste.

  • Spaghetti diagrams, flow diagrams, bar charts, standard work sheets, and production control boards, are all part of the Lean analytical lexicon.

  • VE uses function analysis and FAST diagramming to describe the functional relationship of the product, process, or service and identify functions where the team should focus on improving value.

  • Creating by function is the high-octane fuel generating VE performance and success.


Formula for superior continuous improvement
Formula for Superior Continuous Improvement

(CI)3=

Lean

Six Sigma

x

x

Value Engineering


Six sigma process click here

End

SixSigma Process - Click Here

  • A) Identify what the customer wants.

  • B) Organize an improvement team.

  • C) Create a process flow chart - (SIPOC)

Define the Problem

  • A) Select “Critical to Quality Characteristic” metrics.

  • B) Define Performance Standards.

  • C) Validate the measurement System.

  • D) Establish baseline performance in terms of Sigma Capability - Defects per Million Opportunities.

Measure

  • A) Identify significant characteristics and establish process capability.

  • B) Define performance targets for significant characteristics.

  • C) Identify root cause of process variation.

Analyze

  • A) Identify and evaluate potential solutions.

  • B) Implement short-term countermeasures.

  • C) Implement long term corrective actions.

  • D) Identify systemic indirect effects and unintended consequences of improvement ideas.

  • E) Establish operating tolerances for new process.

Improve

  • A) Verify corrective actions and validate new measurement systems.

  • B) Determine process capability.

  • C) Establish and implement control plan.

Control

  • Move on to next highest priority process.


Value engineering value analysis why is it important
Value Engineering/Value Analysis - Why is it important?

  • Last 3 years (FY2000 – 2003), 2.7 million manufacturing jobs left the U.S.

  • The U.S. is loosing the battle to foreign competition.

  • Labor costs $12 to $30 per hour in U.S., less than $1 elsewhere.

  • Fewer and fewer people will be required to produce the world’s goods.

  • Lean and Six Sigma alone are not enough!


Competitive advantage

Function

Cost

Competitive Advantage

  • Quality is defined as “conformance to specification.”

  • Value is defined as:

  • You can’t have one without the other!

  • Competitive Advantage = Quality + Value


Six step value engineering job plan
Six Step Value Engineering Job Plan

  • Clearly identify the problem(s) to be solved, and gather information on the background, functions and requirements of the product, process, or system.

Information Phase

  • Brainstorm ideas on how to improve the high cost, broken, or inadequately performed key functions.

Creativity Phase

  • Screen ideas for acceptance, score remaining ideas on a scale and group ideas into categories. Develop design scenarios, and selection criteria. Rate and rank ideas.

Evaluation Phase

  • Plan how to sell ideas to management, identify key recommendations, plan management presentation.

Planning Phase

  • Give oral presentation to management, or develop written report.

Reporting Phase

  • Get management approval for go-ahead, make management plan, make assignments, implement, follow-up.

Implementation Phase


Mapping ve to 6

6s

VA/VE

Define the Problem

Information Phase

Measure

Creativity Phase

Evaluation Phase

Analyze

Planning Phase

Improve

Reporting Phase

Implementation Phase

Control

Mapping VE to 6

  • Value-based decision process

  • Value-based decision process

  • Uses statistical approach

  • Uses functional approach

  • Follows a very structured, organized plan

  • Follows a very structured, organized plan

  • Focus on maximum possible solution based on creativity techniques.

  • Focus on maximum possible solution based on analytical optimization techniques.

Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA


6s

s Level

5s

4s

3s

2s

0%

20%

60%

40%

80%

100%

% Usage

Basic Tools Statistical Tools Design for 6s and Innovation w/VE

Application of 6s Tools

Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA


VE Job Plan with 6s

Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA


How and when is value engineering applied

Interdisciplinary Team

Formal Job Plan

Trained Facilitators

Function Analysis/FAST

Documentation

Problem Solving/Decision Analysis

Strategic Planning

New Product Development

Re-engineering efforts

How and When is Value Engineering Applied?

