Creative Value Engineering

Vol: 1 No: 3 September 1968
VALUE
ENGINEERING
In this issue
Editorial - R. Perkins- Value Satisfaction and Profit
Contractual Value Engineering Provisions in the United States
by K. M. Jackson
The Constraints to Creative Value Engineering
by Ll. Colonel B. Decker
Stimulation of the Individual
by F. S. Slier win
The New Management Tool - Value Administration
by A. G. Chappell
The Contribution of Ergonomics to Value Engineering
by K. F. H. Murrell
Ergonomics Checklist
The Challenge of Value Engineering - The Theory behind the Savings
by F. R. Bowyer
The Numerical Evaluation of Functional Relationships
by A. E. Mudge
Organising the V.E.-Effort in a Company
by J. Burnside
The Application of V. E. Effort for Maximum Effectiveness
by G. P. Jacobs
The Value Engineer's Bookshelf
Selected Abstracts of Recent Literature on Value Analysis/Engineering
Page
133
135
139
143
147
149
153
165
169
177
179
183
191
Pergamon Press
The Al Mof Value Engineering
is to encourage the wider use of value analysis/engineering techniques
throughout industry.
Value Engineering
provides a link between those-who are practising and studying the subject
all over the world.
It is the POLICY of the journal
to contain information which promotes the wider and more efficient application
of value analysis/engineering methods.
Its ABSTRACTING SERVI CE
will draw attention in a conveniently summarised form to the main publications
on the subject throughout the world.
* * *
Key-word Index
A number of readers have asked for the system for information retrieval to be
explained more fully.
The key-word system - unlike titles which sometimes cannot cover all the
aspects of an article, book review or abstract - signifies those facets of the
subject which are covered. For example, the article 'The Constraints to Creative
Value Engineering' covers Value Standards yet this was not specifically indicated
by the title.
By referencing the article to two cards measuring 5" x 3", arranged alphabeti-
cally the value engineer can build up a system of reference to articles on
Creativity and Value Standards.
The list of key-words will be built up issue by issue until a useful list of key-
words covering value engineering subjects can be published in a future issue
of the journal.
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Reprints of the articles and checklists appearing in Value Engineering may be
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* * *
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I n t h i s i s s u e :
C ont r a c t ua l V a lue E ngi neer i ng
P r ov i si ons in t he Uni t ed S t a t e s
Kenneth M. Jackson
Manager of Contracts,
Dynalectron Corporation
T h e C ons t r a i nt s t o C r eat i v e V a lu e
E ngi neer i ng
Bert Decker
Director of Project 3000 at the State
University of New York at Buffalo
S t i mulat i on of t he I ndi vi dual
Frederick S. Sherwin
Value Engineering Coordinator,
The Plessey Company Ltd.
T h e N e w Ma na g e me nt Tool -
V a lue Admi ni st r at i on
Anthony G. Chappell
Deputy Managing Director,
Mead Carney & Company Ltd.
There is a great deal of interest in the way in whi ch the U.S. Department of
Defense operates V.E. clauses in contracts wi th its suppliers and this article
describes such clauses in the Armed Services Procurement Regulation. After
half a dozen years a vast potential still exists for savings for of the $45 billion to be
spent in defense procurement in 1968 projected savings only amount to 0-3
per cent.
As well as describing the constraints - habitual, semantic, and educational - the
author puts forward ideas for overcoming them. Managers, he says, cannot
effectively manage that whi ch they do not clearly understand, and the need is
for a definition of value in verifiable measurable terms. The integration of value
engineering into the organisation should be the aim. Teach those inside so it is
they who cut the costs.
The article outlines how management can best stimulate the individual and
overcome the barriers Jo motivation. The dangers whi ch come from the 'extra
effort' philosophy are highlighted. The amount of stimulation upon the individual
should be proportional to the influence whi ch the individual exerts on costs.
Management leadership is prime to all techniques for cost improvement.
The author discusses the weaknesses in the methods of reducing overhead costs
and advocates 'Value Administration' as an effective alternative. Value
Administration' whi ch is based on the functional analysis of activities has as its
objective the comparison of the function wi th its cost. The vital need for
Management support is stressed.
T h e C ont r i but i on of E r g o n o mi c s
t o V a lue E ngi neer i ng
K. F. H. Murrell
Reader in Occupational Psychology,
University of Wales Institute of Science
and Technology
Value engineering should not stop short of its completion point - the perfor-
mance of the product. This can be ensured by applying ergonomic principles to
design, manufacture and use. Equipment whi ch is produced for sale should be
assessed for its overall efficiency when operated by a human operator.
T h e C ha lle ng e of V . E . - T h e The or y
behi nd t he S a v i ng s
Frank R. Bowyer
Consultant, Value Engineering Ltd.
T h e Numer i c al E v aluat i on of
F unc t i onal Relat i onshi ps
Arthur E. Mudge
Director of Value Engineering Services,
JOY Manufacturing Company
O r gani si ng t he V . E . - E f f o r t in a
C o mp a n y
J. Burnside
Assistant to the Deputy Chairman
(Engineering), Lindustries Ltd.
T h e Appli c at i on of V . E . E f f or t f or
Ma x i mu m E f f e c t i v e ne s s
G. P. Jacobs
Manager of Value Engineering, British
Aircraft Corporation (Operating) Ltd.
(Weybridge Division)
In this second of five articles the author asks ' Why bother about a theory of
value engineering?' He puts forward forty postulates for consideration as a
basis of a theory of value engineering.
Continuing the consideration of functional worth from the Jul y issue the author
points out precise functional balance is that whi ch makes a product both work
wel l and sell effectively at the lowest total cost. The article describes methods
whi ch the value engineer can use to evaluate functional relationships of products
whi ch he is called upon to analyse.
In the first of three articles a Profit Improvement Programme is discussed and the
areas in whi ch it can be applied are shown. The requirements of small as wel l
as medium and large companies are given attention.
Attention is drawn to the need for employees to appreciate that their overall
objective is to improve their company's ability to make profit. The value engineer
has to judge the area in whi ch his work is most likely to produce results, and he
can often make his greatest contribution in 'upstream' work during the project
definition stage. The need for a continuing programme of value research is
stressed.
C H E C K L I S T S Ergonomics Checklist
Pitfalls and Weaknesses to Avoid in Establishing Value Analysis or Engineering
in a Company
B O O K R E V I E W S Ergonomics - Man and His Environment (Murrell, K. F. H.)
Materials for Engineering Production (Houghton, P. S.)
The Enterprise and Factors Affecting its Operation (Roberts, C.
The New Materials (Fishlock, D.)
Fitting the Job to the Worker (O.E.C.D.)
R.)
Value Engineering, September 1968 129
B O O K RE V I E WS c ont i nue d Fundamentals of Operations Research (Ackoff, R. L. and Sasieni, M. W.)
Design Engineering Guide - Value Engineering (Roberts, J. C. H.)
Teach Yourself Statistics (Goodman, R.)
Quality Control Handbook (Juran, J. M.) (ed.)
A Search for V.E. Improvement (2 vols.) (SAVE)
SAVE - Volume 3 (Proceedings 1968 National Conference)
SAVE - Volume 2 (Proceedings 1967 National Conference)
Application of Value Analysis/Engineering Skills (Bl yth, J. and Woodward, R.)
How to Cut Office Costs (Longman, H. H.)
Modern Management Methods (Dale, E. and Michelon, L. C.)
Design Engineering Guide - Electric Controls (Weaver, G. G.) (ed.)
Design Engineering Guide - Adhesives (Philpott, B.A.) (ed.)
Operational Research (Makower, M. S. and Williamson, E.)
The Art of Decision Making (Cooper, J. D.)
Design Engineering Handbook - Metals (Product Journals Ltd.)
Propulsion Without Wheels (Laithwaite, E. R.)
Machinery Buyers' Guide 1968 (Machinery Publishing Co. Ltd.)
Creative Synthesis in Design (Alger, J. R. M. and Hays, C. V.)
Purchasing Handbook (Aljian, G. W.) (ed.)
Handbook of Fastening and Joining Metal Parts (Laughner, V. and Hargan, A.)
Materials Handbook (Brady, G. S.)
Measurement and Control of Office Costs (Birn, S. A., et al)
Design Engineering Guide - Fluidics (Product Journals Ltd.)
Value Analysis - The Rewarding Infection (Gibson, J. F.)
Design Engineering Guide - Metrigrams (Product Journals Ltd.)
Main Economic Indicators (O.E.C.D.)
Mechanical Details for Product Design (Greenwood, D. C.) (ed.)
Engineering Data for Product Design (Greenwood, D. C.)
Engineering Materials Handbook (Mantell, C. L.) (ed.)
Fundamentals of Numerical Control (Lockwood, F. B.)
Municipal Work Study (Mi l l ward, J. G.)
Product Engineering Design (Greenwood, D. C.)
Quality Control for the Manager (Cowan, A. F.)
Essays on Creativity in the Sciences (Coler, M. A.) (ed.)
AB S T R AC T S [36] to [45]
In future issues:
Value Control at the North American Rockwell Corporation Commercial Products Group
by E. J. Williams, Vice-President of Manufacturing and Facilities
Patents for Inventions
by Frank Newby, Information and Patents Officer, Hardman Et Holden Ltd.
Organising the V.E.-Effort in a Company; Parts 2 and 3
by J. Burnside, Assistant to the Deputy Chairman, Lindustries Ltd.
The Challenge of V.E. - Making the Theory Work; Training for V.E.; Value Engineering Development
by F. R. Bowyer, Consultant, Value Engineering Ltd.
Insuring an Effective V.E. Workshop Seminar
by J. J. Kaufman, Manager of Industrial and Value Engineering, Honeywell Inc. Aerospace Division
What is a Value Engineer?
by Patricia B. Livingston, Management Systems Analyst, North American Rockwell Corporation, Space Division
Should V.E. be Value Engineering Itself?
by J. Harry Martin, Manager of Value Engineering, General Electric Company, Ordnance Department
How Instant Money Works
Describing the Kaiser Aluminium and Chemical Corporation's Accounts Payable System
Value Engineering - Dynamic Tool for Profit Planning
by George H. Fridholm, George Fridholm Associates
The Value Manager
by Bert J. Decker, Director of Project 3000, State University of New York at Buffalo
Questionnaire - The Value Engineer in Private Industry
130
Value Engineering, September 1968
EDITOR: Bruce D. Whi twel l , Industrial Economist
R E G I O N AL E D I T O R S
CANADA: Mr C. Bebbington,
Value Program Coordinator,
United Aircraft of Canada Ltd.,
P.O. Box 10, Longueuil, Quebec.
NORTH EASTERN UNITED STATES:
SOUTHERN UNITED STATES:
Lt.-Col. Bert J. Decker, USAFR (Ret.),
Director, Project 3000,
Millard Fillmore College,
State University of New York at Buffalo,
Hayes A, Buffalo, N.Y. 14214.
Mr F. Delves,
Lockheed-Georgia Company,
Marietta, Georgia.
WESTERN UNITED STATES: Mrs. Patricia B. Livingston,
Management Systems Analyst,
North American Rockwell Inc.,
Space Division, Downey, California.
UNITED KI NGDOM: Mr R. Perkins,
Technical and Works Director,
Barfords of Belton Ltd.,
Belton, Grantham, Lines.
EUROPE: Mr. P. F. Thew,
Manager - Industrial Engineering,
I.T.T. Europe Inc.,
11 Boulevard de I'Empereur,
Brussels 1, Belgium.
T h e Regi onal E di t or f or t he Uni t ed Ki ng dom
Mr R. Perkins, C.Eng., F.I.Mech.E., M.B.I.M., F.I.D.
Mr Perkins, who has contributed the editorial to this issue, began his career as an engineering apprentice at the London
Midland and Scottish Railway Locomotive Works at Derby. After worki ng as a Planning Engineer he joined the British
Celanese Engineering staff.
In 1951 he became an adviser t o the United States Air Force, coordinating American and British mechanical and electrical
engineering practice. Mr Perkins then resided in the West Indies for seven years, where he held an appointment as Director
of Electrical and Mechanical Services in the Ministry of Communications and Works, Jamaica.
For the last seven years, Mr Perkins has been wi t h the Aveling Barford Group, where he is currently Technical and Works
Director for the subsidiary, Barfords of Belton Ltd.
Mr Perkins is married wi t h four children and takes a keen interest in golf. He is chairman of the South Lincolnshire
Productivity Association whi ch organises seminars and open meetings on behalf of the British Productivity Council.
Long Range PlanningThe Journal of the Society for
Long Range Planninga new quarterly publication from
Pergamon.
Editor: Bernard Taylor
The Management Centre, University of Bradford.
This is an international journal which aims to focus the
attitudes of Senior Managers, Administrators and
Academics on the concepts and techniques involved in
the development of strategy and the generation of Long
Range Plans.
Contents of Volume 1 Number 1
Long Range Planningthe Concept and the Need
B y H. F. R. P er r i n
Analytical Techniques in Planning
Long Range Planning of Managers
By D. J . S ma lt e r
By H. P. F or d
Technological Forecasting in Corporate Planning
By E . J a n t s c h
The Fading of an Ideology
By C . C . B r o wn
New Methods of Economic Management must be
developed B y J . Br ay
The Strategic Dimension of Computer Systems
Planning B y C . H. Kr i ebel
Mergers and British Industry
Price: 10.0.0 per annum.
By N. A. H. S t a c e y
Inspection copies and orders to the
Training & Technical Publications Division,
Pergamon Press Limited,
Headington Hill Hall, Oxford.
132
Reprint No. 1:3:1
Editorial:
Mr R. Perkins, the British Regional Editor o f V a lue E ngi neer i ng is Technical Director of Barfords of
Be/ton Ltd. He has kindly accepted the invitation to write the editorial. Readers, Mr Perkins. . .
Value Satisfaction and Profit
I n business, coordinat ion of effort leads t o success, bu t t o succeed
there must be a profit . Whether it be a produ ct- or a service-
oriented company, wit hou t mot ivat ion, involvement, uniqueness
and value, the goal of satisfaction wil l not be reached.
A short statement of what business is al l about is provided by the
Harvard School of Business: 'Businesses exist t o creat value
satisfaction at a profit'. You may wel l ask, how many people
keep such a simple axiom as this constantly before them? I
submit t o you that the whole concept of value engineering is
bou nd u p in providing the value satisfaction wit hou t which there
can never be any profit.
From my personal experience, value engineering and analysis
has produced increased profit s, and facts and figures have been
produced time and again t o su pport this statement. So the answer
t o ' Why Valu e Engineering?' is equally simpl e-it provides a
proven discipline which wil l produce profit .
I t is interesting t o note that one of the factors taken int o account
when carrying ou t a creative corporate planning exercise is
'the ret u rn on sales'. This ret u rn on sales is a measure of a
company's uniqueness and it shows the value given in its products
or services.
The Editors of Value Engineering are vit al l y concerned that the
techniques of Valu e Analysis and Engineering shou ld be recog-
nised as a sure means of improving the profit abil it y of a company
wit hou t losing any of the uniqueness and value satisfaction of
its produ cts.
A l l companies of whatever type are part of a chain of demand
starting wit h the consumer and extending back t hrou gh al l
forms of indu stry t o agricu ltu re and mining. Each business takes
something from another business, modifies it in some way and
passes it on t o others. I n modifying the company adds value and
obtains a ret u rn on sales which is proport ional t o that value and
its uniqueness. Whil st value in this sense is affected by the
complete corporate plan, the part played by a sound Valu e
Engineering fu nct ion wit hin a company can make a tremendous
cont ribu t ion towards ensuring an adequate ret u rn on the capital
invested by the company's shareholders.
I f a new way is fou nd t o produce a new or an existing produ ct at a
lower cost while retaining the product value then a company wil l -
for a t ime at least - lead its competitors.
The obvious enthusiasm and detail set ou t in the articles on value
engineering are a sure indicat ion of the success it enjoys. I t is
only fair t o sound a note of warning. A l l real success in this fiel d
is based on a methodical approach and unless this is taught the
practitioners cou l d bring value engineering int o disrepute.
Valu e Engineering crossed the At l ant ic in 1957 and many Brit ish
companies have set u p V. E. departments; others have fou nd con-
sultants t o be most u sefu l in t raining their staffs and fol l owing u p
the progress they are making. Personal experience of bot h ways
has given me a preferencefor the latter method. I t ensures that the
company line management can get on wit h their fu nct ions whil e
the V. E. department staff are t rained in V. E. ' techniques and
methodology by someone f r om outside. The outside con-
sultant brings a fresh mind t o bear on the problems encountered
and - i f he be retained t o make periodical visits - can supply an
independent report on progress t o the Chief Executive.
A l l those who are engaged in value engineering wil l be aware
that t o be successful you need involvement at the t op. The best
way t o get involvement is t o make involvement easy. There are
very few senior executives who are not prepared t o listen t o a
reasoned, honest report which wil l save him money. There are,
however, many executives whose day t o day line management
activities preclude t hem giving of t heir best t o su pporting the
value engineering team. I t wou l d appear in practice very difficu l t
for a senior executive t o keep in the forefront of his thoughts
that ' Valu e Engineering equals guaranteed increased profit s' .
The practice of V. E. is one of to-day's most satisfying activities
and greatest cont ribu t ors t o increased company profit s.
133
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134 Value Engineering, September 196H
Reprint No. 1:3:2
Contractual VE - DoD - British Industry - Armed Services Procurement Regulations
Contractual Value Engineering Provisions
in the United States
by Kenneth M. Jackson
Over recent years there has been a great deal of interest
in the way in which the U.S. Department of Defense has
installed and applied V.E. clauses in contracts with its
suppliers. This article describes the V.E. clauses in such-
contracts. It summarises the Armed Services Procurement
Regulation (Revision 23, Section 1, Part 17, dated 1st
June 1967) in an easy-to- understand form.
The author does a great service to British government and
industry in drawing attention to what value engineering
contractual incentives are and the kind of areas in which
they may be considered for application. He further offers
to reply to any inquiries from readers.
Through the ASPR V.E. provisions he says in the United
States 'a new profit center has been added to many
participating companies' and 'the pacing factor is
managerial ingenuity and commitment'. In the U.S. a vast
potential still exists for of the estimated $45 billion to be
spent in defense procurement in 1968 projected savings
only amount to $130 million or 0-3%.
I nt r oduc t i on
The purpose of this article is t o describe the value engineering
clauses used in U. S. Department of Defense contracts, and t o
suggest the use of similar provisions in Brit ain by bot h govern-
ment and indu stry procurement authorities.
Valu e engineering provisions are needed in order t o provide a
vehicle for the parties t o a contract t o optimise its value t o each
of them. They are part icu larly appropriate in 'sell-make' indus-
tries, such as constru ction, defense weapons, and other systems
producers. The need for value engineering became apparent in
1960 aft er reviewing the rate of increase of defense costs in the
preceding decade. To communicate this as a 'demand' for innova-
tions and challenges t o 'gold-plated' requirements, the Govern-
ment, even as a monopsonistic buyer, was forced t o offer rewards
(comprised of increased sales volu me t hrou gh higher technical
evaluation points in new procurements, higher profit abil it y of
defense contracts, and the like) before the sellers wou l d be wil l ing
t o seriously pursue value engineering.
The reluctance of sellers t o participate was based u pon the terms
of the standard 'changes' article of Defense contracts: ' I f any
change (t o the contract, ordered by the Cont ract ing Officer)
causes an increase or decrease in the cost o f . . . this cont ract . . .
an equitable adjustment shall be made in the contract price (or
fee) . . .' I n practice, then, an accepted value engineering-based
change proposal wou l d result in cost savings t o the government
as a consequence of the init iat ive of the contractor, bu t wou l d
also penalise the contractor by reducing his profit or fee originally
priced against the costs being eliminated. I n addit ion, the con-
tractor, by reducing expenses, lost part of the base which absorbs
* Mr Kenneth M. Jackson, Manager of Contracts,
DynalectronCorporation, Washington,D.C, U.S.A.,
has recently produced a book N e w AS P R V a lue
E ngi neer i ng P r ov i si ons (published by Sci-Tech
Digests Inc., 888 National Press Building, Washing-
ton, D.C. 20004). He holds the B.A. and J.D.
degrees from Southern Methodist University, is
Chairman of the Procurement Regulations Com-
mittee of the National Aerospace Services Associa-
tion, and a member of the American Bar. Permis-
sion of Sci-Tech Digests Inc. to publish this article
is gratefully acknowledged.
overhead costs. I n a word, there was an incentive not t o su bmit
cost-reducing change proposals. Of course, the fixed-price con-
tractor wou l d retain al l of any savings realised from value
engineering actions which did not require a change t o the con-
tract.
This practice fol l owed from the legal relations of the parties. I n
fixed-price contracts, a dol l ar saved is, generally speaking, a
dollar earned. I f the customer must approve a change in the
contract before the seller can take the action t o save that dollar,
the buyer must disregard his right t o demand performance
st rict ly in accordance wit h the contract or his alternative right t o
receive a part ial price refu nd for any deviation. I f he does not
wish t o exercise his right s; i f he wishes t o actively seek goods of
better qu alit y at lower cost, then he must motivate the seller,
who has a right t o fu l l payment for the supplies and services as
originally contracted.
Throu gh the use of value engineering clauses, the Government
buyer is able t o motivate the supplier t o submit cost-reducing
change proposals by providing profit increases for changes which
reduce cost. As a consequence, he has the opport u nit y t o optimise
the value of his purchase, and the seller may realise the opt imu m
economic ret u rn for his effort s. Yet this mu t u al it y of interest is
not the key point in the evalu ation of the effectiveness of the
incentive clauses. Today we are operating on the positive not ion
that as l ong as the Government can realise one dollar of savings
from the expected t ot al cost of bu ying and owning a weapon
system, no amou nt of reward payment t o the contractor wit hin
the range of t ot al cost minus $1 wou l d be exorbitant. Bot h parties
are in a better posit ion t han at the time of contracting, assuming
adequate probabilities of ret u rn.
I n addit ion t o the direct profit incentives, the contractor is
encouraged t o participate in value engineering by (1) giving the
successful contractor addit ional points in source selection evalua-
t ion, and (2) giving weight t o past performance in generating
value engineering savings in determining the ' going-in' or
negotiated profit or fee rate.
S u mma r y of t he Regulat or y P r ov i si ons
The Armed Services Procurement Regulation, Revision 23, Section
I , Part 17, entitled ' Valu e Engineering' may be divided int o t wo
parts. One provides statements of policy, and instructions for use
of the contractu al vehicle; the other provides standard clauses
t o be incorporated int o defense contracts.
135
P oli c y and P r oc e dur e s
The policy statements provide an accurate summary of the
objectives of the value engineering program. They include an
au thorisation t o purchase value improving ideas which are sub-
mit t ed as unsolicited proposals.
' Valu e Engineering' has as many definitions as practitioners. For
purposes of the defense contract, however, it is defined as an
effort t o provide the essential fu nct ion of an it em or task at the
lowest overall cost, which is embodied in a cost redu ction
proposal for changing the contract. The proposal is su bmitted
under one of t wo types of provisions, and may be originated by
either the prime contractor or by one of his subcontractors. The
first type of provision is called a ' Valu e Engineering I ncentive', in
which the level of value effort is entirely u p t o the contractor. The
costs of developing a change proposal are not allowable; i f
accepted, the development and implementation costs are deducted
from the gross savings before sharing. Under the second type, the
'Valu e Engineering Program Requirement', the Government
fu nds a level of effort , inclu ding loadings and profit . Sharing of
savings is, of course, reduced for the contractor under this clause.
The incentive clause, wit h several exceptions, is used in contracts
over ? 100,000, althou gh it may, wit h special ju st ificat ion, be
used in contracts under that amount. The program requirement
clause is used in cost-plus-a-fixed-fee, system definit ion, or other
contracts where the lack of firm specifications wou l d likely
render an incentive clause incapable of realising the savings
potential. Bot h types may be included in the same contract if
their application can be identified t o separate phases or portions
of the work.
The key probl em wit h bot h provisions is t o provide an opport u -
nit y for a ret u rn t o the contractor which substantially exceeds the
loss resulting from the decrease in volu me on present and fu t u re
contracts. The point varies, of course, between contractors, and
is a fu nct ion of volu me, compet it ion, type of contract, priced
profit , and so on. To provide a substantial base against which the
policy of increasing profit s by a ' fair proport ion' of saving is
applied, three types of savings are shared: (1) savings under the
instant contract, i.e., the contract under which the change propo-
sal was su bmitted; (2) savings in fu t u re or contemporaneous
acquisitions of the it em or task for a stated qu ant it y or time
period, either in a l u mp sum advance payment or on a ' royal t y'
basis, as additional units are procu red; and (3) savings in Govern-
ment operations (' Collat eral' savings). The proport ion of savings
paid t o the contractor varies as a fu nct ion of type of savings, type
of contract, and type of provision. The fol l owing chart sum-
marises these rates:
A . I nstant Contract Savings
Type of Clause
Type of Contract
Fixed Price
I ncentive Fee
Incentive
Range Norm
0-75% 50%
0-50% varies
according t o
overall cost
incentive and
accuracy of
savings
estimate
Program
Range
0-25%
0-25%
Cost-Plus-Fixed-Fee N / A 0-10
Norm
not stated
varies
according t o
overall cost
incentive and
accuracy of
savings
estimate
10%
B. Fu t u re Acqu isit ion Savings Range
1. Wit h I ncentive Clause
2. Wit h Program Clause
(a) Fixed Price and
I ncentive Contracts
(b) Cost-Plus-Fixed-Fee 5 % normal .
20-40% depending u pon period of
sharing.
10-20% depending u pon period of
sharing bu t not t o exceed share
under instant savings provision.
C. Collateral Savings Definit el y specified as 10%, except
that savings resu lting from a reduc-
t ion in the amou nt of Government
fu rnished material required under
the instant contract is rewarded at
the instant contract rate.
Payments made as a result of accepted change proposals are
treated in 1-1705.4 as 'payments for services rendered', and not as
profit or fee, which are subject t o statu tory limitations in cost-
reimbursable type contracts. Whil e earnings from value engineer-
ing are subject t o renegotiation (a process for obtaining refu nds
of excess profit s realised over al l government sales of the con-
t ract or), f u l l consideration is given t o the statu tory factors reflect-
ing the contractor's contribu tions, init iat ive, and risk. I f a change
proposal applies t o other Government contracts, whether or not
held by the submitter, he shares in the acquisition savings
realised under such contracts.
C ont r a c t C la u s e s
The same clause is used for bot h the incentive and the program
requirement methods, except that the latter references the stated
level of effort in the contract schedule and the mil it ary specifica-
t ion, MI L-V-38352, in accordance wit h which the program is
performed. The clause specifies the data t o be submitted wit h the
proposal, e.g., technical description and evaluation of the
proposed change and cost impact. The instant contract sharing
paragraph states the met hod of adju sting the contract price, costs
or fees in order t o vest the sharing payment, which varies between
types of contracts. Paragraph (e) provides the formu l a for arriv-
ing at the net savings amou nt on sub-contractor-originated
changes. Anot her paragraph provides that, while the contractor
may restrict the Government's use of the data su pporting the
change before acceptance, the Government receives f u l l rights t o
use and disclose the data u pon acceptance. Paragraph (i) defines
'instant contract' in cases where there are options, increases in
contract scope, and indefinite ordering arrangements. Then fol l ow
the clauses for bot h types of fu t u re acqu isition savings wit h their
detailed formu las for compu t ing savings and sharings.
Not es C onc e r ni ng S pe c i a l P r ov i si ons
Of interest t o the general reader are the fol l owing notes. Refer-
ences are t o the paragraphs of the Armed Services Procurement
Regulation.
1-1701. Valu e engineering is not l imit ed t o improvements in
hardware. The ASPR committee clarified this in Revision N o. 23
by referring t o the redu ction of cost in 'any contract it em or
task'.
1-1702. A change proposal is acceptable even i f it causes the
deletion of contract line items. However, the contractor wil l not
share in savings resulting solely from qu antitative evaluations of
defense requirements.
1-1703(b). I n negotiating sharing rates, this paragraph reminds
the parties, it is the Government's policy t o provide strong
financial incentives for maximu m effort in value engineering.
Deleted from prior regulations is the addit ional test which
provided that the Defense Department wou l d be generous in
sharing only if it cou l d be assured of definite cost redu ction sav-
ings. Because of the accomplishments of V. E. , it is wil l ing t o take
reasonable risks by payment of shares before savings are 'assured'.
1-1703.2(f). Cost savings t o be shared are calculated as fol l ows:
1. Tot al decrease in contract price (or target cost); minus
2. Contractor's costs of developing the value engineering change
proposal, provided (a) they are properly direct charges under
the contract involved, and (b) they are not otherwise reim-
bursed t hrou gh either program requirement fu nding or
ASPR Section XV (Cost Ru les); minus
3. Contractor's cost of implementing the change.
'Development Costs' are those costs incu rred after the contractor
has identified a specific value engineering project. 'Contractor's
implementation costs' are the costs of incorporat ing a change
which are incu rred after acceptance of a change proposal.
1-1703.3. The period of time for sharing of savings on purchases
made in the fu t u re shall be sufficient, wit hin the stated l imit s, ' to
induce a significant value engineering effort ' .
1-1703.4. Collateral savings wil l be shared net of any change, up
or down, or wit h no change in acqu isition costs.
l-1704.2(c). Provides, as does its corollary, paragraph (f) of the
basic clause, that the amou nt of collateral savings determined by
the contracting officer is u nilat eral. The amounts of present and
136 Value Engineering, September 1968
fu t u re acquisition savings are subject t o negotiation and settle-
ment procedures.
1-1705.2 Where a single change proposal substantially affects the
basis for compu t ing performance incentives in a mu lti-incentive
contract, an equitable revision wil l be made in the performance
provisions. Experience t o date indicates that value engineering
change proposals enhance performance, so that incentive profits
are increased as wel l . However, there may be degradations in
incentive profit elements where it wou l d be desirable t o reduce
performance targets.
1-1705.3. Advance consideration should be given t o the treatment
of al l types of costs t o be incu rred in implementing a value
engineering clause, e.g., testing costs. Al l owabl e costs incu rred are
allowable as indirect charges except t o the extent they must not
be charged, bu t only deducted from gross savings in accordance
wit h l-1703.2(f). The costs may not be charged direct, except in
the case of the program requirement clause, and then only t o the
extent proper t o cover the required program.
1-1707. Basic Clause Paragraphs.
The Valu e Engineering Change Proposal contents specified by
paragraph (b) shou ld be supplemented by addit ional 'sales'
language, and the contractor ought t o specify the du rat ion of his
offer, whether it is ' al l or none', and he may wish t o protect his
data rights in accordance wit h paragraph (h).
Whil e 1-1703.1(a) states that expeditious processing of change
proposals is an essential element of an effective incentive, para-
graph (c) (1) states that the government shall not be liable for any
delay in action on a proposal. The decision as t o acceptance of a
proposal is final and is not subject t o the 'disputes' clause.
Paragraph (c) (2) provides that the contracting officer may accept
a Valu e Engineering Change Proposal by issuing a change order
t o the contract. A change is a u nilateral document when issued,
and the contractor must comply. Onl y then can negotiations take
place, and the change order superseded by a bilateral contract
amendment. I f the parties are unable t o agree on amou nt or other
terms of the proposal, a disputes remedy may be available.
However, Paragraph (c) (2) also provides that the contracting
officer may accept the Valu e Engineering Change Proposal in
whole or in part. Only if the proposal is condit ioned t o require
acceptance on an ' al l or none' basis wou l d any part ial acceptance
or any acceptance varying the terms of the offer in such a manner
as t o constitute a counter offer be improper.
The final sentence of paragraph (e) states that, whil e payments of
shares t o sub-contractors may be treated as part of the sum of
development and implementation costs, the Government's share
on addit ional purchases may not be reduced by such payments.
Consequently, special attention t o sub-contracts wit h Valu e
Engineering incentives is needed t o achieve a balance of mot iva-
t ion of the sub-contractor and compensating ret u rn for the
volu me decrease realised by the prime. The problems of cost
allowabilit y, met hod of charging, and adequate ret u rn are
part icu larly troublesome in this sub-contracting area, which
constitutes a significant port ion of the procurement dollar and
savings market.
Paragraph (f) (2), apart from its literal provision, is intended t o
compensate maintenance, overhaul and repair contractors when
the end it em is a u nit of serviced Government equipment, rather
than a u nit of hardware, at the higher sharing rates. Otherwise
the contractor wou l d be l imit ed t o sharing at the ten per cent
collateral savings rate.
Under paragraph (g), instant contract sharing is permitted under
more t han one contract, whether held by the submitter or another
contractor, except that collateral and fu t u re savings are shared
only under the contract under which the proposal is first received.
Obviously, the contractor shou ld evaluate sharing calculations
under al l affected contracts in order t o determine under which
contract a proposal shou ld first be submitted.
C onc lus i on
I t is hoped that the reader of ' Valu e Engineering' has now
acquired a knowledge of why value engineering contractu al
incentives are needed and a flavour of the clauses and provisions
used in the U. S. Department of Defense t o fill the need. As a
novice in the ambience of Brit ain' s government procurement, it is
recognised that wholesale application of the U. S. provisions t o
its contractors l ikel y wou l d encounter serious difficu lties. A t the
same t ime, ou r experience is that init ial reactions of government
and indu stry t o the effect that 'value engineering incentives are not
applicable t o my area of interest' are proven t o be incorrect.
Today even ou r Post Office Department is using value engineer-
ing. Some companies having design cont rol offer incentives t o
sub-contractors even where no incentives are payable t hrou gh
prime contracts. The writ er wil l be glad t o respond t o any
inquiries forwarded t hrou gh the editor.
I n the Unit ed States, a vast potential st il l exists. Of the estimated
$45 bil l ion t o be spent in defense procurement in fiscal year 1968,
projected gross savings from contractor-originated change
proposals before sharing amou nt t o $130 mil l ion annu ally or
only 0-3 %. Savings in the magnitude of upwards of 1 % of the
defense dollar are readily projected, and 10 % is not an impossible
goal. Approximat el y fort y percent of the gross savings is paid t o
contractors. A t a profit rate of 10%, this is the equivalent of hal f
a bil l ion dollars in sales, a substantial market.
I n short, a new profit center has been added in many part icipat ing
companies. The contractu al incentives provide a u niqu e opport u -
nit y for joining the conflict ing interests of each part y t o defense
contracts; opt imu m economic ret u rn and maximu m usable
mil it ary ou t pu t . The pacing fact or is managerial ingenu ity and
commitment.
Miscellany
T h e P e r g a mon P r e s s
Pergamon Press was fou nded joint l y in 1948 in London by
Bu t t erwort h & Co. (Publishers) Lt d. one of the oldest pu blishing
houses in England (established circa 1600), and by Springer-
Verlag of Heidelberg and Berl in, the leading Eu ropean scientific
pu blishing house, under the t it l e Bu tterworth-Springer Lt d.
A change of share ownership in 1951 made it possible t o change
the name t o PERGA MON PRESS.
Pergamon was the name of a Greek t own m Asia Minor, famou s
for one of the great works of art, the A l t ar of Pergamon,
dedicated t o At hena. The PERGA MON PRESS colophon is a
reprodu ct ion of a coin fou nd at Herakleia, dat ing from about
400 B. C. , showing the head of At hena. At hena is recognised as
the presiding divinit y of states and cities, of the arts and indus-
tries - in short, as the goddess of the intellectual side of hu man
l ife.
R e d u c e s dr ag by 40 per c e nt
As l it t l e as one part per mil l ion of Polyox in water reduces drag
by 40 per cent.
Polyox resins are widely used in adhesives, hair sprays and
toothpaste. The Polyox solu t ion is viscoelastic. Chemically it is a
l ong chain polymer of ethylene oxide.
When it is stirred it 'rebounds' after coming t o rest and starts t o
move in the opposite direction.
I t flows u phil l . Once the flow is started by t ipping the beaker
containing Polyox solu t ion it continues l ike a siphon wit hou t a
tube t o contain it . The siphon effect does not always empty the
beaker. The height the l iqu id wil l cl imb u p inside itself depends on
how far it falls outside. To empty a beaker containing fou r litres
(a bit less t han a gallon) Dr D. F. James of the Cal ifornia I nst it u t e
of Technology fou nd he needed a fal l of eleven feet.
137
E
LED BY
I
C Eng, AMI Mech E, MIMC
have
increased prof its
reduced costs. ....
improved saleabilrty
for l eadi ng compani es in
motor vehi cl e manuf act ur e
el ectri cal engi neeri ng
hydraul i cs
machi ne tool s
el ectroni cs
offi ce equi pment
i nst rument at i on
consumer durabl es
manuf act ured j oi nery
and many other i ndust ri es
Teams composed of Sales/
Market i ng, Product i on, Desi gn
and Purchasi ng, i ncl udi ng at
least one top manager, bri ng one
of thei r own product s f or study
Realistic savi ngs usually exceed
20% of product costs
TH E TACK ORGANISATION
_ LONGMOORE ST LOND ON SWI
TELEPH ONE: 01-834 5001
Cost
Reduction
Essential
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Value Analysis is the most powerful management
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Value Analysis is a textbook for all levels of
management in industry, intended as a reference to
the fundamental principles of Value Analysis/
Engineering. Written by John Gibson, Value
Engineering Manager, Osram (GEC) Limited.
This book covers the main features of Value
Analysis:
1. Costhow it is initiated.
2. Unnecessary costhow it is caused.
3. The concept of value.
4. How to obtain equivalent quality and perform-
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This book is a must for all involved in design,
planning and decision-making, where cost control
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To: Promotions Manager,
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Name-
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138
Value Engineering, September 196K
Reprint No. 1:3:3
Creativity - Value Standards
The Constraints to Creative
Value Engineering
by Lt. Colonel Bert Decker
In this second article. Colonel Decker aptly quotes the
Assistant Secretary of Defense's reference to value
engineering as a 'rebellion from beneath'. The purpose of ,
every rebellion is to overcome some organised constraints '
and the author goes on to show how managers may
improve individual creative behaviour and optimise group
creativity.
Problems in the main yield best to interdisciplinary
innovative efforts which are constrained in various ways.
Colonel Decker, as well as describing these constraints -
habitual, semantic, educational, and so on - offers sug-
gestions for overcoming them.
Whilst not knowing of the creative techniques is a con-
straint, knowing of them does not eliminate the constraint
unless one knows when and where to use them. People,
too, are attracted in differing degrees to the various
techniques.
The need for a definition of value couched in verifiable
measurable terms is urged for managers cannot effectively
manage and control that which they do not clearly under-
stand.
Differentiating between 'competitive' and 'integrated
cooperative' value engineering the author refers to the
failure of the former in the long run. Integrate value
engineering into the organisation; teach those inside so it
is they who cut costs and simplify design.
G.E., over a three-year period, saved $25.75 for every
dollar spent on value engineering but-as an additional
benefit - they reduced engineering development time by
25per cent. Achievements like this come from the creation
by management of a climate that is conducive to the
application of value engineering principles.
When one considers the constraints t o creative value engineering,
