Combine ideas, as appropri- ate. Develop variations to specific alternatives that have multiple approaches. Estimate the costs of the best alternatives. Provide as much technical infor- mation on the alternatives as practical in the VA workshop, so the design profes- sional, at the conclusion of the workshop, can make an initial assessment concern- ing their technical feasibility and applicability to the design. Support each alternative with: 1. Written descriptions of the original concept and the proposed alterna- tive.
Sketches of original design and proposed alternative. Technical backup, including but not limited to calculations, catalogue cuts and vendor information. Advantages and disadvantages of the alternative. Discussion of the alternative to clearly communicate the idea to the reviewer, including information about implementation, for example, cost, schedule, potential conflicts.
Cost information, including initial and life cycle cost estimates, as ap- propriate, which clearly display the differences between the original design costs and the alternative's costs.
Present, as design comments, alternatives that are not accompanied by cost data, due to a lack of time or information. Presentation Phase Communication is essential to the success of a VA effort. At a minimum, pre- sent the alternatives with supporting documentation and potential cost savings. Establish a specific date for submittal of the report so implementation begins without delay.
Report the following information: 1. Project objectives 2. Project description Copyright by Marcel Dekker, Inc.
Scope of analysis 4. VA procedure 5. The implementation method varies on every project. The design professional documents the reasons why specific alternatives have not been implemented. In all cases, the design professional is responsible for determining the tech- nical feasibility of an alternative.
Each alternative must be independently de- signed and confirmed before its implementation into the project design. Pre-Study Work Plan As part of the pre-study work plan the team leader would prepare an agenda a typical agenda a team may use during the MVO study is shown in Chap. It is good practice to set up an agenda of the work plan for each study.
The specific project, process, program, product, system, or technique would be determined for the team to study. Team members should be selected and assignments outlined before the study begins. Selection of project specific materials to be studied by the team should be gathered and distributed to the team members before the beginning of the study.
Major areas of study focus should be determined. The major functions should be determined as well as any constraints that would affect areas of the study. Make sure the owner, VE team, and consultant designer understand the VE process being undertaken and the expected timeframe for results LOCATION It is best for the team to conduct their study as close to the item being studied as possible. Other locations can be used but if held near the location under study then the team could get answers to many questions that arise during their study.
Recruiting a team is like drafting key players for a professional sport. Members are selected based on: Copyright by Marcel Dekker, Inc. In addition to the traits listed, the team member should also be able to wear several hats during the VE study. The four team stages are: 1. Form test the nature of the situation 2. Storm engage in conflict, demonstrate polarized opinions 3. Norm develop group cohesion 4. Perform structured activities leading to solutions You can see that this team flow can be used to accomplish the five-step VE job plan: 1.
Information form 2. Function storm 3. Creative storm 4. Development norm and perform 5. Goals should be obtainable, specific, challenging, and committed to by the individuals. Feedback should be given for attainment of intermediate and overall goals.
Goal setting combined with on-going feedback and appropriate incentives can be effective in increasing the motivation to perform well. Appropriate incen- tives vary from meeting challenges to convincing the client of a better way. Another motivating factor is the ability of the team leader to bring available resources to the study that enables their goals to be met.
As the study progresses, the team leader is able to give valid feedback based upon the measurement of at- taining goals set for each phase. Specific feedback can be a motivator. Such as, "Mr. X, you did a good job in the presentation to the client today. Sometimes it is unavoidable. Conflict may seem negative but can be beneficial in a team setting. It can promote genuine contact so that you deal with one another's feelings It can increase cohesiveness It can increase productivity It can lead to a real consensus It can lead to team growth It can lead to critical issue identification on the project It can lead to action initiation It can get problems resolved It can promote personal growth It allows opportunities nothing ventured nothing gained It can lead to professional recognition since this team can effectively manage difficult situations Copyright by Marcel Dekker, Inc.
During information gathering the team will confront many cost modeling pitfalls and the team will need to verify the cost estimate given for them to study. Use the information from the instructor's handout and sketch for the project and develop a cost model for the project broken down by major function area, i.
After each cost model has been prepared determine the parametric costs Copyright by Marcel Dekker, Inc. As needed, confirm the quantities for the function areas. The following value engineering terms are commonly used. When unsatisfactory value is discov- ered, the value engineering job plan can be used. The job plan involves these phases: PRE-WORKSHOP Before the workshop begins, a foundation is established to instill good human relations, teamwork, and management support so that an effective interaction can take place and work focuses on the specific study at hand.
For some agencies this approach is being used on over projects each Copyright by Marcel Dekker, Inc. This approach both in preparations for and during the workshop allows suf- ficient time to maintain a quick turnaround time for the project study and the sub- mittal of a MVO report.
It takes advantage of the own- ers' and users' past experiences and urges their full involvement in the analysis of the project. Communication and coordination of the MVO effort are vital aspects of the study's success. The aim is to supplement the project team's work in order to arrive at a better end product.
Because the study is an abbreviated effort, the MVO consultant must be- come familiar with the project in a short timeframe. Therefore, this pre-study ac- tivity time is used to educate the team members about the history of the project and to define the issues. The project data is collected via a value objectives ques- tionnaire and distributed for comment prior to the formal workshop session.
The advantage to this approach is that the MVO team members become familiar with the documents and are able to develop relevant questions for discussion. It is imperative that the MVO team understands what is important to the owner and the user in completing the complex task of planning, designing and constructing the project.
This is accomplished via dialogue with the owner and members of the project team. Understanding the owner's specific value objectives will give the team the tools needed to evaluate ideas for change. The results of the value objective ques- tionnaire will be provided to the MVO team at the onset of the workshop for use in the evaluation process. The Value Engineering team leader will review the proce- dure to be employed in the evaluation of the creative ideas generated by the MVO team.
A description of a pre-study activity phase list is as follows: Copyright by Marcel Dekker, Inc. These models organize initial, energy and LCCs by system and trade to determine where high consumption and costs are expended. All VE studies shall be completed in accordance with all applicable client procedures, design standards, guidelines, project preparation manuals, project manager guidelines, and the desires of the client made known to the MVO con- sultant.
Before the study begins each member will receive an agenda of the activities to be performed for the study. It is not a design review. The previous mentioned agenda is a basic one used for the hour study. It requires the proper positive attitude and removal of mental road- blocks that can thwart creative thinking.
The project design team will give a presentation regarding the rationale for the design to the MVO team on the beginning of the first day of the study. This brief presentation by the current designer will provide additional information and provide answers to team questions prior to offering new ideas for the MVO study.
They determine factors, which influence the cost and perform the function analysis of the project to justify each component and determine its functional requirements.
Starting with each project element, the team will define its function and classify it Copyright by Marcel Dekker, Inc. The secon- dary functions will be further classified as critical or noncritical to the performance of the primary functions.
After analyzing the major project elements, the MVO team will analyze in the same manner each of the items that comprise the element. The MVO team leader and client project manager will determine the perti- nent project documents needed for each study, and will provide these to each MVO team member prior to beginning the MVO study. The MVO team members will carefully study the documents and investigate the project.
During this initial phase, the MVO team members will develop questions for the project design team. The project design team will apprise the MVO team of client project com- ponents, scope, design criteria, program requirements, and point out any project constraints. The MVO team will bring to the study location any reference documents and phone numbers they may need for potential recommendation development. The client's project manager and the MVO team leader will explain the MVO study project objectives, identify the project design criteria, and verify all of the valid project constraints.
The MVO team will then prepare a cost model using the project cost estimate. The cost models will include initial and future costs. The team will also develop and use a graphic model to clearly indicate major areas where they should focus their efforts. The aim is to obtain a large quantity of ideas by eliminating roadblocks to allow a free flow of thought.
The team may use checklists from previous studies. The team will also ob- tain an understanding of secondary and supporting functions. By defining the functions, the team is better able to determine precisely which characteristics of the study area are really required.
The objectives of this phase are to define, identify, classify, and determine the value worth and cost of the functions of the project components.
The team will answer questions about the cost and value of the project. The team will focus their time on major cost items and determine: Copyright by Marcel Dekker, Inc.
The team will brainstorm to generate creative alternative ideas for accom- plishing necessary functions. The team is encouraged to submit any and all ideas during this phase. The team will speculate about alternates and use checklists or previous ideas when the team seems to have become stagnant on offering new ideas. In addition, the team is encouraged to be imaginative, list everything, defer judgment, not criticize, not be intimidated, and not prejudge anyone else's ideas. The MVO team leader will provide techniques for the team that emphasizes the importance of positive interpersonal relations in the success of any effort.
The MVO process challenges and questions people about ideas and designs that they are strongly committed to. This requires that each member put forth a conscious effort to maintain good relations.
The MVO team leader will provide the team with life cycle cost techniques. The team will consider the assumed useful life, recycle costs, maintenance costs, environmental concerns, replacement costs and energy costs. After rating the ideas, each highest-ranking recommendation is then further developed. The MVO team analyzes the ideas listed in the creative session and selects the best ideas for further development.
Up to this point in the MVO study, the primary emphasis is on the cost of each recommendation. Using a weighted analysis, the MVO team may analyze other pertinent factors including aesthetics, initial and operating costs, safety, maintainability, operational reliability, and other areas, which are appropriate to the project.
All recommendations will be backed up with written descriptions, sketches, basic de- sign concepts, technical backups, and recommendations of alternatives and LCC summaries. During the development phase, the team uses the recommendation, LCC, operation and maintenance, and cost estimate worksheets.
Each recommendation is documented according to client requirements. Each recommendation will compare the method in the original design to the method the MVO team recommends. The development will clearly and concisely explain the recommendation and include justification, advantages, disadvantages, detailed cost estimates, schedule impacts, potential cost reductions and improve- ments, a sketch contrasting original to proposed design, and life cycle costs that need to be considered.
The MVO team will support the MVO recommendations with sufficient detail and calculations to allow a prudent decision of implementation. In addition the study summary shall contain an executive summary, which discusses in detail the MVO team recommendations and the advantages and disadvantages of the proposed MVO alternatives, as well as the potential life cycle cost savings.
The teams certified cost consultant prior to submitting the figures to the client will re- view the cost savings. The required copies and the original MVO study report will be furnished to the client within a short period after the last day of the study to allow for prompt implementation of the recommendations. The MVO team will present the rationale for each recommendation, along with the background information used to form the idea.
In addition, the MVO team will work with the owner and the design team in accepting and rejecting recommendations in order to develop an approach to the project design. The idea presentation session is not intended to be a design critique, but rather a sharing of information and an exchange of knowl- edge. In addition to the oral presentation conducted during the MVO study, the CVS and such team members as deemed necessary by the client value engineer shall make a formal presentation to client management.
The presentation shall be coordinated through the client's project manager to ensure that persons authorized to evaluate and act upon the value engineering recommendations are present. The recommendations from the MVO team to the design team are to be completed and prepared in a timely manner so the design effort will not be impacted.
Each member of the team would become familiar with the information in the beginning of the study. Each team member would create new ideas for their re- spective areas during creativity phases. Their expertise is needed during the evaluation phase to refine the list of ideas to best few workable solutions. During the development phase their depth and experience is needed to develop a thorough and well thought out package.
This package should sell itself. When the report is finished and the presentation is given to the client, the Copyright by Marcel Dekker, Inc. These finding should stand on their own and be supported with docu- mentation to convince the reader and implementation managers to strongly con- sider these improvements. It is an advantage if the team is mostly made up of those who have previous study experience.
Performing MVO on a project takes time and commitment, but it can provide recommendations that im- prove the overall expectations for the project. A selected team will apply the step- by-step job plan to a live MVO study. In this chapter the reader will become acquainted with MVO, and what it can do to improve management challenges. With MVO the project team can as- sure that what is budgeted will accomplish the intended functions.
For companies that want to do something to improve their expectations for the project, MVO is a tool that can improve the outcome and make everyone feel better about the deci- sions they are about to begin to implement. There is a good message with "managing value objectives," and it is our intent to convince others of the advantage of using this process.
Managers that have used MVO have developed criteria that meet customer expectations, im- proved team performance, and produced on-time projects within budget with fewer complications. Introduction Many projects are challenged with finding the appropriate method that works to improve results. It is intended by writing this material to demonstrate that there is Copyright by Marcel Dekker, Inc. MVO will be applied to a hypothetical computer company problem that is similar to problems other companies may be facing.
This chapter intro- duces the reader to the general applications of the multistep job plan and clearly indicates its application to the hypothetical example. Managing objectives is difficult enough without adding a third dimension. This third dimension is value.