How

When


Potential savings from ve

No engineering

Change Revision

Document 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 Release

Concept

Design

Production

Potential Savings from VE


Why use value engineering
Why use Value Engineering?

Save

Time

Money

Save

Teamwork

Build

Quality

Improve

Satisfy

Customer


Federal department or agency dollars savad by value engineering fy 95
FEDERAL DEPARTMENT OR AGENCYDOLLARS SAVAD BY VALUE ENGINEERING -- FY 95


SUMMARY OF PAST VE SAVINGSFederal-Aid Highway Program

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



Sacred cow
Sacred Cow

A non-functional constraint or perceived restriction

SACRED COWS MAKE GREAT STEAKS


Ve task team quality process improvement team

Core Team

Support

Support

Support

Support

Support

Support

5 to 8 PARTICIPANTS

OPTIMAL

VE Task Team/Quality Process Improvement Team


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

The Synergistic Effect of Value Analysis/Value Engineering


Concepts of value desirable

Function

Function

Value =

Cost

Cost

Concepts of Value - Desirable

Passable

Ideal

Good

Acceptable


Concepts of value undesirable

Function

Function

Value =

Cost

Cost

Concepts of Value - Undesirable

Undesirable but Passable

(cheapening the product)



Fact finding
Fact Finding

  • What do you need to know about the problem that you don’t know now?

    • What facts are known?

    • What are the requirements of the system?

    • Are these facts, opinions, assumptions, or prejudices?

  • Where or how can information be obtained?


  • Function analysis
    Function Analysis

    • Function Analysis is the key to understanding the problem.

    • Start with defining the mission of the product, process, service, or organization.

    • Then, brainstorm all possible functions necessary to accomplish the mission.

    • Next, build a FAST Model to help identify any missing functions and show dependencies.


    Function analysis1
    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

    Transmit

    Irradiate

    Project

    Dissipate

    Generate

    Convert

    Receive

    Reflect

    Provide (passive!)

    Nouns

    Signal

    Information

    Data

    Heat

    Radiation

    Current

    Light

    Image


    The technical fast model

    HOW?

    WHY?

    INDEPENDENT FUNCTION (SUPPORTING)

    DEPENDENT FUNCTION

    OBJECTIVES OR SPECIFICATIONS

    MINOR CRITICAL PATH

    INDEPENDENT FUNCTION

    INPUT

    B

    OUTPUT

    (concept)

    MISSION, OBJECTIVE, OR HIGHER ORDER FUNCTION

    LOWEST ORDER FUNCTION

    D

    E

    BASIC FUNCTION

    DEPENDENT FUNCTION

    A

    (AND)

    (concept)

    C

    ACTIVITY 1

    ACTIVITY

    2

    WHEN

    MAJOR CRITICAL PATH

    SCOPE OF THE PROBLEM UNDER STUDY

    LOWER ORDER FUNCTIONS

    HIGHER ORDER FUNCTIONS

    The Technical FAST Model


    Fast example overhead projector

    HOW?

    WHY?

    FACILITATE PORTABILITY

    ALLOW SAFETY

    (concept)

    WHEN

    GENERATE HEAT

    FOCUS IMAGE

    (concept)

    DISSIPATE HEAT

    SUPPORT IMAGE

    GENERATE NOISE

    AMPLIFY IMAGE

    OBJECTIVES OR SPECIFICATIONS

    FAST Example - Overhead Projector

    F.A.S.T MODEL

    OVERHEAD PROJECTOR

    OUTPUT

    INPUT

    CONVEY Information

    PROJECT IMAGE

    GENERATE LIGHT

    CONVERT ENERGY

    RECEIVE CURRENT

    TRANSMIT CURRENT





    Other tools that can work with ve
    Other tools that can work with VE

    • Activity Based Costing (ABC)

    • Cost Function Matrix

    • Failure Modes and Effects Analysis (FMEA)

    • Risk Analysis Tools

    • Other traditional quality tools such as pareto analysis, ishakawa diagrams, scatter diagrams, etc.

      Function analysis is the key to understanding the system and what it does. Function analysis enables you to analyze the problem from a system perspective.


    Cost function matrix
    Cost/Function Matrix

    • Position critical path functions on the top of the matrix.

    • Use costed activities that relate to the functions.

    • Allocate cost to each function.



    Creativity definition
    CREATIVITY DEFINITION

    Creativity is the art of bringing something new into existence.

    It has the art of making, inventing, or producing something new and different.


    Creativity innovation relationship
    CREATIVITY & INNOVATION RELATIONSHIP

    You must blast before you can create. Blow apart the misconceptions, skeptics, and naysayers. Blow-up the preconceived ideas and common theories of how things should be done. Rather, focus on possibilities.

    J. R. Wixson - 2004


    Imagination
    IMAGINATION

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

    • Albert Einstein


    Thought for the day
    Thought for the day:

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

    • Socrates


    Idea vs solution
    IDEA vs. SOLUTION

    • A solution requires justification & validation, and idea needs no justification.

    • A solution is an end point, an idea is just the beginning.

    • A solution is solid and self supporting, an idea is tender and must be built upon.

    DON’T KILL IDEAS WITH

    ROADBLOCKS!!


    Problem solving
    PROBLEM SOLVING

    An organized effort for developing

    UNIQUE and RELEVANT

    resolutions for opportunities

    or

    undesirable situations


    Creative and judicial ability development

    Predominately creative

    Predominately judicial

    0

    1 2 5 6

    17 24

    Creative and Judicial Ability Development

    Age





    C

    K

    S

    B

    O

    L

    • FEAR of making mistakes

    • FEAR of the risk of pioneering

    • Latching onto the first idea

    • Desire to conform . . . To “belong”

    • Belief that fantasizing . . . (imagining) . . . Is a waste of time, and childish

    • Difficulty in defining the problem

    • Inflexibility

    • The erroneous belief, “I am not a creative person”

    To Creative Thinking and Action


    Information for skeptics
    INFORMATION FOR SKEPTICS

    • What is believed to be "common knowledge" is NOT ALWAYS truly "correct" in the long run.

    • Consider the following quotes denying the existence of, or impact of, innovations and discoveries of their time.


    INFORMATION FOR SKEPTICS

    • INNOVATION

      • "... after a few more flashes in the pan, we shall hear very little more of Edison or his electric lamp. Every claim he makes has been tested and proved impracticable."

        [New York Times, January 16, 1880]

    • AEROSPACE

      • “Professor Goddard ... does not know the relation of action to reaction ... he only seems to lack the knowledge ladled out daily in our high schools"

        [New York Times, January 13, 1920]

      • "Heavier-than-air flying machines are impossible."

        [Lord Kelvin, president, Royal Society, 1895]

      • "Airplanes are interesting toys but of no military value."

        [Marechal Ferdinand Foch, Professor of Strategy, Ecole Superieure de Guerre]


    COMPUTATIONAL SYSTEMS

    "I think there is a world market for maybe five computers."

    [Thomas Watson, chairman IBM, 1943]

    "There is no reason anyone would want a computer in their home."

    [Ken Olson, Chairman and founder Digital Equipment Corp., 1977]

    "640K ought to be enough for anybody."

    [Bill Gates, 1981]


    ENERGY

    "Fooling around with alternating current is just a waste of time.

    Nobody will use it, ever." [Thomas Edison, 1889]

    "There is not the slightest indication that nuclear energy will ever be obtainable. It would mean that the atom would have to be shattered at will."

    [Albert Einstein, 1932]

    "The energy produced by the atom is a very poor kind of thing. Anyone who expects a source of power from the transformation of these atoms is talking Moonshine."

    [Ernst Rutherford, 1933]


    MUSIC

    "We don't like their sound, and guitar music is on the way out."

    [Decca Recording Co. turning down the Beatles, 1962]

    ASTRONOMY

    "I would sooner believe that two Yankee professors lied, than that stones fell from the sky"

    [Thomas Jefferson, on hearing the report of a meteorite fall]


    MEDICINE

    "Louis Pasteur's theory of germs is ridiculous fiction."

