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The Value Engineering (VE) technique emerged during the years of World
War II at GEC, USA.

Mr. Lawrence D. Miles of General Electric Company was assigned the task
of "finding, negotiating for and getting” a number of vital materials that
were in short supply. Invariably suppliers declined to supply. In this
desperate situation, Miles was forced to basics. Whenever he was faced
with serious shortages, he aimed at getting the product functions met by
some alternate means. Repeatedly there was a way to do it. Miles often
found that many of the substitutes used were providing equal or better
performance at less cost. The function approach proved to be effective. With
active support of his superiors Miles developed and refined the technique
that he called as “Value Analysis” (VA).

Based upon the success experienced by General Electric, the concept soon
spread throughout private industry because of its ability to yield a large
return for a relatively modest investment.

The first government organisation to implement a formal program was the

Department of Defence's Bureau of Ships, USA, in 1954 (now the Navy
Ships System Command). They called the program "Value Engineering” to
reflect the emphasis on their type of organisation, which was engineering.
This name is now the most commonly used and accepted since the
chartering of the Society of American Value Engineers in 1959. By 1961,
the Value Engineering program was formally implemented throughout the
US Department of Defence.

Department of Defence instituted VE programs by staffing full-time Value

Engineers. It also introduced VE incentive clauses into its construction
contracts, permitting contractors to propose VE changes and share in
resultant savings.

1947 General Electric ‘Asbestos Affair’
1954 Department of Defence
1959 “Save” Established
1990’s Most organised sectors practising

1955 JPC sent troop to USA to search “Cost Control’
1959 VA Program started
1965 “SJVE” established
1973 Boost to VE during ‘Oil Crisis’
1990’s Practically all organised sectors practising

∗ No organised effort
1965 VE Directorate
1979 “INVEST” established
∗ Few organisations following in low key
∗ Need of the hour

∗ Automobile Industry.
∗ Heavy Electric Equipment Industries
∗ Ship Builders
∗ Railways & Heavy Vehicles Mfr.
∗ Electrical & