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Value Methodology?
 

 

The benefits of Value Methodology include: 

bullet Solving economic, technical, and/or organizational problems
bullet Decreasing costs
bullet Bettering product or technical quality and design
bullet Saving time
bullet Improving resource use and allocation
bullet Increasing profits

 

Definitions:

“Value has been defined as a ratio between ‘Quality & Cost’, ‘Performance & Resources’, ‘Satisfaction of needs & Use of resources’ and ‘Benefits & Investment’. All those ratios and others are acceptable, as long as, on one side lies the satisfaction of an explicit or implicit need - and on the other, the resources invested to achieve it.”

Value Management (VM) consists of the combined application of value methodologies (no acronym) and other methodologies at organizational level (from strategic to operational) in order to improve organizational effectiveness.  It is a management approach.”

Value Analysis (VA) and Value Engineering (VE) are specific value methodologies aimed at improving existing products or developing new products.  Products can include both goods and services.”

“Value methodologies include all processes, tools and techniques derived from the work of Lawrence Miles.  They specifically include the concept of functions and function analysis (and its derivatives), the concept of cross-functional teamwork and the concept of a structured process based on creative thinking (alternative lateral and vertical thinking, or creativity/evaluation). 

There are a number of specific methodologies that have been developed worldwide on the basis of these, including, but not limited to: FAST Diagramming (US and Canada), 40 hour workshop with job plan (US & Canada), Split workshops (UK), Function Tree (Europe & Canada), Function Cost (US & Europe), Functional Performance Specification (France, Canada & Europe), Soft VM (Australia, UK). etc.”

Applications:

The use of a Value Methodology can allow organizations to control or reduce the cost of a project while maintaining the quality of that project.  Application of a Value Methodology can typically result in savings of 20-30 percent in operations, maintenance, manufacturing, or construction.

 A Value Methodology is developed through a value study.  The approach to a study involves bringing together and unifying a multidisciplinary team of knowledgeable, qualified people who are intimately familiar with the problem and have the expertise to develop solutions to it.  The team is tasked with brainstorming ideas that will achieve reasonable, cost-effective, and technically feasible alternatives to the design or problem.

The timing of the study is critical to achieving the best success.  The best time for conducting a study for manufacturing/transportation/engineering projects is during the preliminary design stage, generally when the project is 20-30 percent along toward completion.

 A typical value study job plan has seven phases: 

bullet Information – Collect all pertinent data available about the project’s background requirements and costs.
bulletFunction Analysis - Analyze the project with Function Analysis (the heart of value analysis)
bullet Creative – The Study Team selects specific functions for further analysis on the basis of cost and potential for improvement.
bullet Evaluation – Analyses are performed by first passing or failing the brainstormed ideas, then combining or grouping similar ideas.
bulletDevelopment - Further develop an idea and determine whether it is technically and economically feasible, especially on a life-cycle cost basis.
bulletPresentation – All ideas, calculations, and cost analyses recorded during the VE process are compiled to present the results of the study to the key decision-makers.
bullet Implementation – Accepted proposals are incorporated into the project and actual savings are recorded.

                                                   

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Last modified: 05/23/06