Not only is each project faced with defining the customer requirements and building the product or project according to those re- quirements, but also the manager is confronted with day-to-day problems that must be overcome.
One way to solve these problems is to use a tool such as MVO. There are other tools being used to solve these management problems, but the writer believes this MVO tool can provide a break through to solve almost any item on the manager's plate on a daily basis. It can also be used to determine the course of action to take on a program from the beginning, or it can help determine the actions to take in the midst of crisis. Its use at any phase of the project can provide the team with extra well thought out solutions that work.
When the manager has a group working on the project, they each should know what is expected and what can be done about it. When the team is asked to participate in improving the project, they say, of course, to include them. When they are asked by the client to design a new product, they take it on as a challenge.
However, when they are asked to find a way to bring the project in on time and within budget, they cringe at thinking of all the time and effort it will take this task team to unravel the associated problems. Let us look at a hypothetical case. For example, a computer company is try- ing to determine which method they should use in understanding, critiquing, re- formatting, sequencing, reporting and implementing solutions for their major computer repair problems. The methodology that will be discussed and used dur- ing the writing of this paper is called MVO.
The group involved in a project like this has several things to accomplish. However, in this case it is simple as deter- mined by the CEO , the team needs to reduce the amount of returned computers and find a way to increase profitability.
Many reasons exist that cause management to do things that cost too much money. Just a few of the many reasons are 1 not enough time, 2 habits and attitudes, 3 customs, 4 need to meet standards, 5 lack of knowledge, 6 lack of training, 7 lack of management support, 8 too many conflicts at the same time, and 9 erroneous cost, schedule and performance information to make in- formed judgments.
Let's assume that a vice president of the Hypothetical Computer Company HCC had a long meeting with his staff and determined that their problem con- sisted of: 1. Too much wasted time to produce the product 2. Too many orders are returned because of errors 3. Too many products are shipped incomplete or not on time Many companies use various problem-solving tools to solve problems and develop better solutions.
MVO is a new dimension problem-solving tool that HCC has decided to try to improve the three areas shown above. After completion of the five steps the MVO team may remain involved to implement the best recom- mendations. The team met on the first day of the five-day MVO study in a conference fa- cility comfortable for 20 professionals conducting this type of work.
The facility was off site so that the group could work together uninterrupted for the duration. The conference facility was complete with the amenities they needed to work to- gether from 8 a. If anything were needed during the MVO study the company would provide it on short notice. The team was made up of a representative from each major area of focus. Representatives from design, manufacturing, shipping, packaging, customer Copyright by Marcel Dekker, Inc.
Information Gathering During the first phase of the workshop the team spent time gathering information and getting everyone up to speed on the key issues on which they were about to focus. The team sifted through the documents and a key company agent discussed the issues in detail. All three major issues were reviewed with the entire team in the first half-day. The team took a tour of a facility where the products were de- signed, manufactured, packaged, shipped, and returned.
The tour also included discussions with the department managers to get a sense for the associated issues. One part of the tour informed the group of the redesign, remanufacture, and re- work part of the issues.
Another part of the tour focused on the customer satisfac- tion issues. After the team absorbed the information in written, verbal and visual formats the group was ready to summarize their findings. Solid constraints were marked which included items that the team could not change.
The constraints were that the products had to be fixed in-house. Function Analysis Next, the team developed a function analysis of the three major areas of the study focus. The function analysis consisted of identifying the verb and noun for each major function.
For example, the functions verb, noun of the areas are as shown below, classified as basic or secondary: 1. Design Define product Basic 2. Manufacture Form product Basic 3. Package Safely package product Basic 4. Shipping Ship product Basic 5. Redesign Repair product Secondary 7. Repair Repair product, satisfy customer Secondary 8. Reshipment Satisfy customer, ship product Secondary 9.
Shop Repair product Secondary During the fkction analysis the team diagrammed the fiinctions so that they identified the basic, secondary and supporting functions. The purpose of the function analysis was to obtain team agreement of the issues, identify the basic function, and think of alternatives to the functions. During function analysis the team gathered additional valuable information. More than one function oc- curred for each major area, but only one fiinction for each major area has been shown above, except accounting.
A FAST diagram can be drawn by the reader. During the function analysis phase the team performed the following: Analyzed function for the critical activities 0 Performed function identification and analysis in the multidisciplinary team session 0 Identified and defined the functions of the project or subsystem; then defined the functions of each product element using an active verb and a measurable noun 0 Classified the functions of each element as basic essential to meet the usedowner needs and requirements or secondary supporting func- tions that enhance usedowner needs and requirements The basic functions must be llfilled in any alternative.
The secondary functions describe features, attributes, or approaches that implement or enhance the basic functions. The MVO team then collectively estimated the cost, and the worth, for each function. It represents a target for the team to obtain the neces- sary functions. The team determines the worth figures based upon their experi- ences on similar projects. During this function analysis the team determined the functions as they occur now which helped them diagram the functions as they thought they should be performed.
A ratio greater or less than 1: 1 indi- cates an opportunity for cost improvement. The MVO team concentrates on those opportuni- ties during the next phase of the workshop, the creative phase. A high cost-to-worth ratio value index indicated areas where the team concentrated to meet the needs and requirements established by the usedowner for cost, performance, and reliability of the element being studied. Cost Models and Determination of Worth A comparison of the cost to worth of each function clearly informed the team of potential areas of improvement.
Assumption: the cost to remanufacture is higher than original worth to manufacture due to off assembly line repairs by higher priced one time shop re- pair. A cost model depicted the most costly items that contributed to the product life cycle cost.
The cost model informed the group of poten- tial areas where their time should be focused for greatest chances of improvement. Section 2 Creativity There were barriers to thwart the team's thinking process during the creativity phase brainstorming ; any idea thought of to perform the intended function was listed on the flip chart. While brainstorming on each major function the team was kept cognizant of the constraints items that the team could not do anything about.
The team created as many new ideas as possible and this segment of the MVO job plan was not completed until everyone had exhausted their thoughts on each subject. These individuals were asked to participate in the creative phase brainstorming via computer e- mail.
Lists of ideas were compiled from each individual and distributed for each other to think of other ideas and resubmit those during a later e-mail transmission. Each professional represented a segment from one of the categories for this hypo- thetical case and submitted ideas via email for consideration by the team. The questions posed to the team via e-mail prior to the online brainstorming experiment for creating new ideas for potential solutions on this case problem are listed below.
You have been selected as a group of professionals to provide some valuable input for possible ways to resolve the HCC potential problem of failed computers. What is needed from each of you are some creative ideas to improve the management of a company, given the following scenario.
The experiment consists of obtaining brainstorming ideas via long distance e-mail communication. The scenario is that each of you pretends that you are the vice president of a division in a computer manufacturing company. Compatible with any devices. This invaluable reference teaches effective and practical techniques to improve the overall performance and outcome of design projects in various industries.
Value Engineering highlights the application of value methodology to streamline current day operations, strategic planning in company or business segments, and everyday business decisions in the private sector. The book shows how to maximize budgets, reduce life cycle costs, improve project understanding, and create better working relationships.
It explains how to gather information for the creation, evaluation, development, and presentation of new project ideas and shows how to design an appropriate task agenda and timeline. Bureau of Reclamation. In turn, the casting crew is the internal customer of the mold assembly process, while the Land Transport Authority is the external customer of casting. Each of these crews will require that the intermediate product they receive meets the quality standards to avoid rework.
The concept of internal customers ensures that quality permeates through the total operation, and thus by addressing the internal processes in this way, total quality improvement can be achieved. To ensure that customers get what they want, there is a need to fully understand their requirements and to communicate this throughout the organization. This is at the heart of quality management and is the goal of the quality system.
The quality system comprises quality manuals providing the templates to guide the worker in the performance of each particular task. These templates ensure management that proper work has been performed and provide confirmation to the owner that the work has met his requirements. The core of these systems is to present a way of working that either prevents problems arising, or if they do arise, identifies and rectifies them effectively and cheaply.
In the next section, an overview of the ISO quality system will be presented. Another culture of quality management is the dedication to continual improvement. Such a commit- ment requires accurate measurement and analysis of the performance of the processes from the viewpoint of the customer. This can take the form of a trend chart showing the trend of the problem.
Control charts are also useful to highlight out-of-control conditions. A flowchart or process flow diagram will put the problem in the perspective of the whole operation. Histograms, scatter diagrams, and pareto analysis are other tools that may be used to identify and present the problem. Mears gave a good account of these and other techniques that have been used for quality improvement.
The problem has to be analyzed to identify the root cause. A common and useful technique is the fishbone diagram, also called the cause- and-effect diagram. This and some other improvement techniques will be presented later. The action plan and monitoring of the implementation are the other two steps to complete the improvement process as shown in Fig. The action plan describes the action to be taken, assigning responsibility and time lines.
Monitoring would confirm that the conditions have improved. Quality System Underlying the concept of quality management is a quality system. It is becoming increasingly common for the ISO Standards certification to be necessary for tendering in big projects. The Standards provide the framework for developing the quality system.
ISO excludes design and is the most appropriate choice for controlling the operations of a contractor. This is also adequate to cover design and build projects, provided that the design is bought-in. ISO carries an additional clause 4. The standards only provide the key elements in a quality system.
Evidently, there can be no standardized quality system because the specific choice of quality measures depends on factors such as the main fields of activity, the operational procedures, and the size and structure of the company.
Nevertheless, there is a hierarchy of documents making up the quality system see Fig. The quality manual according to Part 1 of ISO defines an outline structure of the quality system and serves as a permanent reference in the implementation and maintenance of the system. This is supported by the procedures and instruc- tions common to the whole organization at the company level. There are also quality documentation comprising forms and checklists, procedures, and work instructions that are more project specific, in order to operate effectively in the unique circumstances of the project.
A brief synopsis of some of the pertinent clauses follows. Clause 4. TABLE 7. Review is necessary to ensure the integrity of the system and continual improvement. It describes the implementation of a quality manual and the documentation necessary to operate the system. Quality planning is also a requirement in the clause, demonstrating how the system will be implemented and consistently applied.
It also comprises the quality plans that set out the required good quality practices according to the specific requirements of the contract.
It ensures that they are adequately defined and understood, and any ambiguities or contradictions are resolved. This clause also includes a docu- mentation of the results of the process.
Design and development planning, and organization and technical interfaces relate to the resources and organizational aspects of the design process. The input and output elements deal with compliance with customer and statutory requirements and mode of output. The remaining elements relate to the management of the design, comprising design review, verification, and validation, to ensure that the design actually meets requirements and original intention, and design changes, ensuring that revisions are adequately communicated and versions are adequately recorded.
The procedures ensure that the proper documents would be used, that there would be uniform documentation, and that revisions and obsolete documents would be properly handled. The clause covers the evaluation of subcontractors and suppliers, standardization and specification of purchasing data, and verification of the purchased product. Related procedures must also be in place to ensure that customer client supplied services or products, including information, also comply with quality standards Clause 4.
There are related procedures controlling product identification by marking or by accompanying docu- mentation Clause 4. The remaining clauses deal with process control, inspection and testing matters, handling and storage issues, quality records, audits, training, servicing, and statistical techniques.
The servicing clause deals with after-sales service and may not be appropriate in every construction company. Quality Improvement Techniques Mistakes and problems that arise provide opportunities for learning and continual improvement.
There are numerous tools that have been used in this context. These range from simple checklists, flowcharts, scatter diagrams, and pareto analysis, to fishbone diagrams and more sophisticated tools such as bench- marking, customer needs mapping, and quality functional deployment QFD. Essentially, they collect data so that the problem can be identified and aid in finding the cause and developing solutions to improve the situation. In this section, only the fishbone diagram, customer needs mapping, and QFD will be briefly presented.
The reader may refer to Mears and McCabe for other techniques available. Fishbone Diagram The fishbone diagram was first developed by Karou Ishikawa. Essentially, it is a cause and effect analysis used to identify the root causes of a particular problem. The final diagram resembles the skeleton of a fish as shown in Fig. The ribs on the minor spines are the causes within the main areas and can make up a chain of causes.
The last rib in the chain is the fundamental root cause that is specific enough to take action on. Cause and effect analysis is usually used in a brainstorming setting, in which all members of the group should be familiar with the nature of the problem. The analysis begins with a clear definition of the problem, defining its symptom or effect. The major areas have been grouped according to the major project players.
