[ Basics Concepts ]
[Additional Information] Responsible : Sergio Luis; Prof.
Henrique Rozenfeld
Send your comments or suggestions to
the resposible(s)
Source : BASSO, J.L.; COLENCI JR, A.; CSILLAG, J.M.
(See additional information)Historical context and concepts
The technique of Value Analyse / Value Engineering (VA/VE) is an organised effort to reach the excellent product, system or job value. It aims to promote the necessary functions for the minimum cost. Its sprouting there is a correlation with new materials research, considering lower cost and easier attainment, substituting the scarce materials resulted of the II World War. This research occurred in General Electric in U.S.A. and the VA/VE technique was legalised by Lawrence D. Miles in 1947.
The Value Analyse (VA) is used for existing products already, in production phase. The Value Engineering (VE) is used for designs and products in the development phase. Therefore, the VA/VE can be applied in all phases of the product cycle. Better results can be reached when the methodology is applied in new products in the introductory phase already. In this phase, the costs of implemented changes are smaller and the potential of results is very high.
Theoretical background
The background of the VA/VE is basically consolidated in four areas as described below:
The basic content for any application of the VA/VE technique involves three distinct stages: functions establishment, function evaluation for comparison, and development of alternatives aiming at value.
The value can be classified in; functional (related with performance), aesthetic (related with the saleable), and change (related with the two previous ones).
The function classifications can be; basic (with a specific purpose of the projected item), secondary (that support the basic action but that is not necessary, therefore, must be eliminated). The functions are, necessarily, evaluated by comparison. As a first step for the evaluation of functions, the component costs and functions must be related.
To carry out a VA/VE study we need to follow some criteria that enable the selecting of a viable product or operation, to apply this technique. These criteria involve such questions as:
Another aspect to be considered, in order to proceed with the VA/VE study, involves determining in which development phase the study should be applied.
The ideal would be 50% of efforts spent in EV, applied in the product design phase, 40% in the preparation to production phase and, finally, 10% in the production.
Procedure to carry out the VA/VE
A viable and consistent work plan is basic to execute the VA/VE technique. The following stages are part of the great majority of the existing work plans:
a) Orientation phase: aim, real desires of customer, desired features and properties, etc.
b) Information phase: to collect all data and information available, the functions must be established and defined, evaluation of each function using comparison.
c) Creative phase: to determine how the product or operation cost could be reduced for the evaluated value, through the elimination of unnecessary functions or substitution of some items or operations. In this phase, it is common to use brainstorming technique.
d) Analysis phase: the ideas are analysed and, for each one, an adjusted reply is written considering what is necessary for them to work. In this phase alternatives are also considered, for example; whether to buy or to make, process and material selection; and factors related with the production problems.
e) Program planning phase: when the work execution is planned. The suggestion is to divide the design into functional areas, facilitating the analysis by specialists. A programme for the activities must be made, considering the times and costs involved.
f) Program execution phase: the results are verified and consequently the program is realigned based on these results.
g) Final phase including conclusions and final report: the decision process is of vital importance. Some elements must be taken into account: the element of conflict, time, random and of strategy. The utilisation of techniques to make a decision, such as the "decision matrix", is recommendable. The final report is very important to document the study.
Final considerations
To implement the VA/VE ideas an infrastructure is necessary which will guarantee a lot of benefits for the company. Moreover, after its application a real and quantifiable benefit, with the cost reduction, is obtained. The areas where these benefits are easily verified are: material, process, normalised parts, number of components, weight, documentation cost, tool rack, total time between the order emission and the product deliver.
There is a great multiplicity of the existing work plans. The success is directly related with the motivation and incentive of people involved. One thing that should be pointed out is the difference between VA/VE and other costs reduction techniques. The VA/VE aims to identify and select the best method to lower costs, among a lot of methods, focusing on the satisfaction of functional necessities. VA/VE is not a simple idea that only generates low-cost results to reach a design requirement. Using a simple idea, aimed at reaching a design requirement, to generate results in lower costs does not necessarily mean that the VA/VE technique is being applied. Although this simple idea probably represents a better value, there is not a repetitive attempt to determine if this solution represents the best value, among a lot of alternatives, or if this design requirement, once satisfied, represents the real problem with the product.
BASSO, J. L. (1991). Engenharia e Análise do Valor. São Paulo: IMAM. ( Available in Library EESC - USP).
COLENCI JR, A. (1989). Análise e Engenharia de Valor. São Carlos. /Technical Report EESC-USP/. ( Available in Library EESC - USP ).
CSILLAG, J. M. (1991). Análise do Valor: metodologia do valor. 3.ed. São Paulo: Ed. Atlas. ( Available in Library EP - USP ).
Value Analysis and Function Analysis System Technique (1996) - DRM Associates. http://members.aol.com/drmassoc/va.html
SAVE International (1999). http://www.value-eng.com/
Value Analysis by Theodore C. Fowler (1994). http://mijuno.larc.nasa.gov/dfc/va.html
Value Engineering from the Perspective of Competitive Advantage by Edwin B. Dean (1997). http://mijuno.larc.nasa.gov/dfc/ve.html