one wonders how it ever happens. To some extent, resistance
t o creative attempts seems t o be bu il t int o man's genes. However,
it is the dynamic apathy and myopt ic negativism which has
retarded value engineering for t wo decades that convinces one
that t radit ional firms are u nfort u nat ely most efficiently organised
t o cause bot h unnecessary costs and detrimental conformit y. I n
fact , one must evaluate value engineering as creative solely on the
basis of its persistence. I n spite of its many constraints, it persists
and accelerates.
The many and complex constraints t o the profit able innovat ion
concerning value derive from many sources. Edu cat ion inculcates
them, t raining shapes them, and organisations bu il d constraints
t o creative activities int o their procedures. However, the greatest
barrier t o increasing value is ou r own habit u al verbal patterns
and ou r own unconscious, erroneous assumptions concerning how
t o achieve indu st rial innovat ion.
The Honorable George Fou ch, Assistant Secretary of Defense,
has correctly called Valu e Engineering a ' rebellion from beneath'.
I t was a shrewd, int u it ive observation which makes one realise
that we must somehow change Valu e Engineering int o a 'creative
crusade by chiefs'.
The purpose of every rebellion is t o overcome some organised
constraints. I n the indu st rial worl d, 'organised constraints'
shou ld be very mu ch the concern of managers. I n fact , in their
complex, over-specialised environment, their most pressing prob-
lem concerns the opt imisat ion of the grou p creative behaviour of
* Colonel Decker, USAFR (Ret.) is Director of
Project 3000 at the State University of New York at
Buffalo. He wrote on 'The Creative Aspects of
Value Engineering' in the first issue of the journal.
His address is c/o Office for Continuing Education,
Millard Fillmore College, State University of New
York at Buffalo, Hayes A, 3435 Main Street,
Buffalo, N.Y. 14214, U.S.A.
their subordinates. I mproving the creative behaviour of an
individu al is relatively easy in comparison t o opt imising creative
cooperation. Valu e Engineering is very mu ch a grou p act ivit y.
That , in itself, is a constraint. Today's problems are interdiscipli-
nary. Few can be solved by one man alone. I nterdisciplinary
integration and innovat ion is the obvious answer and pressing
need. Profits derive from creative change. The average indu st rial
produ ct rarely remains unchanged for more t han three years.
The constraints t o creative value engineering and the interdisci-
pl inary innovat ion which it strives t o be can be classified under
five general headings as fol l ows:
1. Habit u al hu man responses deriving from bot h evolu t ionary
and indu st rial survival factors.
2. The General Semantics difficu lties involved and the inabil it y t o
resolve them.
3. Lack of understanding in and practice of the creative concepts
and techniques and especially the inabil it y t o optimise grou p
creative behaviour.
4. Lack of understanding of value engineering and especially of
why it is different, radical, and difficu l t t o manage.
5. Lack of understanding of how education, t raining, and daily
indu st rial practices shape conformit y rather t han creative
behaviour.
Habi t ual C ons t r a i nt s
I n ' The Creative Aspects of Valu e Engineering', it was stated
that man is instinctively creative in that al l of l ife rebels against
its harsh environment and attempts t o change it . Creative rebel-
l ion does seem t o be a characteristic habit of al l creatures. How-
ever, another almost instinctive habit which characterises man
seems t o negate effective creative behaviour as defined today.
That constraint can be called the ' swift habit u al signal response'.
The ' swift habit u al signal response' is an automatic, instanta-
neous, discriminative, manipu lative, evaluative reaction to danger
or threat of danger in the environment. I t is deeply ingrained
since it is a su rvival produ ct. The caveman who instantaneously
discriminated the spot of yellow in his green ju ngle manipu lated
139
it in his cerebric memory banks, evaluated it as the Sabre
Toot hed Tiger, and au tomatically ju mped for the nearest tree,
survived. Because he survived, he gave that capability t o instan-
taneously discriminate, manipu late, evaluate, and react t o his
children. Down t hrou gh the ages that swift , habit u al signal
response has been perfected. I t is almost a reflex action. Korzybski
warned us about that 'signal response'. Al ex Osborn gave us
techniques for overcoming it .
The swift habit u al signal response was and st il l is a su rvival
necessity. We must react instantaneously t o some dangers.
Fortu nately, however, the caveman discovered that a fire at the
cave door kept the tiger ou t and gave man time t o t hink. The
bow and arrow, however, which he created t o reduce the danger
of the large cat was not the result of a swift habit u al signal
response. I t was a produ ct of extended creative effort . I t was
developed slowly. The sharp stone came first. Fastening it t o a
branch fol l owed and the new u niqu e combinat ion was used as a
spear. Mu ch later came that u niqu e set of verifiable fu nct ions
provided by that weapon system called the bow and arrow. The
extended creative behaviour of many men produced it .
I n the economic ju ngle, the greatest danger is the boss. He is
today's Sabre Toot hed Tiger. I t is his whim, his fancy, his words
that subordinates instantaneously discriminative, manipulate,
evaluate, and react t o. Unfort u nat el y, that swift habit u al signal
response t o the words of the boss is not very creative. Bu t he,
being hu man, likes it . I t becomes even more of a habit.
I n economic l ife, managers are for the most part a self-elected
elite. Managers pick managers; few stockholders bother t o use
their vote. This means that every ambitious subordinate studies
the behaviour of his boss, apes it t o a large degree, uses the values
of the boss as evaluative criteria and, in general, reacts in a
manner that keeps the boss happy. Thu s ou r economic l ife is
organised t o shape excessive detrimental conformit y. Effective
managers cl aim they want no 'Yes-men' bu t st ill tend t o be the
victims of their most persuasive specialists who t el l t hem what
those managers want t o hear. Nat u ral l y such conformit y negates
the innovat ion u pon which modern organisations t hrive and
wit hou t which they stagnant. We hear mu ch of 'permissive' and
' part icipat ing' management bu t not in scientific terms. We
flou nder towards the solu t ion.
S e ma n t i c Di f f i c ult i es
Today's 'swift habitual signal responses' are mostly verbal. People
skilled in General Semantics call them ' Conventional Wisdoms'
or ' u nverifiable generalities'. Others, skilled in the detection of
propaganda, call t hem ' glit t ering generalities' because they
' sou nd' so good bu t mean so l it t l e. They include such statements
as ' The effective leader is a professional manager' or ' The effective
manager must, at al l times, ret ain a safe margin of psychological
distance while part icipat ing wit h subordinates'. One finds no
verifiable fu nct ions in such statements. Scientifically, they are
meaningless. They cannot be verified as either true or false. Their
onl y ju st ificat ion is that they aid and abide economic su rvival.
They please managers because they ju st ify and reinforce manager
behaviour. Managers l ike being called 'professional'. I t sounds
impressive.
Managers interested in having innovat ion happen and value
increased must be very mu ch aware of these habit u al constraints
called the swift , habit u al, signal response, conventional wisdoms
and glit t ering u nverifiable generalities.
As covered in 'the Creative Aspects of Valu e Engineering', the
greatest constraint t o creative behaviour is semantic. We assume
and operate u pon the erroneous assumptions that the word is the
t hing and that a word has meaning by itself. I n fact, research wit h
six-grade children has demonstrated that Korzybski-t ype t raining
in General Semantics increased their verbal flexibility and fluence
bot h of which influence creative behaviour.
The need for semantic clarificat ion in ou r dialogues concerning
indu st rial organisation, management, decision-making, problem-
solving, etc., is obvious. Such dialogues are almost completely
void of verifiable fu nct ions. Words such as au t horit y, responsibi-
lities, and decision have yet t o be defined in scientific terms. This
does'not say that they wil l not be. For instance, it is possible and
might be highly advantageous t o define a decision as a verifiable
statement; i.e., a verifiable set of verifiableTunctions which has a
tendency t o evoke behaviour which increases or decreases
verifiable value.
Unfort u nat el y, far t oo few indu st rial people have had adequate
t raining in General Semantics althou gh some corporations have
published excellent papers on the subject for their people.
I gnor anc e C onc e r ni ng C r eat i v e C o n c e p t s
The worl d abounds wit h intuitively creative people. Far t oo few
are deliberately, consciously creative in accordance with creative
rules. Many erroneously consider lack of discipline as creative
and associate creative behaviour wit h u niqu e, different, 'screw-
bal l ' behaviour only. However, creative behaviour must be bot h
unique and profitable. To be creative, it must increase value. To
creatively increase value requires a u niqu e creative discipline, a
discipline which consistently fol l ows creative rules in a con-
sistently flexible manner. I t is behaviour disciplined t o be
habit u ally u nhabit u al in extended creative effort . Fu rther, many
people pay ' l ip service' t o the creative concepts they know. Like
Christian principles, the creative guides for action may be known
bu t not practised.
N ot enough creative concepts have been stated in scientific terms.
However, some creative guides for action have been research-
proven. Al ex Osborn's principles concerning 'deferred ju dgment'
and that ' qu ant it y breeds qu alit y' have been proven by research.
I f people do defer ju dgment, crit icism, and evalu ation at first, it
can be demonstrated that there is a significantly high degree of
probabil it y that they wil l generate a bigger percent of ideas which
they themselves evaluate as 'better'. ' Deferred ju dgement' also
increases value as value engineering has demonstrated time and
t ime again. The fact that creative behaviour has only recently
been defined in verifiables is very definitely a significant constraint
t o creative value engineering.
The fact that creative concepts have not been research proven
does not necessarily negate their usefulness. I t is u sefu l t o know
that the creative process is advantageously defined as a cyber-
netic 'feedback' system of ' Object ive-Finding' , ' Fact -Finding' ,
' Problem-Finding' , ' I dea-Finding' , ' Sol u t ion-Finding' , and
'Acceptance-Finding'. Creative techniques such as the 'Forced-
Relationship Technique', 'Synectics', Bionics', the ' Catalog
Technique', etc., al l obviou sly generate divergent behaviour and
exploit the research proven principle of ' Qu ant it y breeds
Qu al it y' .
N ot knowing of a creative technique is a constraint bu t knowing
of a technique does not eliminate the constraint unless one knows
how and where t o use it . Fu rther, because many creative guides
for action are not stated in scientific terms, bu t instead in very
vague terms, many fail t o understand them. The advice t o ' Think
Big' or 'Broaden the Scope', for instance, leave a l ot of people
cold, yet those statements evoke a l ot of creative behaviour from
others. Fu rther, ju st because people have been taught the value of
' l ooking at the advantages of an idea before even considering the
disadvantages' does not mean they wil l do so.
V a lue E ngi neer i ng I gnor anc e
Du ring the American Civil War there was an attempt t o sell
repeating rifles made on a mass-production basis t o the U.S.
A rmy. The A rmy wou l d have no part of it for t wo reasons. Their
addit ion indicated that they cou l d not logistically support
rifles being fired that fast! Second, they were afraid that if one
man did not make the complete rifl e there would be no pride in
craftsmanship. Hist ory has demonstrated that their first reason
was nonsense bu t their second does indeed have some ju stifica-
t ion.
Prior t o mass-production, the manager's job was simple. He hail
one man under him, the craftsman, responsible for the value of
the produ ct. I f that craftsman did not produce an it em the
manager cou ld sell at a profit , he either changed the behaviour of
the craftsman or fired him.
Wit h mass-production and its specialisation of tasks, the mana-
ger's value problem became completely ou t of hand. Everyone on
the produ ct ion line directly influenced the value of the product.
I n addit ion, every other part of the organisation either directly or
indirectly influenced the value of the produ ct or else we cou ld not
140
Value Engineering, September 196H
ju st ify their existence. Wit h everyone being responsible for value,
no one is. Wit h no way for the manager t o measure the degree of
influence that each department had u pon the value of the produ ct,
he soon became the vict im of his most persuasive specialist. I n
fact, u nt il twenty years ago, he had no way t o precisely measure
value for the simple reason value had not been defined in verifi-
able measurable terms. Few managers are aware of the opport u -
nities which the value concepts gives them. Their ignorance of
those opportu nities does constrain value engineering.
When Valu e Engineers first asked ' What causes unnecessary
costs?' they fou nd that the list was long. These constraints t o
value and the creative effort requ ired t o increase it inclu ded such
things as split au t horit y, split responsibilities, failu re t o use avail-
able specialists, excessive over-specialisation, Empire Bu il ding,
Selfish Sectional Efficiency, knowledge hoarding for power's
sake, lack of effective coordinat ion, lack of grou p creative plan,
lack of ideas, and excessive conformit y. Valu e Engineering is
actually a creative, systematic organised attempt t o overcome
these organisational discrepancies and constraints. As noted
above, their attempts t o overcome those organisational con-
straints have been called a ' rebellion from beneath', for the simple
reason that those constraints come under the ju risdict ion of
middle management. N ot understanding the purpose, techni-
ques, or promise of that ' rebellion' , middle managers int u it ivel y
counter attacked. Besides, the more successful value engineering
is, the more middle management looks bad. Looking bad is not
conducive t o economic su rvival.
The swift habit u al signal responses and conventional wisdoms
generated in reaction t o successful value engineering st il l fill
today's engineering and management literatu re. ' Valu e Engineer-
ing is ju st good engineering under a new name!' is heard t oo
oft en. Those making such statements cannot define ' good
engineering' in verifiables and overlook the advantages of being
able t o so define 'value'. The statement that ' Ou r System Cost
Effectiveness people eliminate al l unecessary costs before design'
overlooks the fact that System Cost Effectiveness has been based
u pon t radit ional cost analysis which value engineering has
demonstrated as inadequate for determining precise value.
I gnorance is always a constraint. I t is an erroneous assumption
that managers can effectively manage and cont rol that which they
do not understand. Knowing the value concepts is not enough.
Managers must understand the implications of those concepts,
their impact u pon the t radit ional organisation, the degree t o
which those concepts are in conflict wit h what al l of us call 'the
stu pid system', the shaper and creator of 'the organisational man' .
The most import ant lesson learned from the list of organisational
constraints which cause unnecessary costs is that t radit ional
organisation is very effectively established t o cause t hem and
excessive detrimental conformit y. Fu rther, they are creative clues
for those imaginative managers who are interested not onl y in
overcoming those constraints bu t in eliminating them.
One of the greatest retardation factors t o value engineering over
the last twenty years has been 'competitive value engineering' in
contrast to.'integrated cooperative value engineering'. ' Compet i-
t ive value engineering' is when a team from outside an organisa-
t ion or division goes in and does that u nit' s value engineering
task. To do this, they must ' pick the brains' of those in the
organisation, go t hrou gh their files and in general waste their
time. However, because they use the V. E. techniques, they
invariably drastically reduce costs and simpl ify design. I n fact ,
they usually make the original design l ook l ike a Ru be Goldberg.
This nat u rally shatters the self-image and self-confidence of those
in the organisation who were responsible for the original design.
Worse st il l , it threatens their su rvival capability in the economic
ju ngle. They nat u rally react against bot h the outsiders and value
engineering.
Time and time again in American corporations, ' Competitive
Valu e Engineering' has started ou t wit h startling profit able results
and slid slowly t o a complete halt. The second time arou nd the
insiders ju st do not allow their brains t o be picked. Records can-
not be fou nd. Protective tactics dominate. Reactive rationalisa-
tions take over. Valu e engineering becomes 'ju st good engineering
under a new name!' Soon everyone goes back t o ' good engineer-
ing' and doing things in the ol d t radit ional wastefu l way.
The tactic t o overcome 'competitive value engineering' is simple.
Do not do it . I nstead, integrate value engineering int o the
organisation. Teach the insiders so they cut costs and simpl ify
design. Most import ant , start from the t op down and teach the
managers t o value engineer so they understand its implications
and can creatively exploit its profit able possibilities. Fu rther,
blame the original ' Ru be Goldbergs', the fau l t y designs and al l
the waste in the past u pon the ' st u pid system'. Do not blame any
one person. To do so stops value engineering cold. Reinforce the
new creative behaviou r: blame the system for past mistakes.
Blame and crit icism stifles creative behaviour.
The need t o integrate value engineering int o the organisation does
not negate the need t o have a small grou p in the organisation
devoting f u l l t ime t o insu ring that value engineering is planned,
fu nded, manned, and does happen. Fu rther, the Valu e Manager
must be u p close t o the t op manager or it ju st doesn't happen.
J Time is nat u rally a constraint t o creative value engineering t o
some degree as it is t o any creative effort . I t is because we t hink so
slowly that creative effort must be extended. However, value
engineering is noted for saving time in relat ion t o t radit ional design
practices. For instance, a Vice-President of General Electric
Company reported that not only did GE save $25.75 for every
dollar spent on value engineering over a three-year period bu t , as
an addit ional benefit, they also reduced engineering development
time 25 %. This, of course, is because value engineering does not
have the designer working al l alone and forced t o do a l ot of
research t o optimise his design. I nstead, the designer is provided
wit h a team of experts, a fast informat ion gathering team, who
either have the required informat ion in their heads or know whom
t o phone for it .
One bit of ignorance concerning the creative u t ilisat ion of time
is a constraint t o value engineering or any other type of problem.
Too many people solve problems sequentially. I f they have five
problems t o solve in a week, they attempt t o solve one a day.
This allows t hem t o incubate only one day on each problem.
However, i f they spent an hou r and a hal f on each probl em on
each day thus giving themselves five days t o incubate and extend
creative effort on each problem, the improved qu alit y of their
solutions wou l d amaze them. Students in creative problem-
solving courses have demonstrated this t o themselves t ime and
time again.
Example of ignorance of value concepts constraining the value
effort abou nd in indu stry. One fol l ows.
I n a large American electronic firm it was decided t o hire three
Valu e Analysts for the Procurement Department. They were t ol d
that their task was t o 'challenge al l requisitions and ascertain
whether a better, less expensive it em t han that ordered cou l d be
purchased'. Two did ju st that and nat u rally saved a l it t l e money
bu t the t hird didn' t ; in fact , the t hird cou l d be rarely fou nd in the
Purchasing Department, so three months later the head of
procurement fired him.
The firing of procurement's t hird Valu e Analyst caused an u proar
in, of al l places, the Design Department. Three Design Engineers
went t o the Vice-President in charge of manu fact u ring wit h
evidence that the fired Valu e Analyst had helped each of them
reduce costs by tens of millions of dollars before they requisitioned
anything. His theory was 'Challenge a man's requisitions and you
challenge his pet ideas, his creative behaviour, and shatter his
self-image. You must get t o him before he has ideas and insure he
bot h obeys the creative principles and obtains al l the requ ired
expert help his design task demands'.
Needless t o say, the Vice-President was curious. He asked t o see
the fired Valu e Analyst for ' fift een minu tes' bu t listened t o him
fascinated for an hou r and a half. Highl y impressed, he then
compounded his procurement man's mistake. He rehired the
Valu e Analyst and pu t him in charge of a $600,000 fou r-mont h
project. He made him a manager. I t didn' t dawn on the Vice-
President that the Valu e Analyst had been saving more t han that
per mont h by being free t o work straight across al l departments.
Six months later the Valu e Analyst l eft the firm seeking a more
creative climate. The Vice-President cou ldn' t figure ou t why.
One sees incidents l ike that happen in organisations every day.
I gnorance of the value concepts and their organisational implica-
tions is one of the most damaging constraints t o interdisciplinary
innovat ion. The results are dollar diarrhoea and small dividends.
E duc at i onal C ons t r a i nt s
Research concerning Creative Edu cat ion by Dr Pau l Torrance
and others has demonstrated the degree t o which bot h educational
objectives and methods slowly bu t surely reduce the curious,
imaginative questioning behaviour of ou r children. A l l five and
six year olds test ou t as highly creative. By seven, however, only
fift y percent of t hem do. By the time the children are in their teens
only three or fou r are st ill behaving creatively according t o the
tests given. Questioning has stopped. Divergent behaviour has
ceased. The children have become adults. Those adults st il l
creative are oft en called ' childish' .
One general educational objective which has resulted in det ri-
mental conformit y has been the one based u pon the idea that
'the chil d must be taught t o adju st' . Act u al l y, we do not desire
that ou r children ' adju st' t o the present worl d stupidities. On the
contrary, we hope they rebel against those stupidities and creati-
vely make some order ou t of this mess we have given them.
I ndu st ry also has its ' adju st' objectives. I t is called ' indoct rinat ion' .
Unfort u nat el y, there is effective and detrimental indoct rinat ion
especially when 'creative indoct rinat ion' is not inclu ded.
A survey by Dr Pau l Torrance of educational objectives has
indicated that less t han 2% was aimed at incu lcating divergent
many-answer behaviour. Everyone is famil iar t o the degree t o
which education, indu st rial t raining, and day-to-day practices
shape convergent one-answer behaviour. Engineers are taught t o
'go by the book!' The mot t o of most teachers is ' Heed my words
and writ e them for me in the exams!' Facts are stressed. Get t ing
by in such t raining is a 'guessing game' onl y in the sense that the
student must guess about which part he is t o be tested. That
guessing is ju st about the only questioning behaviour reinforced.
The above indicates that t o optimise creative value engineering
requires a reorientation of practically everyone in the organisa-
t ion. Mu ch habit u al complex behaviour must be clarified and
changed where it is fou nd that conformit y is detrimental. Some
conformit y is not . Onl y that which retards ou r efforts t o increase
verifiable value must be changed. A l l of us have been aware of
and burdened by the constraints of the ' st u pid system'. The
creative value concepts provide bot h a promise and an opport u -
nit y. They wil l eliminate the stupidities not only because 'the
dollar t alks' bu t because al l men yearn t o learn and can't wait t o
create. Those hu man desires may be curbed and stifled bu t they
are there.
'So the fu t u re wil l hol d not hing less
Than the flowering of ou r creativeness.'
Today requires more t han lu ck
To make that extra, profit able bu ck!
Miscellany
S a v i ng Te le phone Wi r e s
A telephone system in which u p t o sixty-three subscribers can be
connected t o an exchange on onl y t wo pairs of wires has been
devised by Mr P. A . Wing of the Department of Electrical
Engineering at Lanchester College of Technology, Coventry,
England.
By replacing sixty-three pairs of wires wit h t wo pairs the new
system is far more economical wit h copper t han the present tele-
phone installations. Mr Wing' s system makes use of pulse code
modu l at ion - PCM for short. This is a met hod of t ransmit t ing
signals, such as speech, by electronically translating the signal
int o a code made u p of patterns of pulses having the same size
and shape.
I n several respects PCM systems are simpler t han conventional
telephone l inks, and have the advantage that the qu ality of the
signal is not degraded by the switching device it has t o pass
t hrou gh at the telephone exchanges.
I n Mr Wing' s system t wo pairs of wires connect sixty-three
subscribers t o an exchange and can carry u p t o eight conversa-
tions at once. This is achieved by interleaving the pulses making
u p the eight channels. According t o the inventor, the chances of
more t han eight channels t o the exchange being needed at any
t ime is small enough t o make the system practical. What happens is
that when one of the subscribers l ift s the handset of the telephone
a signal from the telephone searches for an empty channel
among the PCM pulses. When one is fou nd, the conversation can
start. A number of precautions bu il t int o the system maint ain
privacy for the subscribers.
S e le c t i ng pot ent i al v alue engi neer s
Many people of obvious intellectual abilit y gain l ow scores on
conventional intelligence tests bu t high scores on tests containing
questions t o which there is no one correct answer. Such people
are defined as 'divergers'. 'Convergers', on the other hand, gain
higher marks on intelligence tests t han on open-ended tests.
Tests carried ou t by Dr Hu dson, of Cambridge, noticed other
distinctions between the convergers and divergers. The convergers
were less l ikel y t o express unusual, liberal or non-au thoritarian
attitu des; their range of interests was narrower t han the divergers
and their hobbies tended t o be practical.
Shou ld you seek a 'diverger' value engineer?
T h e Huma n B a la nc e S he e t
Previously, employees have always been shown as an expense
on the balance sheet. N ow James S. Hekimian and Cu rtis H.
Jones (writ ing in the Harvard Business Review) show how people
can be counted as company assets.
Using the system which these t wo authors propou nd, a company
can assess its needs for the skills it has bou ght, invest in their
maintenance and improvement, and allocate their supply t o the
most promising divisions and projects in the same way as raw
materials and machinery are allocated.
A costing system that gives the value of an asset when there is an
alternative use for it is recommended. Placing a monetary value
on employees has considerable advantages. Accu rate allocations
of hu man resources can be made in accordance wit h company
goals, and having made these allocations, managers are motivated
t o make efficient use of the abilities of the new employees.
Michigan University' s I nst it u t e of Social Research is working to
develop ways by which any company can keep account of the
money it has t ied u p in people and t el l how mu ch it wou l d cost
t o replace them, and whether their wort h is fal l ing, rising, or
standing st il l .
Professor Likert , who is directing this investigation, t hinks that
i f a company in t rou ble knew how mu ch money it had t ied u p in
its employees' skills and loyalt y it might l ook elsewhere for
economies rather t han immediately cu t back on its people.
142
Reprint No. 1:3:4
Management Appreciation - Human Relations
Stimulation of the Individual
by Frederick S. Sherwin, B.S.M.E.*
The author, in pointing out that the only source of cost
reduction lies in the efforts of individuals, outlines how
management can best stimulate the individual.
I ntra-functional jealousies. Not Invented Here factors and
the like can prevent cost reduction motivation.
Leading on from an analysis of why people do things,
Mr Sherwin discusses the problems and dangers which
can arise out of the 'extra effort' philosophy. He holds that
the amount of stimulation should be proportional to the
influence which the individual exerts on costs.
Finally, the dramatic impact which value engineering
(which is product-oriented) has had on costs is dealt
y
with and the author contends that, although many tech-
niques for cost improvement can be used effectively,
management leadership is prime to them all.
T h e I mpor t anc e of I ndi vi dual E f f or t and
Ma na g e me nt Di r ec t i on
The onl y source of cost redu ction is individu al effort . Thus, the
effectiveness of any profit improvement programme based on the
redu ct ion of produ ct and operating costs is directly proport ional
t o how wel l the individu al cont ribu t or is motivated t o produce
and implement changes which minimise costs. Generally,
employee mot ivat ion is a management responsibility, first t op
management and then middle and lower management. I t is
management who must establish the climate under which
improvement and change fl ou rish. This is one responsibility that
it is very difficu l t for them t o delegate. Many have t ried and some
do attempt t o avoid this aspect of their job by assigning certain
people or fu nct ions the task of stimu lating the individu al , bu t
usually it doesn't work. People do first what they t hink the boss
wants done first, and they give priorit y t o these things. Some staff
or su b-fu nctional head cannot usually establish cost effectiveness
as a high level of priorit y on a broad enough base t o affect
profit s substantially. Onl y general or profit oriented management
can do this. Thu s, st imu lat ion of the individu al must originate
wit h the t op man in each profit centre.
W h o S hould be S t i mulat ed
Starting wit h this as a basic concept let's l ook at some of the
techniques that can be employed by management t o stimulate the
decision maker who really influences the cost of doing business.
Bu t first, perhaps we should define ' individu al ' . Just who is this
individu al who shou ld be stimulated? Wel l , he is many people -
the engineer, the researcher, the methods man, the indu st rial
engineer, the buyer, the salesman, the accountant. A l l of them,
individu al l y and as fu nct ional groups, have an influence on costs.
More oft en t han not , the inter-relationship of this influence is
complex and is deeply involved in hu man relations, the modern
business structure, indu st rial politics, organisation and physical
locat ion. For instance, suppose the indu st rial engineering section
is strongly cost improvement motivated. I n the course of their
work they may uncover many opportu nities for cost redu ction,
which requires implementation decision making and/ or study by
other groups or individu als. Suppose, however, these other
* Mr Sherwin is the Value Engineering Coordinator
of The Plessey Company Ltd., Vicarage Lane, Ilford,
Essex, England, and a Past President of the Society
of American Value Engineers.
groups are not similarly motivated or are whol l y engaged in other
work. Who can provide the mot ivat ion for an equal level of effort
by these other fu nct ions? I nt ra-fu nct ional jealousies and N . I . H.
factors can erupt t o prevent action. Thus, something more t han
individu al st imu lat ion is requ ired. Perhaps it is individu al st imu -
l at ion plus an integration of fu nct ions which can capitalise on
the motivated individu al . N ow we are back t o an area which only
t op management (General) can cont rol because of mu l t i-
fu nct ional decision making required for maximu m cost redu ction
achievement.
Ma na g e d Mot i v at i on
Consequently, more t han ju st st imu lat ion is required, managed
mot ivat ion is essential, on a broad and cross-function basis. So
when we are discussing st imu lat ion of the individu al we shou ld
be considering those management oriented techniques which do
t wo things:
1. Mot ivat e the individu al whose decisions affect the cost of
doing business t o take aggressive action t o init iat e cost savings
changes.
2. Mot ivat e al l the fu nct ional areas of the business t o so inte-
grate and coordinate their efforts that maximu m u t ilisat ion of
individu al efforts and skills is made.
This is managing for t ot al cost effectiveness and I believe it is
unwise t o consider st imu lat ion of the individu al wit hin any other
framework. Certainly st imu lat ion of individu als wit hou t provid-
ing the channels for the fu l fil ment of their efforts wou l d onl y lead
t o fru st rat ion and eventual defeat of the whole programme.
Wh a t Mot i v at es P e o p le ?
N ow - wit hin this context let's t al k about techniques t o motivate
people. First , why do people do things? Wel l - for many reasons,
bu t they can be summarised simply as:
1. They l ike t o doit .
2. They need t o do it .
3. They are directed t o do it .
People generally have a nat u ral desire t o create, t o gain personal
recognition, t o improve their economic position, t o advance their
social posit ion and t o contribu te t o society. Those things which
appeal t o these nat u ral desires wil l stimulate t hem t o take action.
The social scientist has many intricate explanations of why and
how people are mot ivat ed. However, t o get int o these in depth is
beyond the scope of this discussion. I nstead, let's l ook at some of
the things that management can do t o set the climate under which
the individu al can be stimulated t o be produ ctive in the cost
redu ction and avoidance areas.
143
E st abli shi ng a Re c e pt i v e C li ma t e
Probably one of the first things, t o establish bot h the climate and
personal mot ivat ion, is t o inform the employee that cost reduc-
t ion is part of his job. Position descriptions in indu stry today ru n
the gamut from loose verbal descriptions t o an extensive detailed
writ t en document which identifies the job' s responsibilities,
accountabilities and measurements.
Awa r e n e s s of Need- P osi t i on Responsi bi li t y
Whatever the form used each employee should be t ol d by his
immediate supervisor that efforts t o minimise all costs are apart
of his work. The individu al thus feels the need t o do it , the same as
he feels the need t o perform other work elements. Of course, this
inst ru ct ion t o make cost redu ction a part of each job must
originate at the t op. Each fu nct ional manager and supervisor
must know that cost redu ction is part of his job and part of the
responsibility of the fu nct ion he manages. Thus, cost redu ction
becomes a way of l ife, as mu ch a part of the job as any other
element on which the employee's salary, progress and advance-
ment depends.
Suppose on the other hand, where the supervisor orients the new
employee t o his job he makes no ment ion of cost bu t emphasises
schedule, accuracy, qu alit y and other performance factors. The
individu al' s attention wil l be focused on those things which his
boss feels are import ant . These get t op priorit y and the employee
feels no need t o do cost redu ction work. Thus, management must
establish cost effectiveness as a part of the job of all individu als
whose decisions influence cost. The individu al is thus stimulated
by recognition of the need t o do cost reduction as a part of his job
and as a part of the company's profit improvement programme. A
campaign t o advise al l employees of this need is essential if a
favou rable cost redu ct ion climate is t o exist. This can be done in
many ways such as form job orient at ion, supervisor-employee
discussion, job descriptions, brochures, company pu blications.
Whatever the means, the message must get across - Cost Reduc-
t ion is a part of you r job.
P er pet ual Awa r e n e s s
A n init ial awareness of the importance of cost redu ct ion actions
is not sufficient. A cont inu al effort must be made by management
t o keep this fact before employees - Company profit , you r job
and you r welfare depends on you r efforts t o minimise costs. How
wel l you do as an individu al determines how wel l we do as a
company. This continu ally reinforces in the mind of each indivi-
du al the need t o reduce costs.
Di r ec t i on of E f f or t
Very closely allied t o management's efforts t o create a general
understanding of the need t o do this work is the effort of manage-
ment t o direct specific cost avoidance or redu ct ion work. This
more specifically orders the individu al t o carry ou t certain
defined tasks wit h established goals and schedule. I t is desirable
that the recognition of need climate is established prior t o the
direction of effort , because the employee is more receptive t o
carrying ou t the order expeditiously i f he is convinced that his and
the company's welfare is dependent on his efforts.
T h e Haz ar ds of E xt r a E f f or t P hi losophy
There is a tendency in American indu stry t o l ook u pon cost
redu ct ion work as an extra effort t o be rewarded by extra com-
pensation in one form or another. Prizes, bonuses, cash awards
and other forms of recognition are associated wit h the field of
cost redu ction. Suggestion systems of various types are devised t o
motivate the employee t o create and submit changes t o minimise
cost. N ot only do some of these programmes require high
administrative costs bu t also they may be actually detrimental t o
overall cost redu ction. For one t hing, this thesis of extra com-
pensation for cost redu ct ion implies that such work is not part
of each individu al' s job. I t is saying in essence - we are not paying
you t o reduce inefficiencies and unnecessary cost. This is a
dangerous climate t o establish because it removes the recognition
of the need t o do it , and such a climate may permeate fu nct ional
areas where a key job responsibility shou ld be cost redu ction.
Whil e it may be desirable t o encourage employees t o keep their
eyes open in areas other t han their own job responsibility, it may
be more desirable t o manage improvement in areas of deficiency
by strengthening those areas rather t han expecting someone else
t o fill the gap. Moreover, by recognising cost improvements as an
extra effort in one area or wit h one grou p of employees it is hard
t o avoid this same climate from penetrating other areas. Possibly
it wou l d be more profit able t o devote management attention t o
more systematic, organised methods of redu cing unnecessary
costs and stimu lating the individu al t o do his total job effectively.
C o s t Reduc t i on P r og r a mme s - As a S t i mula t or
Formal cost redu ction programmes which assign responsibilities,
establish goals and measure results oft en serve as an effective
stimu lant. However, they oft en can deteriorate int o an admini-
strative effort t o document normal effort s. I f that is al l that is
achieved, a company is better off t o save the cost of administering
the programme. I f on the other hand the programme is wel l
structured t o motivate excellence in the area of cost effectiveness
then it may wel l serve as a good rnanagement t ool . Such a
programme should ident ify for employees al l areas where cost
improvements are desirable, al l techniques by which cost savings
should be achieved, the need for continu al effort and manage-
ment's endorsement of cost redu ction work. Since cost redu ction
activities are mu l t i-fu nct ional and mu lti-discipline they must be
under the direct guidance of general management. As any formal
programme the ret u rn on investment shou ld be measured t o
insure the gained benefits are wort h the cost.
P r opor t i oned S t i mulat i on
The amou nt and intensity of st imu lat ion should be in proport ion
t o the influence which each individu al exerts on costs. For
instance, it does not make sense t o motivate the janit or t o reduce
costs i f the plant superintendent is not motivated. I f we are con-
cerned wit h produ ct costs, engineering personnel must be highly
stimulated since their designs probably have the greatest impact
on cost. Their drawings and specifications establish a certain
fou ndat ion of inherent costs based on existing material and
produ ct ion knowledge. Wit hou t breakthroughs in these areas,
costs cannot be fu rt her reduced. By having cont rol over process,
configu rat ion, tolerances, material and oft en source or produ ct
make the design engineer exerts significant influence on produ ct
cost. His mot ivat ion t o take action t o reduce this cost is thus a
key fact or in any cost improvement, which requires change in one
of the elements under his cont rol . Purchasing and Manfact u ring
can onl y cont rol costs in areas under their decision making
au t horit y.
C o s t Tar get P r og r a mme a s a S t i mula t or
Thus, mu ch of managements efforts t o stimulate the individu al
must be centred in their engineering organisation. Where an
insu fficient degree of cost proficiency has existed in engineering
design one management technique t o force improved efforts is
called 'Cost Targeting' . I n this technique management establishes
cost targets for produ ct ion cost of the produ ct at an early stage of
design. Each responsible engineer is assigned a goal for produ ct
manu fact u ring costs on that port ion of the produ ct for which he
is responsible. As the design progresses the projected produ ct ion
cost is audited by the engineer, his supervisor, a design review
team or a cost target team t o insure its meeting target. This
met hod provides a real incentive for the engineer, as well as
others who influence produ ct cost, t o perform wel l in the cost
area. I t makes the designer cost conscious and encourages him to
seek methods t o minimise cost because he knows he wil l be
measured in this area. The same concepts can be applied to
produ ct improvement or re-design as t o original or new designs.
I n either case, they hit right at the source of produ ct costs and to
provide an import ant st imu lat ion for cost avoidance or reduction
work. Such a programme also does mu ch t o establish an overall