In the case of process-related problems, the major groupings can usually be categorized according to resource and methods, such as tools, components, production methods, people, and environment. In larger operations, the groupings could include the major processes making up the whole operation. The major categories are then refined to determine the root causes. A plan of action is then formulated based on the root causes that have been uncovered according to a priority ranking system.
Customer Needs Mapping Customer needs mapping is a technique that analyzes the effectiveness of the internal processes to meet customer requirements or needs. It is based on a matrix approach, as shown in Fig.
The customer in the analysis could be an internal customer, especially in the case of support activities such as inventory control and the IT department. The left-hand column of the matrix makes up the customer needs.
An importance rating on a scale of 1 least important to 5 most important is assigned to each item. The top row of the matrix identifies the internal processes required to meet these needs. Only the major processes are necessary so as not to be bogged down by the details of a complex operation.
To complete the matrix, the effectiveness of each process in meeting customer needs is evaluated. The evaluation is obtained through customer interviews and is based on the following scale: high H , medium M , and low L. With this mapping, the quality improvement team can now identify internal processes that need to be enhanced to improve quality delivery.
A customer need with high importance is one point of focus. An internal process that is not effective in meeting any customer needs should also draw attention, for example, internal process 3 of Fig. Another benefit of the mapping is the identification of customer requirements that have been neglected, such as customer need 2. A detailed flowchart of the whole operation usually accompanies the mapping so that improvement plans can be developed as a result of the analysis.
Since then, it has gone through several stages of development and has been used in various applications, not only in manufacturing, but also in the AEC industry. QFD uses a matrix structure in the form of the house of quality see Fig. The house of quality comprises six main sections, as shown in Table 7. The product characteristics or processes are the technical counterparts that must be deployed to meet customer requirements. These technical counterparts are often related, and their interactions are shown using symbols as shown in Fig.
The relationship matrix is the main matrix of the house. It shows the relationship between the customer requirements and the technical counterparts. Symbols as shown in the figure are also used to indicate the strength of their relationships.
It is usual to denote their importance on a 5-point scale where 5 represents the highest importance. Alternatively, the analytical hierarchical approach AHP referred to in the earlier section on value engineering can be used to rank their importance Akao, This section of the house of quality also comprises the competitive evaluation of competitors to highlight their strengths and weaknesses to meet their customer needs.
If a numerical score is given to the relationship matrix, the technical rankings or process importance weights can be derived as shown in Fig. The rankings show the importance of the internal processes in achieving the quality of the finished mold for the casting crew, an internal customer of the whole precast operation.
Jim Rains shares powerful insights harvested during his two decades of studying and benchmarking target costing for leading Japanese corporations including Toyota, Nissan, and Canon.
Supplying the understanding and the tools to achieve critical cost reductions while maintaining and even improving customer satisfaction, this book explains the steps needed to reap the rewards of constant, consistent, acceptable, and predictable levels of profitability. Author : James P. Most product cost reduction in industry occurs during new product introduction NPI.
However, for some firms, a case can be made that product cost reduction efforts can be devoted towards products already in sustained production. These firms face a set of business conditions that often preclude exhaustive product cost reduction during NPI. These conditions include fast time to market requirements and the necessity of devoting engineering resources to a pipeline of innovative products needed to remain competitive in the market.
These firms' products also possess characteristics that make cost reduction during sustained production viable. Products have sufficiently long lifecycles in which to realize project savings and a market that will continue paying prices that enable continued profitability. However, as expected, these firms often must devote resources to more pressing NPI needs, leaving sustained product cost reduction savings under-realized.
Cisco Systems is a firm that faces these business conditions and has products that have these characteristics. Cisco Worldwide Manufacturing has thus devoted itself to improving Cisco's value engineering capabilities to a world class level. Value engineering at Cisco refers to product cost reduction activities that occur during sustained manufacturing.
The research in this thesis set out to validate the hypothesis that Cisco could improve value engineering savings by funding cost reduction projects directly through Worldwide Manufacturing, rather than through the typical budget of a Cisco business unit. Cisco business units often have to prioritize NPI over value engineering.
This thesis will discuss the process and results of a model that was established to provide value engineering project funding through Manufacturing. Results show that value engineering savings can be increased with this funding model. Author : Abate O. Thought leader Abate Kassa finds the U.
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