    [Pierre Pachet, Professor of Physiology at Toulouse, 1872]


    Creativity techniques
    CREATIVITY TECHNIQUES

    • Brainstorming

    • Synectics

    • Morphological Analysis

    • Force Fit/Forced Relationships

    • Brainwriting


    Creativity techniques continued
    CREATIVITY TECHNIQUES (continued)

    • Visualization/Visual Brainstorming

    • Listing

    • Lateral Thinking

    • Divergent Thinking

    • For more information on creativity, clickhere.


    Rules for brainstorming
    Rules for Brainstorming

    • Generate a large number of ideas - quantity, not quality.

    • Free-wheeling is encouraged - Listen and improve on the ideas of others.

    • Don’t criticize - No evaluation of ideas

    • Encourage everyone to participate

    • Record all ideas presented

    • Time to let ideas “incubate” should be allowed.

    • Select an appropriate meeting place


    Brainstorming concept

    Best Solutions - combination of ideas

    100 +

    75 - 80

    Off - the - wall ideas

    15 - 20

    Traditional Answers

    Brainstorming Concept

    QUANTITY

    TIME



    Evaluation phase idea screening

    1 st

    2 nd

    3 rd

    4 th

    5 th

    Evaluation Phase - Idea Screening

    GO, NO-GO

    CHAMPION

    GFI (Killer Trade)

    FORMAL TRADE-OFF STUDY (NGT, PAIRWISE COMPARISON, ETC.) MOCKUP AND PROTO TYPES IF NECESSARY

    CUSTOMER ACCEPTANCE


    Evaluating ideas
    Evaluating Ideas

    • GO - NO GO

      • Scratch ideas that hold no interest.

    • CHAMPION

      • Who will speak for the ideas and support them?

    • GFI

      • Discuss pro/con and vote. GFI is team average.

      • Combine ideas; add new ideas.

      • Record all assumptions when voting.


    Evaluating ideas1
    Evaluating Ideas

    • Trade Study

      • Quantify performance characteristics.

      • Select top candidates using NGT, Pair-wise Comparison, etc.

      • Could use software such as Expert Choice®, or Criterium Decision Plus®

      • Record all assumptions when voting.

    • Customer Acceptance

      • Determine & quantify customer acceptance criteria.

      • Rate surviving ideas against norm & risk.

      • Develop proposal scenarios.




    Planning and reporting phases
    Planning and Reporting Phases

    Left Click to advance to next slide


    The planning reporting phases
    The Planning & Reporting Phases

    Planning

    • What is recommended?

    • Who has to approve it?

    • What is the implementation plan?

    • Are mockups or prototypes required to verify final decisions?

    • What are the cost, schedule, and deliverables?

    • ROI?


    Action plan guidelines
    ACTION PLAN GUIDELINES

    • “What needs to be done?”

      • Identify the actions needed to “solidify” the proposals.

    • “Who should be assigned the action?”

      • Assign a team member.

      • Assign a completion date for the action.

    • “When should the task be completed?”

      • Plan regular team status meetings.

      • Anticipate 4-6 weeks to complete the actions.



    Implementation planning
    Implementation Planning

    • Ideas must be planned and managed to ensure implementation.

    • Proposed actions should be managed like a project with specific end products, defined start and end dates, and funding limits.


    The planning reporting phase
    The Planning & Reporting Phase

    Reporting

    • Give oral presentation.

    • Support it with written executive brief.

    • Be clear, concise, and positive.

    • Anticipate roadblocks

    • Use good human relations.


    Ve workshop follow up activities
    Ve Workshop Follow-up Activities

    • Recognize the participants.

    • Publicize the results.

    • Audit the performance of the implemented actions.

    • Close out the project.


    Lean six sigma and ve synergy final thoughts
    Lean, Six Sigma and VE Synergy Final Thoughts

    • VE is a powerful design methodology that harnesses existing organizational creativity and knowledge resulting in superior innovative products with unique customer benefits

    • Together, Lean, Six Sigma, and VE Increase customer value by optimizing costs, quality and delivery.

    • Lean dramatically reduces time to market execution.

    Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA


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