cost-conscious climate under which al l profit improvement
activities flourish. I t also motivates an integrated effort between
engineering and manu fact u ring.
144
Tr ai ni ng P r og r a mme s - f or S t i mulat i ng t he
I ndi vi dual
The last met hod of stimu lating the individu al which wil l be dis-
cussed here is Training Programmes. Such programmes can
stimulate participants in several ways. First, they serve t o make
people more aware of the cost and profit problem. Second, they
make them aware of the personal and company benefits of reduc-
ing costs as a means of profit improvement. Third, they help the
individu al be better qu alified t o eliminate unnecessary costs and
because they are better able t o do the job they like t o do it . More-
over, they stimulate greater job satisfaction and personal sense of
achievement and cont ribu t ion. Such things appeal t o the basic
mot ivat ion instincts mentioned previou sly: I t ' s creative work, it
gains personal recognition, it improves their economic posit ion,
and they feel they have cont ribu t ed t o society (and company).
Some t raining programmes aim directly at profit improvement,
others help by setting the climate. Some il l u st rat ion of the latter
are:
General Company orientation programmes
Management t raining programmes
I ndu st rial psychology.
Some of the programmes which help directly in cost redu ction
mot ivat ion are:
Work simplificat ion
Better methods
Valu e analysis - Valu e engineering
Time and mot ion studies
Operations research
Profit improvement and Cost redu ction
PERT/ Time/ Cost
Purchasing methods, Manu fact u ring methods
Materials and Processes
Creative engineering - Creativity.
Miscellany
I nst ant P r i nt ed Re por t s
A met hod for produ cing instant print ed reports of conferences
and committees is being developed at the Nat ional Physical
Laborat ory at Teddingt on, England.
The system uses a keyboard machine directly l inked t o a com-
pu ter system. As the spoken word is taken down by operators of
the Palantype mechanical shorthand writ er it is converted
au tomatically int o a f u l l English text. This is print ed ou t or
punched on t o a paper tape which can be fed int o an au tomatic
typesetting machine.
Normal l y the Palantype u nit prints the spoken word on t o a
strip of paper and typists transcribe this int o t ypewrit t en script,
a process that takes five times as l ong as the original Palantype
recording.
Dr W. L. Price, one of the designers, says that for practical
application many shorthand writers wou l d be l inked int o one
compu ter system.
Me g a t e c h n i c s and Roc k e t r y
Lewis Mu mford' s recent book The Myth of the Machine (pu b-
lished by Seeker and Warbu rg) reminds us that the mechanisation
of men l ong preceded the mechanisation of their working
instruments. The mechanisation of man himself Mu mford calls
the 'megamachine' - the organisation of men's bodies int o a vast
constructive force capable (wit h no mechanised tools) of bu il ding
the pyramids.
He explains how - du ring thousands of years of history - this
megamachine served the ambitions of kings. I t was the basis
of the creation of the ' mil it ary machine'. Mu mford quotes
Keynes' not ion of pyramid-bu il ding as a device for coping wit h
the surplus labou r force in an affluent society whose rulers were
averse t o social justice and economic equ ality. Rocket bu il ding,
he concludes, is ou r modern equivalent.
V a lue E ngi neer i ng Tr ai ni ng
One of these which has made rather dramatic impact in American
business in recent years is Valu e Engineering. This systematic
method for ident ifying and removing unnecessary costs (mostly
produ ct oriented) was developed after Worl d War I I and is today
applied in most companies either formal l y or informal l y. I t is
taught for the most part by means of in-plant, workshop, team
oriented seminars. Usu ally, these seminars take the form of
lecture, demonstration and practice (tell-show-do) wit h the
practice applied t o products or parts from produ ct ion items. The
teams consist of from three t o five people of different back-
grounds and responsibilities. The seminar du rat ion is 40 hours or
longer and split about 50-50 between lecture-demonstration and
workshop. One advantage t o this approach is that in addit ion t o
developing skil l it actually pays for itself from the cost saving
ideas that are generated. I n addit ion t o the formal t raining effort
Valu e Engineering programmes usually include the assignment of
Valu e Specialists, whose fu nct ion is largely catalytic in nature
designed t o motivate people and provide consultant services t o
stimulate and assist each line decision maker t o do a better job of
profit improvement through cost reduction.
T h e P r i me Role of Ma na g e me nt
Whil e I have discussed a number of techniques for stimu lating
the individu al t o reduce costs, I believe al l of t hem can be sum-
marised by emphasising the role of t op management in any
mot ivat ional effort . Cont inu ing, effective profit improvement wil l
only come about when the individu al is stimulated t o take
aggressive action t o reduce costs. Such action can onl y be
sustained by a t op management directed programme which comes
down t hrou gh the management chain t o al l individu als whose
decisions affect cost, and finally so integrates and coordinates this
decision making that cost improvements are prompt l y imple-
mented. Many techniques can be used effectively bu t manage-
ment leadership is prime t o them al l .
His conclusions are t oo awfu l t o contemplate: ' Wit h this new
megatechnics the dominant minorit y wil l create a u niform, al l -
enveloping, super-planetary structure, designed for au tomatic
operation. Man wil l become a passive, purposely, machine-
conditioned animal or strictly l imit ed and cont rolled for the
benefit of de-personalised, collective organisations.'
Of c o u r s e , y ou k n o w all t hi s
Of al l the factors which improve one's attitu de t o work, none is
more potent t han recognition. We al l have a basic need t o be
recognised - and wanted. Oscar Wil de said, T can live on a good
compliment for a mont h' .
Mr D. J. Slingsby's Human Relations in Industry contains one of
the best checklists I have seen for anybody who has hal f an hou r
t o spare and wishes t o search his heart about his relations wit h
his staff and his superiors.
Here are a few examples.
Do try to realise that . . .
people are often motivated more by emotions and impressions
than by facts . . .
security is like happiness, the harder you seek it, the more elusive
it becomes . . .
people's wants and motives change as their circumstances change.
Do try to . . .
fit people into jobs worthy of their ability . . .
let them know how they are doing . . .
decide promptly unless there is a good reason for delay . . .
consider the suggestion, not the person making it . . .
be honest with yourself - question your own judgment.
Of course, you know al l this.
To get a copy send 4s. t o Hil l foot , Ben Rhydding Drive, I l kl ey,
Yorkshire, England.
P R O G R AMME D I N S T R UC T I O N
Can I use it?
Does it work?
How much does it cost?
Find the answer to these and your other questions by reading PROGRAMMED
I NSTRUCTI ON IN I NDUSTRY, every month.
This is a monthly reference series of case histories describing programmed
instruction work done in industry in which a significant contribution has been
made to training. Everything is coveredsuccesses and failures; problems;
planning; implementation and results.
Obviously we cannot tell you enough in this advertisementso send this slip
today for a FREE copy of one of the monthly issues and descriptive literature.
To: Training & Technical Publications Division (KC), Pergamon Press Limited,
Headington Hill Hall, Oxford.
Please send me a free copy of one of the PMissues and descriptive literature.
Name
Position.
Reprint No. 1:3:5
Indirect costs - Value Administration
The New Management Tool
Value Administration
by Anthony G. Chappell*
The application of the proven principles of Value Analysis
to the overhead as well as the direct costs incurred by
companies has shown that these indirect costs can be
substantially reduced and controlled.
The author discusses the weaknesses in the present four-
methods used for reducing overhead costs and he puts
forward 'Value Administration' as an effective alternative
approach.
Value Administration is based on the functional analysis of
individual activities in a company and the objective
comparison of the value of the function with its total cost.
The six steps in Value Administration - Organisation,
Evaluation, Speculation, Investigation, Recommendation,
and Implementation - are described.
The vital need for whole-hearted support from manage-
ment is stressed.
O v e r he a ds an I nc r easi ng P r opor t i on of Tot al
P r oduc t C o s t
I t is characteristic of indu stry that overheads account for an ever
increasing proport ion of t ot al produ ct cost. Typical proportions
fou nd in companies today are:
direct labou r 10/15%
direct materials 40/45 %
overheads 45/ 50%.
The growt h of overheads has arisen because of the increasing
complexity and compet it ion in indu stry. Companies have
acquired more and more administrative and specialist personnel,
wit h the objective of reducing direct costs, increasing sales and
produ ct ion volu me.
Bu t the acqu isition of these specialist fu nct ions has not always
been economic. The financial ret u rn t o companies has not
always matched the expense invested in them, wit h result that
many companies are faced wit h the probl em of cont rol l ing
indirect costs and bringing t hem int o a balance wit h direct costs.
As you have heard, the application of work study and Valu e
Analysis is now well established in most companies and enables
direct costs t o be reduced, on average, by 10 per cent.
Unfort u nat el y, the amou nt of scientific effort applied t o the
development of effective techniques for overhead cost redu ction
has been less significant.
F our Me t hod s of At t ac k i ng O v e r he a d C o s t s
At t acks on overhead cost have fallen generally int o fou r cate-
gories:
(a) Budgetary cont rol
This conventional approach stems from the accounting
practice which compares the direct costs of products wit h
their sales value. Costing of overheads is restricted t o the
secondary purpose of allocating charges against the gross
margin of products. I n this context, budgetary cont rol is
usually restricted t o a comparison of current items of over-
head expense wit h the equivalent in preceding periods. I t
is not unusual t o find that a growt h in tu rnover allows a
* Mr Chappell, Deputy Managing Director, Mead
Carney & Company Ltd., delivered this paper at a
meeting of the Institution of Works Managers
(Notts, and Derby Branch) in March 1968. Grateful
acknowledgement is made to the Institution for
allowing this important paper to be published in
this journal. Mr Chappell's address is 46 Park Lane,
London, W. 1., England.
corresponding growt h in overheads, simply because, in
this respect, overhead cost is treated as a variable related
t o t ot al produ ct cost.
(b) Organisation and methods cont rol (O & M)
Organisation and methods departments can do a great
deal t o simpl ify and improve the detailed commu nicat ion
and paperwork procedures wit hin a company bu t they are
rarely given the au t horit y t o examine the real need for
major fu nct ions as a whole.
The int rodu ct ion of pre-determined time standards t o
establish numbers of staff required t o carry ou t clerical
activities has done a great deal t o eliminate over-staffing
bu t neither this met hod nor the st raight forward systems
analysis have made mu ch impact on the eliminat ion of
fu nct ions, which are unnecessary for a company's
prosperity.
(c) I nt er-firm comparisons
Some years ago, the American Management Association
( A MA ) obtained the co-operation of approximately one
thousand American companies in attempting t o establish
the average levels of various overhead fu nct ions in the
various branches of commerce and indu stry. More
recently, the idea of companies comparing their costs and
performance wit h others of equivalent nature or in a
similar trade has gained some acceptance in this cou ntry.
However, the experience in bot h the Unit ed States and the
Unit ed Kingdom is that the advantages of this comparison
are small, because of the difference in detail that exists
between companies, not onl y in their structures, bu t in the
way in which they analyse their costs. There is a danger in
these circumstances that misleading conclusions can be
reached.
(d) A rbit rary cuts in overheads
I f a company does not exert real cont rol over the cost of
its overhead fu nct ions du ring times of prosperity, expendi-
tu re may be increased on activities which are not neces-
sary. When recession fol l ows, there is the risk that crude
across-the-board cuts, which take l it t l e account of the
relative merits of individu al fu nct ions, may not only leave
considerable surplus fat in areas which are superfluous to
the profit abil it y of the company bu t may easily destroy
other activities which are vit al . Fu rthermore, this type of
action must be isolated t o emergency conditions and can
never form the basis of any cont inu ing cont rol .
These methods are not satisfactory because management has no
yardstick whereby the value of overhead expenditure can be
assessed.
147
The weakness lies in the attempt t o cont rol overheads on a
departmental basis.
V a lue Admi ni st r at i on i s a N e w Ap p r o a c h
Valu e administ rat ion is a new approach providing a more effec-
tive cont rol of overhead costs. What then is value administration ?
Valu e administ rat ion is a technique of overhead cost redu ction
and cont rol based on t wo principles:
(a) I ndividu al activities in a company are analysed on a
fu nct ional basis. Cu rrent ly, costs are summarised on a
departmental basis. Valu e administ rat ion summarises
activity costs wit hin individu al fu nct ions. For example,
the fu nct ion of wage payment can involve activities in
the fol l owing eight departments:
operation planning payrol l
rate fixing or work study cashier
produ ct ion cont rol security
shop clerks personnel.
(b) Objective comparison of the value of a fu nct ion wit h its
t ot al cost. This requires the same challenging appraisal as
applied t o a produ ct by a Valu e Analysis team. Each
activity is treated l ike a component in a produ ct. The value
of its cont ribu t ion t o the fu nct ion is compared wit h its
cost.
The S t e p s in V a lu e Admi ni st r at i on
ORGA N I SA TI ON
(i) Discussions take place wit h t op management t o gain an
understanding of the operating business cycle, that is,
how the company operates, its aims and ambitions, and
the actions being taken or proposed t o achieve these.
Specifically, these discussions wou l d encompass the
spheres of activity of the company. What are the pro-
ducts, how are they init iat ed, designed, sold, produced,
delivered and serviced. What is the labou r force, how
are they attracted t o the company, how are they em-
ployed, paid, controlled, trained and what services are
provided for them? What materials are used, how are
they purchased, stored, cont rolled and paid for? What
physical assets are owned by the company, how are they
acquired, installed, maintained, cont rolled and disposed
of?
(ii) As a result of these discussions, the Valu e Administ rat ion
team determines the essential fu nct ions necessary for
successful operation of the company and agrees them
wit h t op management.
(iii) A list ing of these fu nct ions is then made; as far as
possible this list is in the chronological order in which the
fu nct ions are performed.
EVA LUA TI ON
(iv) A census is then taken of al l personnel employed on work
of an indirect nature. This census asks for name, clock
number, t it l e, department, t o whom responsible and a
brief description of their work.
Depart ment al heads are then asked t o add remu neration,
departmental overhead, and t o check that the supplied
informat ion is correct.
(v) The facts as presented by the census are then analysed t o
fu nct ion and department, resulting in a head count and
cost of each fu nct ion and each department.
SPECULA TI ON
(vi) This analysis is compared wit h the list of essential
fu nct ions t o determine non-essentials and duplications.
A t this stage, each fu nct ion in the business has been
defined and costed. This informat ion is presented t o a
Valu e Administ rat ion team of executives, who determine
the value of each t hrou gh a series of challenging ques-
tions, which I mentioned earlier. These are:
what does it do? is it in the best place?
is it necessary? is some ou t pu t unused?
is it good value? is it duplicated?
148
can it be combined wit h another fu nct ion?
does ou t pu t go where it is not used?
is a demand for ou t pu t unsatisfied?
are more economic methods available?
is a key fu nct ion missing?
We suggest that the team shou ld meet regularly each
week and shou ld comprise one executive from each of the
major departments of the company, these generally being
sales, accounting, purchasing, produ ct ion, engineering,
personnel and management services where applicable.
We have fou nd that the use of such a team in this type of
exercise leads t o a high degree of co-operation t hrou ghou t
a company in challenging and eliminat ing unnecessary
expenditure and secondly it facilitates the development
of a company-wide view of each fu nct ion and its value.
I t is also the responsibility of this team t o instigate,
assess and approve proposals arising from the investiga-
t ion stage, which runs concu rrently.
I N VESTI GA TI ON
(vii) Functions considered by the team t o be non-essential or
duplicated are subjected t o closer investigation by the
consultant and, in conju nct ion wit h team members and
departmental managers, proposals are generated for
corrective action t o be taken.
(viii) A fu rt her area of investigation takes place wit hin those
fu nct ions agreed t o be essential, areas of high cost are
located from the analysis and these are subjected t o
detailed costing and scrutiny wit h the objective of reduc-
ing the cost t o the company.
RECOMMEN DA TI ON S
(ix) Proposals approved by the team are documented and
submitted t o management in the form of recommenda-
tions for action.
I MPL EMEN TA TI ON
(x) There are certain essential steps in the implementation
of a Valu e Administ rat ion programme. These are:
stop recru itment
agree essential company fu nct ions
agree new organisation and manning
establish manpower budget and controls
declare redundant positions
set u p t raining and inter-change centre
t rain and transfer redundant staff as vacancies arise
DO N OT FI RE.
We must emphasise that the steps shown here shou ld be
init iat ed at the very start of a Valu e Administ rat ion
exercise, anticipating that redundant positions and
unnecessary expenditure wil l be fou nd.
V . A. Thi nk i ng B e c o me s a W a y of L i f e
We have fou nd that the thou ght process of Valu e Analysis and
Valu e Administ rat ion becomes a way of l ife in those companies
where such techniques have been started. I n short, we have engen-
dered an attitu de of mind, which au tomatically searches ou t the
cost and real wort h of every activity or fu nct ion performed and
evaluates its cont ribu t ion t o the company prosperity. The success
of Valu e Administ rat ion primaril y depends u pon the whole-
hearted support of the management in a company and the
infectious and progressive attitu de of mind, which judges act ivi-
ties not by their size bu t by their qu ality and performance.
The financial advantages of the Valu e Administ rat ion approach
are best illu strated by qu ot ing t wo examples:
I am not at libert y t o give the names of the companies concerned
bu t , in the headquarters organisation of a major indu strial
corporat ion, an annual saving of 400,000 was achieved for an
ou tlay of 30,000. I n another major electrical grou p, a saving of
500,000 was achieved, again for an ou tlay of 30,000. These
results show an average ret u rn on investment of fift een t o one.
One final point , these savings are achieved at relatively high
speed. I n the instances quoted, they were achieved in approxi-
mately one year.
Reprint No. 7:3:6
Ergonomics - Design
The Contribution of Ergonomics to
Value Engineering
by K. F. H. Murrell, M.A.(Oxford), F. R. P. S. , F. B. Ps. S. *
Ergonomics does not seem to have found its way into the
thinking of many practising value engineers. V.E. should
not stop short of its completion point which is the perform-
ance of the product. This can be ensured by applying.'
ergonomic principles to design, manufacture and use.
Describing how man and machine interact, the author
considers discrete once-and-for-all actions and where the
machine works at a fixed rate. Input displays and Output
controls require detailed consideration if they are to be
efficient. 'Equipment which is produced for sale, 'according
to the author 'should be assessed for its overall efficiency
when operated by a human operator' and he goes on to
describe the ways in which such an assessment may be
made.
When the Edit or first asked me t o writ e a piece about the con-
t ribu t ion Ergonomics cou l d make t o Valu e Engineering I must
confess that I cou l d see no very clear way in which this cou l d be
done. I n the first place, it was not by any means clear how Valu e
Engineering differed from a variety of activities already being
carried ou t in indu st rial concerns t o keep costs down. Secondly,
there seemed t o be an overwhelming preoccu pation wit h the
minu tae of the 'nuts and bolts' of produ ct ion. I have now had an
opport u nit y of reading the first issue of this Jou rnal, the contents
of which suggest t o me that Valu e Engineering can be regarded as
an integration of a nu mber of activities which hit hert o may have
operated independently. Thus it seems t o be import ant that
consideration of the hu man fact or shou ld also be inclu ded
althou gh, t o ju dge by the articles, it has not yet fou nd its way int o
the t hinking of most of those who are practising Valu e Engineer-
ing.
I wil l start therefore from the definit ion of Valu e Engineering,
given by G. P. Jacobs in his article in the first number of this
Jou rnal : ' Valu e Engineering is an organised effort directed at ;
(i) ident ifying the necessary fu nct ions t o be performed and
(ii) achieving those fu nct ions for least cost, commensurate wit h
performance and time scale.' There are t wo parts of this definit ion
which can be expanded int o the hu man factors fiel d. The first is
cost. You can design a produ ct which can be produ ced at l ow
cost from the engineering point of view, bu t it st il l has t o be
produced by people and these people have t o be serviced. I t is
tru e that many processes are now automatic, bu t this merely
transfers the hu man cont rol t o a different level, from the tu rner
t o the programmer for instance, and puts a greater emphasis on
the requirements for efficient maintenance. Therefore Valu e
Engineering cannot stop at the assessment of the engineering and
material costs of the produ ct (as a nu mber of the articles suggest)
bu t must also consider the efficiency of the means of produ ct ion,
and this includes the people who are engaged in produ ct ion and the
equipment wit h which they work.
* Mr Murrell is Reader in Occupational Psychology
at the University of Wales Institute of Science and
Technology, 8 Cathedral Road, Cardiff, Wales.
He has been a leading figure in Ergonomics since
its inception, having practised in industry and
conducted University and Technical College courses
in the subject. He is a founder member of the
Ergonomics Research Society.
The second fact or is the produ ct performance. Here again we
must remember that most products service man in some form or
another, t o a greater or lesser extent. Bu t wit hou t man they
wou l d be useless chunks of metal, or collections of wires, print ed
circuits or what-have-you which are incapable of any activity of
their own. The finest Rolls Royce wil l stay in the car park and
eventually wil l rot i f no-one ever comes along t o drive it away.
Therefore the performance of the produ ct cannot be considered
wit hou t also considering the performance of the men who are
going t o be involved in its operation, and in its servicing. Far t oo
oft en equipment is designed which is highly efficient from the
engineering point of view, bu t which because of lack of considera-
t ion of the relationship between machine and man wil l give
performance at a level of efficiency which is below the opt imu m.
Thus bot h cost and performance must subsume consideration of
man as wel l as hardware.
Usabi li t y of E q ui pme nt
Interest in man/machine developed du ring the last war part icu -
l arl y in the Services when it was fou nd that man was oft en the
l imit ing fact or in the performance of mil it ary equipment. This
interest has continu ed since and has crystallised int o ergonomics.
Perhaps because indu stry since the war has had a relatively
plushy time, interest first developed by the mil it ary has not been
taken u p and extended by indu stry t o the extent that many had
hoped. There must be a number of reasons for this bu t t wo which
I believe are of primary importance are the predominance of
engineering considerations and an attitu de of mind, which when I
was working for the A dmiral t y I called the ' Nelson complex'
which accepts u ncrit ically t oo many situations which have existed
in their present form from grandfather's time and even f r om that
of his grandfather before him. Thus how many people purchasing
a centre lathe for use in a t ool room wil l take int o account any-
t hing other t han the engineering specification? How many wil l
consider whether the machine can be operated efficient ly;
whether the basic design wit h its horizont al bed which forces the
tu rner t o bend over the machine in order t o see the t ool cu t t ing
is the best lay-ou t? I t is tru e that lathes have been l ike this for
the last 4,000 years bu t the poor posture which results may be a
cont ribu t ing fact or t o the l ow cu t t ing time of only 21 mins/ hou r
which we measured in one large engineering company. I n an
experiment which we conducted in a dock-yard on t wo capstan
lathes making identical parts we fou nd that one machine was
produ cing 50 % more t han the other, irrespective of which of the
t wo operators involved were working it . This was mainly due
t o the lay-ou t of the controls. I t is, therefore, reasonable t o
suggest that when considering the purchase of alternative
machines as a means t o produ ct ion their operational efficiency as
well as their mechanical efficiency and price shou ld be taken int o
account. I t is of l it t l e use purchasing a machine which appears
fract ional l y cheaper t han another i f the cost of produ cing a
produ ct on the machine is going t o be higher because of man/
machine incompat ibilit y. Rather, a detailed analysis of the kind
carried ou t by Singleton (1964) on a capstan lathe shou ld be
carried ou t. I n his paper Singleton makes a detailed examination
of al l the cont rol and operational design and as a result of modifi-
cations he showed that a standard operation cou l d be carried
ou t in a time which was 11 % less t han before the machine was
modified. Not hing that he did however cou ld make the machine
perfect because, as he point ed ou t , t o operate it efficiently the
man shou ld be onl y 4 f t t al l and have a reach of nearly 9 ft .
I have spoken of the ' Nelson complex'. A n example of this is the
met hod of giving informat ion about the posit ion of the t ool on
the centre lathe. Conventionally this is done by a circu lar
graduated scale attached t o the lead screw of the cross slide.
The scale wil l have a scale maxima which is determined by the
pit ch of the lead screw, and the informat ion it gives is by
differences; it gives no informat ion about the actual diameter
being cu t. A digit al device t o replace this scale was proposed
more t han 16 years ago and was developed commercially; we
conducted experiments wit h it on a pair of lathes in a large
indu st rial concern and showed that cu t t ing time was increased by
15% on the average; one subject increasing by as mu ch as 30%.
Similarly an experiment wit h highly skilled men using digit al
micrometers showed that errors of reading were reduced from
abou t 3i% t o less t han hal f of 1 %. I t is well known that sub-
stantial scrap is made t hrou gh reading errors of micrometers of
5 or 25 t hou . Ou r experiment confirmed that the errors were of
this kind. Bu t in spite of the time saving which cou l d fol l ow from
the use of these devices and the probable redu ction in the amou nt
of scrap made t o the best of my belief neither has fou nd accept-
ance in Brit ish I ndu st ry t o any great extent and yet their use must
contribu te t o cost redu ction.
The examples which have been given so far have related t o the
assessment of equipment procu red from others for a firm's own
produ ct ion. Under these circumstances a choice is oft en l imit ed
by what is available and this in t u rn can oft en lead t o a vicious
circle in which, so l ong as some fool is prepared t o bu y a piece of
unsatisfactory equipment some other fool is equally wil l ing t o
make it , using the excuse that he can readily sell his produ ct as a
reason for not improving it . The fact that between them the
producer and the purchaser are depressing produ ct ivit y is lost
sight of. When firms design their own produ ct ion equipment it is
equally import ant that they should apply the same crit erion of
u sability as they wou l d apply when purchasing equipment from
others, and if they are themselves producers of hardware which
wil l be used by others in produ ct ion it is of even greater impor-
tance that the u sability shou ld be considered. I t is only in this
way that the vicious circle referred t o above can be broken. I n
using the t erm u sability I refer not only t o the efficiency wit h
which components can be produced bu t also t o the efficiency wit h
which fau l t -finding, maintenance, t ool changing and so on can be
carried ou t. Most of these are hu man activities and they should
be assessed bot h when equipment is designed and when it is
purchased.
Ma n and Ma c hi ne
A man and his machine can interact in t wo ways. First action can
be discrete or once-and-for-all. A n action is taken, something
happens and that, for the time being, is that. Such an event might
be the starting of the engine in a mot or car, or the switching on
and dipping of the head lights. Secondly, action can be cont inu -
ous in which case the man wil l act as the cont rol l ing element in a
closed-loop system. This occurs when the driver puts the car on
the road and controls movement t hrou gh t raffic. I n either event
t wo things must happen; the machine must have a means of
commu nicat ion wit h the man, this is known by the jargon t erm
'display' and the man must have commu nicat ion wit h the
machine, which is known as ' cont rol ' . The efficiency of bot h these
fu nct ions wil l be predicated by the physical lay-ou t in relations
t o the man or woman who is involved. A great deal has been
writ t en about the factors which wil l contribu te t o the efficiency of
this commu nicat ion (e.g. McCormick, 1964; Mu rrel l , 1965) so it
is not intended t o go int o any detail here other t han t o give
examples and t o set ou t the general principles on which work in
this area shou ld be based.
A first principle is that the demands for informat ion intake or
cont rol ou t pu t must match the capacity of the hu man operator.
Consider an operator moving a lever-type cont rol . I f this cont rol
is spring-loaded the ou t pu t wil l be proport ional t o the applied
force; the harder you push the fu rt her wil l the cont rol move. I f
the cont rol has viscous frict ion then the ou t pu t wil l be propor-
t ional t o the first time integral of the applied force; the harder
you push the faster wil l the cont rol move. Final l y the cont rol may
operate a system wit h inertia in which case the ou t pu t wil l be
proport ional t o the second time integral of the applied force; the
harder you push the faster wil l the cont rol accelerate. Thus for
the same ou t pu t , the application of force, the result obtained wil l
depend u pon the dynamics of the cont rol system. N ow if a
completely free cont rol is used and an operator is called u pon t o
accelerate at a particu lar rate he wil l be unable t o do this con-
sistently or efficiently. On the other hand if he is given a cont rol
where the acceleration depends u pon the pressure applied he wil l
very rapidly learn the amou nt of pressure required t o produce a
particu lar acceleration and be able t o reproduce this consistently.
The reason for this is that hu man beings are very bad integrators
and differentiators and i f the feed-back from the action being
taken requires one or more integrations the result is inefficient
and inconsistent. I f however the operator is able t o use his
bu il t -in feed-back mechanism in the muscles of the l imb being
used (known as kinesthesia) which he can onl y do when he has t o
apply pressure, he can make u p for the deficiency of the mechani-
cal feed-back system. I n the same way informat ion is oft en given
on cont rol panels and so on in a form in which the operator has
t o make one or more differentiations before he can make a
decision for action. He may be given a pressure gauge and be
expected t o judge, from a slow displacement of the needle giving
a difference in pressure in pounds, the rate or even the accelera-
t ion of a change of pressure. A piece of equipment which includes
this feature wil l always be inefficient because a man cannot carry
ou t this fu nct ion wel l however wel l he has been trained.
A second area of interaction between operator and his machine is
when the machine works at a fixed rate and the operative has t o
service the machine at fixed intervals. Variabil it y is a characteris-
tic of al l hu man act ivit y; so that here we have a situ ation where a
variable fu nct ion is matched t o a rigid one. When hu man perfor-
mance is expressed in terms of rate rather t han cycle time (i.e. a
harmonic t ransformat ion has been applied t o cycle times) the
dist ribu t ion becomes approximately normal and can be plot t ed
as a straight line on normal probabil it y paper. From this is a
fairl y easy matter t o predict the proport ion of occasions on which
the operative wil l be unsuccessful in feeding a machine in the
time allowed and the proport ions on occasions on which either
the machine wil l have t o be held or a posit ion wil l go t hrou gh
u nfil l ed. I n either case a redu ction in the potential produ ct ion of
the machine wil l ensue. When pl ot t ed in terms of ou t pu t against
machine rate the ou t pu t wil l reach an asymptote and then start
t o fal l as the machine rate is increased. I t is qu ite clear that it is
not possible t o obt ain increased ou t pu t beyond a certain point
merely by increasing the machine speed, and ideally the speed of
each machine shou ld be matched t o the individu al working u pon
it . This puts a premiu m on choosing, wherever possible, machines
on which the speed can be varied always assuming that the
process permits this. I f the process does not permit this the
init ial design of the process shou ld include consideration of the
capacity of the operator t o service the machine under opt imu m
conditions.
From what has been said it wil l be seen that t o achieve the desired
fu nct ions at the least cost the hu man operator must be con-
sidered alongside the machine. A t the outset therefore it is
necessary t o ask whether there shou ld be a hu man operator at
al l , i f so, what are his capabilities and limit at ions and what inpu t
and ou t pu t does he need t o achieve his planned purpose and how
wil l these be organised arou nd him. The role of a man in a system
is fu l l y discussed in the textbooks, inclu ding those already
150
mentioned and so does not need t o be dealt wit h at length here,
other t han t o say that man is at his best when he is used as a
sensing device, as an amplifier or as a maker of complex decisions.
He does not perform very wel l when called u pon t o differentiate,
t o integrate or perform at high speed. I n addit ion, he wil l int ro-
duce delay and imprecision (noise) int o any system of which he
forms part .
I nput - Di splay s
Having decided that a man is required and the role which he is t o
play the first matter t o be considered must be the informat ion
which he requires and how it is t o be presented t o him. On some
occasions this wil l be very evident, bu t on other occasions the
sit u at ion may be very complex and may even require investigation
before a decision can be made. Too oft en I suspect the easy way
ou t is taken; a convenient instrument is installed which is related
t o the mechanical, electrical, or other convenient characteristic
of the system rather t han t o the needs of the operator. Perhaps a
pressure is available so a gauge is fitted t o give this fu nct ion when
the operator needs t o know the rate of change of pressure; bu t
ou r grandfathers before us fit t ed a pressure gauge in this situ ation
and so we do the same wit hou t question.
The process of considering informat ion needs can be illu strated
in an allegorical form. We have by the side of the bed a device
which makes us an early morning cup of tea, which (apart from
being suitable for only about 8 % of the popu l at ion who are l eft -
handed !) presents a probl em in informat ion every evening when
the kettle is filled. I t is intended that it shou ld be filled t o wit hin
1 inch of the t op, a distance which is difficu l t t o ju dge t hrou gh the
rather small filling hole, especially when the kettle is t il t ed t o go
under a wash-basin tap. I f it is over-filled the teapot wil l overflow
wit h the possibility of an electrical short circu it . I f it is under-
filled my wife does not get her second cup of tea. To avoid this
t rou ble we might imagine that a pressure gauge is fit t ed t o the
bot t om of the ket t le; bu t t o use the informat ion pressure wou l d
have t o be converted int o depth, and knowing the t ot al depth, t o
calculate when the level was correct. The calcu lation wou l d be
even more difficu l t i f the gauge gave the contents in cubic inches.
A better approach wou l d be t o install a depth gauge, bu t i f this is
graduated in inches, it wou l d st il l be necessary t o remember the
t ot al depth and continue fil l ing u nt il the reading was one inch
from the t op. However, i f this depth gauge had a single mark
showing when the level is correct the task wou l d be qu ite simple
(in practice a ridge cast on the inside of the kettle wou l d give the
same informat ion). I t might be thou ght that as the kettle is
filled every night it wou l d be quite easy t o learn the pressure or
depth reading at which it was fu l l . This is of course true, bu t
learning is necessary and i f someone was fil l ing a number of
different kettles of different sizes it wou l d take some t ime t o
become acquainted wit h all the correct values and there is a high
probabil it y that a mistake might be made.
This example (which is taken from real l ife) illustrates a situ ation
which can be seen over and over again in one form or another in
indu st rial equipment. I have already referred t o the scale fitted t o
the cross slide of a centre lathe which gives readings as differences
whereas a tu rner really needs t o know the diameter which he is
cu t t ing. This it is impossible for him t o get f r om the conventional
scale and he has t o stop the machine in order t o check diameters
wit h a micrometer (on which he may make an error!). Far t oo
oft en when an operator merely needs t o know whether a t ank is
hal f or quarter f u l l he is given a gauge showing depth in feet or
inches or contents in gallons ( I have even seen depth gauges
being marked in decimal feet wit h the minor marks representing
inches!). When there are many instances of this kind the task of
the operator is made unnecessarily difficu l t and mistakes are more
probable because he is being given qu antitative informat ion wit h
a degree of precision in excess of that which is needed. I n other
words he gets the right kind of informat ion bu t in the wrong
form. I n other instances however he is given the wrong informa-
t ion as wel l . I t may t el l him qu ant it y when al l he needs t o do is t o
check whether a fu nct ion has departed from a set point .
Man is a mechanism wit h a strictly l imit ed channel capacity and
he acts as a single channel mechanism at the cortical or decision-
making level. His apparent abilit y t o do more t han one t hing at a
time is due t o alternate sampling: i f this strategy is insu fficient t o
give him enough informat ion then he can carry ou t onl y one
activity at a time. His informat ion handling capacity can be
greatly increased i f informat ion is coded so that instead of passing
t hrou gh the channel as a series of discrete items at the l imit ed
rate of about t wo per second it can go t hrou gh as one u nit ,
thereby greatly increasing his efficiency.
To su m u p, therefore, before the efficiency of any display can be
assessed it is essential t o review the qu ality and the qu antity of
informat ion which the operator wil l require in order t o carry ou t
his job efficiently. When this is done the display system must
give this informat ion directly and unambiguously.
O ut put - C ont r ols
The study of controls shou ld always include an assessment of
whether the cont rol provided is the best for the fu nct ion which it
is intended that it shou ld carry ou t. There are in the literatu re a
nu mber of tables which enable this t o be done, bu t far t oo oft en
controls fol l ow convention and are accepted because they have
always been that way.
The layou t of controls and displays arou nd the operative usually
leave mu ch t o be desired (the work of Singleton in this connection
has been referred t o) and again fol l ow a convention t oo oft en.
For instance, the keys on card pu nching machines are usually
oriented in a horizont al plane; now, the nat u ral posit ion of the
arm is wit h the hand vertical or nearly so, the more the pal m is
t u rned downwards the greater the muscular effort involved and i f
the keys are high in relat ion t o the operative then she may have
t o adopt a ' Praying Mant is' posit ion which can cause muscular
strain not only on her arms bu t in her back as wel l . This can
reduce the time which is spent at the machine or in extreme cases
cause infl amat ion in the hand and arm which wil l require medical
treatment. Y116 (1962), who is medical officer at the Vol vo
Works at Gotenberg was concerned at the number of girls who
reported t o him wit h infl ammat ion of this kind. He therefore did
a detailed study of their task and fou nd that i f he moved the keys
t o a posit ion near the knee and slanted about 30 from the
horizont al the disability disappeared and the girls' ou t pu t went
u p by 100%. I n the same way we fou nd in a t yping pool that
when the girls were using tables and chairs that were t oo high
they were absent f r om their places of work for 20 minutes in
every hou r. When we fitted the fu rnit u re t o the girls they were
absent from their work for only eight minutes in every hou r;
there was a resulting increase in produ ct ion of 25 %.
I t is tru e that these examples have been drawn f r om office work
bu t they can be repeated in other spheres in indu stry. They do
illu strate that most of the factors referred t o cou l d have been
assessed when the work situ ation was first established and this
nearly always involved the assessment of the potential of equip-
ment being purchased. I n the card pu nch example the individu al
negotiating the contract wit h the supplier cou l d have insisted on
the keys being placed in the posit ion where the strain on the
musculature of the girls wou l d be at a minimu m. Compet it ion is
such that I dou bt that insistence of this by a large firm wou l d
have had other t han a beneficial effect. This appears never t o have
been done and most of the card pu nching situations are such
that they cause difficu l t y t o the girls working u pon them.
C o s t and E f f i c i e nc y
Readers who have proceeded so far t hrou gh this article wil l have
begun t o realise that what I am suggesting is that Valu e Engineers
shou ld go more deeply int o the means of produ ct ion inclu ding
assessment of the efficiency of equipment which is going t o be
used, l ooking at it f r om the over-all stand point of the man/
machine interaction. By the same token, equipment which is
produced for sale shou ld be assessed for its over-all efficiency
when operated by a hu man operator.
There are various ways in which this assessment can be done,
the best certainly involves some form of user t rial . These are
almost essential in the Services bu t seem t o be less prevalent in
indu stry. When a firm's own means of produ ct ion are being
designed user trials shou ld ideally be carried ou t in the design
stage preferably in a mock-u p. Mock-u ps can have other purposes
as wel l in assisting in design for efficient produ ct ion. To be
carried ou t efficiently user trials require properly trained per-
sonnel who have the capacity for pu t t ing themselves in the place
of the individu al who wil l operate equipment and who are able
t o supervise properly cont rolled trials. When purchasing equip-
ment and several alternatives are available for a particu lar
purpose these trials cou l d take the form of comparisons of per-
formance on a standard task. Particular care wou l d have t o be
taken t o plan trials so that the results were not confou nded by
u nwanted personality variables. Far t oo oft en have I seen bot h
in the Services and I ndu st ry a great deal of money wasted on
carrying ou t experiments or trials under conditions which made it
impossible for any val id conclusion t o be drawn from the results.
I t is t oo oft en not realised that experiments wit h people cannot be
carried ou t in the same way as experiments in the laboratory in
chemistry or physics. I t cannot be t oo strongly emphasised that
for these trials t o be a success they must be done by somebody
who has a special aptitu de for this kind of work, somebody who
can pu t himself completely in the place of the housewife, tu rner
or other person who may eventually be working wit h the equip-
ment. Somebody who has an understanding of experimental
met hod and statistics, and who has extensive knowledge of al l
factors which are l ikel y t o effect efficiency of equipment, which
come under the general heading of Ergonomics.
I t wou l d seem that it is possible that the activities of the Value
Engineer should not stop at ensuring that the best machines or
equipment have been procu red from the man/ machine stand-
point ; these do not work in vacuo, and so cognizance may have
t o be taken of the organisation wit hin which the man/ machine
wil l have t o work. For example, I have referred earlier t o the
matching of operatives t o machines ru nning at a fixed speed, and
have point ed ou t t hat this depends u pon the variabil it y of the
operative. N ow variabil it y increases wit h time as the operative
becomes fatigu ed so that if a machine is ru n continu ou sly
t hrou ghou t a period of work the speed of the machine wil l have
t o be set t o the variabil it y of the operative at the end of work
otherwise t oo many parts might go t hrou gh unprocessed or the
machine efficiency might be t oo l ow. This can be avoided by
giving the operatives rest at regular intervals and it has been
clearly demonstrated that a higher ou t pu t can oft en be achieved
in this way t han by ru nning machines continu ou sly. So that it
cou l d be argued that even the work-rest schedules of operatives
on particu lar types of work might have t o be taken int o account
when, t o go back t o Jacobs' definit ion, fu nct ions are being
achieved at least cost.
To ret u rn t o the beginning, t o assess the 'value' of a situ ation
only in terms of the hardware involved is l ooking at only one side
of the coin. Machines are the servants of men and indu stry exists
for man not the other way rou nd, so a complete assessment must
include man as wel l if the job is t o be done properly.
R e f e r e nc e s
McCormick, E. J. Human Factors Engineering. New York:
McGraw-Hil l (1964).
Mu rrel l , K. F. H. Ergonomics. London: Chapman & Hal l (1965).
Singleton, W. T. A preliminary study of a capstan lathe. Int. J.
Prod. Res. 3, 213-225 (1964).
Y116, A . The biotechnology of card pu nching. Ergonomics 5,
75-80 (1962).
Miscellany
O n t he j ob t r ai ni ng
One commentator on the Fu l t on Report* stated: ' Coming t o
t raining, I cannot help t hinking that the committee has made t oo
mu ch of formal t raining and t oo l it t l e of t raining on the job.
Work is done by chaps working. A nd in responsible work lies the
best t raining.
'Some formal t raining of course is needed . . . '
Qui et er c o mp o n e n t s
Studies in the mathematical prediction of the type of noise which
a newly designed car component wil l make have led General
Mot ors Research Laboratories, at Warren, Michigan 48090, t o
develop a technique known as 'mechanical frequency
modu l at ion' . This technique is expected t o go a l ong way towards
t u rning unpleasant whines which are hard t o suppress int o broad
spectrum whit e noise which can be lost in the backgrou nd
noise of a travelling vehicle.
For instance, blade spacings in a fu el pu mp impeller were made
according t o a non-u niform mathematically calculated pattern
which destroyed the bu il d u p of energy on a single pure tone.
Tyre tread patterns were similarly arranged, cu t t ing road whine
t o a very l ow level. Mechanical vibrat ion, t oo, can be similarly
reduced.
50t h Anni v e r s a r y of I nst i t ut e of P at ent ees
and I nv ent or s
To mark its 50th anniversary, the I nst it u t e of Patentees and
I nventors, is hol ding the first London I nt ernat ional I nventions
and New Products Exhibit ion (LI N PEX '69) in the Royal
*The Civil ServiceReport of the Committee 1966-68 (Chairman:
Lord Fu l t on) H. M. S. O. (Cmd.3638)
Hort icu l t u ral Society's Halls, Westminster, from 6t h t o 11th
January 1969.
New products do not ju st happen. They start by being ideas or a
new application of existing ideas.
LI N PEX '69 wil l be attended by manufacturers, licensing
consultants and others seeking new products and processes, new
applications and new ideas.
Fu rther informat ion may be had f r om Business Conferences and
Exhibit ions Lt d. , Mercu ry House, Wat erloo Road, London,
S.E.1, England.
I t ' s a quest i on of i magi nat i on
' Too many people (according t o the man working on the SI RA
handbook on adhesives) t hink adhesives are for sticking soles
on shoes, and they don' t realise that there is a huge area wait ing
t o be explored. I t ' s a question of imaginat ion. '
The new handbook (t o be published in 1969) wil l contain informa-
t ion t o help people design for adhesives. I t wil l help t hem ' el imin-
ate the impossible' and then decide for themselves. The Scientific
I nstru ment Research Association wil l be t rying t o close the
informat ion gap between manufacturers and users wit h its book.
Bui ldi ng wi t h e le c t r oni c glue
' I t ' s extraordinary the lengths people wil l go t o push a process t o
its l imit s and beyond before t hey' l l even l ook at change,' says
Mr Perdue, manager of the Elect ron Beam Grou p of Hawker
Siddeley Dynamics at Hat fiel d, England.
Carl Zeiss developed the first electron beam t ool in 1948 and it
is not u ncommon t o find ' new' ideas which are 20 years ol d,
l ike this one. Bu t st il l there are welding engineers from qu ite
big companies who know not hing about electron beam welding.
Reprint No. 1:3:7
Ergonomics Checklist
The following checklist is a 1968 revision of the Ergono-
mics Checklist published at the 2nd International Congress
of the International Ergonomics Association held at
Dortmund in 1964. It is the work of Dr K. Boer and Prof.
G. C. E. Burger - it is not an official publication of the
I.E.A. The authors have kindly consented to its publication.
The original checklist was the work of Prof. G. C. E.
Burger. Dr Ch. Frieberger, Dr G. V. J. Hultgren, Dr J. R.
De Jong. Prof. G. Lehmann, Mr K. F. H. Murrell and
Prof. E. Grandjean.
The checklist in cyclostyled form is entitled 'Checklist
for Ergonomic Taskanalysis' (C.E.T. II).
Dr K. Boer is Head of the Occupational Health Service at
N. V. Philips Factory at Stadskanaal, Netherlands. Prof.
G. C. Burger is Director of the Coronel Laboratory of
Occupational Health at the University of Amsterdam.
T h e Hei r ar c hi c al Que s t i on S y s t e m
The list contains four categories of questions -A,B,C and D. They have been arranged so that it depends on the answer
to an A-question as to whether the subsequent B-question(s) has to be considered. In the same way a C response D question
has only to be answered when the preceding B response C question gives an indication to do so. This heirarchical system
allows for the omission of all non-relevant questions and thereby reduces the time required for a complete analysis.
T h e Us e of t he C he c k li s t
1. In the case of existing functioning work systems the analyst is advised to make himself first of all acquainted with the
task of the worker with the available data (method- and time studies, quality reports, etc.) and with the technical
demands of the job. Then he should study the job by personal observation and by interviewing some workers and
supervisors about their experience concerning the demands of the task on the worker.
After this it will be easy to answer the ten general questions (section A) of the checklist.
This preliminary study being done, he will decide whether a complete analysis in the presented order of the sections
of the checklist has to be made or another sequence of sections will be preferable or some sections can be omitted.
A model form in which the answers obtained may be efficiently recorded is given at the end of the checklist, and this
may be used as a basis for preparing a report.
2. When the checklist is used in the case of a new product the analyst (engineer) will first study the technical demands
of the product. He can then use the checklist to find out what are the critical points in construction which have to
be watched and allowed for. The preliminary design of the product can be checked against this list.
3. In complicated machines a mock-up may be of great advantage. It can be studied on its ergonomical merits in the same
way as has been described for functioning working systems in paragraph 1 above.
S e c t i o n s of t he C he c k li s t
A. Gener al Que s t i ons
B. Wo r k s p a c e
I Physical demands
II Mental demands
1. visual system
2. auditory system
3. other senses
4. way of information
C . Wor k Me t hod
I Physical demands
II Mental demands
I la Mental demands; f l ow of information
D. E nv i r onment al L oad
E . Or gani sat i on of t he Wor k
F. F unc t i onal and I nt egr al ( Tot al) L oad
G. S y s t e m O ut put
A. Ge ne r a l Que s t i ons
/ What is the operator expected to do and what kind of data does he require to carry out his task?
II Does the task carry an important physical load?
(see chapter Bi, C F question A60, B129-131, question A61-66).
III Does the task carry an important mental load?
(see chapter B, C, C
ll3
, A65, 66)
IV Are motivation, alertness and power of concentration strongly involved ? (chapter IIa)
V Has the work environment an important influence on the worker? (chapter D)
VI Has the work organisation an important influence on the worker (speed, rest pauses, etc.) ? (chapter E)
153
VII Is it desirable to replace the human operator partly or entirely by a machine performance, or the reverse ?
VIII Does the task require a learning period of:
- less than one week?
- less than one month ?
- more than one month ?
IX Have social-psychological factors in the work situation an unfavourable effect on the worker?
Are these factors present in the task of the worker (monotonous, insignificant, disagreeable or unworthy) or in the
environment (interhuman relations, mental 'climate') ?
X Does the work situation imply potential sources of physical or mental harm (e.g. accidents, occupational diseases,
etc.) and may the task convey fear or repulsion ?
B. Wo r k S p a c e
I Physical demands
A 1 Has the correct choice been made between sedentary, standing and ambulatory work or a combination of these ?
B 1 Can sitting be promoted by the location of instruments, controls and work pieces ?
A 2 Is an altered position of the machine desirable ?
A 3 Does the operating area offer sufficient space, whatever the operator's position is during work ?
B 2 Is there sufficient room for the legs, knees, feet, elbow, etc ?
A 4 Is a correct work posture promoted by the location of instruments, controls, and workpiece ?
B 3 Is an unfavourable work posture due to:
- machine ?
- work piece ?
- instruments ?
- controls ?
A 5 Is the height of the work surface adapted to the posture and correct in regard to viewing distance ?
A 6 Are the properties of the work surface correct in regard to:
- hardness ?
- elasticity ?
- colour ?
- smoothness ?
etc. ?
A 7 Is the workshop sufficiently spacious ?
B 4 Is the lack of space principally due to:
- sharing the work space with other workers ?
- distance to other machines ?
- protruding parts of the machines ?
- incorrect position of containers, material, etc. ?
A 8 Are operations carried out by hand ?
B 5 Is correct control by hand promoted by the location of instruments, controls and work piece ?
C 1 Does the positioning of controls demand a considerable static component in the muscular load?
C 2 Are the controls located within easy reach in regard to the work posture ?
C 3 Are the grips correctly positioned (location, direction of movement) in regard to required forces
and movements ?
C 4 Does the positioning of instruments, controls and work piece correspond with sequence and
frequency of required actions ?
C 5 Are the shape, size, surface and materials of the hand controls correct in regard to the required
forces?
A 9 Is finger control by means of push buttons necessary or desirable ?
B 6 Is the surface of the button large enough to have contact with whole fingertip; is the surface concave to
fit the fingertip; is the surface too smooth ?
B 7 is the counterpressure small enough in regard to frequent use (errors) and large enough when the button
is used as a starter (danger) ?
A 10 Is foot control by means of pedals used necessary or desirable ?
B 8 Have pedals been avoided in standing work and limited to two in sitting work ?
B 9 In standing work if the use of pedals is imperative, must the worker stand almost continuously on one
and the same leg or is alternating use of left and right foot possible ?
B 10 If the work is done in a sitting position, is a variation in posture of the rest of the body hampered by the
use of one or more pedals ?
C 6 Can the pedals be used while sitting and can the feet be alternated ?
C7 Is the location, size and construction of the pedals correct ?
C 8 Does the type of pedal used correspond with required force, range and rate of movement?
C 9 is the counterpressure of the pedals correctly chosen ?
154
A 11 Is foot control by means of push buttons used necessary or desirable ?
B 11 Is the counterpressure of the push buttons correctly chosen ?
B 12 Can the buttons be pushed down by the toes instead of the heel?
A 12 Are the required forces acceptable ?
B 13 Can the degree of loading be decreased by:
- decrease of weight of the objects to handle ?
- use of counter weights ?
- use of electric, hydraulic or pneumatic devices ?
- conveyors ?
- cranes, pulleys ?
B 14 Can the degree of loading be decreased by:
- changing the direction of forces ?
- use of stronger muscle groups ?
- limitation of the time of muscle contraction ?
B 15 Is the movement in accordance with the force required for handling controls acceptable ?
B 16 Are moving work pieces correctly conveyed and stopped, (use of gravitation, conducting shoots, etc.) ?
B 17 When force is required is the control located so that this can be applied without undue strain and without
the need to maintain static load?
C 10 Are jigs used as much as possible ?
A 13 Are chairs and stools available to obviate unnecessary standing?
B 18 Is the chair or stool correct in regard to:
- dimensions of the worker ?
- upholstering ?
- back rest ?
- work height ?
- adjustability of seat and back rest ?
- possibility of standing up ?
- variation in work posture ?
B 19 Is a (horizontally or vertically) adjustable chair required for adaptation to the daily task ?
B 20 Is the use of a one-legged stool desirable ?
A 14 Is a foot rest necessary?
B 21 Is a correct foot rest available ?
B 22 Is there sufficient room for a foot rest ?
B 23 Is the foot rest correct in regard to:
- position ?
- size ?
- inclination ?
- surface ?
A 15 Is a support for elbows, forearms, hand, back, necessary?
B 24 Are the supports for elbows, forearms, hand or back correct in regard to:
- position ?
- size ?
- movability and adjustability ?
- surface ?
A 16 Is the floor of the work space (shop) correct?
B 25 Is the floor correct in regard to:
- friction between floor I supports, floor/sole and floor/tools and product ?
- horizontal level?
- evenness?
- thermal conductance ?
- hardness, elasticity ?
A 17 Are hand tools used?
B 26 Is the weight of the tool too much, too little or correct ?
B 27 Is the hand grip correct in dimension and shape ?
B 28 Does the tool used for fine manual work provide sufficient contact surface with the hand?
B 29 Is the operational part of the tool correct in dimensions and shape ?
B 3- Is the length of the shaft correct in regard to work posture and performance ?
B 31 Has the shaft a correct elasticity ?
B 32 Is the surface of the tool correct in regard to:
- friction between hand and grip ?
- thermal conductance ?
B 33 Have different tools been combined if possible into one tool?
Value Engineering, September 1968 \ 55
B 34 Is the length of the tool correct in regard to fine manual work in order to avoid or diminish the effects ol
tremor?
B 35 Have the tools a planned location ?
A 18 Are containers (boxes, etc.) used?
B 36 When so are they appropriate in regard to:
- weight ?
- dimensions ?
- safety ?
- location ?
A 19 Can the speed of the machine be adjusted in accordance with the skill of the performer when necessary ?
A 20 Has the variability of performance time been taken into account?
A 21 Does the machine construction allow for good maintenance and repair (accessibility, risk of accidents, lighting,
tracing of technical troubles) ?
A 22 Is there any risk of burns ?
A 23 Are any parts of the body exposed to undue constant or intermittent mechanical pressure ?
A 24 Does the work require the use of personal protection devices:
- clothing ?
- shoes?
- gloves ?
- eye protection ?
- ear protection ?
- masks ?
- safety helmets ?
B 37 Does the personal protection impede the intake of information ?
B 38 Does the personal protection impede action and movements ?
A 25 When devices are used for protection of products, do these impede the performance of the worker?
A 26 Does the machine cause significant vibration ?
B 39 Has the vibration any perceptible effect on the body ?
B 40 Has vibration any perceptible effect on performance ?
B 41 Is inconvenience caused by continuous or intermittent vibration ?
B. Wo r k s p a c e
II Mental demands
7 Visual system?]
A 27 Does the work imply heavy demands with respect to quality and/or quantity as regards visual information and
does it involve special demands on illumination ?
B 42 Has the difference between the level of illumination in various parts of the operating area any detrimental
effect on the working conditions ?
B 43 Does the size of the objects present difficulties for perception ?
C 10 Is the use of optical aids required?
D 1 Are the optical aids adequate in regard to:
- visual field?
- resolving power?
- sharpness depth ?
- enlargement? <
B 44 Does a small difference in brightness and/or colour between parts of the object or between object and
surrounding present difficulties for perception fcontrastj ?
B 45 When the objects are moved mechanically by the machine, does this movement present difficulties for
perception and handling ?
C 11 Does the movement ask for special measures of adaptation ?
B 46 Are there any special requirements in regard to colour perception or should introduction of this element
be advocated?
C 12 Are the colours used adequately detectable in daylight and artificial illumination (colour, con-
trast) ?
C 13 Is the environmental situation, the brightness of illumination and the choice of colours such that
the chance of confusion of colours is neglectible ?
C 14 Are the colours adequate and appropriate in regard to:
- nature of the work ?
- desirable contrast?
- compatibility of generally accepted rules or habits (signalling of danger) ?
B 47 Is there any glare from the work space or surroundings ?
, cf- Value Engineering, September 1968
C 15 Is glare caused by:
- unprotected sources of light ?
- reflecting surfaces ?
- windows ?
- other sources ?
B 48 Is the level of illumination adequate in regard to visual demands ?
C 16 Does the illumination level (brightness) call for improvement:
-general day/night?
- local day/night ?
C 17 Is improvement of the rest of the qualities of lighting desirable or necessary ?
C 18 General illumination :
1. undue flickering (stroboscopic effect)
2. colour
3. location of light source
4. distance for adequate vision (accommodation)
5. binocular vision
6. size and location of the viewing field in regard to:
- instruments "'
(
- work pieces and surroundings
- controls
C 19 Local i l l umi nati on:
1. undue flickering (stroboscopic effect)
2. colour
3. location of light source
4. distance for adequate vision (accommodation)
5. binocular vision
6. size and location of the viewing field in regard to:
- instruments
- workpieces and surroundings
- controls
A 28 Are warning lights attention-getting and are they placed in the central part of the visual field under working
conditions (sunlight, or obstructing objects) ?
B 49 Are warning lights adequate in number and quality ?
C 20 Are the warning lights placed in the central part of the visual field?
B. Wo r k s p a c e
II Mental demands
2 Auditory system
A 29 Are auditory signals used?
B 50 Have the auditory signals the right qualities ?
C 21 Can auditory signals with different meanings be easily distinguished from each other by differ-
ence in quality:
- duration ?
- frequency ?
- sound level?
- pattern ?
C 22 Does the noise level of the workspace hamper the perception of the auditory signals ?
A 30 Does the task imply verbal communication ?
B 51 Is normal verbal communication impeded by the noise level in the workshop ?
A 31 Does the task imply the perception of other auditory information ?
B 52 is the perception of these data hampered by signals or the noise level of the workspace ?
B 53 Does the task require a reduced noise level?
B. Wo r k s p a c e
II Mental demands
3 other senses
A 32 Does the work imply special demands of other senses (tactile perception, proprioception, equilibrium, smell,
taste) ?
B 54 Does the work imply special tactile demands ?
C 23 Can different parts, control knobs and tools easily be recognised by touch ?
C 24 Can parts, control knobs and tools be recognised by their position ?
B 55 Does the work imply high demands on equilibrium ?
B 56 Does the work involve accurate manipulation or precise control of forces (proprioception) ?
B 57 Does the work imply high demands on smell or taste ?
157
B. Wo r k s p a c e
II Mental demands
4 Way of information
A 33 Are dials (panels) displays and/or controls used?
B 58 Can measuring instruments and controls be easily located, distinguished and correctly used ?
C 25 Is tbe positioning of instruments correct and easy to be recognised?
D 2 Does reading of instruments require undue movement of head or body ?
D 3 Is the display and size of dial or panel correct in regard to:
- work posture ?
- arm reach ?
- viewing distance ?
- viewing direction ?
C 26 Can measuring instruments easily be distinguished from each other by:
- position ?
- shape?
- colour?
- other qualities ?
C 27 Can grouping of instruments decrease the mental demands ?
Is it possible to group different categories of dials in different planes of mounting ?
Can groups of dials of a specific category be divided by area or colour patterning ?
Are the breakdowns of scales of dials identical as far as possible ?
Is the dial located near its corresponding control?
Have the most important and I or the most frequently used instruments the best position
in the normal visual field?
Are the most frequently used instruments grouped together in one and the same area of
the visual field?
C28
C29
D 4
D 5
D 6
D 7
D 8
D 9
Is the
D 10
D 11
D 12
D 13
D 14
D 15
D 16
D 17
D 18
D 19
D 20
is the
D 21
D 22
D 23
Can the required data be quickly obtained from the dials with the desired accuracy ?
Is the scale correctly graduated and as simple as possible ?
Do the letters, numbers and markings conform to the relevant standard in relation to the
required reading distance ?
is the pointer simple and clear, and does it allow the numbers to be read without obstruc-
tion ?
Is the pointer mounted so that visual parallax is minimised?
Have great differences in brightness between panels, dials and surroundings been avoided ?
Is the legibility of dials impaired by reflection of light sources ?
Has glare from displays been avoided?
Has shadowing by pointers, edges or controls been avoided?
Is the reading distance limited to 70 cm if during reading of dials the control knobs
have to be handled?
Does the chosen numerical progression minimise reading errors ?
Is the accuracy of the instruments compatible with the required reading accuracy ?
Are reading errors minimised by the design of the instrument ?
Does the instrument present the required information correctly and fast enough ?
- are digital types (direct reading) of dials used where necessary?
- is a moving pointer used for quick estimation of the degree of deviation and for adjusting
deviations ?
- is the dial as simple as possible in regard to the desired information ?
- can coloured zones be used instead of numbers and markings, when only check
information is required?
C 30 Is a sufficient conformity (compatibility) existing between signals ?
D 24 Does the grouping of dials conform to the reading sequence of these dials ?
D 25 Do pointers in their correct working position point in the same direction (horizontal or
vertical) ?
D 26 Has the direction of the pointer movements a similar meaning in different dials ?
D 27 Is the positioning of dials in different panels the same if these panels serve a similar
purpose ?
D 28 Is a sufficient compatibility existing between signals and actions (controls) ?
C 31 Is an attention-getting signal used to indicate the breakdown of a measuring instrument?
C 32 Are controls (switches, push buttons) correctly positioned and constructed ?
D 29 Is it possible to avoid positions of rotating control switches differing by 180 degrees ?
D 30 Is it possible to see immediately which situation is indicated by the position of the con-
trols (e.g.: on-off) ?
158
D 31 Does the controlling hand impede the reading of the dial?
D 32 Is it possible to indicate the zero position by a stop ?
D 33 Is it possible to promote the recognition of controls by means of differences in shape,
colour, size ?
C . Wo r k Me t hod
I Physical demands
A 34 Has the work posture any unfavourable effect on the muscular (dynamic, static) and energetic load ?
B 59 Has the correct choice been made between sedentary, standing and ambulatory work or a combination
of these ?
B 60 Are large groups of muscles subject to important static exertion induced by the work posture ?
C 33 In which way can this static load be decreased (variation in work posture) ?
B 61 Is the work posture such that the muscles take the dynamic load correctly ?
C 34 Is variation in work posture desirable and possible ?
A 35 Are energetic and muscular load (static and dynamic) insignificant or l ow ?
B 62 If the load is very low, are additional tasksdesirab/e and possible ?
B 63 Is there any risk for undue local muscular fatigue in small muscle groups ?
A 36 Is the daily energetic and muscular (dynamic^ load heavy or strenuous ?
B 64 Have heady loads to be lifted and/or carried ?
C 35 If loads have to be lifted and I'or carried:
- what are their normal weights ?
- have they to be carried on the shoulders ?
- have they to be carried on the arms ?
- have they to be lifted from the floor level?
- can they be lifted in the correct posture ?
- is the passage way free from obstacles ?
B 65 Is the heavy load caused by wal ki ng, climbing, pulling, pushing or any other physical activity ?
C 36 Can this load be decreased in any way ?
B 66 Is the heavy load caused by (frequent) peak loads (not by a constant daily load) ?
C 37 What is the frequency and duration of peaks ?
C 38 Can these loads (degree, duration, rate) be reduced by technical measures ?
B 67 Does the work provide for a good alternation of work and rest pauses and of static and dynamic elements
in regard to energetic and muscular load ?
A 37 Does the work imply a heavy static load ?
B 68 Are groups of muscles subject to static exertion induced by ho/ding of the material or the tools or by an
unfavourable work posture ?
C 39 Are groups of large muscles involved (posture, carrying loads, etc.) ?
C 40 Are groups of small muscles involved?
B 69 Is there a good alternation in work and rest as we/las of static and dynamic elements in the muscular load ?
A 38 Is the muscular (dynamic, static) load adequately divided over different muscle groups ?
B 70 Are large or small muscles or muscle groups involved? Is the muscular load predominantly on:
- arms ?
- legs ?
- neck?
- trunk ?
- small muscles of hand, fingers ?
B 71 Do secondary activities inherent in the work method provide for alternation in muscular loading ?
B 72 Does the control of movement require much muscular exertion ?
C 41 Has the number of active muscle groups been restricted by means of a support ?
C 42 Is the sequence of activity in muscle groups correct ?
C 43 Can undesirable displacement of centre of gravity and I or rotation of the body be avoided ?
A 39 Is the pattern of movement correct?
B 73 Does the pattern and the control of movement cause unnecessary muscular load ?
C 44 Does the usual pattern of performance include superfluous movements ?
C 45 Is simplification of movements possible and desirable ?
C 46 Can controlled movements be replaced by free (ballistic) movements ?
C 47 Is kinetic energy correctly used?
D 34 Can loss of kinetic energy be avoided?
C 48 Is there any avoidable combination of precise movement and strenuous muscular exertion ?
159
B 74 Has the worker adequate freedom in the pattern of movement?
C 49 is there sufficient possibility for free movement ?
C 50 Are the direction, location and length of movements correct in regard to:
- required force ?
- required accuracy ?
- required time ?
- prevention of static muscular load?
- symmetry ?
- rhythm ?
C 51 Are the movements in the joints within acceptable limits ?
C 52 Is it desirable and possible to make the pattern of movement less variable ?
B 75 When the worker follows a prescribed pattern of movements, is this pattern correct ?
C 53 Are the movements symmetrical?
C 54 Are the movements rhythmical?
C 55 Are left and right arm (leg/foot) used alternately if necessary, when symmetrical movements are
not acceptable ?
C 56 Can simultaneous movement of left and right hand be promoted by:
- location of information sources ?
- location of controls ?
C 57 Do imposed subsequent actions fit into one pattern of movement ?
C 58 Do the actions consist of precisely controlled movements ?
C . Wo r k Me t hod
II Mental demands
A 40 Does the work imply the use of controls ?
B 76 Is the relation between the direction of movement of control and the effect compatible ?
C 59 Have the following control movements always the following corresponding effects:
- forward: on, advance, more, +, down
- to the left: off, to the left, less, -
- backward: off, backward, less, -, up
- to the right: on, to the right, more, +
C 60 Is the position of information providing instruments compatible with the position of corresponding
knobs and handles ?
B 77 Are the controls positioned in the sequence of task performance ?
B 78 Can the controls easily be recognised by shape, size, labelling, colour, for normal use and for emergency ?
B 79 Are the controls located as near as possible to the corresponding sources of information ?
A 41 Does the work imply high demands on accuracy of movements ?
B 80 When accuracy is required does the control allow for accurate movement ?
B 81 Are the tools correct in regard to accuracy of movement?
A 42 Does the work imply the use of signals ?
B 82 Can signals easily be confounded ?
C 61 Can confusion of signals have serious consequences ?
B 83 Have signals always the same meaning?
B 84 Does the worker use unofficial signals ?
C 62 Are these unofficial signals as reliable or perhaps even more reliable, or are they preferred because
they are easier to perceive ?
C 63 If easier but less reliable signals are preferred, does it mean that the official signals should be
improved?
A 43 Does the work imply the use of data ?
B 85 Have the data to be processed before the required action can be taken ?
B 86 Is the use of tables (lists, etc.) required and is this efficient?
B 87 Have different data to be compared before action can be taken ?
B 88 Is the action to be taken on the basis of received information rigidly prescribed or should it be improvised?
B 89 Have data to be estimated?
B 90 Are standards of comparison (control norms) actually present and regularly used?
A 44 Are errors easily made ?
B 91 Can accessories, objects easily be confounded ?
C 64 Can confusion of these parts have serious consequences ?
B 92 Can movements easily be confounded ?
C 65 Can confusion of movements have serious consequences ?
B 93 Are the parts to be assembled supplied in a correctly pre-adjusted way ?
C 66 Can preadjusting, aiming and assembling be performed quickly and correctly by tactile sense ?
160
A 45 Do the workers receive the necessary information (qualitative and quantitative) regarding the process flow and the
output (production) at sufficiently short notice ?
A 46 Is there any possibility for pauses in monitoring tasks ?
C . Wor k Me t hod
Ma Mental demands; f l ow of information
A 47 Does the rate of information imply high mental demands ?
B 94 Is the rate of information likely to exceed the mental capacity of the operator and to overload him ?
C 67 Is reduction possible in the number of signals per time unit, the number of signals per source,
the number of sources ?
B 95 Are all these data necessary for performance ?
B 96 If any of the sensory channels is likely to be overloaded, can the load be more evenly spread ?
B 97 Is the rate of information likely to underload the operator?
A 48 Do the qualities of information imply high mental demands?
B 98 Are the data required to carry out the task obvious, unequivocal and to the point ?
C 68 Do the various displays of different information differ in more than one aspect ?
C 69 Is the method of displaying information too detailed ?
B 99 Have signals to which preference has to be given the highest attention-getting value ?
C 70 Does critical information have an attention-getting value of its own?
C 71 Are there any rare signals carrying nevertheless important information? Have they more than
usual attention-getting value ?
C 72 Does the information which had to be taken at one glance exist of more than 5 different items ?
B 100 Is the correct sense to be used in regard to the meaning of the signal (danger, alarm - ear; normal machine
performance - eye; discrimination of controls, etc. - tactile sense) ?
C 73 Are urgent signals given through the auditory sense ?
C 74 Is it desirable that visual signals are replaced by other signals ?
C 75 Have signals the usual meaning (e.g. red for danger) ?
B 101 Are different answers possible to one and the same signal whereas only one is the most suitable ?
C 76 Can the worker be immediately aware of the effects of a wrong choice ?
C 77 Are the effects of a wrong choice important?
A 49 Does the time for processing of information imply high mental demands ?
B 102 Are all the factors relevant to a decision presented at the right time and in the right sequence ?
C 78 Are any misleading or ambiguous factors present which might cause errors ?
B 103 Is adequate time allowed in machine or process cycle for decisions and resulting action ?
B 104 Do the workers receive the necessary information (qualitative and quantitative) regarding the process flow
and the output (production) at sufficiently short notice ?
B 105 Can rapid feed-back of the effects of adjustment to a system be given ?
B 106 Is it possible that signals of different sources occur simultaneously ?
C 79 If this can happen, is there any preference to be given ?
B 107 Have signals to be detected when the worker's mind is occupied by monitoring actions ?
B 108 Do identical or similar signals occur for a long time and are they frequently repeated?
B 109 Is received information to be retained for longer than a few seconds ?
B 110 Isthe duration of an important signal not shorter than one second; are the signals repeated; do they appeal
to different senses ?
B 111 Isthe attention span longer than about 20 minutes, if a signal can occur at any time but does it occur less
than about four times per half hour ?
D. E nv i r onment al L oad
A 50 Are the climatic conditions within the comfort zone ?
B 112 If climatic conditions are not within the comfort zone, is this especially due to:
- air temperature ?
- humidity ?
- air movement?
- radiation ?
C 80 Is the work performed in extreme temperature (high or low) ?
What is generally the range of air temperature in the department:
- in summer time ?
- in winter time ?
C 81 Does the room heating guarantee a more or less homogeneous air temperature in tho work
environment ?
161
C 82 What is generally the range of relative humidity in the department:
- in summer time ?
- in winter time ?
C 83 If there is any radiation to or from the worker, does it produce any uncomfortable or excessive
warmth or cold?
D 35 Is the work place near cold or hot surfaces ?
C 84 If there is any undue cooling effect caused by air movement, is this uncomfortable or excessive ?
C 85 If the work is not performed within the comfort zone: are the working time and rest pauses
adapted to heat or cold?
D 36 Have preventive measures been taken against uncomfortable climatic conditions ?
D 37 Do these preventive devices impede performance ?
C 86 Is the man during his daily work exposed to rapid changes in climatic conditions ?
D 38 Is the rapid change of climatic condition caused by the work process ?
D 39 Does the rapid change of climatic conditions occur because the worker has to chanae his
location ?
A 5 1
performance*?* ^
W
'
k e n v i r o n m e n t c a u s e
inconvenience to the worker and/or does it interfere with his
B 113 Is there any risk of hearing loss due to noise ?
C 87 What is the level and the quality (frequency spectrum) of the noise ?
D 40 Is there a predominant pitch or does the pitch fluctuate ?
B 114 Is the noise intensity and quality constant or changing ?
B 115 Is the source of the noise:
- outside the factory ?
- in the factory ?
- in adjoining departments ?
- in the department itself?
C 88 Is the noise produced by the handling of materials and tools or by the machine ?
B 116 Is isolating or absorbing material adequately used?
C 89 Have the sources of noise been adequately isolated?
C 90 Have adequate preventive technical measures been taken at the source ?
D 41 Have the most noisy machines been located as far as possible from the workers ?
A 52 Does the work method imply the emission of other radiating energies inconvenient or harmful to the worker (U V'
ionising radiation, etc.) ? ' '
A 53 Does the work method imply exposure to chemical agents and/or dust?
B 117 Do the chemical agents and/or dust cause inconvenience or health risks to the worker ?
C 91 Is the use of technical preventive measures against chemicals and/or dust necessary and present
(GXfidUSt, GtC.) P
D 42 If a product protection is used does it impede the performance ?
A 54 Is the use of personal protective devices necessary because of the environmental load ?
B 118 If product protection devices are used, do they impede the performance ?
A 55 Are the qualities of illumination adequate ?
B 119 Is the illumination level acceptable ?
B 120 Are the differences in illumination level not too large ?
B 121 Does the colour of the light give any difficulties ?
B 122 Is the direction of the light flow correct in regard to the causation of glare ?
B 123 Does the heat production of artificial illumination have an unfavourable influence on the worker (heat
radiation) ?
E . O r gani sat i on of t he Wo r k
A 56 Is the work performed in shifts ?
B 124 What is the organisation of shifts:
- 2 shifts system ?
- 3 shifts system ?
- 4 shifts system ?
- changing time in shifts ?
C 92 What are the official working times:
-per day?
- per week ?
C 93 What are the official paid rest pauses ?
D 43 What is the average overtime in hours:
- per day ?
- per week ?
162
A 57 Are there definite rest pauses included in the work method itself?
B 125 How long are the definite rest pauses included in the work method itself?
C 94 How are these definite rest pauses included in the work method itself, distributed over the working
period?
D 44 Does the work method allow the operator spontaneous rest pauses ?
A 58 Is the work rigidly paced ?
B 126 Is the worker paced by the machine ?
C 95 Is rigid pacing of operatives by machines or belts essential or can it be avoided by the introduction
of buffers or queues ?
C 96 When pacing systems are used is the speed of the machine regulated:
- to the paced performance of the operatives as distinct from the unpaced performance ?
- to the natural variability of the operative as distinct from the levelled performance ?
C 97 is the maximum tolerance ('feeding' time as a proportion of the operation cycle time) allowed?
B 127 Is the worker tied to incentive payment and is the average speed of work acceptable ?
C 98 Has allowance for work speed variations due to performance fluctuations been made in organisa-
tion of work?
B 128 If workers in a production line are selected to form a proper team, are they compared then by criteria of
work speed ?
C 99 Are adequate buffer stocks between workers in the production line allowed?
D 45 Is a maximum variance allowed (e.g. time for positioning of work piece in relation to time
for operation cycle) ?
B 129 Are suitable operatives selected in terms of variability as well as speed of performance ?
A 59 To what extent can the load be decreased by modifying work layouts and fob distribution ?
F. F unc t i onal and I nt egr al ( Tot al) L oad
A 60 Is the work physically
-light?
- moderate ?
- rather heavy ?
- heavy?
- very heavy?
B 130 Is in continuous daily work the average heart rate (average during working day in a group of normal
workers) within the following limits ?
average permissible limit qualification
< 85 < 95 light
85-88 95-98 moderate
89-94 99-105 rather heavy
95-100 105-112 heavy
101-110 113-130 very heavy
B 131 Is in continuous work the respiratory rate per minute during worki ng hours on the average (without
pauses):
-< 15?
- 15-30?
->30?
B 132 is in continuous work the estimated energy expenditure in Kcalper minute during worki ng hours on the
average (basal metabolic rate included; without pauses):
< 2-5 Kcal/min light
2- 5-3 moderate
3 - 4 rather heavy
4 -5 heavy
>5 very heavy
B 133 In discontinuous work (peak load) determine pulse rate within 15 seconds after the peak.
B 134 Does the pulse rate recover completely between peak loads ?
A 61 Does the work cause continuous visible sweating?
A 62 Can a rise in body temperature (> 0-5C) be expected during working hours ?
A 63 Is there any reason to expect either short term or long term effects on well-being and health of the workers ?
B 135 Evaluate the number and reasons of transfers and dismissals ?
B 136 Evaluate occupational health data:
- symptoms and signs
- medical transfers
- sick absence
A 64
A 65
A 66
Is the work suitable for man, woman, young workers, older workers in regard to physical and/or mental load?
Try to evaluate the physical (BI and CI) and mental (BII and CII) load of work space and work method, environ-
mental (D) and organisational (E) load, each in five classes: light, moderate, rather heavy, heavy, very heavy and
cross the corresponding squares:
load by workspace and - method
physical mental
light
moderate
moderately heavy
heavy
very heavy
Does a combination of physical and mental load impede performance either by asking simultaneous action or by
causing a too heavy combined stress.
environmental organisational
G. S y s t e m O ut put
A 67 Does an analysis of performance or production errors exist ?
B 137 Does analysis of:
- operator's errors ?
- non conforming product?
- tool wastage, etc. ?
(possibly as a function of the hour of the day or rate of performance)
give clues with regard to the effectiveness of:
- measuring instruments ?
- controls ?
- lighting ?
- feed back of results ?
- learning methods ?
- fatigue ?
A 68 Is a change in output criteria desirable ?
B 138 Is alteration of product design or output standards desirable in view of:
- required accuracy of movement ?
- forces to be exercised?
- accessibility ?
in:
- production ?
- transport ?
- use by customers ?
- maintenance ?
Total number of detailed questions A 68
B 138
C 99
D 45
General questions
Total
350
10
360
Question
no
A\B\C\D
Situation
acceptable
Explanation
of cases
'undecided'
and 'no'
Further observation
and measurement
needed in cases:
'undecided'
and 'no'
Result of
further
observation
and
measurement
Localisation of
Unsatisfying conditions
Co o CO to
Advise:
1 = On short notice
simple measures
2 = On longer notice
more complicated
measures
3 = Measures difficult
to realise in pre-
sent conditions
164
Reprint No. 1:3:8
Management Appreciation - Theory of V.E.
The Challenge of V . E . - The theory
behind the savings
by Frank R. Bowyer*
in this second of five articles Mr Bowyer refers to the ever-
growing number of articles and books on value engineer-
ing which fail so far to provide any theory (per se) of the
subject. Why bother, asks the author, at this late stage,
about a theory ?
After tracing the evolution of value engineering the author
puts forward some forty postulates which he considers
might be a basis of a Theory of Value Engineering.
He concludes this article in the series by grouping the
subjects connected with the Value Concept under these
six headings - Costs and Cost Reduction, Function,
Creativity, Personal and Personnel Development and
Individual and Departmental integration.
Then he provides readers with a general and specific list
of references on value engineering.
T h e C ha lle ng e of V . E .
Why Bother? A search t hrou gh the rapidl y growing pile of books
and papers being writ t en about Valu e Analysis and Valu e
Engineering on bot h sides of the At l ant ic has so far failed t o
provide any theory {per se) of V. A . and V. E. albeit that it is not
difficu l t t o dig it ou t if one has the patience and considers the
task wort hwhil e.
There are thousands of references t o 'techniques, philosophies,
new concepts, disciplines, skills, procedures, organisation' etc. so
why bother t o add the word theory at this seemingly late stage?
Unt il ju st over a year ago there wou l d have appeared t o have
been no ju st ificat ion, bu t somewhere arou nd this time it became
apparent that althou gh starting from a common ancestory V. E.
had evolved along different lines in Europe t o those of the
Unit ed States, despite the fact that ostensibly the techniques and
disciplines shared a common jargon. This in itself wou l d not have
mattered t oo mu ch if the differences had been confined t o
semantics bu t any reader of case histories that had crossed the
At l ant ic (in either direction) was soon led t o the surprising
conclusion that not only were the same words being used t o mean
entirely different things bu t that the large scale increase of
American influence in this cou ntry oft en led t o the wrong things
being done, despite the fact that they were being done for the
right reason. Undou bt edly, were the Brit ish influence as strong in
the States the same t hing wou l d happen in reverse, and du ring a
recent visit t o the States the writer met t wo Brit ish Valu e
Engineers who had gone over there t o work and they admitted t o
a state of temporary bewilderment over adjustment t o acceptable
management action in the differing environments.
Wit h the growing pressure of American Consultancy in this
cou ntry it becomes a matter of expediency that the u nderlying
theory be derived. I f one adds t o this ju st ificat ion the fact that
theory is oft en the map that allows new t errit ory t o be explored,
this is in itself a fu rt her incentive.
Of necessity this wil l in the first instance be tentative and insular,
it is hoped, however, that once the analytical stage (wit h appro-
priate corrections) is over, others wil l add t o the postulates u nt il
there is a solid fou ndat ion for a theory of V. E. that wil l allow the
required environmental differences wit hou t the embarrassment of
contention.
Du ring the course of this work it oft en became startlingly
evident that the evolu t ion had t hrown u p almost new species
even in such a small area as the Brit ish Isles and it was extremely
* Mr Frank Bowyer, the author, is a Consultant
employed with the firm of Value Engineering Ltd.,
60 Westbourne Grove, London, W.C.2, England.
Vol. 1, No. 2, July 1968 carries the first article in
this series-'The Challenge of V.E. - First
Appraisal'.
difficu l t if not impossible t o decide whether this was due t o the
entrepreneural nature of the disciplines or the fact that as yet
formal education has had only a small part in their dissemination.
These differences are so marked from one side of the At l ant ic t o
the other that only extensive sampling can t ru l y decide that which
is t ru l y archaic and that which has the potential of a new biol ogi-
cal spur. This t oo is evident from one company t o another in this
cou ntry, so in assessing the merits or demerits of the derived
theory one must be constantly aware of one's own posit ion in the
developmental stream.
In t he Begi nni ng
Near the end of the second Worl d War, Harry L. Erlicher, Vice-
President for Purchasing and Traffic of the General Electric Co.
noticed that many of the wartime material substitutes had not
been replaced by the originally specified material despite the fact
that these were now again available. Fu rther enqu iry revealed
that not only were many of the substitutes less costly bu t that
many of them also performed more reliably. Arising from this
he went on t o t hink about costs in general and systematic cost
redu ction in particu lar. He noticed t oo how many creative ideas
were being generated pu rely ou t of necessity and wondered why
this shou ld not continue when the immediate necessity had
disappeared. He fou nd a ready supporter in the Vice-President
for Engineering, H. Winnie, and a l it t l e later, Larry D. Miles was
given the task of developing a series of techniques specifically
designed t o cut costs wit hou t impairing the qu alit y or rel iabil it y.
I t is extremely import ant t o note here that these early techniques
appeared naively simple t o many of the engineers and designers
first asked t o use them and that Larry Miles had considerable
difficu l t y in obtaining a project on which t o work in order t o
convince people that what he had come u p wit h was really effec-
tive. Wit h the benefit of hindsight we can now recognise how
import ant it was that these techniques shou ld be simple (see first
article in series) bu t at the time this was construed as lack of
sophistication. Since that time many attempts have been made to
sophisticate the disciplines in the mistaken belief that this wou l d
make them more acceptable, whereas it wou l d, in fact, only
narrow the fields of application. I t is also extremely interesting
t o note that those Companies who have very successful pro-
grammes develop al l the sophists ask for, but this is unique to
that particu lar organisation and cou ld only be repeated in very
similar organisations. When therefore we try to deduce the theory
behind the savings we not only have t o go right back to what was
originally intended bu t also t ry and see what has been made of il
in the intervening years. This means that whilst the theory rests
on the past it must take carefu l note of the present and I K
sufficiently flexible to suit the fu t u re, anything static would I K lo
invite the self-annihilation that has been the fate of so many ol'
the 'techniques of the moment'.
AT h e o r y of V a lu e E ngi neer i ng
I f, t hen, one starts wit h Larry Miles, takes a long l ook at current
practice and then seeks t o make the t wo su fficiently flexible t o
encompass the fu t u re, there is a fair chance that one cou l d derive
some postulates t hat cou l d be the basis of a Theory of Value
Engineering. I n this connection these suggestions are pu t forward:
1. That in a society that insistently demands ever higher stan-
dards of qu al it y and rel iabil it y (and right l y so) the fact or that
must u l t imat el y determine the fittest t o survive wil l be the
LOWEST COST for A N A CCEPTA BLE QUA L I TY LEVEL.
2. That COSTS fal l int o t wo categories (a) those legitimately
requ ired t o adequately fu l fil the required fu nct ion and (b)
Unnecessary Costs.
3. That UN N ECESSA RY COSTS are I N HEREN T in any
organisational system and are not necessarily symptomatic of
inefficiency, they may oft en be occasioned by the rate of techno-
logical change, speed of produ ct innovat ion, lack of suitably
qu al ified personnel and many other such variables.
4. That Cost Redu ct ion and Cont rol must therefore be a con-
t inu ou s process of disciplined analysis and revision.
5. That a single cost expert can rarely encompass enough
experience and skills t o detect, analyse and recommend alterna-
tives for al l the unnecessary costs generated.
6. That a cross-fu nctional team of diverse management expertise
is far more l ikel y t o succeed.
7. That i f cost cont rol is t o u ltimately make way for profit
pl anning this cross-fu nctional expertise must not only be bent
t o the project , bu t mu st also ensure that the met hod of analysis
and cost correct ion is itself constantly under review in order that
the disciplines remain su fficiently flexible t o meet the demands of
the latest technologies and new management systems.
8. That i f a costing system is t o remain su fficiently flexible t o
meet al l the requirements of technological innovat ion it must be
FUN C TI ON based rather t han part oriented.
9. That fu nct ion (l ike costs) can be divided int o REQUI RED or
desirable fu nct ions and UN WA N TED fu nct ions.
10. That the BA SI C FUN CTI ON is the specific reason why a
device was designed and made.
11. That SECON DA RY FUN CTI ON S are al l other fu nct ions
t hat a device performs and are subordinate t o the basic fu nct ion.
12. That A ESTHETI C FUN CTI ON S may be basic (as in
jewellery) or secondary (as in machine tools).
13. That UN WA N TED FUN CTI ON S wil l always be SECOND-
A RY and wil l u su ally detract from the value of the produ ct bu t
may wel l be exploit ed as a sales feature (e.g. exhaust noise in a
popu l ar sport car).
14. That Val u e Analysis/ Engineering exercises t aking the
el iminat ion of u nwant ed fu nct ions as their objective wil l have a
st rong bias t o competitive marketing. (Consider for example the
fol l owing u nwant ed fu nct ions: Occupies space, has weight,
makes noise, smells, gives heat, kil l s people etc. etc.)
15. That for the promot ion of performance or as a means of
enhancing rel iabil it y FUN CTI ON can be ranked in order of
su sceptibility t o fail u re in exactly the same way as piece parts
provided one tests on the basis of fu nct ion as opposed t o parts.
16. That the discipline of fu nct ional t hinking has classically
been u niqu e t o t he designer and research and development
engineer, once Val u e Analysis and Valu e Engineering pract i-
tioners become used t o this new way of t hinking it is in itself the
promot er of enhanced creativity and cost consciousness.
17. That companies seeking t o maint ain a competitive lead need
creative management.
18. That Creat ivit y need no longer be considered dependent
u pon int u it ive inspirat ion. Whil st it can never be denigrated t o
a set of techniques or a rou tine, sufficient is now known about
the way in which t he mind works t o enable an environment and
disciplines t o be used that wil l substantially enhance innovat ion.*
19. That considerable enhancement of creativity is experienced i f
the discipline of separating imaginative and ju dicial t hinking is
practised.
20. That the fol l owing represent ju st a few of the accepted
methods for improving creativity. Using new and unexpected
combinations. Using plenty of material (ideas). Acceptance of
alien t errit ory. The use of free association. Ideas on ideas, snow-
balling. Making mu ch more use of the sub-conscious mind.
21. That the fol l owing represent ju st a few of the Personality
Factors derived from highly creative people. Enthusiasm and
tenacity. Dept h and Urgency of interest. I nsatiable Cu riosity.
Open-minded fl exibil it y. Positive Mot ivat ion.
22. That Creativity can be fu rt her enhanced by an understanding
of the different types of t hinking and their fields of application.
The fol l owing represent those particu larly pertinent t o V. A . / V. E.
Convergent and Divergent Thinking. Grou p Psycho-dynamics.
Situ ational Thinking. Rigidificat ion and Fl exibil it y.
23. That Psychological analysis has shown that A L L people are
creative; the inabil it y t o produce ideas can be due t o several
variables amongst t hem being, wrong environment (now or early
in l ife). Disbelief in one's creativity. I ncorrect learning methods.
Wrongfu l emphasis on security and the subsequent fear of any-
t hing new. A nd many other forms of mental blocking al l of which
inhibit creativity.
24. That one cannot ju st jab creativity int o Valu e Engineers l ike
a vaccination. I t is a slow learning process in which reward (not
necessarily monetary) and mot ivat ion have powerfu l roles t o play.
25. That since modern management psychology recognises the
release of creativity as one of the basic requirements of personality
development, regular part icipat ion in disciplines of this nature
are profit able not only t o the produ ct bu t also t o the executive.
26. That the Valu e Disciplines are in themselves a powerfu l t ool
for management development. I n terms of the Managerial Grid,
unless a Value Engineer is a 9-9 executive equally concerned wit h
the people wit h whom he deals as he is wit h the produ ct he is
handling, he is u nl ikel y t o last very long. That fu rt hermore this is
not an academic self-assessment bu t a dynamic exercise in
achievement.
27. That, as wel l as the Valu e Engineer, there is oft en spectacular
executive development for those who participate in V. A . / V. E.
exercises due t o the fol l owing: enhanced creativity, involvement
in fu nct ions of management normal l y departmentalised, cross
fert ilisat ion of techniques, the need for self-discipline, team
loyalt y and shared objectives, contact wit h outside specialists,
increased cost consciousness and analysis (the latter oft en for the
first time) the need t o deal wit h people outside one's particu lar
speciality etc., etc.
28. That several organisations have recognised the efficacy of this
development and are making V. A . / V. E. part of management
t raining and development.
29. That it is not advisable t o change the team t oo frequ ent ly in
the pu rsu it of this development since a good team (as in sport)
onl y get the best ou t of each other after working together for
several sessions. I f V. A . / V. E. is envisaged as part of management
development it is better t o have several teams independently
working on several projects, which not only meets the require-
ments of the executive development bu t contributes substantially
t o profit improvement.
30. That mu ch of the research laboratory work on 'effective
groups' is extremely applicable t o V. A . / V. E. exercises. The ideal
team size being 5 or 6 people. Grou ps of 4 or less tend in time t o
be dominated by one or t wo people. Grou ps mu ch larger t han
six (excluding visit ing specialists) tend t o (a) slow down ou t pu t
(b) develop int o t wo contending teams of creators and critics
wit h sub-group loyalties and pressures.
* These disciplines above al l others in Valu e Analysis/Engineer-
ing MUST remain flexible and eclectic.
Creativity is as individu alistic as a person's fingerprints, some
people require elaborate checklists, whilst others produce major
technological breakthroughs from a few hieroglyphics on a t orn
envelope. What can be analysed and recommended is the met hod
of operation, and a study of the personality factors, of highl y
creative people.
166
31. That most groups readily accept as a leader, one whose
knowledge is superior t o their own. I t is advisable therefore that
the Valu e Engineer t horou ghly understands V. A . and V. E. in
depth,
32. That the Valu e Engineer be picked for competence in 'Social
Skills' or be trained in them.
33. That al l practitioners have a working knowledge of 'Resis-
tance t o Change' and methods usually effective in overcoming
' Roadblocks' .
34. That resistance t o change wil l be lowered by team participa-
t ion either directly on project work, by involvement in programme
monit oring or specialist consultancy. The wider therefore that
project work or the organisation for V. A . / V. E. can be spread the
more effective wil l be the implementation. Over emphasis on the
departmentalisation of V. A . / V. E. wil l oft en increase resistance t o
change.
35. That departmental esteem being an extremely import ant
fact or in resistance t o change the V. A . / V. E. team shou ld never
appropriate credit for the accrued savings individu al l y bu t seek
at al l times t o credit the su pporting fu nct ions of management
represented, e.g. Design, Produ ct ion, Work Study rather t han
Mr Smit h, Mr Jones, etc.
36. That resistance t o change is increased by lack of knowledge
of how the changes are t o be brou ght about and Valu e Engineers
and Practitioners that seek t o promote their status and expertise
by insu larity inflate the probl em of implementation and deny the
company the benefit of the 'Valu e Bonu s' or profit from int an-
gibles.
37. That whilst it is difficu l t if not impossible t o measure the
profit from intangibles it is reasonable t o expect that a company
wit h a well established programme wil l derive as mu ch monetary
wort h f r om enhanced fu nct ional integration as from direct
savings from the produ ct.
38. That Valu e Analysis/ Engineering contains wit hin itself most
of the attributes required by the proponents of fu nct ional inte-
grat ion (see for example Likert , Schein, McGregor, Argyris, etc.)
39. That fu nct ional integration must be firml y established before
the int rodu ct ion of Valu e Assu rance/ Cont rol/ Administ rat ion,
etc.
40. That these postulates form onl y a basic skeleton arou nd
which Valu e Analysis/Engineering/Assurance can be bu il t . The
fu l l y operational method must be developed in the environment.
In C onc lus i on
A ny Valu e Engineer reading the above suggestions wil l recognise
that no originalit y is claimed for them, they are available t o any-
one in ret u rn for the t oil of searching. Some wil l appear t o be
repetitive bu t this is due t o the minor deviations recognisable
f r om one geographical area t o another (mainly the U. S. A. and
U. K. ) . I t wil l also be readily apparent that they can be con-
veniently grouped under six subject headings that form the basis
of the Valu e Concept, COSTS A N D COST REDUCTI ON ,
FUN CTI ON , CREA TI VI TY, PERSON A L A N D PERSON-
N EL DEVELOPMEN T, RESI STA NCE TO CHA N GE,
I N D I VI D UA L A N D DEPA RTMEN TA L I N TEGRA TI ON .
The work has been done in far t oo short a time and the writ er
wou l d have l iked t o have had access t o a mu ch larger indu st rial
sampling; it is hoped that i f not hing else has been done t han t o
point ou t the need, others wil l in t u rn criticise and possibly co-
operate t o fu rt her improve and validate these findings. The
references at the end have been deliberately separated int o V. A . /
V. E. bibliography and a reading list which deals in depth wit h the
six subject headings u tilised for the search.
A ny Valu e Engineer or Manager wishing t o know the subject
t horou ghly wil l soon recognise the co-relation existent between
the t wo bibliographies and wil l detect the movement of material
from the last list int o the steadily growing literatu re on V. A . / V. E.
N o reading matter on FUN CTI ON as a subject in its own right
cou ld be fou nd outside of V. A . / V. E. references bu t u ndou btedly
this wil l be remedied as its value becomes more widely recognised.
V . A. / V . E . R e f e r e n c e s
Miles, L. D. Techniques of Value Analysis and Engineering.
McGraw Hi l l .
Gage, W. L. Value Analysis. McGraw Hi l l .
Gibson, J. F. A . Value Analysis - The Rewarding Infection.
Pergamon Press.
Mandel korn, R. S. Value Engineering. Chapman & Hal l Lt d.
Value Engineering in Manufacturing. American Society of Tool
and Manu fact u ring Engineers. Prentice Hal l I nc.
Value Analysis Value Engineering. American Management Ass.
SA VE Vol. 1. Proceedings of American 1966 Nat ional Convention
Proceedings of the 4t h, 5t h and 6th Valu e Analysis Conference
(U. S. A. ). Edit ed by V. A . I nc., Schenectady.
Proceedings of the 1st and 2nd European Valu e Analysis/
Engineering Conference. Edit ed by V. E. Lt d. , London.
S upple me nt a r y Bi bli ogr aphy
Costing and Cost Reduction.
Wheldon, Cost Accounting and Costing Methods. Macdonal d &
Evans.
Scott, J. A . Budgetry Control and Standard Costs. Pit man.
Pritchard, T. A . and Samuel, W. Organised Cost Reduction.
Brit ish Produ ct ivit y Cou ncil .
Creativity
Osborne, Al ex F. Applied Imagination. Scribner, New York.
Creativity and its Cultivation. Edit ed by H. H. Anderson, Harper
& Row.
Wil l iams, John K. The Knack of Using your Subconscious Mind.
Prentice Hal l I nc.
Personal and Personnel Development
Readings in Managerial Psychology. Edit ed by H. J. Leavitt and
L. R. Pondy, Universit y of Chicago Press.
Mal t z, M. Psycho-Cybernetics. Simon & Schuster I nc.
Maslow, A . H. Toward a Psychology of Being. Van Nost rand.
Resistance to Change
Judson, A . S. A Manager's Guide to Making Changes. Wiley &
Sons.
Rice, A . K. Learning for Leadership - Interpersonal and Inter-
group Relations. Tavistock.
Power and Conflict in Organisations. Edit ed by R. L. Kahn and
E. Bou l ding. Tavistock.
Argyle, Michael. The Psychology of Interpersonal Behaviour.
Pelican Books.
Integrating the Individual and the Organisation
Likert , R. New Patterns of Management. McGraw Hi l l .
McGregor, D. The Human Side of Enterprise and the Professional
Manager. McGraw Hi l l .
Dru cker, Peter F. Managing for Results. Heinemann.
Argyris, Chris. Integrating the Individual and the Organisation.
Wiley & Sons.
Schein, E. H. Organisational Psychology. Prentice Hal l I nc.
Maslow, A . H. Eupsychian Management. Richard D. I rwin, I nc.
The Scanlon Plan. Edit ed by Frederick G. Lesiur. M. I . T. Press,
Mass. I nst it u t e of Tech.
Errata
To Mr Bowyer we owe an apology. I n the last issue of this
jou rnal we published Mr Bowyer's article ' The Challenge of
V. E. - the First Appraisal ' wit h the fol l owing errors:
Page 107.
'ther' shou ld have been ' t heir' ; ' taken' should have been 'takes';
' itinerant' shou ld have been 'inherent'. The final word in the
sentence at the head of the colu mn should have been 'over-
simpl ificat ion' .
Page 108.
' V. E. ' shou ld have been ' VA ' at first use and 'organised' was
omit t ed before the word system.
Page 109.
' gimic' should have read ' gimmick' .
167
I
I
I
I
I
I
L
To the Sales Director
Thermo Plastics Ltd.
Lut on Road, Dunst abl e, Bedfordshi re
I understand you are Britain's foremost plastics moulders,
and can offer outstanding expertise in design and technical
service.
Please send me further information.
Name
Posi ti on
Company
Address
V.E.
This coupon
could cut
your costs
by
(and improve shape)
Control knob for hydraul i c Trol l ey Jack.
Price in steel event ual l y reduced t o 3/ -.
Price for bet t er -l ooki ng arti cl e of i mproved f unct i onal
shape, in an ABS mat eri al , 1 / 3.
(and increase life)
Column cap. In spun al umi ni um, 4/ - .
In much more durabl e H.D. Pol ythene 1 / 6.
/ / (
a r ,
d save weight)
/ M n u J Cable pulley. In cast i ron, 30/ - .
^ " In i nj ect i on- moul ded Acet al Resi n, saving
f i ve si xths of the wei ght , carryi ng loads of 1 t on p.s.i., 8/ -.
^ (and take 9,000 p.s.i.)
Piston Guide. In hardened and gr ound
EN1 5, 1 2/ - . In st eel -backed Acet al Resin
whi ch absorbs di rt parti cl es and wi t hst ands cyl i nder
pressures of 9,000 p.s.i., 5/ -.
The above results derive f rom a value analysis carried out by one of our customers.
168
Reprint No. 7:3:9
Functional Worth
The Numerical Evaluation of
Functional Relationships
by Arthur E. Mudge*
This paper continues the consideration of functional
worth which was begun in the previous issue of this
journal. As the author points out precise functional
balance is that which makes a product both work well and
sell most effectively at the lowest total cost. To start
toward the attainment of this balance, the analyst must
first have an understanding of the required and desired
functional relationships.
The paper describes the Numerical Evaluation of Func-
tional Relationships in a manner which will enable the
value engineer to apply this tool to the items he is
developing or analysing.
I nt r oduc t i on
There must be wit hin the Fu nct ional Approach a met hod of
determining the delicate balance between the fu nct ions of the
Produ ct* being analysed. This balance is determined onl y
t hrou gh a comparative process which in its t u rn leads t o a pre-
ceptual evaluation.
' I t can be said almost wit hou t fear of cont radict ion, that i f there
is no comparison, there is no evalu ation' - L. D. Mil es.
1
The Fu nct ional Approach is that part of the Valu e Engineering
Met hodology which differentiates it from cost redu ct ion and
makes it usable on any produ ct at any phase in the business cycle.
This Approach encompasses three phases, i.e. Define Fu nct ion,
Evaluate Fu nct ion and Develop Alternates. A l t hou gh these are
stipulated as three distinct phases, they do, in actu ality, overlap
and int erlock.
The first phase - Define Fu nct ion - has been discussed and
described in detail in the paper, 'The Preparation and Use of the
Valu e Engineering Fu nct ional Chart . '
2
The present paper, due t o
the overlap mentioned is, t o a degree, a cont inu at ion of the
' Define Fu nct ion' Phase of the Fu nct ional Approach. I ts content,
however, deals mainl y wit h the determination of the balance
between the fu nct ions, this being the major port ion of the second
and equally import ant phase - Evaluate Fu nct ion.
Before u ndertaking a discussion and detailed description of the
establishment of this balance, certain facts must be reiterated.
Before this phase can be started, the fu l l requirements of the
previous phase must, of necessity, have been met. This entails the
compil at ion of complete fact u al data from the areas of Market -
ing, Engineering, Manu fact u ring and Purchasing from which the
product's fu nct ions are concisely defined in t wo words - a verb
and a nou n. The degree of the fu nct ions must also have been
determined, i.e., as t o whether they are Basic or Second Degree
Functions bot h at the part and the assembly levels. Fu rt hermore,
it must also be realised that the relative importance of the fu nc-
tions must be established before a wort h or value can be assigned
t o the various fu nct ions or alternate methods developed for the
accomplishment of them.
The constant nature of this balance between the fu nct ions can
only be appreciated when there is a complete understanding of the
interrelationship between them. Nu merical Evalu at ion of
Fu nct ional Relationships is one concise, yet simple, met hod of
determining the necessary interrelationships among the fu nct ions.
The Nu merical Evalu at ion of Fu nct ional Relationships met hod is
capable of determining and/ or verifying the Basic Fu nct ion of the
produ ct being studied as well as determining the descending order
of importance of the Second Degree Fu nctions. I t fu rt her helps
the user by aiding in the positive determination of which fu nc-
tions are in the produ ct because of the User's or Producer's
specifications or requirements and which fu nct ions are included
because of an earlier design approach.
Starting from this common grou nd, the ' Nu merical Evalu at ion
of Fu nct ional Relationships' met hod can be discussed. This dis-
cussion, in order that the met hod can be fu l l y understood, wil l be
described in t wo forms. The first wil l be a general and broad
account of the met hod; the second, a detailed step-by-step
delineation of the method as applied t o a specific example.
Numer i c al E v aluat i on of F unc t i onal Relat i onshi ps
'Valu e being a relative rather t han an absolute measure, the
comparison must be used in evaluating fu nct ions' - L. D. Mil es.
1
Nu merical Evalu at ion of Fu nct ional Relationships is accom-
plished wit h the aid of Fu nct ional Worksheets Nos 2 and 2B
(Figures 1 and 2 respectively). Fu nct ional Worksheet N o. 2
shou ld be completed before this approach is undertaken.
The basic fu nct ion of each part of the it em being studied, as
defined and so checked in columns three and fou r respectively
(Worksheet N o. 2) is placed in the appropriate space at the t op of
Fu nct ional Worksheet N o. 2B.
The fu nct ions are then evaluated each one against al l the others,
one at a time, t o determine which one of each pair is the more
import ant . This importance is indicated in the chart by marking
the Key Letter of the more import ant fu nct ion in the appropriate
block in the evaluation chart. A t the time of the comparison of
each pair of fu nct ions, the magnitude of difference in importance
is also determined and indicated by a nu mber fol l owing the letter.
This difference in importance shou ld be given a value of ' 1', ' 2' or
' 3' according t o you r ju dgment wherein ' 1 ' indicates a minor
difference in importance, ' 2' a mediu m difference of importance
and ' 3' shows a major difference of importance.
'Mr Mudge is Director of Value Engineering Ser-
vices with JOY Manufacturing Company, Oliver
Bui/ding, Pittsburg, Pennsylvania, 15222, U.S.A.
He is also President of International Affiliates of
the Society of American Value Engineers.
This is the second of three articles written by Mr
Mudge on 'The Functional Approach'. The third
article will appear in the November issue.
* Product - As used in this paper, it is considered in its broadest
definit ion ' The result of someone's labou r,' i.e., a physical
produ ct, process or procedure.
References
1
Miles, L. D. Techniques of Value Analysis and Enghwerinn
(McGraw-Hil l ).
2
Mu dge, A . E. The Preparation and Use of the Value Engineer inn
Functional Chart (Journal of Value Engineering, 3:1 (1965)
169
Fig. 1 Sheet 2
F U N C T I O N AL W O R K S H E E T
Fig. 2 Sheet 2B
DRA WI N G NO.
DRA WI N G NO.
BA SI C FUNCTI ON
QUA N TI TY
and PA RT
FUNCTI ONS(S)
VERB I NOUN
FUNC.
PA RT
B. i S.
LEVEL
A SSY.
B. I S.
I t is import ant t o note that no t wo fu nct ions ever have the same
importance, i.e., there is always at least a minor difference of
importance between t wo fu nct ions.
When a weighted importance has been determined for each fu nc-
t ion relative t o every other fu nct ion, a su mmation of this data is
compiled in the Eval u at ion Summary - Weight Col u mn (Work-
sheet 2B) beside the listed fu nct ions. This is accomplished by
totalising the weight factors, bot h horizont ally and vertically,
for each fu nct ion (key letter) in the nu merical evalu ation chart.
From a comparison of the totalised figures in the weight col u mn,
the Basic Fu nct ion of the it em being studied is determined and/ or
verified. This wil l be the fu nct ion which has the highest totalised
weight fact or. The descending order of importance of the Second
Degree Fu nctions is determined by a similar comparison of the
fu nct ion' s weight factors for the various fu nct ions; i.e., by the
descending value of the fu nct ions totalised weight factors.
A ft er the details of the Fu nct ional Relationships have been
determined, it is possible for the Analyst t o study the results and
determine many conclusions on the produ ct's complexities. I t
allows him t o determine which fu nct ions are incorporated due t o
specifications or requirements and which fu nct ions are there
because of an earlier design approach. Wit h this knowledge, he
can objectively analyse the produ ct wit h confidence. When a
wort h has been established on each fu nct ion, this knowledge
provides a more positive means of relating each fu nct ion' s wort h
t o that of the whole. A l l of these are aids in directing cost pre-
vent ion and/ or cost improvement efforts t oward areas which
contain high and/ or unnecessary costs.
Having thus broadl y ou t lined the Nu merical Evalu at ion of
Fu nct ional Relationship Met hod and its basic uses, a step-by-
step application t o a case example wil l be described. The case
example in this development wil l be the Connector shown in
Figu re 3.
Evaluation
Summary
KEY
LETTER
FUNCTI ONS WEI GHT
A
B
C
D
E
F
G
H
1
J
K
L
M
N
B c D E F G H I J K L M N
B
c
D
E
F
G
H
NUMERICAL EVALUATI ON
Note: Evaluation Wei ght Factors
1 = Minor difference in importance
I
2 =
3 =
Medium difference in importance
Major difference in importance
J
K
L
M
This example has been chosen for a number of reasons. First , it is
a small sub-assembly yet is su fficiently complex t o cover the
necessary points of the approach. Second, it is an actual part of a
complex piece of equipment and the evalu ation can be carried
t hrou gh t o a logical conclusion. Third, it is the same case example
used in ' The Preparation and Use of The Valu e Engineering
Fu nct ional Chart ' ,
2
thereby preserving cont inu it y between the
Fig. 3
170
N U M E R I C A L E V A L U A T I O N G R A P H
CO
o
I-
u
<
I
CD
o c
'tn
3
10
Second Degree Functions
11 12 13 14 15 16 17
papers and giving a clearer understanding of their interdepen-
dence.
Before starting the step-by-step description of this method, cer-
tain vit al points must be stressed. First, before this or any analysis
can be undertaken, detailed fact -finding must have been accom-
plished. Second, these facts must include an understanding of
both the User's and Producer's specifications and requirements.
S t e p I. Det er mi nat i on of P er t i nent Dat a
When the detailed facts have been secured and Fu nct ional Work-
sheet No. 2 has been completed, see Figu re 4-Fu nct ional
Worksheet N o. 2 on the example connector, the numerical deter-
minat ion of fu nct ional relationships can be undertaken.
Using Fu nctional Worksheet 2B, the basic fu nct ions of the parts
us noted in the ' Fu nct ion(s)' colu mn and checked in the 'Fu nc-
tional Part' colu mn (Figu re 4) are listed in the appropriate area as
shown in Figure 5, eliminat ing all direct redundancy. I t shou ld be
noted that as each fu nct ion is noted down, it is au tomatically
u viiyncil a key letter.
Fig. 5 Evaluation Summary
K E Y
L E T T E R F U N C T I O N S W E I G H T
A PROVI DE CONNECTI ON
B I NDUCE FRI CTI ON
C A PPLY PRESSURE
TRA N SMI T PRESSURE
E PROVI DE SEA L
F CON DUCT CURRENT
G
H
1
J
K
L
M
N
Value Ijifii'ieering, September IV68
171
Sheet 2
REF. NO. : ME A-3116
DRA WI N G NO. : 9090547
CONDUCT CURRENT 30 A MPS CURRENT
B AS I C F U N C T I O N
Q U AN . P AR T
F U N C T I O N ( S )
V E R B | N O U N
F U N C T I O N AL
P AR T
B AS I C 1 S E C O N D
L E V E L
AS S Y .
B AS I C | S E C O N D N O T E S
2
i" BRASS NUTS
PROVI DE j CONNECTI ON
PROVI DE | LOCA TI ON
CONDUCT 1CURRENT
A PPLY { PRESSURE
! v
! V
! v
j V
MUST BE READI LY
DI SCONNECTA BLE
1 i * LOCK WA SHER
TRA N SMI T 1PRESSURE
I NDUCE j FRI CTI ON
RESI ST 1 MOVEMENT
v i " ! v
SUBJECT TO SHI PPI NG
VI BRA TI ON
1
i" BRONZE NUT
A PPLY j PRESSURE
PROVI DE 1 LOCA TI ON
~J !
1 v
! v
1
i" LOCK WA SHER
TRA N SMI T ] PRESSURE
I NDUCE 1FRI CTI ON
RESI ST | MOVEMENT
v i "
\
v
SUBJECT TO SHI PPI NG
VI BRA TI ON
1
2
RECESSED WA SHER
i" GA SKETS
TRA N SMI T] PRESSURE
PROVI DE | SEA L
i '
v !
1
V
! v
I v
MUST SEA L 7 p. s. i.
1 4 i " STUD
TRA N SMI T! PRESSURE
PROVI DE I LOCA TI ON
CONDUCT ! CURRENT
RESI ST 1 MOVEMENT
PROVI DE ] CONNECTI ON
! v
v I "
V
!
v
v !
1 SPECI AL NUT
CONDUCT ] CURRENT
A PPLY ] PRESSURE
PROVI DE 1 CONNECTI ON
i v
V \
v
! v
MUST BE READI LY
DI SCONNECTABLE
1 COPPER TUBE
PROVI DE i CONNECTI ON
CONDUCT 1 CURRENT
PROVI DE | LOCA TI ON
v !
! V
V
!
v
1
MUST BE READI LY
DI SCONNECTA BLE
Fig. 4
DA TE: 9- M2
A SSEMBLY: C O N N E C T O R
30 A MPS CURRENT
S t e p II. C o mp a r i s o n and Wei ght i ng of F unc t i ons
A t this point , Fu nct ional Worksheet N o. 2 is set aside and
Worksheet N o. 2B fu l l y undertaken. This step of the approach is
carried ou t using the ' Nu merical Evalu at ion' port ion of Work-
sheet N o. 2B. This is done by comparing one fu nct ion t o only one
other fu nct ion at a time and determining which is of the greater
importance as well as the magnitude of the difference in impor-
tance.
Starting wit h Fu nct ion ' A ' - 'Provide Connection', compare it t o
Fu nct ion ' B' - 'I ndu ce Frict ion' . This comparison is made as
they each relate t o the complete assembly t o determine which is
of the greatest importance. I f the analyst has compiled al l the
pertinent data, a knowledgeable decision can be made. When this
decision has been determined, the Key Letter corresponding t o
the fu nct ion having the greatest importance is placed in the ' A B'
block (Figu re 6). I n this case, it was determined ' A ' 'Provide
Connection' was more import ant than ' B' - 'I ndu ce Frict ion' .
Fig. 6
Numerical Evaluation
A
B C D E F G H 1 J K L M N
A
B
As the above decision is being formu l at ed, the extent of the
magnitude of the difference in importance is also being rationa-
lised. That is t o say, it is being determined whether the difference
in importance is of a minor, mediu m or major magnitude. As this
difference is determined, it also is marked in the ' A B' block (1
indicating a minor difference, 2 a mediu m difference and 3 a
major difference). I n the above comparison of Fu nct ion ' A ' t o
Fu nct ion ' B' , the analyst determined that there was a major
magnitude of difference in importance; therefore, a ' 3' was placed
in the ' A B' block after the ' A ' as shown in Figu re 7.
Fig. 7
B
C D E F G H I J K L M N
A A3
B
The Analyst now continues his comparison of Fu nct ion ' A ' -
'Provide Connection' t o each of the other Fu nctions in their t u rn,
i.e., he compares Fu nct ion ' A ' t o Fu nctions ' C , ' D' , ' E' and ' F' .
As each weighted comparison is made, the Key Letter and weight
fact or is marked in the appropriate block in the Nu merical
Evalu at ion. When the Analyst completed his weighted compari-
son of Fu nct ion' A' in the example case, the chart was fil l ed in as
shown in Figu re 8.
Fig. 8
B C D E F G H 1 J K L M N
A-3 A-3 A-3 E-2 F-3
B
When the Analyst has completed his evaluations of Fu nct ion
' A ' t o every other fu nct ion and determined a weighted com-
parison for each, he, in a similar manner, makes similar evalua-
tions for al l other fu nct ions. I n the example case, Fu nct ion ' B' ,
' C , ' D' , ' E' and ' F' were individu al l y compared t o every other
fu nct ion, one at a time, and a weighted comparison established.
When this had been accomplished, the ' Nu merical Eval u at ion'
port ion of Worksheet N o. 2B was completed as shown in Figu re
9.
172
Fig. 9
B C D E F G H I J K L M N
A-3 A-3 A-3 E-2 F-3
B B-1 B-1 E-3 F-3
C C-1 E-3 F-3
D E-3 F-3
E F-3
S t e p III. P r eli mi nar y S u mma t i o n
When the evaluations have been completed and a weighted
importance has been determined in the comparison of each
fu nct ion t o every other fu nct ion, the Preliminary Su mmation can
be undertaken. This su mmation is recorded in the ' Evalu at ion
Su mmary' port ion of Worksheet N o. 2B.
Here, the weight factors of each Key Letter are t ot alled and
placed in the ' Weight ' col u mn beside the corresponding letter, as
shown for Fu nct ion ' A ' in Figu re 10.
F
' S -
1 0
B C D E F
A g Ag) A@ E-2 F-3
B B-1 B-1 E-3 F-3
Evaluation Summary
KEY FUNCTI ONS WEI GHT
LETTER
A PROVI DE CONNECTI ON 9
I n the example case, the ' Evalu at ion Su mmary' when completed
by the Analyst was as shown in Figu re 11.
I n the example case, 'Condu ct Cu rrent' has been verified as the
Basic Fu nct ion by the fact that its weighted importance is greater
than any other fu nct ion. Since none of the other fu nct ions have a
similar weight fact or, they are Second Degree Fu nctions.
Figu re 12 shows the example case fu nctions when listed in their
descending order of importance.
Fig. 12
Basic Fu nct ion . . . . . . . . . . . . . . 15
Second Degree Fu nctions - Provide Seal 11
Provide Connection . . . . 9
I nduce Frict ion . . . . 2
A ppl y Pressure . . . . 1
Transmit Pressure . . . . 0
I f it is desirable t o depict this difference in importance more
graphically, the fu nct ions' weight factors can be plotted on graph
' , paper as shown in Figu re 13.
Fig. 13
16
o 14
S 12
LL.
- 10
'5 8
\
\
\
\
\
Basic
\
Basic
ru iicu on
C
o
n
d
u
c
t

C
u
r
r
e
n
t

P
r
o
v
i
d
e

S
e
a
l

P
r
o
v
i
d
e

n
n
e
c
t
i
o
n

I
n
d
u
c
e

F
r
i
c
t
i
o
n

A
p
p
l
y

'
r
e
s
s
u
r
e

f

r
a
n
s
m
i
t

'
r
e
s
s
u
r
e

o
Functions
Fig. 11
Evaluation Summary
KEY
LETTER
FUNCTI ONS WEI GHT
2
c A PPLY PRESSURE
1
D TRA N SMI T PRESSURE
0
E PROVI DE SEA L
11
F CONDUCT CURRENT
15
G
S t e p I V. Fi nal S u mma t i o n
From the data now compiled in the ' Evalu at ion Su mmary'
port ion of Worksheet N o. 2B, the Analyst can now make his final
su mmation. This step entails determining or reconfirming the
Basic Fu nct ion by assessing which fu nct ion has the greatest t ot al
weight factor. I n the example case, this is Fu nct ion ' F' - 'Condu ct
Cu rrent' wit h a total weight fact or of 15.
A l l other fu nctions listed, unless they have the same weight fact or,
arc second degree fu nct ions. The descending order of importance
of these second degree fu nctions can be and is determined by the
descending magnitude of their corresponding weight factors.
I hc Basic Fu nction and Second Degree Fu nctions should now
I K listed in their descending order of importance. A t the same
ni i K . Ihc relative difference in importance can be noted.
Not e:
The charting approach, as shown in Figu re 13 is of part icu lar
benefit when t wo or more people are analysing the same grou p of
produ ct fu nct ions. I t pinpoints variations in understanding of the
basic data. For examples of this use, see the paper in the next
issue.
E xample C o n c lu s i o n s
From the data compiled in Figures 12 and 13, a nu mber of vit al
conclusions can be ascertained.
1. The fu nct ions of 'Provide Seal' and 'Provide Connection' are
major Second Degree Fu nctions. Because of their high rat ing,
the need for t hem shou ld be questioned and/ or the possibility of
their de-rating studied.
2. The fu nct ions of 'I ndu ce Frict ion' and ' A ppl y Pressure' are
minor Second Degree Functions due t o the drop in their related
importance compared t o the fu nct ions above t hem as shown in
bot h the list ing and graph forms. Definit e study shou ld be under-
taken t o determine i f these can be eliminated or combined wit h
other fu nct ions.
3. The fu nct ion, ' Transmit Pressure' (althou gh at this time still
considered necessary) cannot be accomplished u nt il one or more
of the fu nct ions above it is accomplished.
4. I n analysing the Final Su mmation data, it can be determined
that the first three fu nct ions are in the produ ct because of the
User's or Producer's specifications and/ or requirements. I t can
fu rt her be determined that the remaining fu nctions arc included
in the product due t o the present design approach.
173
When the foregoing was completed and analysed, it was con-
cluded that changes cou l d be made wit hou t affecting the rel iabil it y
or maint ainabilit y while reducing the t ot al cost of the connector.
Wit h this knowledge, added t o that already determined by the
definit ion of the fu nct ions, it was determined by the designer that
necessity of the fu nct ion 'Provide Seal' was in reality an 'Honest
Wrong Bel ief and therefore cou l d be eliminated. This, then,
eliminated the last t wo special parts from the assembly and
provided a t ot al cost improvement in the assembly of 92%.
Ge ne r a l C o mme n t s
When the Basic Fu nct ion of the Produ ct being studied cannot be
determined as stipulated in the reference paper, the Nu merical
Det erminat ion of Fu nct ional Relationships is accomplished in
the same manner. The variat ion is made in the handling of
Fu nct ional Worksheet N o. 2. I n this type of situ ation, the Basic
Fu nct ion line of Worksheet N o. 2 is l eft blank. The parts and
their fu nct ions are filled in and the Fu nct ional Level -Part
col u mn is completed. A t this point , the Nu merical Det erminat ion
of Fu nct ional Relationships is undertaken. The results of the
evaluation, in this type of situ ation, instead of verifying the
Basic Fu nct ion, determines the Basic Fu nct ion. When this has
been accomplished, Worksheet N o. 2 can be completed.
On occasion, when the ' Evalu at ion Su mmary' port ion of Work-
sheet N o. 2B is completed, it is fou nd that t wo Second Degree
Fu nctions have similar weight factors. When this probl em arises,
the order of importance can, qu ite easily, be determined. This is
done by going back t o the ' Nu merical Eval u at ion' port ion of
Worksheet N o. 2B and determining which of the t wo fu nct ions
when compared t o each other, had the greater importance.
Whichever fu nct ion had the greater importance in this evaluation
then has the greater importance in the t ot al evalu ation.
Examples 1 and 2 show addit ional applications of this approach
t o sub-assemblies. The final paper shows and explains how this
basic approach t o a problem can be applied t o other products,
i.e., ' produ cts' used in the fu llest sense of its meaning.
Example I - Roof Exhaust Fan Wheel
Figu re 14: 4S N OL Wheel
Figu re 15: Worksheet N o. 2 on 4S N OL Wheel
Figu re 16: Worksheet N o. 2B on 4S N OL Wheel
Figu re 17: Final Su mmation 4S N OL Wheel
Figu re 18: Graphic List ing 4S N OL Wheel
Example 13 - Control Enclosure
Figu re 19: Tabu lated List ing on Cont rol Enclosure
Figu re 20: Graphic List ing on Cont rol Enclosure
Figu re 21: Worksheet N o. 2B on Cont rol Enclosure
Relat ed E xample I
Roof Exhaust Fan Wheel - 4S NOL
I n reviewing this example, the reader wil l ascertain that it
embodies not only the points covered in the basic paper, bu t a
nu mber of the points covered in the General Comments. As can
be seen from Figu re 14, this sub-assembly is large and of a
different nature than the case example.
Fig. 14
Design 4S NOL Wheel
Fig. 15
S n e e t 2
D AT E C 7- 7- 65
AS S E MB L Y : R O O F E X H AU S T F AN W H E E L
R O T AR Y F O R C E C O N V E R T E N E R G Y K I N E T I C E N E R G Y
I N P U T B AS I C F U N C T I O N O U T P U T
Q U AN . P AR T
F U N C T I O N ( S )
V E R B L N O U N
F U N C T I O N AL
P AR T
B AS I C J S E C O N D
L E V E L
AS S Y .
B AS I C ; S E C O N D N O T E S
1 T AP P E R L O C K B U S H I N G P R O V I D E | S U P P O R T
P R O V I D E L AD J U S T ME N T
P R O V I D E | L O C AT I O N
T R AN S MI T ! F O R C E
P R O V I D E L C O N N E C T I O N
! V
V
I V
! v
1 K E Y T R AN S MI T | F O R C E
P R O V I D E L L O C AT I O N " i v ! v
3 C AP S C R E W S T R AN S MI T ! F O R C E
P R O V I D E
1
L O C AT I O N
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REF. NO. : W - 40
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Evaluation
Summary
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NUMERICAL EVALUATI ON
Note: Evaluation Wei ght Factors
1 = Minor difference in importance
2 = Medium difference in importance
3 = Major difference in importance
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rig. n
Tabulated Listing
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Relat ed E xample II
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Fig. 19
Tabulated Listing
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Functions
Vulue I'Jiglnevring, September 1968
175
Contents
Message from the Minister
of Technology
Pictorial review of achieve-
ments of the British
Electrical Industry
BEAMA Publications
Directory of Manufacturers
including summary of
products manufactured and
addresses of overseas
agents, companies etc.
Trade Marks
Conversion Tables
Technical Information
Section. Classified, illus-
trated descriptions of plant
and equipmentover 150
pages
Buyers' Guide. A fu l l guide
from accelerometers to
X-ray tubes and valves
with an index to
classifications
Deutsches Verzeichnis
(mattgelbe seiten)
Indice Espanol (paginas
verdes)
Repertoire Francais (pages
bleu)
Indices Portugues (paginas
amarelas)
Py CCK H H Y K A3ATEJIB ( CM.
P030BBH PA3JIEJI)
This directory is a mine of
valuable information,
encased in an attractive
hard cover
This is the current
directory of the
British Electrical &
Allied Manufacturers'
Association
BRITISH EtECIRiCAL AND ftttttB FODPMNT
f V i lli * T O i S Y
Electrical Power Plant
Electrical and Electronic
Systems and Equipment for
Industry, Transport and
Communications
Domestic and Commercial
Appliances
Lighting Accessories and
Installation Materials
Order Form
To: the Journal Sales
Manager, T & T Division,
Pergamon Press Lt d.,
Headington Hil l Hall,
Oxford.
Please send me/us
copies of the BEAMA
directory at the UK price of
3 0 0 or Export price
3 10 0
Please invoice me/us
I/we enclose remittance of
Name .
Address
176
Reprint No. 1:3:10
Basic concepts - Management Appreciation - Methodology
Organising the V.E.-Effort in a Company
by J . Burnside, C.Eng., M.I.Mech.E., M.I.M.C*
The author provides answers to questions which face
Managements when they are considering the introduction
of value engineering in their companies.
In the first of a series of three articles Mr Burnside dis-
cusses the Profit Improvement Programme showing the
areas in which it can be applied. He deals with the
requirements of large, medium and small companies, and
then focusses attention on the establishment of V.E. effort.
I nt r oduc t i on
Companies wishing t o set u p a value engineering facil it y fre-
quently find difficu l t y in deciding how best this shou ld be done.
The problems which beset t hem usually stem from the inabil it y
t o answer satisfactorily the fol l owing questions.
1. Shou ld we have a fu l l -t ime or part-time value engineer?
2. Shou ld we have a value engineer at al l or can existing staff
cope;
Should the Valu e Engineer have his own staff?
How wil l the Valu e Engineer fit int o the organisation? Shou ld
he operate in isolat ion or be part of some existing department ?
To whom shou ld the Valu e Engineer report ?
How wil l his activities fit int o the general scheme for reducing
costs and improving profit cont ribu t ion?
How best can we 'sell' value engineering t o the staff as a whole
so that suspicion and distrust of value engineering may be
minimised, or better st il l , eliminated?
I t is the purpose of this paper t o discuss the issues involved and
thus t o arrive at a sound basis for answering these questions.
Companies of varying sizes have different organisation structures
and different needs. What is right for one company may not be
right for another and it is the int ent ion, in this series, t o highlight
where the differences lie. By this means it is hoped that some
guidance may be given t o those companies wishing t o set u p a
value engineering facil it y for the first time.
For simplicity discussion is grouped under three main headings as
fol l ows:
Part I The Profit I mprovement Programme.
Part I I Organisation.
Part I I I Records and Docu ment at ion.
P ar t I. T h e P r of i t I mpr ov ement P r og r a mme
Value Engineering is su fficiently flexible for it t o be applied on a
once-only basis t o a particu lar produ ct (or process), or, going t o
the other extreme, as a procedural activity carried ou t as a matter
of course on a selection of products. How it is applied depends t o
a very large extent u pon size of company, produ ct ion volu me and
degree of compet it ion encountered and it is these same factors
which usually determine the vigou r wit h which profit improve-
ment is pursued.
I t is true t o say that, t o a greater or lesser degree, al l companies
attempt t o maximise profit . I t fol l ows, therefore, that all com-
panies have some form of profit improvement programme t hou gh
11 may not be called this or even recognised as such. However, it
Mr Burnside is Assistant to the Deputy Chairman
(Engineering) at Lindustries Ltd., 100 Brompton
Road, London, S.W.3, England. He lectures regu-
larly to members of the course arranged by The
Tack Organisation.
must be accepted that even elementary cost cont rol , however
applied, constitutes a conscious attempt t o cont rol expense and
hence increase profit . The preparation and pursuance of a com-
plete Profit I mprovement Programme is merely a formal recogni-
t ion that savings can be made, the Programme itself being a con-
venient means of selecting areas t o be examined, progressing
analysis and measuring results achieved.
I n larger companies the responsibility for preparing the Pro-
gramme usually rests wit h a cost redu ction committee which has
at its command a nu mber of specialists skilled in O & M, Work
Study, Valu e Engineering, Crit ical Path Programming, Dat a
Processing, and other techniques. The preparation of a Profit
I mprovement Programme in these cases becomes a formalised
grou p activity which results in the selection of the areas t o be
studied and the allocation of the personnel t o carry ou t the work.
This type of procedure can be illu strated as in figu re 1.
Fig. 1
COST REDUCTI ON COMMI TTEE
I NCL: REPRESENTATI VES FROM
SALES DEPT; DESI GN DEPT;
PURCHASI NG DEPT; PRODUCTI ON;
PERSONNEL DEPT; TRA DE UNI ONS.
VA LUE
ENGINEERING
( " BUYI NG ) (PRODUCTI ON)
M VA LUE
ENGINEERING
WORK
STUDY
VA LUE
ENGINEERING
&
WORK
STUDY
DESI GN
SA VI NGS
A DMI N .
SA VI NGS
PURCHASES
SA VI NGS
METHODS PA CKI NG *
SA VI NGS DI STRI BUTI ON
SA VI NGS
FI G. 1.
PROFIT I MPROVEMENT PROCEDURE
I ' / <- I jig ineering, September 1968
177
Of course the establishment of this type of structure depends
whol l y on the abil it y of the company t o support its cost. For an
organisation of this type t o be viable the grou p as a whole must
produce adequate annu al savings and this in t u rn suggests that
there must be sufficient cont inu ing scope for profit improvement,
in monetary terms. Gross annual savings of fou r times the cost
of the specialists engaged on profit improvement is indicated as
being the minimu m acceptable ret u rn. A n average rat io of 10:1
shou ld be yielded by value engineering since a rat io of this order
is requ ired t o offset the more modest returns from the application
of the other techniques.
For smaller companies the services of many fu l l -t ime specialists
cannot be ju st ified and it is then fou nd expedient t o l imit the
breadth of enqu iry and t o concentrate on the application of a
few techniques; t ypically Work Study, Cost Cont rol , and Valu e
Engineering. When activity is l imit ed in this way a formal Cost
Redu ct ion Committee is not commonly elected, inspirat ion and
direction being given by departmental heads who individu ally
interpret a Board-directed profit improvement policy. When
profit improvement is tackled in this way specialists are attached
t o existing operating departments.
The less formal approach, however, shou ld not be used as an
excuse for fail ing t o prepare a Profit I mprovement Programme.
Some form of programme is essential and the small company
must st il l establish a pl an against which progress and achievement
can be measured. The differences lie in the scope of the pro-
gramme and the met hod of supervising implementation.
Whil e the accent of this series is on value engineering the prepara-
t ion of a Profit I mprovement Programme is necessary before any
specialised technique can be applied. Activities must be integrated
and the Programme forms the means by which this can be
achieved. Whether the Programme is decided u pon by a com-
mittee, by the Board of Directors or by an individu al (perhaps the
Managing Direct or) the procedure and factors considered shou ld
be the same. Onl y by giving due weight t o each aspect of the
Programme can an accurate assessment be made of the t ot al work
invol ved; wit hou t this no assessment of staff requirements or
time-scale can be undertaken.
When drawing u p a Programme the procedure described below
is generally adopted.
(a) Likel y or current demands for each produ ct line are
qu ant ified. At t ent ion can then be concentrated on products
wit h a u sefu l sales l ife.
(b) Produ ct specifications are denned wit h precision and com-
pared wit h those for competitors' produ cts. Decisions on
produ ct policy, incl u ding produ ct qu ality, then are very
mu ch simplified.
(c) Valu e of the produ ct t o the customer is accurately estimated
and compared wit h known prime costs. Not e: I n most cases
this informat ion wou l d be supplied by the Sales Department
and Cost Office bu t it is not u ncommon for it t o be supplied
by the Valu e Engineer since this is the first step in value
analysis.
(d) From a knowledge of the price the customer is prepared t o
pay and the present manu fact u ring costs, profit cont ribu t ion
of each produ ct line is established. Decisions on profit
improvement action can then be taken and those products
wit h a l ow profit cont ribu t ion either discontinued or treated
wit h urgency.
(e) Analysis of costs wil l immediately highlight areas where costs
are excessive and this informat ion is used t o determine what
profit improvement action is required.
For example: High labou r content wou l d indicate a work
study approach while wit h high material costs the produ ct
wou l d probably benefit from value analysis, as a first step.
Of course, t o maximise profit improvement every avenue
shou ld be explored bu t the above example serves t o illustrate
the kind of t hinking that is applied.
(f) Compl et ion of the steps described above wil l yield sufficient
informat ion for a list t o be prepared showing products or
processes requ iring attention. I ndicat ion of priorit y is
essential.
(g) Final l y, a time-scale for complet ion of each project is
attached t o the Programme. This is based on availability of
manpower and perhaps marketing strategy.
Up t o now we have been considering the preparation of an overall
integrated Profit I mprovement Programme. We are mainl y con-
cerned, however, wit h the organisation of the value engineering
activity wit hin a company and we must now t u rn ou r at t ent ion
t o the establishment of the Valu e Engineering Programme. This
may be viewed as an extension t o the overall Programme.
I nformat ion obtained as a result of working t hrou gh the steps of
the Profit I mprovement Programme is vit al and must be made
available t o the supervisor in charge of each of the profit improve-
ment activities. I n the case of the Valu e Engineer, he wil l take
the analysis one stage fu rt her and provide data on each of the
fol l owing:
(a) Which areas of the selected products (or processes) offer the
largest pot ent ial savings per u nit .
(b) What proport ion of t ot al cost is attribu table t o bou ght-ou t
items (i.e. materials and processes.)
(c) What proport ion of t ot al cost is at t ribu t abl e t o materials.
(d) What proport ion of t ot al cost is attribu table t o labou r.
(e) What analysis time is allocated t o each sub-assembly, it em
and part.
Wit h the complete Programme, as ou t lined above, the Valu e
Engineer, or the executive responsible for value engineering, has
the whole story before him and can proceed wit h confidence t o
maximise produ ct value t hrou gh value analysis.
Miscellany
Wh a t ki nd of noi se a nnoy s an o y s t e r ?
The reply t o which is ' A noisy noise annoys an oyster most.'
The provision of comfort able conditions for his workpeople
stood very l ow on the list of priorities of the early fact ory owner
when the main consideration was maximu m ou t pu t at minimu m
cost. I t has since come t o be recognised that comfort able con-
ditions must be provided, not only on hu manit arian grounds bu t
also because a pleasant environment encourages the occupants of
indu strial premises t o produce their best efforts.
There are various aspects of good environmental conditions in
factories - adequate l ight ing, warmt h in winter, and fu nct ional
colou r schemes. Most managements have given attention t o these
matters. One area where l it t l e progress has been made u p t il l the
present time is the cont rol of indu st rial noise.
The fol l owing diagram ranks noises:
Noise level
dBA
120
Typical
environmental
noise conditions
110
100
r - f yi
J
90
80
70
60
mm
mm
Boiler works, hammering
Steel works, fettling
Car horn at 3 feet
Wood planing machine
Weaving shed
Inside a piston englned airliner
Castings falling into bin
Printing works
Tube train interior
Automatic lathes
Motor bus interior
Average traffic on
street corner
Conversational speech
178
Reprint No. 1:3:11
Basic concepts -Value Standards - Applications
The Application of V. E. Effort for
Maximum Effectiveness
by G. P. Jacobs*
The author draws attention to the need for employees to
appreciate their overall objective-to improve their-
company's ability to make profit. He stresses that the
Value Engineer of all people must make sure that he does
not allow this objective to be obscured.
The Value Engineer must judge the area in which his
work is most likely to produce results which will be
implemented.
In the aircraft industry the Value Engineer can make
his greatest contribution in 'upstream work {i.e. during the
project definition stage) but unfortunately this is often
the least demonstrable stage.
Methods of assembling and recording Cost Data, and
of isolating poor value parts are described. The need for a
continuing programme of value research is stressed.
A marked improvement in indu st rial efficiency wou l d be fel t
if al l a Company's employees were clearly aware why the Com-
pany was in existence and how they cou l d best cont ribu t e t o the
Company's overall aims. I f you ask an engineer t o define his
fu nct ion he wil l invariably do so at a l ow level of abstraction.
He wil l say his job is ' t o design an improved flexible joint ' ,
' t o machine this frame section t o comply wit h this drawing' ,
' t o fatigu e test this fork-end' , and so on. He has largely lost
sight of the overall objective, which is t o improve his company's
abilit y t o make a profit . When a man is submerged in over-
coming a worrying technical problem, when he is u nder pressure
from many sides t o produce an article qu ickly, when people
are await ing the results of his investigation, he can easily lose
sight of this aim. The Valu e Engineer can have no excuse for
misinterpreting his task, or losing sight of the u lt imat e goal.
He is employed t o achieve the best possible ret u rn on the com-
pany's investment in Valu e Engineering. A t the highest level of
abstraction his fu nct ion is ' Maximise Profit ' . Whil st he shares
this global task definit ion wit h al l other employees, the Valu e
Engineer must be quite sure that he does not al l ow the lower
levels of definit ion t o cl ou d this objective. He must organise his
activities such that he is not sidetracked int o investigating areas
where the ret u rn on investment is not good. He must review his
activities continu ally and check on his audited achievements, t o
ensure that he is getting the best results from his effort s.
A Value Engineer seldom has any real difficu l t y in finding
places where value improvements can be made. However, in
deciding which represent the most rewarding areas for work, his
difficu lties are t wofol d. He must take bot h int o account:
1. Is this a fu nct ional area which wil l give a high net cost
saving (or other value improvement) for the Valu e Engin-
eering effort expended?
2. What l ikel ihood exists for getting changes adopted in this
area of the company's activities?
* Mr Jacobs is Manager of Value Engineering at
tha Weybridge Division of British Aircraft Cor-
poration {Operating) Ltd., Brook/ands Road,
Waybridge, Surrey, England.
On the one hand, the Valu e Engineer wants t o work on subjects
giving large potential savings. On the other hand he may feel
that it is pointless investigating areas of high potential savings if
the resulting proposals have l it t l e chance of being adopted.
He must recognise that the Designer wil l not have the same
enthusiasm t o make changes as he has, and because of this it is
vit al l y import ant that the Valu e Engineer shou ld adequately
prepare his case. Reliable and convincing cost and weight
informat ion (and any other effects on performance or accept-
abil it y), must be provided. The harder the anticipated resistance
t o change, the more research and detailed investigation wil l be
necessary. Eventu ally, i f the Valu e Engineer has done his job
properly, the decision whether or not t o accept a proposal
wil l depend primaril y on questions of design policy. However,
it is admit t ed, wit h some reluctance, that the int u it ive judgement
of the man u ltimately responsible, based on his past experience,
must also play its part.
The experienced Valu e Engineer wil l recognise in the earlier
stages the signs that his proposal is likely t o be rejected and he
must then decide whether the potential rewards ju st ify fu rt her
effort . Unfort u nat el y, it is one of the many ironies of Valu e
Engineering that the most rewarding proposals are those most
difficu l t t o get accepted! The Valu e Engineer must therefore
ensure some form of balance between the ' l ong shot' proposals
wit h the high savings bu t lower chance of acceptance, and the
'sure fire' proposals which may not be so rewarding (or interesting
t o him), bu t which provide the bread and butter of the Valu e
Engineer's existence. A n achieved saving of 5,000 per year is
infinit el y more u sefu l t o the company's financial state t han a
suggested saving of 50,000, resulting from a bril l iant idea,
which ju st fail ed t o get past the proposal stage.
Of course, it is wrong t o accept this situ ation and do not hing.
The Valu e Engineer's du ty is t o ' Maximise Profit ' ; it is his du ty
not only t o discover the areas of his company's activities which
represent the poorest value bu t also t o provide the evidence
needed t o overcome any reluctance by design or produ ct ion to
accept the necessary changes. To do this, he must equip himself,
as far as possible, wit h sufficient facts t o demonstrate poor value
qu antitatively. A t the present level of knwolcdgc wc arc a very
l ong way from achieving this ideal. However, there arc various
I alue iMfiiiwvring, September 1968
179
techniques which have been developed t o assist in this process of
selection and demonstration of poor value products. I n consider-
ing some of them, perhaps it wou l d be advantageous t o fol l ow
t hrou gh an aircraft design cycle, see where Valu e Engineering
can fit int o the overall pattern, and the process applicable t o the
various stages.
( 1) P r oj ec t Def i ni t i on S t a g e
I t is generally accepted that Valu e Engineering can make its
greatest impact du ring 'upstream' work. I t is clearly better t o
stop excess cost being designed int o the project t han t o re-
design t o delete it . The 'upstream' area of cost avoidance obviates:
(a) duplicated design work.
(b) duplicated t ool ing.
(c) duplicated testing.
id) repeated produ ct ion learning.
(e) any excess cost items being produced.
( f ) duplicated spares holdings.
I n themselves, these are substantial reasons for 'upstream'
work. However, perhaps the most import ant aspect is that the
correct fu nct ional sol u t ion can be sought at the higher levels of
abstraction, wit h mu ch larger potential savings. One can tackle
the basic problem of (say), ' Cool Passengers', and decide what
constitutes the best overall value method, rather t han pick u p
the probl em at a later stage, when the basic system has been
decided and creative t hinking is restricted t o sorting ou t the
best value components - in what may wel l be the wrong type of
system.
The difficu lties at this early stage are:
(a) when making its greatest impact, Valu e Engineering may
have l it t t l e or no commercial evidence t o demonstrate its
cont ribu t ion - i.e. no 'before' and ' aft er' facts.
(b) Valu e Engineering work at an early stage can be very
similar in aim t o other forms of 'upstream' activity, e.g.
'Project Eval u at ion' , 'Cost/Effectiveness Studies,' etc.
We accept that Valu e Engineering can be defined as satisfying
the requ ired fu nct ional performance for the lowest cost, com-
mensurate wit h timescale. Considering 'cost/effectiveness,' the
'effectiveness' of a weapon system is defined by its combat
capability and its availabilit y at the right t ime, in the right
place. The parallel wit h Valu e Engineering is a very close one;
the difference is generally one of the level at which the problems
are defined. On aircraft studies it can be assumed that the results
of cost/effectiveness work wil l have led t o decisions, for example,
on the form of power off-t ake from the engines, the methods of
providing added l ift for t ake-off and landing, and so on. The
Valu e Engineer is usually involved wit h the next level of defini-
t ion.
Hence, once the general form of the project is settled, the
Valu e Engineer can move in and du ring the early scheming
stage can assist in ensuring that the project is pu t together in
the best way. As a general ru le, it cou l d be expected that the
scheme drawings wou l d be subject t o clearance by some form
of Review Committee, representative of design, produ ct ion and
commercial interests. Here the Valu e Engineer has a major
part t o play in assisting the Project Management in arriving at
the best compromise between conflict ing specialist viewpoints.
When the key scheme drawings t o define the project are produced,
everyone must be covered comprehensively; there is no question
of sorting ou t work priorities at this stage! The basic job of
arriving at the best value alternatives requires that the produ ct ion
cost of many possible solutions must be obtained. As this may
impose t oo great a l oad on the Estimating Department, it is
desirable that simplified data for cost comparisons is made
available. (This has t o be done in advance. I t is t oo late, when
faced wit h the problem, t o commence t o find the met hod of
solving it . ) Hence the Valu e Engineer needs t o know the cost of
satisfying, in various ways, 'standard' broadly defined aerospace
fu nct ions. He should develop methods which wil l enable him t o
know what represents the best value design solu t ion under the
particu lar pressures prevailing on the project and, approximately
at least, what this solu t ion should cost.
I n the early phases, the type of date available tends t o be that
of a work capacity type, which we can consider first.
The V. E. studies require t o cover the fol l owing main areas
progressively:
(i) the correct choice of (say) the type of an overall system.
(ii) opt imisat ion of sub-systems wit hin the overall framework
o f .
(iii) correct choice of major components.
(iv) cost targets t o be provided for work packages, as defined
for design office work. I t is u nl ikel y that these wil l be
exactly as any V. E. fu nct ional definitions.
We need t o sort ou t (at al l sensible levels of abstraction), the
cost of satisfying the primary fu nct ions; we require t o isolate
the cost of secondary fu nct ions, those fu nct ions resulting from
the particu lar way we tackled the primary fu nct ional require-
ment.
From this work we are attempting t o establish what to specify
(from basic system philosophy down t o component detail),
and what we should pay for this in production, in order that
subsequent cost monit oring can be undertaken. The Valu e
Engineer shou ld contribu te t o the establishment of bot h the
design solu tion and the target cost t o satisfy it . Fu rt her, at a later
stage in the design, his responsibility wou l d be t o give specialist
assistance, where necessary, t o obt ain the produ ct ion article for
these targets.
Considering in fu rt her detail the sort of data requ ired at the
early stage, on systems components plots of cost against suitable
cont rol parameters wil l be requ ired for broad fu nct ions such as
'Refrigerate A ir' , ' Lower Undercarriage', Supply Fu el ' , etc.
These are at a relatively high level of abstraction and are needed
in assessing ' key' scheme drawings. We can drop this level
by asking ' How?' and the fu nct ion can be broken down int o
more detailed areas progressively. We wil l then have such
plots as cost against swept volu me for hydrau lic jacks, cost against
H. P. ou t pu t for hydrau lic and electric motors, cost against
delivery rate and pressure for fu el pumps, etc. Whil st this work
wil l be of l imit ed use in the early project phases it wil l progres-
sively come int o its own when the overall system is established
and detail choice of components is underway. This detail data
assists in 'make or bu y' decisions and indicates the best supplier.
( 2) Det ai l Desi gn S t a g e
A t this stage scheme drawings have been cleared and the Valu e
Engineer is assisting the designers in defining the best value
produ ct on detail drawings. Specialist advice must be given,
where requested, or where necessary from inabil it y t o meet
targets. Cost Dat a Sheets are a u sefu l t ool , t o enable the designer
t o make correct detail decisions.
These Dat a Sheets cover fu nct ions at the lowest level of
abstraction, i.e. they satisfy the need t o know detail cost differ-
ences between materials t o various specifications, the cost of
alternative ways of fabricat ing, the materials, etc., using simple
presentations of empirical data. For example, the designer
needs cost guidance as t o when t o call for machining-from-the-
solid as opposed t o using a forging or casting, when t o call for
an extru sion rather t han a rol l ed section. He also needs t o know
the relative costs of approved attachments, bot h the u nit price
charged by the supplier, and an average t ime required t o make
the fixing in the shops. The Valu e Engineer must use his experi-
ence t o determine which areas of the design are not getting the
best value cont rol treatment and do everything in his power t o
correct them.
I n this way we pu t together an aircraft which we consider
represents good valu e; we reconcile differences between fu nct ional
wort h of the major fu nct ion wit h the cu mu lative fu nct ional
wort h of the lower fu nct ions which make it u p, and wit h the
achieved values. The 'upstream' part of the Valu e Engineering
process is complete; the 'downstream', or Valu e Analysis
stage can commence. There is a place for bot h in al l balanced
attacks on poor value.
(3) P r oduc t i on S t a g e
We hope that ou r upstream efforts wil l have reduced materially
the nu mber of poor value items in ou r produ ct. However,
at this phase we have available a better collection of data on
180
which t o ju dge ou r achievements. We have mu ch firmer cost
informat ion, we can obt ain the weight of al l of the parts and
assemblies, we know the areas where we are experiencing
trou ble in produ ct ion, we are getting feed back from ou r cus-
tomers on the l ife of components and have better data on
maintainability. We have an aircraft we can examine. There is
no shortage of data, and the need for ' Valu e Analysis' work
exists. We must sort ou t ou r priorities. There are various ways
we can do t his:
(a) Comparison of similar products. Here one attempts t o l ook
at parts or components having some physical resemblance, sort
ou t a parameter u pon which cost wil l primaril y depend, and
plot cost against this parameter.
Perhaps the most simple and readily available parameter is
the finished part weight.
(i) Cost-v-Weight. On these assessments, cost is pl ot t ed against
weight for a collection of items or bou ght-ou t parts of the same
basic type.
These plots enable the answers t o be fou nd t o t wo questions
which fu ndament ally influence ou r choice of parts for value
investigation. These are:
(a) How expensive is the part specifically?
lb) How mu ch of it is there?
The answer t o the first question results directly from the cost/
l b. value. (Lines of cost/ lb. values shou ld be drawn in on the
pl ot . Where possible, the use of log/ log paper is recommended,
for clarity.) For various reasons, the cost/ lb. tends t o increase
as size is reduced. Clearly a high cost/ lb. indicates that the
item may be of poor valu e: at the same t ime, i f its cost is l ow,
expected returns from value analysis work (even assuming high
percentage savings can be obtained), may not be sufficient t o
warrant the expense of redesign, ret ooling, etc. Al so, one cannot
simply select the parts wit h high cost, as these may represent
good value. I t is reasonable t o assume, therefore, that the right
choice lies in selecting parts where some combinat ion of high
cost/ lb. (degree), and high cost (amou nt), is shown t o be excessive.
The simple process of mu l t ipl ying these together has been fou nd
to give good results. The parts wit h the highest produ ct of
cost/ lb. and cost per aircraft (=' cost 2/ l b' ) can be awarded
priorit y attention. Cost^/ lb. lines can be drawn in on the pl ot
and used t o indicate these priorities, the components wit h the
highest cost2/lb. nu mber being dealt wit h first, and so on.
This process has been proved t o be an efficient way of:
(a) isolating poor value parts from a relatively high value
grou ping.
(b) ident ifying complete groups of parts which are shown t o
be inefficient.
Of course, in aircraft we are t rying t o achieve bot h l ow cost
and l ow weight, and an int eract ion exists between these factors.
Hence, the above process is not wit hou t its l imit at ions; it tends
to highlight areas of poor value due t o excess cost and t o condone
areas which are of poor value due t o excess weight.
This is not a significant fact or, where the weight aspects are
under constant surveillance by weight cont rol teams.
(ii) Cost-v-Size. Plots of cost against other physical parameters
can be effective in certain applications. For example, in assessing
fl u id system components, it is oft en hel pfu l t o pl ot cost against
the diameter of valves, couplings, etc. General trends can be
established and rogue points, requ iring investigation disclosed.
On stru ctu ral items such as doors, achieved cost may be plotted
against area for the various types of door-i. e. pressurised
or unpressurised, doors which open in flight (e.g. undercarriage
doors) and those which do not , etc. This type of comparison is
also useful on cont rol surfaces and other largely area-dependent
items.
(iii) Comparison of Bought Out Prices. On an aircraft it is not
unusual to purchase similar components or standard parts from
dilVcicnt sources. Whil st an energetic commercial department
u nlwuys t rying t o rationalise the situ ation, a l it t l e analytical
work from the Value Engineer can be of great help and show
MBiulWunl returns.
(li) Achieved Cost-v-Theoretical Cost. For this process, the
lum lion is defined by the use of a verb and a measurable nou n
r tt. function 'Transmits Torqu e' , where torqu e is X l bf. ft .
and has t o be transmitted over Y ft . at a given stiffness. I n this
simple case, it is possible t o work ou t a theoretical wort h. Use
of materials wit h known physical properties are assumed, and
the required cross section calculated. A cost is assessed for the
necessary material and manu fact u ring operations, using 'stand-
ard' cost data.
The process is mentioned as it has been investigated in some
detail in the U. S. A. I n the aerospace field here, this met hod has
not yet been developed t o the degree where it can serve t o disclose
parts requ iring Valu e Engineering treatment. The nu mber of
areas amenable t o such basic analysis seems l imit ed, and in these
cases, it is generally not difficu l t t o ju dge by other means the
level of value achieved. However, there is scope for developing
ou r skills in this area.
(c) Achieved Results-v-Target Requirements. I have previously
touched on the subject of Valu e Engineering's part in establishing
and achieving target costs. Even at the late produ ct ion stage, the
over-target regions must remain high on the list for attention.
(d) Utilisation of Material. A check shou ld be made on the
!
finished part weight compared t o the weight of raw material.
Where the material u t il isat ion is shown t o be l ow, the value of
the produ ct may be in dou bt . I n the first place, a large proport ion
of the purchased material is wasted, and this is an import ant
consideration when an expensive material, such as t it aniu m, is
used. Secondly, a large amou nt of money is spent in reducing
this wasted material t o oftcuts and swarf. (The finding of an
area of l ow material u t ilisat ion, or a high cost2/lb., does not
necessarily mean a poor value part has been uncovered. I t
nevertheless gives a most valuable guide.)
(e) Feed-back from Airline Operators. The airline operators
advise the contractor of servicing problems, t ell him where high
u t ilisat ion of spares is being experienced and give other clues t o
produ ct value. Valu e Engineering shou ld pay particu lar at t ent ion
t o items which are ident ified from these sources, as these involve
not only poor value because of high cost bu t poor value resulting
from l ow l ife or fail ing t o meet requ ired performance.
This leads on t o the process of ' Tot al Cost Eval u at ion' , which
I wil l t ou ch on.
(f) Total Cost Evaluation. The foregoing has largely dealt wit h
methods of ident ifying high cost regions. We al l accept that
Valu e Engineering is the achievement of the necessary fu nct ion
for minimu m cost; however we cannot always define the fu nct ion
absolutely. Many interactions between the basic value attributes
of performance, cost, and timescale can influence ou r work
priorities.
There are many poorl y denned ' performance' requirements
which must be considered, and the only ' right ' way of covering
this is t o consider the t ot al cost of the it em t o the customer;
that is, development costs, the price of the produ ct ion article,
etc., plus al l the incremental spending necessary du ring the l ife
of the it em due t o its performance attributes. To give a few
examples:
(i) A simple, cheap air condit ioning system can involve
ru nning costs many times the init ial cost of the equipment.
For minimu m t ot al cost a considerable amou nt cou l d be
added t o the first cost of the equipment i f this wou l d
make a major cont ribu t ion t o improving subsequent
operating efficiency.
(ii) A u nit wit h a high level of reliabilit y may cost mu ch
more t o purchase t han its low-reliabilit y counterpart.
This extra cost must be weighed against the direct and
indirect cost savings resulting from unserviceability and
high maintenance costs of the cheaper u nit .
(iii) As not ed previously, especially on aircraft , weight is at a
premiu m. The t wo questions for which answers are oft en
sought are:
' How mu ch money is the aircraft manu factu rer prepared
t o pay t o reduce the weight of a component?'
' How mu ch is the saving wort h in revenue t o the
aircraft operator?'
This subject is t oo involved for mu ch discussion in this article.
I t has been reasonably covered elsewhere. Briefl y, the civil
aircraft has developed t o the point where it has become a sophisti-
cated device wit h a very high work capacity, which can be
./< Ilnglm-cring, September 1968
181
measured in various ways, perhaps the most simple being
passenger miles per annu m. (I t is of interest t o note that a 150
t on Super VC 10 intercontinental jet airliner achieves abou t the
same passenger miles/ annum as the 85,000 t on liner Queen
Elizabeth.) This high work capability means that relatively small
variations in efficiency, as can be represented by small changes
in the aircraft ' s weight, have become progressively more signifi-
cant as performance achievements have advanced.
Hence, in selecting parts for Valu e Analysis work on aircraft ,
it is of great advantage i f a weight saving potential can be ju dged
t o exist. I n some cases, best value may be achieved by arriving
at an alternative approach which increases first cost, a sit u at ion
most unusual for Valu e Engineering in other industries.
I n conclu sion, it is vit al that the Valu e Engineer, in his effort
t o improve the efficiency of his Company, shou ld equip himself
wit h the tools necessary t o ensure that his own cont ribu t ion is
as great as possible. This requires a cont inu ing programme of
value research, analysing the performance and cost achievements
of elements of past and current projects on a fu nct ional basis,
and keeping pace wit h advances in technology.
The foregoing is generally concerned wit h the aerospace indu stry
wit h which the writ er is famil iar. I t is believed however that most
of the techniques discussed can be used directly, or adapted
simply, t o meet the needs of any indu stry.
Miscellany
L abour and Aut oma t i on
Lit erat u re reviewed and analysed in Technological Change and
Manpower in a Centrally Planned Economy (I nt ernat ional Labou r
Office Bu l l et in N o. 3) shows how the nature of work, the skills
requ ired of workers and the occupational structure of indu stry
is changing wit h au t omat ion and advanced technology.
Soviet writers suggest that a new type of man wil l develop, of
whom academician St ru mil in writ es:
' I f today we see not hing amazing in the fact that a piano tuner,
after carrying ou t his task, shows himself t o be a tru e musician
by playing Beethoven's Moonlight Sonata, such a combinat ion
of various fu nct ions wil l be even more nat u ral wit h the advent
of a shorter working day . . . the "tu ners" of automated lines
wil l use their leisure for the purpose of design or wil l swell
the ranks of pu blic figures, scientists, writers, musicians or
inspired artists.'
No P r oduc t i s C omple t e unt i l it i s P r oper ly P a c k e d
The Code of Procedure for Packaging (published by the Nat ional
Cou ncil for Q & R wit h the assistance of Marks & Spencer Lt d. )
draws attention t o the fact that packaging is a Management
responsibility.
Many produ ct ion engineers and produ ct designers regard packag-
ing as something someone else does t o the produ ct after it has
been manu factu red. I n reality, a produ ct is only made aft er it
has been packed.
Packaging for Quality, Reliability and Profit, which sets ou t the
Code of Procedure for Packaging, is obtainable f r om the
Nat ional Cou ncil for Qu alit y and Rel iabil it y, Vint ry House,
Queen Street Place, London, E.C.4, England.
' The Huma n Us e of Huma n B e i n g s ' *
Urged by some of his friends, Norbert Weiner wrot e a popu lar
exposition of Cybernetics under this t it l e.
' To those of us', he says ' who are engaged in research and
invent ion there is a serious moral risk of aggrandising what we
have accomplished. To the pu blic, there is an equally serious
moral risk of supposing that in stating new potentials of fact, we
are thereby ju st ifying and even u rging their exploit at ion at any
cost.''
Professor Weiner then went on t o warn us ' that we shall have t o
change many details of ou r mode of l ife in the face of the new
machines is certain; bu t these machines are secondary in al l
matters of value that concern us t o the proper evalu ation of
hu man beings for their own sake, and not as second-rate surro-
gates for possible machines of the fu t u re. '
'Cybernetics' was the t erm which the Professor gave t o the study
of messages, and in particu lar of the effective messages of con-
t rol ; 'cybernetics' signifying the art of the pil ot or steersman. The
word 'governor' in a machine, it is interesting t o note, is the
latinised Greek for steersman.
* Eyre and Spottiswoode, London, 1950. pp. 242.
182
'Those who suffer from a power fixat ion find the mechanisation
of man a simple way t o realise their ambitions. I n organisations
where al l orders come from the t op and none ret u rn hu man
beings are reduced t o the level of effectors for a supposedly
higher nervous organism,' wrot e Professor Weiner in this book
which is a protest against the inhuman use of hu man beings.
Relat i v e C o s t s of Di f f er ent S u r f a c e F i ni s he s
A t page 39 of the first issue of Value Engineering (A pril 1968)
the Cost comparison of various surface finishes was referred
t o by Mr Ant hony Tocco in his checklist for produ ct design.
The table therein provided has now been extracted and visu ally
presented in this graph:
FINISH IN MICRO-INCHES
T y p e s of Sur f ac e Fi ni sh
Sur f ac e
Roughness
in Micro
i nc hes
Appr oxi mat e
Relat i ve
C ost
Cast and Unmachined 500 100%
Rough Machining 250 250%
Ordinary Machining 125 500%
Fine Machining or Rough Ground 63 1100%
Ordinary Grinding 32 1800%
Fine Grinding or Honing 16 3500%
Honing or Lapping 8 6000%
Reprint No. 1:3:12
The Value E ngi neer' s
Bookshelf
'Abook is a machine to think with'/. A. Richards
No one in industry today can ever hope to read the mass of
printed matter which passes across his desk.
A Three-Star Guide system has been adopted by Value
Engineering as an indication of the relative importance, of
its book reviews and abstracts for the value engineer.
Three stars (***) indicates that the material is particularly
significant; two stars (**) that it is very useful; and one
star (*) that - although important - the information deals
with a subject on the fringe of the value engineer's
interests.
For an explanation of the use of the keywords which
appear in italics above each review see the system of
' information retrieval which has been explained on the
inside front cover.
The number in parentheses ( ) refers to the publisher's
name and address given on the inside of the back cover.
Ergonomics - Design - Checklist
*Ergonomics Man in His
Working Environment
Murrell, K. F. H.
Chapman a Hall, 1965 496 pages 63/- (115)
Mr Mu rrel l , the leading English researcher int o Ergonomics
(the scientific study of the relationship between man and his
working environment) has produced a nu mber of tables t o which
value engineers can t u rn t o check the practicability of design
change proposals. The Ant hropomet ric Measurements (see
Table 2, page 43) provide a convenient reference t o body size,
body weight and body measurements. Such matters as the
effect of elbow angle on maximu m t orqu e; the effect of cont rol
height on pu l l ing force; and the time and nature of nervous
system responses are fu l l y covered.
Man as a System Component is considered and fu nct ions are
classified according t o those which can usually be done better
by a man t han a machine, and vice versa. A man in a system
- it is noted - introduces Delays, ' Noise' and Limit s.
I n Part I I of the book Design matters are considered as they
relate t o the layou t of equipment, the design of seating and the
arrangement of instrument displays.
Environmental factors such as temperature, hu midit y, noise,
light ing and vibrat ion are also covered.
Final l y, Mr Mu rrel l gives the designer and value engineer a
useful ou tline of the methods of investigating user-opinion,
safety features, operator-usage and inspection. The effects of
shift work and age are also discussed. I n connection wit h his
study of the factors which influence work ou t pu t the au t hor is
reinforcing the findings of the famou s Hawt horne experiment at
General Electric Company earlier this century.
A n Ergonomic Checklist for use by designers is provided by
the au thor.
H. G. C.
Materials - Design - Checklists
**Materials for Engineering
Production
Houghton, P. S.
Tha Machinery Publishing Co. Ltd., 1962 800 pages
(4 parts) 251-each part (122)
In Machinery's Standard Reference series this fou r-part book
<hich needs to be bou ght as a complete set) provides a concise
reference t o non-ferrou s (inclu ding timber, rubber, asbestos,
fibres and plastics) as well as t o ferrous materials.
I t wil l save the time that is oft en wasted in searching t hrou gh
a mass of leaflets t o find a standard material nu mber; it wil l
save the present great annu al loss there is in over-specifying
due t o a lack of knowledge of the most economic material which
can perform the required fu nct ion.
To select the most economic materials requires a close know-
ledge of the range of available materials - of their properties
and of the standard forms in which each material is manu factu red.
Cu t t ing t o best advantage, minimising machining and reducing
scrap requires value engineers t o have a knowledge of such
matters as standard sheet sizes and of manu factu red dimensional
accuracies. Available finishes and ' condit ion in which normal l y
supplied' from which the most suitable material for a particu lar
purpose can be selected is also very useful informat ion t o have.
There are t wo very u sefu l sections giving the appropriate
uses of the various standard B.S.970 En and the S.A.E. steels
as well as indicating their interchangeability. A list of 200 uses
for the standard t ool steels indicates that it may oft en be more
economical t o use standard material t han t o purchase steel
sold under a trade name.
A chapter on the choice of steels draws attention t o the need
in selection for the ' al l -in' cost t o be considered. Strength,
resistance t o abrasion, possible reaction wit h other metals or
liqu ids, response t o heat treatment, surface finish and machin-
abilit y as wel l as other design problems have t o be considered in
arriving at this ' al l -in' cost comparison.
The applicat ion of powder-metal technique t o the produ ct ion
of bearings, gears and a wide range of small components is
ou t lined as well as the properties of the types of wood in general
use and the means available for protecting them. The chapter on
plastics - which gives brief informat ion on the forms in which
they are obtainable, their general properties, and synthetic
adhesives - cou ld in view of their wide use today be extended
in fu t u re editions.
Lists covering the points t o watch for good casting design,
the points in favou r and against the various types of non-ferrous
castings, the effects of alloying elements u pon Cast I ron and
steel, the composition of B.S.970 En and S.A.E. series of standard
steels, the mechanical properties of B.S.970 En steels, the coding
system for S.A.E. steels, the classification and uses of bearing
metals and alloys, and the properties of woods and plastic
materials are spread t hrou ghou t the fou r parts. Each part also
gives reference t o sources of fu rt her informat ion.
A. H .
I alue llnitineering, September 1968
183
Management techniques Checklist
*The Enterprise and Factors
Affecting its Operation
Roberts, C. R. W. et al.
International Labour Office, 1965 193 pages 17/-
(120)
The first in an ' I nt rodu ct ion t o Management' series, this
book the components and activities of a business enterprise.
Wit h other books in the series it aims at providing a
'small-scale map' wit h which one can become oriented in relat ion
t o the whole ' cou ntry of management'. A ft er examining the anat-
omy of the enterprise the book then elaborates on each manage-
ment fu nct ion - supply, produ ct ion, marketing, finance and
personnel.
A n Appendix contains a very comprehensive checklist covering
the attributes of an enterprise and the effects produced by
them. The intelligent application of this attribu te list it is claimed
' may not lead t o the most efficient methods bu t it wil l avoid
making serious mistakes.' Each attribu te produces certain effects
which management shou ld know about and shou ld take int o
account when formu l at ing its policies or setting priorities for
executive action.
Eighteen excellent illustrations at the end of the book include
a diagram of the interaction of activities relating t o three products
and the variations in the levels of intensity of these activities over
a period of time.
A . C.
Materials - Design
**The New Materials
Fishlock, D.
John Murray, 1967 240 pages 45/- (123)
N ot a t ext book bu t a book t o read. N o value engineer cou ld
read it wit hou t learning something new for which he might well
find use. As designers know ideas tend t o ru n ahead of the
materials they have t o execute them, and there are st ill gaps in
required materials. Fibre-reinforced plastics are now becoming
better known; we have HYFI L and shall soon have more
fibre-reinforced metals.
This - as perusal of the index wil l reveal - is a forward-l ooking
book. The au thor points t o the rapidly developing science of
'molecular engineering' - the practice of creating materials having
exactly the properties which the designer requires. N o longer
according t o Mr Fishlock wil l materials be classified as metals,
fibres, ceramics, polymers and so on, bu t rather according t o
their applications. They wil l be known as nuclear, magnetic,
refractory, or cryogenic materials. The emphasis wil l be on
similarities. The designer (or the value engineer) is not bothered
about whether the material is made of glass or metal provided
it perfoms the function which he requires of it .
Descriptions of electrochemical machining and high-energy
rate forming for fashioning materials are fol l owed wit h chapters
on materials which can 'handle' heat, 'strong metals', 'mute
metals' and those wit h other special properties. ' Materials wit h
Holes' , 'Skins that Separate', 'Chemical Sponges' and 'Materials
wit h Memories' indicate the author's abil it y t o arouse the reader's
interest.
Cercor (a cellular ceramic), the cermets (metals blended wit h
non-metals) and calthrates capable of absorbing large amounts
of gases are al l described and there is a glossary for those who
have trou ble in recalling such terms as ' dopant' and ' gal l ' .
Altogether a fascinating book.
H. J.
Ergonomics
*Fitting the Job to the Worker
O.E.C.D., 1961. 108pages. 7/6 (124)
This is the report of a seminar held at Liege on 'Ergonomics for
Engineers'.
I t is the fou rt h and final phase of a project init iat ed by the
European Produ ct ivit y Agency in 1955 which was aimed at
giving a wider currency t o the discipline of Ergonomics or fitting
the job t o the worker.
I nqu iry revealed that marked variations exist between countries
as t o the emphasis which is placed on Ergonomics in the t raining
of their engineers. The hu ndred seminar members (who had been
provided wit h this informat ion before they met) first discussed
the general nature and aims of ergonomics and then went on t o
t al k about its more specific applications.
This discussion led t o the participants in the seminar recommend-
ing that attention of Nat ional Produ ct ivit y Centres and other
bodies be drawn t o the desirability of setting u p a form of t raining
in ergonomics and of encouraging research int o the subject.
This is a subject which wil l repay the attention of value engineers.
A . T.
Operations Research
^Fundamentals of Operations
Research
Ackoff, R. L. and Sasieni, M. W.
John Wiley, 1968. 455 pages. 92/- (125)
A transatlantic author-partnership between an academic and a
marketing executive has resulted in an exceptionally good book
on O.R.
Beginning wit h general aspects of formu l at ing problems the
authors describe the nature of a decision problem, and then
cover mathematical models.
I nvent ory, queueing, resources allocat ion, networks, dynamic
programming and search theory are some of the practical
applications discussed.
The co-authors examine some of the problems related t o the
extension of O.R. int o new areas, and it is here that value
engineers wil l be part icu larly interested. By using some of the
techniques of O.R. value engineers wil l have refined scientific
methods at their disposal in seeking the opt imu m solu t ion t o a
number of their problems.
Describing the Modes of Management Cont rol the authors
ou tline what managers can do about them and what science can
do in helping management do it better. As regards materials,
their use the authors point ou t may be improved t hrou gh value
analysis.
Summaries, discussion topics and problems, and suggested
readings appended t o each chapter provide ju st the type of
reinforcement which is wanted t o ensure that the reader gains
the most ou t of the book.
K. N . W.
Basic concepts - Management Appreciation
***Design Engineering Guide
Value Engineering
Roberts, J. C. H.
Product Journals Ltd., 1968. 23 pages. 7/6 (126)
Many Brit ish firms, as the au thor says, regard V. A . wit h sus-
picion. I t may work in the USA bu t not here, and we've always
made it this way being frequ ent ly advanced as reasons for their
resistance.
Frequently, more progressively minded competitors steal a
march by deciding t o 'give it a go' . Ru bery Owen Lt d. actually
saved 150,000 in a year by applying V. A . !
Conventional cost redu ction achieves 5-25 per cent savings, bu t
using V. A . methods can produce savings of the order of 40-50
per cent. Wit h results like this Management can onl y afford t o
ignore V. A . at its peril and this book provides a handy int ro-
du ct ory work for those who wou l d seek a knowledge of the
basics of V. A .
V. A . cannot be successful unless it receives the f u l l and enthusias-
tic support of management at al l levels and can gain the highest
standard of cooperation between purchasing, design and pro-
du ct ion. A l t hou gh this depends on management it also is vit al l y
affected by the right choice of value engineers.
G. K. J.
Statistics
*Teach Yourself Statistics
Goodman, R.
The English Universities Press Ltd., 1966. 240
pages. 7/6 (127)
The reviewer in the Journal of the Royal Statistical Society records
that this book 'presents the general basic principles in a terse and
understandable form' . There is no hesitation in commending it t o
newcomers t o the subject.
I ts au thor, who is head of the Department of Compu t ing,
Cybernetics and Management, has recognised the need of many
businessmen t o teach themselves some statistics. He has succeeded
in clearly explaining basic statistics t o the non-mathematician.
The book provides a practical int rodu ct ion t o ' working' statistics;
then shows step by step procedures for applying them t o
problems.
A n understanding of the book wil l enable the reader t o determine'
validit y or otherwise of statistical data, classify data int o
meaningfu l categories, and state problems statistically and clearly.
C. B. L.
Quality Control
*Quality Control Handbook
Juran, J. M. (ed.)
McGraw-Hill, 1962. 180/- (101)
Messrs. Seder and Gryna collaborated wit h Mr Ju ran in the
produ ct ion of this most comprehensive coverage of the subject
of Qu al it y Cont rol .
This second edit ion is the international standard reference book
and has added informat ion on the management of the qu alit y
fu nct ion, statistical methodology, and Q.C. for specific products
and processes.
A study of the book wil l enable the value engineer t o evaluate the
effectiveness of a qu ality cont rol system.
Treating such subjects as fu nct ional requirements, tolerance
systems, costs of tolerancing, organisation for qu ality, suggested
ou tline for t raining in statistics, approaches t o cost redu ction,
acceptance sampling, paperwork in the qu alit y fu nct ion, and
vendor material cont rol the book wil l be hel pfu l t o value engineers
desiring t o extend their knowledge of modern developments in the
subject.
The au thors' explanation of 'value analysis' the reviewer fou nd
interesting. ' Valu e Analysis' , according t o them, 'has been a t erm
coined t o describe an organised approach t o redu ction of costs
of purchased materials and components. The essence of the
approach is t o consider the fu nct ional purpose t o be served and
then to discover an easier, cheaper way of serving that purpose.'
K. L .
Basic concepts - Applications - DoD -R&D- Construc-
tion Industry
***ASearch for V. E. Improvement
Proceedings of the Fifth National Meeting of the
Society of American Value Engineers at Boston in
1965
SAVE, 1965. 2 vols. 46 sections. $10.00 (134)
The Paul Revere Chapter of the Society of American Valu e
Engineers was host t o the Fift h Nat ional Meet ing of the Society
ami produced a cyclostyled edit ion of the fort y-six papers
delivered at the meeting which was held in Boston, Massachusetts,
in A pril 1965.
I hc authors, addressing themselves t o the wide topic ' A Search
for V. K. I mprovement', dealt wit h such subjects as:
Specification Valu e Analysis
A Corporation-wide Valu e Program
V. I ' , in Research and Development
Shaping the Value ' Climat e'
Kimisticnl Evalu ation of Design
I united Budget Value Engineering
VH UI C Analysis and Managerial Decision
Do-it -You rsel f Valu e Engineering
Valu e Engineering in the Home
Blu eprint for Value in the Constru ction I ndu stry
Valu e Engineering in Mil it ary Constru ction.
I n spite of the fact that the pu blicat ion is typewritten and
duplicated and not serially paged it is very u sefu l reading for
those who wou l d trace the development of V. E. year by year
since its inception and since the beginning of the Society of
American Valu e Engineers.
To a reviewer of the later SA VE Conference Proceedings it is
interesting t o note the degree of ingenuity which the speakers in
1966, 1967 and 1968 have brou ght t o bear on topics covered in
these t wo earlier volumes.
B. D. W.
Basic concepts - Training - Management Appreciation -
Cost Data - Local Government - DoD - Advanced
Techniques - Construction industry
***SAVE
Volume 3 Society of American Value
Engineers, Proceedings of the 1968 National
Conference
Delves, F. (ed.)
Robert J. Mayer & Co., 1968. 350 pages. $12.50
(128)
' For Profit Headaches Take V. E. ' was the imaginative theme of
this conference which was attended by the reviewer who was
amazed at the smooth-ru nning organisation of the conference
inclu ding the issue of these print ed proceedings before its con-
clu sion.
V. E. now in its 21st yearhas drawn together a grou p of
particu lar people, ' part icu lar' in the sense that they are wil l ing
sharers and active doers.
The SA VE members (who range from t op managers, civil
servants, teachers, practitioners in indu stry and consultants)
have in common a willingness t o share their personal experiences
and an abilit y t o motivate their fellowmen.
The papers deal wit h the more mundane bu t nevertheless impor-
tant aspects of V. E. as well as the problems of the new areas of
V. E. such as local government and the constru ction indu stry.
' Why not women value engineers?' is the query which receives an
adequate answer from Mrs Patricia Livingstone, herself a
Management Systems Analyst wit h N ort h American Rockwel l .
The work of a few whose efforts saved the ' t own hal l ' millions
is also described.
Frederick Delves, an experienced jou rnalist , performed not onl y
a most useful function for the At l ant a Host Chapter in getting
ou t this Vol u me so prompt l y bu t also in carrying ou t so efficiently
what must have been a difficu l t edit orial task.
B. D. W.
Basic concepts - Management Appreciation -
Methodology - Producibility
***SAVE
Volume 2 Society of American Value
Engineers, Proceedings of the 1967 National
Conference
Snodgrass, T. (ed.)
Robert J. Mayer St Co., 1967. 296 pages. 80/-
(128)
The papers delivered at the Chicago Nat ional Conference and
very ably edited by Thomas Snodgrass show how the value
engineering profession is mat u ring. Valu e engineers t hinking and
writ ing about professional status; Larry Miles reflecting on the
fu t u re direction of V. E. ; and George Fou ch dwelling on the
expanding concept of V. E. indicate this reaching towards
mat u rit y.
The abilit y t o take a critical l ook at V. E. as revealed in some of
the papers is also significant. The reasons for failu re and signs
t o beware of are detailed in 'The Decline and Fall of V. E. '
Papers describing the use of Produ cibilit y Workshops in value
I ttlw iMitinecrini!, September 1968
185
t raining and the role of V. E. in the 'cost redu ct ion famil y' open
u p new concepts. Program Management aims at using the
appropriate elements from the fol l owing techniquesConfigura-
t ion management, Dat a management, Maint ainabil it y manage-
ment, Produ ct management, Qu alit y management and Valu e
Engineering management. The vit al need t o integrate V. E. int o
management is stressed by several writers who have obviously
experienced the fru strations and disappointments of not having
been able t o do so.
This Conference's papers go a l ong way t o showing that V. E.
t o paraphrase Vict or Hu gois an idea whose time has really
come!
B. D. W.
Basic concepts - Training
***Application of Value Analysis/
Engineering Skills
Blyth, J. W. and Woodward, R. G.
Argyle Publishing Corp., 1967. 216 pages. $10.00
(129)
The reviewer t ried ou t this self-instru ctional programmed t raining
course in V. A . / V. E. on one of his friends.
The cl aim that the programme wou l d provide skil l in V. E. in the
minimu m of time was satisfactorily demonstrated.
A ft er working t hrou gh the course the 'Learner Valu e Engineer'
was able t o select suitable products for V. E. effort ; ident ify the
fu nct ions of produ cts; and carry t hrou gh al l the other steps in
the V. E. Job Plan.
The ' L ' value engineer at first t hrou gh fail ing t o realise the
purpose of the course fail ed t o appreciate the progress which he
was making. The courseit shou ld be stressed t o those under-
t aking it is not designed t o improve people's specialised techni-
cal skills bu t t o enable t hem t o carry ou t the systematic procedure
fol l owed in value analysis.
Whil st the course did not make my friend an expert value engineer
it did fit him t o make a wort hwhil e cont ribu t ion t o a V. E.
exercise in his company, and after completing the programme he
became cost / fu nct ionally oriented towards all the costs incu rred
in his section of the fact ory.
K. L .
Indirect costs - Overheads
**How to cut Office Costs
Longman, H. H.
Anbar Publications Ltd., 1967. 300 pages. 50/-
(130)
As the dust-cover points ou t this book is 'compu lsory reading'
for al l who are interested in reducing office costs. I ts author,
who was Chief of O & M wit h Unilever Lt d. , wrot e the now
famou s Bu l l et in N o. 21 claimed by many t o be the best t hing
published on simpl ifying the paper-war in which most of us are
engaged.
I t seems that Mr Longman has produ ced a very complete answer
t o the plea used recently by a wel l -known credit card firm t o
indicate that the readers of their advertisements wanted their
lives simplified. Office managers and value analysts by bu ying
this book can have their lives simplified. I n a t wo page section
marked '30' in the book ' Valu e Analysis in the Office' is touched
u pon, and the au thor rounds off the brief discussion wit h this
statement'Value analysis can provide yet another way of getting
u sefu l ideasand it shou ld always be remembered that all
progress begins with an idea'.
Sections on 'Selling the I dea', ' Aids t o Creative Thinking' , ' Give
a strong lead from the t op' , ' Brainst orming' , and ' Try it Upside-
down' treat subjects which value engineers wil l recognise at
once as concerning t hem; and the scattered quotations provide
handy recall of a number of cost-saving actions.
Wit h Valu e Analysis entering u pon a phase of emphasis on in-
direct costs this book wou l d be most u sefu l t o the readers of this
jou rnal .
G. F. C.
Basic concepts - Management Appreciation -
Applications
*Modern Management Methods
Dale, E. & Michelon, L. C.
W. Foulsham & Co. Ltd., 1967. 156 pages. 35/-
(131)
I n a chapter entitled 'Redu cing Costs by Valu e Analysis' the
authors present a u sefu l int rodu ct ory explanation of the subject.
They contend that a number of methods of cost-cutting entail
penalties. A redu ction in advertising, for instance, may lose
customers. However, wit h value analysis there are no penalties
for the cost of V. A . is offset by gains.
Valu e analysis they say offers u nl imit ed possibilities. I t is the
application of known concepts plus a few new ones.
Their suggestion that managers read a few of the latest issues of
the magazines of their trade (inclu ding the advertisements)
wit h the basic questions of Valu e Analysis in the forefront of
their minds seems an easy way t o test ou t the efficacy of the
technique.
}
Wit h the book's well-rou nded coverage of other new management
techniques it shou ld be a handy volu me t o add t o the V. E.
Department's library.
G. H.
Electric controls - Checklists - Ergonomics
^Design Engineering Guide
Electric Controls
Weaver, G. G. (ed.)
Product Journals Ltd., 1968. 150 pages. 40/-
(126)
This is one of a series of handbooks published by Product
Journals Lt d. , al l of which wou l d be valuable in a technical
l ibrary. I t has t wo sections - Design Dat a and Product Direct ory.
The first eleven chapters provide informat ion for the selection of
switches, and the next fou r chapters cover relays. Timers, solen-
oids, circu it breakers, starters, fuses and solid state switching are
described in the five final chapters.
Each of the 21 chapters have been cont ribu t ed by a specialist
and they include such matters as checklists for selection,
ergonomic considerations, ordering specifications, installation
points, terminology and standards. The 'guide' is wel l illu strated
t hrou ghou t .
As wel l as list ing the many manufacturers who have supplied
produ ct data the editor has performed a u sefu l service in giving
the names and addresses of 'other companies who also manu -
factu re this type of produ ct ' . This gives the specifier an extended
range of contacts which is oft en of great use where produ ct ion
'lead t ime' is extremely short.
J.S.
Adhesives - Fastening
*Design Engineering Guide
Adhesives
Phi/pott, B. A. (ed.)
Product Journals Ltd., 1968. 28 pages. 7/6 (126)
To the value engineer seeking t o determine which type of
adhesive is the best for a particu lar purpose, and which is the
best way of designing bonded joint s this booklet supplies u sefu l
informat ion. I t goes fu rt her by indicating over fifty suppliers of
adhesive materials.
Design Engineering by providing this ' Gu ide' is performing a
most u sefu l service t o indu stry where the strength of adhesive
joint s is becoming of more and more practical importance.
Wit h this informat ion it should be possible t o choose adhesives
suitable for the required end-use or any particu lar adherent under
any particu lar stress conditions.
P.B.
186
Operations Research
Ôperational Research
Makower, M. S. and Williamson, E.
English Universities Press, 1967. 264 pages. 10/6
(127)
This 'Teach You rself Book' presents the value engineer wit h a
means of acqu iring a basic knowledge of Operations Research.
The theories of probabil it y, queueing, linear programming and
so on are explained in such a way that the reader does not require
a knowledge of advanced mathematics. Each theory is illu strated
wit h a probl em and each chapter contains exercises for fu rt her
practice. These worked problems and exercises are based on the
type of decisions which face management everyday.
Value engineers, as wit h other researchers, have a need t o
understand the environment of the system which they are
analysing, of the factors which affect the way the system operates
and how they are related. O.R. shows how an abstract model
can in certain cases be bu il t u p t o describe such a system. Wit h
their interest in produ ct standardisation, value engineers wil l
find the chapter on ' Dynamic Programming' presenting them
wit h a number of u sefu l ideas.
K. H.
Decision making Checklists
*The art of Decision Making
Cooper, J. D.
The World's Work (1913) Ltd., 1964. 395 pages.
30/- (132)
This book, which is aimed at providing 'a point of view' and 'a
compendiu m of techniques' wit h which t o approach problems,
wil l assist the value engineer t o improve his chances of getting
decisions.
I n the chapter of ' The Techniques of Fact -Finding' the au thor
mentions the checklist which purchasing officers in the Rockwel l
Manu fact u ring Company were given as a guide t o cu t t ing costs.
A l l materials, parts and operations were pu t t o the 10-point
'Valu e Analysis' test before a requ isition was approved.
The roadblocks t o agreement cannot be removed solely by
procedural means, and it is necessary t o understand what motivates
men. Mr Cooper mentions ' fu nct ional provincialism' as the
main barrier and suggests methods for overcoming (or minimis-
ing) it . He gives some advice on the tactics of agreement which
value engineers in their job of 'selling ideas' wil l find most u sefu l.
By placing you rself in the posit ion of others and t rying t o under-
stand the effect you r decisions may have on them, by remember-
ing that not hing is as simple as it seems, and by appreciating that
problems are only solutions in disguise the au thor contends
that managers and others wil l improve their decision-making
abilit y.
L. B.
Materials
*Design Engineering Handbook
Metals
(126)
As well as su pplying design data on non-ferrou s, and cast and
wrou ght ferrou s metals, and on joining and coating, the Hand-
hook also has a produ ct suppliers directory.
Twenty-one specialists have writ t en for designers and others
providing them wit h up-to-date informat ion on the metal they
have studied and its alloys, its heat treatment, the shapes and
forms in which it is available, design considerations connected
wit h its use, applications and sources of fu rt her facts,
t hirt een writers give informat ion on casting, forging, extrusion,
t iamping, forming and spinning; and on the joining processes-
Uling, brazing and soldering.
Value engineers and purchasing officers wil l find the informat ion
on ihc forms and shapes in which the metals are available particu -
Ul> hel pfu l , and the applications in which they have been
tve**fully used. J. McL.
Design
^Propulsion without Wheels
Laithwaite, E. R.
The English Universities Press, 1966. 273 pages.
63/- (127)
Professor Lait hwait e writes enthusiastically and interestingly
about the linear indu ct ion mot or. As Professor of Heavy Elect ri-
cal Engineering at I mperial College, London, and one who main-
tains a close contact wit h indu stry his views on the practical
application of these motors deserves attention.
The book admirably serves its aims - t o inform on the applica-
tions of linear motors, and t o provide directions for the construc-
t ion of working models of these motors.
Suggested over seventy years ago, linear indu ct ion motors t ook
their place alongside boats and gliders as a method of propu lsion.
Where linear mot ion is required the electric mot or has strong
competitors in the hydrau lic ram and the pneumatic cylinder.
Presenting the case for the linear mot or the au thor points ou t
that the conventional electric mot or requires a rotary-to-linear
convertor as well as a gearbox and the whole equipment is l ikel y
t o cost more t han the pressure devices (hydrau lic and pneumatic).
Practical applications of the linear mot or already include t u bu lar
actuators and levit at ion apparatus, and experiments are being
conducted int o the use of the linear mot or for crane drives,
shuttle propelling and high speed travel. F. T.
Purchasing - Materials
^Machinery Buyers' Guide 1968
The Machinery Publishing Co. Ltd., 1968. 1,454
pages. 16/- (122)
Purchasers of materials, machinery and small tools wil l find this
book a u sefu l source from which t o locate suppliers.
The 39th edit ion of the Gu ide also contains a short-list of trade
fairs and exhibitions t o be held du ring the coming twelve months
in Brit ain and overseas. There is a section containing trade names
and fou r foreign language glossaries of engineering terms.
Products are classified alphabetically from Abrasion-resistant
alloys t o Zirconium ingots and from the reviewer's examination
appear t o leave very l it t l e ou t that is of general usefulness.
J . K. M.
Design - Creativity
^Creative Synthesis in Design
Alger, J. R. M. and Hays, C. V.
Prentice-Half, 1964. 92 pages. 35/- (117)
Valu e analysis, as a means of assuring that designs meet needs
wit hou t providing addit ional but unneeded (and costly) fu nct ions
is referred t o by these writers.
The book attempts t o explain the semantic confu sion which
surrounds the engineering design process.
Creative behaviour, the authors contend, requires self-confidence,
constructive discontent, a positive ou t l ook, an open mind and the
courage of one's convictions.
The books also describes various creative techniques inclu ding
that of brainstorming which is becoming widely used in problem-
solving. J.C.W.
Purchasing
**Purchasing Handbook
Aljian, G. W. (ed.)
McGraw-Hill, 1966. 1,440 pages. 196/- (101)
This second edit ion brings the handbook u p t o date wit h an
explanation of those techniques developed since 1958 inclu ding
the application of the learning curve t o purchasing, recent
improvements in V. A . techniques, and the practical use of PERT
in bu ying activities.
I ts editor has marshalled 131 specialists to explain the practices
and procedures of purchasing. The book (as its jacket cluims)
shows how t o bu y the right commodity at the right price and have
it at the right place at the right time. I t gives 'the grou nd rules'
I #/>*< I ngineering, September 1968 187
concerning responsibilities, legal and ethical practices, and the
selection and t raining of staff.
For value engineers, the sections on - How t o select sources of
supply, Soliciting and evaluating qu otations, Pricing considera-
tions, I ncidental purchasing costs, Qu ant it y determination and
Order point have particu lar interest. The special bu ying con-
siderations for a representative set of commodities provide
practical guidelines for those new t o the purchasing fu nct ion.
Mr Larry Miles (the fou nder of V. A . ) wit h Mr C. W. Doyl e are
responsible for a section of the book on Valu e Analysis. These
authors present what they call ' A n over-all understanding of
V. A . ' According t o t hem 'Purchasing Valu e Analysis is the
process of applying value analysis techniques in the sphere of
materials procurement'.
Readers wil l be interested in the seven Relative Cost Tables
which, of course, need u p-dating in the light of current prices.
The section ' What Businesses can Benefit from V. A . ?' and the
references t o books, films and teaching aids is u sefu l t o those who
wish t o pursue the subject of V. A . more deeply.
There is a u sefu l collection of reference tables at the end of the
book, and the comprehensive index makes reference t o particu lar
subjects an easy matter. E.G.P.
Design - Fastening
^Handbook of Fastening and
Joining of Metal Parts
Laughner, V. H. and Hargan, A. D.
McGraw-Hill. 1956. 622 pages. 8 (101)
'One of the basic keys t o mass produ ct ion is an intimate know-
ledge of how t o fasten parts together.'
Wit h this statement the joint authors set ou t t o provide an idea-
source of methods of joining metal parts. A ft er covering the more
usual fastening methods then adhesive and other assembling
methods are dealt wit h - e.g. stitching, stapling, cast-in attach-
ments, mou lded-in inserts, and snap slides.
A supplement illustrates 1500 ideas for fastening and joining and
the age of the book does not milit at e against its usefulness t o the
designer and value engineer. F. A .
Materials - Purchasing
^Materials Handbook
Brady. G. S.
McGraw-Hill, 1959 (9th ed.) 968 pages. 163/6
(101)
This book has grown over 35 years t o a work u pon which those
concerned in any way wit h materials can depend, and purchasing
analysts and value engineers wil l find it a most u sefu l ' t ool '
describing over 1,200 different materials inclu ding those now
used in space-age industries. The book wil l enable them t o save
time in seeking materials for new products or processes. However,
it is not - as the au thor is carefu l t o point ou t - an exhaustive
treatise on materials and takes for granted that suppliers wil l
fu rnish detailed specifications.
Proceeding as the book does from Abrasives t o Zirconium it very
completely covers the gamut of materials made out of the ninety
odd elemental ' bu il ding blocks'.
The materials alphabet is then fol l owed by a section devoted t o
materials economics or 'the procurement and u t ilisat ion of the
raw materials of the worl d' .
To be able t o ju dge effectively the relative values of new materials
the bu yer-so the au thor points ou t -mu st have in his mind
basic standards for almost instinctive comparisons for a new
figure is of no value unless it is compared t o a known value.
There is interesting informat ion on colou r and flavou r, and sets
of indu stry terms and reference tables provide a u sefu l source of
facts.
The author, Mr George Brady, who has spent his l ife in the field
of materials as a toolmaker, designer, consultant and writ er is
exceptionally well-fit t ed by practical experience t o select those
parts of the subject which are of most importance t o the purchas-
ing officer and engineer in their daily work. A . G. B.
Indirect Costs - Office Costs
^Measurement and Control of
Office Costs
Birn, S. A., Crossan, R. M., and Eastwood, R. W.
McGraw-Hill. 1961. 318 pages. 79/6 (101)
Valu e engineers who are interested in applying the techniques of
value analysis t o the redu ct ion of office costs wil l find in this book
a set of time-studied standards which are applicable t o the
operation of accounting, calculating, du plicat ing, recording and
mail ing machines, and t o t yping. The book covers manu al and
mechanical as wel l as diversified and repetitive clerical work.
M. C. D. (or Master Clerical Dat a) lists the standard elements
which clerical workers use in performing office activities u nder
thirteen categories giving work values in the form of T. M. U. s
(time measurement u nits) for each. Those value engineers who are
famil iar wit h work study techniques wil l recognise the type of
forms used in M. C. D. studies - the Clerical Methods Analysis
Sheet, the Operation Summary Sheet, etc. Allowances (for per-
sonal needs and fatigu e and those due t o unavoidable delays) are
dealt wit h in a fresh way for the authors disagree wit h the classic
met hod for fixing allowances by finding ou t what they are and
they advocate that what they should be is the right approach.
The writers contend that work measurement shou ld be prefaced
wit h mot ion study and supported by job evaluation, merit rat ing
and work sampling which they ou tline. The use of M. C. D. also
has the effect of challenging bot h established and new methods
from an overall effectiveness point of view. M. T. M. , P.S.D.,
M. C. D. etc. are not ends in themselves - they are means t o an
end. F. G.
Fluidics
*Design Engineering Guide
Fluidics
Product Journals Ltd., 1968. 27pages. 7/6 (126)
The technique called ' Fl u idics' uses fluids in devices t o perform
the fu nct ions of sensing, logic and cont rol . I t eliminates moving
parts. This leads - so the protagonists cl aim - t o higher reliabi-
l it y and almost u nl imit ed l ife. However, design problems in
fluidics (because of the pau city of established theory) st ill have
t o be solved empirically.
The book covers the various types of fluidic devices on the market
today, the grou nd rules of their application, and definitions of
terminology used in the subject. Such phenomenon as the
Coanda effect (the abilit y of a jet of fl u id fl owing near a surface
t o attach itself t o that surface even t hou gh the surface may be at a
considerable angle from the original jet direction) is described
and clearly illu strated.
The reference t o suppliers of fluidic devices is very complete and
provides a u sefu l start for those who, having read this booklet,
wish t o t ry their arm. G. B.
Basic concepts - Checklists
***Value Analysis
The Rewarding Infection
Gibson, J. F.
Pergamon, 1968. 46 pages. 21/- (102)
The author, who is V. E. Manager at OSRA M (GEC) Lt d. , is
well-qu alified by basic t raining and successful practical experience
t o writ e on his subject, and the intensely interesting and readable
way in which he has done so shou ld give the book a wide reader-
ship.
The questionnaire/comment sections of the book ensure that the
reader is t hinking along the right lines when he attempts t o
produce answers, and is set ou t in such a way as t o provide
checklists on the points which need t o be taken int o account.
The reviewer agrees wit h the au thor that V. A . is better caught
t han taught, and considers that the au thor has achieved this for
the book when placed in the hands of tiros had exactly that
188
effect. I n fact , what it started wou l d, indeed, be hard t o stop!
l t is rather a pit y that fol l owing the six case histories there is
not a list of references for fu rt her reading so that those who have
caught the infect ion can easily proceed t o extend their knowledge
of the subject.
The I ndu st rial Training Division of the Pergamon Press are to
be commended for the convenient size of this booklet and the
easily readable way in which they have had it set u p by the
printer.
B. D. W.
Metrication
^Design Engineering Guide
Metrigrams
(126)
Met ricat ion is increasingly in the news wit h the dates of change-
over in the various industries being fixed, and the controversy
over the decimal point or decimal comma and so on.
This reference booklet adds t o the series of handy pu blications
being frequ ently issued by the Design Engineering people. As well
as twenty-eight metrigrams or conversion graphs the book con-
tains a number of references t o sources of conversion calculators,
metric fasteners, metric gears and taper-lock bushes. A . C.
Statistics
*Main Economic Indicators
O.E.C.D., March 1968. 136pages. 10/- (124)
I ntended t o serve as a desk ready reference t o the basic nat ional
economic statistics of the twenty-one Organisation for Economic
Cooperation and Development member countries and Yu go-
slavia, this bilingu al book performs its purpose wel l .
Comparative tables for the countries provide a means of con-
trasting produ ctivities of these countries and of ascertaining the
terms and direction of their trade.
Shortly the O. E. C. D. is t o pu blish a revised issue of Historical
Statistics which wil l include the economic indicators from 1957
to 1966. This pu blicat ion wil l supplement Main Economic
Indicators and provide a guide t o business cycles showing runs of
mont hly and annu al data. V.S.
Design - Ergonomics
^Mechanical Details for Product
Design
Greenwood, D. C. (ed.)
McGraw-Hill, 1964. 341 pages 88/6 (101)
These mechanical design aids which have been culled from
Product Engineering Magazine offer a wealth of alternatives for
solving the problems of designers in their everyday work.
The reviewer in his value engineering work has fou nd the book
must useful in fu rnishing qu ick, workable ideas and leads t o
answers t o problems in reducing produ ct cost.
Covering such subjects as Accessories, Materials handling,
I listening and joining methods, and mechanical movements and
linkages the book provides very practical on the job help.
Ihc methods engineer also wil l find many ingenious devices
cxpluined in the book. For instance, there is a description of
how small parts can be oriented and fed by use of a roller chain,
to assemble economically wit h the use of adhesives are
given, and there is u sefu l informat ion on quick-disconnect
lonlcncrs and permanent magnet mechanisms.
I lie ncctions on designing for easier machining, for heat
tieaimcnt, and for reducing waste wil l wel l repay reading, and
ignntimie considerations are featured giving u sefu l ' normal '
iimn dimensions.
Mr Greenwood has obviously had a wide experience in design
engineering. He is Associate Edit or of the widely read jou rnal
Product Engineering and the writ er of several other equally
interesting books in the same subject area.
A . V. T.
Design - Checklist
Êngineering Data for Product
Design
Greenwood, D. C.
McGraw-Hill, 1961. 430 pages. 107/6 (101)
This desk reference book is a valuable time-saver placing a
wealth of engineering charts, formu las and tables wit hin arm's
reach of the engineer and designer.
As well as providing answers t o problems invol ving beams,
torqu e, moments of inertia and so on the au thor also points the
way t o better fastening methods, describes the use of radioactive
tracers, and shows how t o calculate crit ical speeds.
Given the principles of good produ cibil it y as simple design,
maximu m use of standards, practical assembly and installation,
minimu m design changes, best use of suitable facilities and man-
power, simple t ool ing requirements, and carefu l consideration
of tolerances and allowances, the au thor provides a Produ cibil it y
Checklist which wil l be of interest t o value engineers.
T. C. P.
Materials
Êngineering Materials Handbook
Mantell, C. L. (ed.)
McGraw-Hill, 1958. 900 pages. 12 (101)
The work of more t han one hu ndred-and-fifty cont ribu t ors, the
book is intended t o provide the buyer and designer wit h an
au thoritative reference source t o engineering materials.
The subject matter has been arranged int o fou r sections - ferrou s
and non-ferrou s metals, inorganic materials, organic materials,
and what the engineer needs t o know regarding corrosion,
deterioration, brit t l e fract u re, etc.
I nformat ion u pon short-time high temperature materials use
problems is also included.
The section on properties of materials at the beginning of the
book is arranged alphabetically for convenience of reference,
and at the end of the book u sefu l sources of informat ion of
engineering materials are given. A n 83-page index provides an
unusual section called ' Nu mbers' in which the various metals
and alloys are arranged in ascending order of their distinguishing
numerals. I nspection of the alphabetical section of the I ndex
(which fol l ows) wil l indicate the comprehensiveness of the book.
K. L .
Producibility - Numerical Control
^Fundamentals of Numerical
Control
Lockwood, F. B.
The Machinery Publishing Co., 1968. 82 pages. 18/6
(122)
As nu merical cont rol can be applied t o machine tools, marking
ou t, welding, flame cu t t ing, pipe bending and circu it wiring it is
of importance t o value engineers vit al l y concerned as they are
wit h the probl em of produ cibil it y. Valu e engineers cannot com-
municate, nor can they be correctly informed by others, if they
lack a basic knowledge of the systems and terminology used in
N . C.
The book provides a backgrou nd knowledge for those who arc
recommending, bu ying, using or maint aining numerically
cont rolled equipment. The au thor stresses that a company should
see that it does not pay for an accuracy greater than is required.
Nu merically cont rolled machines used in small batch produ ct ion
confer the fol l owing advantages:
t Wiw Engineering, September 1968
189
1. Consistent accuracy independent of the varying skills of
operators thus reducing inspection time, scrap and rectifica-
t ion costs.
2. Increased machine u t il isat ion wit h l ow set-up t ime (oft en
only the time required t o clamp the component and insert
the tape).
3. Reduced t ool ing costs wit h no jigs and fixtu res being
requ ired, and the eliminat ion of lead time that is needed
for manu fact u ring these. N o storage space requ ired for
jigs and fixtu res.
These reasons shou ld ensure that the potential benefits obt ain-
able f r om N . C. shou ld not be overlooked by value engineers.
G. H.
Work Study - Local Government
^Municipal Work Study
Mil I ward, J. G.
B.I.M., 1968. 138 pages. 451- (113)
Wit h V. E. techniques now being applied t o local government
services in the Unit ed States, this book (the first of its kind)
is extremely pertinent for value engineers.
The book describes how the 3 M' s (men, money and materials)
may be conserved by local and nat ional authorities. The au thor
gives seven ' M' s' as basic!
A l t hou gh local authorities have been applying work study
methods t o their manu al operations for ten years Mr Mil l ward' s
endeavour t o share his experience wit h others wil l be welcomed.
He has signposted the rou te which a successful assignment carried
ou t by himself fol l owed, and the very real need t o explain work
study t o people is shown.
A chapter on the int rodu ct ion of work study lists the problems
wit h which value engineers wil l be only t oo famil iart he posit ion
of W.S. in the organisational structure, and the composit ion of
the W. S. team. The Summary of Essential Steps cou l d wel l have
been writ t en for V. E.
Part I I of the book deals wit h specific applications of work study,
ou t l ining the way in which a few of the problems have been
tackled.
A . L .
Design
*Product Engineering Design
Manual
Greenwood, D. C.
McGraw-Hill, 1959. 342 pages. 121/6 (101)
Over a hu ndred produ ct design topics are covered by the
Associate Edit or oi Product Engineering in this treasure house of
design ideas.
The book triggers off new design ideas, qu ickly provides alterna-
tive ways of solving design problems, and provides a long-term
reference source.
The reviewer has fou nd the sections on Bead chains, Hopper
feeds, Which Adhesives for What , Quick-release fasteners and
Air-act u at ed mechanisms part icu larly u sefu l as idea sources in
helping him t o devise assembly jigs and fixtu res.
' Why didn' t I t hink of that myself?' is the feeling which came
f r om reviewing the book which might wel l have been t it l ed
Tmagineering'.
J.W.
Quality - Inspection - Design - Purchasing
*Quality Control for the Manager
Cowan, A. F.
Pergamon, 1966 95 pages 12/6 (102)
This book - now in a second edit ion - is suitable for the value
engineer as well as for the manager.
Qu alit y cont rol , as the au thor notes, 'is hedged about wit h
misunderstanding' and he sets ou t (and succeeds) in cl arifying
its meaning. Qu alit y depends on the design of the produ ct and
since value engineers are vit al l y concerned at the design stage
they require a knowledge of those matters which facilitate the
maintenance of qu ality in produ ct ion.
Mr Cowan's chapter which deals wit h the problem of tolerances
and the bu ying of qu ality wou l d repay study by purchasing
officers. I n describing Statistical Acceptance Sampling he draws
attention t o the obvious - qu ality is not an end in itself. The
design of the produ ct and the design of the processes by which
it is t o be manu factu red must be considered together and not
separately. This consideration of bot h these aspects is what is
impl ied by the t erm ' Tot al Qu alit y Cont rol ' .
A n Appendix is given over t o an explanation of the statistical
t ool - t he Shewhart Cont rol Chart.
He does not mention the PRI DE (Programmed Reliabilit y in
Design) system nor the latest ZERO DEFECT techniques.
The short list of fu rt her reading given in this book may be
supplemented by the 80-page bibliography of the most import ant
periodical articles in the last five years. The articles have been
classified under ' Cont rol Charts', 'Acceptance Sampling', etc.
and according t o the industries in which they are used. The
bibliography, entitled Quality Control by G. Mort , is available
from the Library Association, 7 Ridgmou nt Street, London,
W. C. 1, price 24s.
C M .
Creativity - Training
**Essays on Creativity in the
Sciences
Coler.M. A. (ed.)
New York University Press, 1963. 235 pages.
$6.00 (133)
This ' fru it ' of over fifty fu l l -day meetings - held over a period
of five years - t o discuss how the creative process can be fostered
shou ld be of interest t o designers and value engineers, and also
t o those responsible for t raining these people.
Those who believe that creativity is simply the process of
bringing something new int o being might not find it easy t o
accept statements that creative act ion is that which 'achieves
increased u nit y or order in some sit u at ion' or that creative
produ ct ion 'begins in a state of imaginative mu ddled suspense'.
The editor of these Essays, who is Direct or of the Creative
Science Programme at New York University, in bringing together
the wide variety of views of scientists, engineers, sociologists,
anthropologists, industrialists and educationists on the nature
of creativity has performed a very u sefu l service.
The eleven contribu tors provide readers wit h an historical
backgrou nd t o the subject and an explanation of the nature of
creativity in the sciences, the universities, and in indu stry. They
cover the different aspects of creative endeavour which we al l
experience - groping, remembering, fmding, testing, discarding.
The contribu tions on ' I ndividu al and Grou p Creat ivit y' (by
H. K. Hughes) and on ' Creat ivit y in Engineering' ( M. F. Blade)
offer several ideas for the value engineer. List ing the stages of
creativity and the advantages and drawbacks of Grou p Creativity
leaves the reader desirous of fol l owing u p Mr Hughes' promised
later studies of this subject.
For teachers of engineering subjects, who have the problem
of pou ring a qu art int o a pint pot , Miss Blade's comments on
how they might foster the creative talents of their students wil l be
interesting.
Those who are interested in fu rt her study of creativity wil l
find the references given at the end of ten ou t of the eleven
chapters t o be most u sefu l.
A . J.
190
Reprint No. 1:3:13
Selected Abstracts of Recent
Literature on Value Analysis/
Engineering
Miss C. Ma by Abstracter
'Education: the expansion of experience by experts'C. K. Ogden
These Abstracts are based on a survey of periodicals and
books, supplemented by a selection of abstracts which
have already appeared in other Abstract Journals.
Permission to reproduce the latter is gratefully acknow-
ledged.
The addresses of the publishers of the periodicals contain-
ing the abstracted articles may be obtained by noting the
number appearing in the round brackets and referring to
the addresses on the inside of the back cover.
Abstracts [36] to [45]
[36]
Applications - Overspecification
Stead, E.
V.E. Case Histories- No. 2-Is the Design Too
Good for the Job ?
Design and Components in Engineering, 26 Jan 67
pp. 12-13 (18)
Reporting the results of value analysing a front axle stub end
by the Standards and Valu e Engineer of Kirkst al l Forge Engin-
eering Lt d. of Horsfort h, Leeds, the article shows how a cost-
Miving of 80 per cent was made on a section of the axle design.
The designer approached the problem from a standardisation
angle-was there a part already used which wou l d serve the
purpose? When this did not work he decided a new longer
pressing wou l d be required which cou ld be made from a slightly
modified existing t ool that cou ld st il l be used in its original
application.
The cost-saving, however, was negligible and the Valu e Engineer
after finding ou t what had been t ried applied the techniques
of his trade asking the standard Valu e Analysis questions. He
asked: (1) Is the pressing being used t oo good for the job?
(2) Is the met hod of hol ding the pressing on t o the stop t oo good
for the job ? The answers t o these questions alone being 'yes'
was sufficient t o warrant fu rt her investigation. This was made
und a section costing 7s. 5d. was fou nd cou ld be produced for
Is. fid.
[37]
Applications - Mouldings
Anon
V.E. Case Histories - No. 1 - Mouldings Replace
Hot Stampings
Da$ign and Components in Engineering, 12 Jan 67
pp 16-18 (18)
IteH'Mbcft the redesign of a range of submersible pumps
Manufactured by SUMO PUMPS L TD. of Crawley in which
. nam components made from manganese bronze hot stampings
<.umg J0. 6d. were replaced by new components made from
ih# polycarbonate MA KROL ON G. V. costing 19s. 3d. - a
Mtng of M) per cent.
A fu nct ional improvement of this su bstitu tion was a superior
dimensional stability eliminat ing leakage between stage castings,
and that polycarbonate is corrosion free and offers excellent
abrasion resistance.
From the 4,200 savings (based on a yearly produ ct ion of
7,500) wil l have t o be deducted the mou l ding t ool costs spread
over three years.
[38]
Applications - Design - Plastics
Oakley, E. H.
V.E. Case Histories - No. 9 - Redesigning from
Scratch
Design and Components in Engineering, 11 May 67
P. 8 (18)
The Chief Valu e Engineer of I nt ernat ional Harvester Co. of
Great Brit ain Lt d. mentions the stack cap assembly which is a
sub-assembly of an air cleaner.
The basic fu nct ion is t o prevent water, straw, etc. t o be drawn
or fal l ing int o the air cleaning filters. Other properties required
are that it withstand impact loads from fal l ing debris when the
machines are used on loaders. I n view of its posit ion on t op of
the hood the assembly needs t o have a good appearance.
As a result of study polypropylene was considered the most
suitable material and now the cap (which was previously of
fou r pieces) is made of t wo parts - the domed cap and the webbed
core - separately inject ion mou lded and later riveted together.
The mou l ding can be of any colou r and does not show
scratches. Whil st the impact l oad is fairl y high no permanent
set results from fal l ing objects. Overall savings were 90 per cent
after al l owing for the cost of new mou l d tools.
[39]
Basic concepts - Applications - DoD
Kramer, G. M.
The Internal Auditor Winter 66 pp. 25-35 (27)
A n int rodu ct ion t o Valu e Analysis and some practical examples
of its cost-saving achievements. Details are given of how the
U. S. Department of Defense encourages its use by sharing the
cost-savings wit h their contractors.
*JW Engineering, September 1968
191
[40]
Applications - Fastening
Anon
V.E. Case Histories - No. 7 -Adhesives can save
Assembly Time
Design and Components in Engineering 13 Apl 67
p. 14 (18)
Avery Hardol l Lt d. , manufacturers of pet rol pumps, achieved
a saving of 700 per year by changing over from dril l ing and
pinning a roller t o a shaft (time 25.29 minutes) t o joining these
t wo pieces wit h Loct it e Retaining Compou nd (time 12.76
minutes).
To this saving may be added 6d. due t o eliminat ing copper
plat ing t o keep the area soft for dril l ing and the value of 1.29
minutes saved on the actual assembly. This does not include
time wasted t hrou gh broken drills and the cost of these drills.
[41]
Applications - Value standards - Single Product Cost
Leadership
McKay, J . (reporter)
Value for Money Where It Counts
British Industry Week 19 Jan 68 pp. 26-29
(16)
Mr T. P. Callaghan, S.T.C. Director-Operations Staffs, is
directing the concentration of his company's efforts on Valu e
analysing high profit produ cts t o make t hem even more profit able.
Called 'Single Product Cost Leadership' (SPCL), S.T.C. has
already successfully carried ou t this new approach t o Value
Analysis in its operations in the Unit ed States.
The company is aiming at a standard format for V. A . teams
t o work wit h which covers the implementation of the Valu e
Analysis Change Proposals.
Suppliers' V. A . proposals are rewarded wit h al l the savings for
the first six months after implementation. This is called 'Pocket
the Savings' pl an.
A manu al of Valu e Standards (which t ook t wo years t o com-
pile) helps t o streamline value engineering work and in the
company's selection of products for analysis it has adopted the
concept of S.P.C.L. This means that a produ ct is produced at a
cost that is as l ow, or lower than, the cost of competing products
by others and that the value analysis concentrates on items
which show the greatest ret u rn for time and effort invested.
Priorit y is given t o the 20 per cent of the company's products
which account for 85 per cent of the sales.
The company uses a carefu lly devised nine-step approach.
[42]
Functional worth - Cost-estimating
Dillard, A. E.
The 'Function' in Value Engineering
Society of Automotive Engineers, Inc. SP-277
pp. 5-8 (24)
This article discusses an approach t o better value t hrou gh
the recognition of the interfaces that exist between design
parameters, it em capabilities, it em design and the item's u nit
cost, based u pon an objective definit ion of the primary fu nct ion
of an it em.
Redu ndant Fu nct ion (a fu nct ion that duplicates a primary or
secondary fu nct ion which - unless absolutely necessary - can be
eliminated) is discussed, and seven steps are set ou t for creating
better valu e: I dent ify the fu nct ion; I dent ify al l the parameters
and environment su rrou nding the fu nct ion; Convert the para-
meters and environment int o design crit eria; Convert the design
criteria int o it em capabilities; Convert the it em capabilities int o
cost; and Develop a famil y of curves of cost versus each capa-
bil it y. This wil l provide guidance on the opt imu m cost/ capability
relationship.
The u nit cost of a produ ct then becomes the sum of the capability
costs.
[43]
Basic concepts
Taylor, D. R.
An Introduction to Value Engineering
Society of Automotive Engineers, Inc. SP-277
pp. 1-4 (24)
Valu e engineering is a proven t ool for redu cing costs and
increasing the value of products. This has a direct bearing on
improved competitive posit ion in the market place and increased
profit margins. The t ool is an organised effort , is oriented t o
fu nct ion, involves overall costs, and is inter-disciplinary in
nature.
This article takes the reader from selection of items for study,
t hrou gh fu nct ional analysis, t o implementation of proposals.
Reasons for high costs and suggestions for avoiding roadblocks
t o change are discussed because of the importance in under-
standing the hu man aspects of reducing costs and improving
value.
[44]
Basic concepts - Management Appreciation
Harris, A.
Calculate - or motivate ?
The Financial Times 28 June 67 (14)
The au thor described the experience of Mr Wayne Ruggles in
seeking t o establish Valu e Engineering in Brit ain. Valu e
Engineering, according t o Mr Ruggles, is an attitu de of mind, a
systematic approach t o problems wit h COST high on the agenda
and VA L UE as the objective. 'Companies', he contends, ' al l
think they are cost conscious, bu t few of them are.'
How oft en is pricing the new model l eft u nt il it is finalised for
produ ct ion ? Where does COST come on the agenda of companies
who do this?
Valu e Engineering is a 70 per cent mot ivat ional probl em and
30 per cent system.
[45]
Applications - Basic concepts - Management
Appreciation - Value standards
White, M.
Dunlop get a Grip on Rising Costs
The Times 22 Jan 68 (22)
Du nl op, t hrou gh Valu e Analysis, saved i mil l ion in 1967.
The Value Analysis work is carried ou t t hrou gh the Grou p
Management Services u nit which is also responsible for O.R.,
Compu ter applications, O & M , etc. The Management Services
Division usually provides a larger reservoir of capabilities than
can reside in any single u nit in a grou p of companies.
The Management Services Division also acts as a u sefu l bridge
between consultants and the company and as a u sefu l t raining
and testing grou nd for promising executives.
I nit ial l y, the Management Services Division trained ten Valu e
Engineers and t hen- wi t h the help of an outside consultant
-embarked on an educational and 'selling' programme t o get
the companies in the grou p interested. As the idea t ook hol d the
value engineers were moved int o the companies. The Manage-
ment Services Division retains three value engineers whose
fu nct ion it is t o cross-fertilise the work being done in the divisions
of the company.
The importance of having a yardstick by which t o ju dge the
value of effort in relat ion t o the results which it produces is
emphasised. I n Du nl op they aim at a minimu m saving of three
times the cost involved.
192
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Publishers' Names and Addresses
Journals
14. The Financial Times, Bracken House, 10 Cannon Street, London, E.C.4, England.
16. British Industry Week, 161 Fleet Street-London, E.C.4, England.
18. Design and Components in Engineering, 161 Fleet Street, London, E.C.4, England.
22. The Times, Printing House Square, London, E.C.4, England.
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U.S.A.
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Books
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102. Pergamon Press Ltd., Headington Hill Hall, Oxford, England.
113. British Institute of Management, Parker Street, London, W.C.2, England.
115. Chapman & Hall Ltd., 11 New Fetter Lane, London, E.C.4, England.
117. Prentice Hall Inc., Englewood Cliff, N.J., U.S.A.
120. International Labour Office, 40 Piccadilly, London, W. 1, England.
122. The Machinery Publishing Co. Ltd., New England Street, Brighton, Sussex, England.
123. John Murray Ltd., Albemarle Street, London, W. 1, England.
124. O.E.C.D., 2 rue Andre-Pascal, Paris 16e, France.
125. John Wiley & Sons Ltd., Baffins Lane, Chichester, Sussex, England.
126. Design Engineering Handbooks, Product Journals Ltd., Summit House, Glebe Way,
West Wickham, England.
127. The English Universities Press Ltd., St. Paul's House, Warwi ck Lane, London, E.C.4,
England.
128. Robert J. Mayer & Co., 330 South Wells, Chicago, Illinois 60606, U.S.A.
129. Argyle Publishing Corp., 200 Madison Avenue, New York, N.Y. 10016, U.S.A.
130. Anbar Publications Ltd., 34 The Mall, Ealing, London, W.5, England.
131. W. Foulsham & Co. Ltd., Yeovil Road, Slough, Bucks., England.
132. The World's Work (1913) Ltd., Kingswood, Tadworth, Surrey, England.
133. New York University Press, New York University, New York, N.Y., U.S.A.
134. Society of American Value Engineers, National Business Office, Wi ndy Hill, Suite
A- 1 , 1741 Roswell Street, Smyrna, Georgia 30080, U.S.A.
Henry Burt & Son Ltd, College Street. Kempston, Bedford
Reprint No. 1:3:14
PI TFALLS AND WE AKNE SSE S TO
AVOID IN ESTABLI SHI NG VALUE
ANALYSI S OR ENGI NEERI NG
IN ACOMPANY
It i s i mpor t ant t hat if V a lue Ana ly s i s or E ngi neer i ng i s est abli shed in a c ompa ny it mu s t be mor e
t ha n a di f f er ent name f or c o s t r educ t i on and c ont r ol t e c hni q ue s wh i c h exi st ed pr ev i ously. It
mus t really r epr esent good v alue i t self , and mus t on no a c c o u n t be a llowe d t o be c o me a poli t i c al
de v i c e used by c er t ai n i ndi v i duals t o s e r v e t hei r o wn r at her t ha n t he c o mp a n y ' s e nds . It mu s t
f ost er ma x i mum c o- ope r a t i on be t we e n people and ma x i mum i ndi v i dual ef f or t . O n no a c c o u n t
mus t V a lu e Ana ly s i s or E ngi neer i ng be c ome r i val f unc t i ons t o ot her c o s t r educ t i on and c ont r ol
t e c hni q ue s .
It i s also i mpor t ant t hat V a lue Ana ly s i s and E ngi neer i ng do ac t ually ma k e t he f ullest us e of v er y
st r i c t di sc i pli nes sui t ed t o t he nat ur e of t he c o mp a n y ' s wo r k , and ar e not si mply or gani sat i onal
de v i c e s wh i c h a c hi e v e t hei r r esult s si mply by put t i ng seni or people in a posi t i on wh e r e t hey ar e
obli ged t o c ons i de r pr oblems wh o s e solut i on ma y be n o wh e r e near a s i mpor t ant t o t he c o mp a n y
as t he f ar mor e di f f i c ult one s t hat t hey we r e engaged t o wo r k on.
V a lue E ngi neer i ng s hould not , e x c e pt in spec i al c i r c u ms t a n c e s of a s hor t t e r m nat ur e, be c ome a
s e c o n d desi gn or r e- desi gn e s t a bli s hme nt , and s hould not c olle c t and hold i nf or mat i on wh i c h
i s not f r eely av ai lable and a c c e s s i ble t o t he desi gn depar t ment , or wh e r e v e r it c a n be used i n
mak i ng i mpor t ant de c i s i ons .
Amo n g s pe c i f i c pi t f alls and we a k n e s s e s t hat c a n only t oo easi ly ar i se in employi ng V a lu e Ana ly s i s
or E ngi neer i ng ar e t he f ollowi ng :
1. Di sr egar di ng t he hi dden c o s t s of c ar r y i ng out t he t e c hni q ue s , s u c h a s di sr upt i ons t o ot her
wo r k , t he c o s t of t he t i me and ef f or t of t hos e ont o w h o m t e a m me mbe r s of f - load wo r k .
2. Relyi ng t oo mu c h on ' br a i ns t or me d' i deas wi t hout gi v i ng t he oppor t uni t y f or , or ev en
c a us i ng def i ni t e obs t r uc t i ons t o, deep t houg ht wh i c h a lwa y s i nv olv es c onc e nt r a t e d ,
f oc us s i ng of ment al ac t i v i t i es and a t i me delay.
3. Relyi ng t oo mu c h on ' c he c k li s t ' quest i on t e c hni q ue s r at her t han t hi nki ng deeply about
wh a t q ue s t i ons ar e mos t li kely t o be r e wa r di ng if a n s we r e d .
4. W h e r e c he c k li s t t e c hni q ue s ar e us e d, bei ng in t oo gr eat a hur r y t o di s pos e of q ue s t i ons wh i c h
' obv i ously' wi ll not r ev eal anyt hi ng.
5. Wor k i ng in t e a ms in s u c h a wa y , or f or s o long at a t i me, t hat i nt er est and at t ent i on of
c er t ai n me mbe r s i s lost .
6. I nadequat e pr epar at i on pr i or t o meet i ngs, par t i c ular ly per f or mi ng wo r k s u c h a s t he def i ni ng
of f unc t i ons and oper at i ons in a t e a m by st udy i ng t he d r a wi n g s or par t s wh e n i t c ould be
a c c ompli s he d f ar mor e ef f i c i ent ly bef or e t he t e a m met .
7. P er mi t t i ng t he a c c e p t a n c e of s ha r e d r esponsi bi li t y f or t he r esult t o dev elop i nt o a f eeli ng
of no r eal per sonal r esponsi bi li t y and t h u s i nsuf f i c i ent mot i v at i on f or ma x i mu m i ndi vi dual
ef f or t .
8. W a s t e of f ollow- up and dev elopment t i me and mone y on s ug g e s t i ons wh i c h bet t er t r ai ned
per sonnel c ould d i s mi s s as bei ng wo r t h le s s af t er br i ef exami nat i on.
9. Relyi ng t oo mu c h on t he spec i ali sed k nowle dg e of par t i c ular me mbe r s of t he t e a m.
10. Bei ng ov er elabor at e in est abli shi ng v alue me a s u r e me n t s t o t he det r i ment of c onc e nt r a t i ng
on t he mor e i mpor t ant t ask of dest r oy i ng unne c e s s a r y c o s t s .
11. L a c k of suf f i c i ent ly adequat e and c o n c i s e pr oc edur e f or pr oposals and suf f i c i ent ly r api d
me a n s of ensur i ng pr ac t i c al t est i ng and i mplement at i on.
12. C la i mi ng s a v i ng s or gai ns wh i c h c a n only be r eali sed on paper and c a nnot be i mplement ed
i n c a s h t e r ms .
13. I nabi li t y of t e a m me mbe r s t o put t hei r j oi nt endeav our bef or e depar t ment al i nt er est s.
14. Appoi nt me nt of V a lue E ngi neer lac ki ng in br eadt h of exper i enc e and t r ai ni ng, e nt hus i a s m
f or hi s t ask , and abi li t y t o eli c i t t he r i ght r e s pons e f r om hi s t e a m and t hos e w h o wi ll c h a l-
lenge t hei r pr oposals.
15. I nsuf f i c i ent bac k i ng f r om t op ma na g e me nt and i nsuf f i c i ent at t ent i on t o t he det ai led wo r k
r equi r ed t o c r e a t e t he c li mat e in wh i c h V a lue Ana ly s i s and E ngi neer i ng c a n f lour i sh.
16. Appa r e nt suppor t f r om people w h o hav e not c ha ng e d basi c ally in t hei r at t i t udes and
beli ef s and do not genui nely a c c e p t t he ne c e s s i t y f or i mpr ov ed me t hods of wo r k i n g .

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Vol: 1 No: 3 September 1968

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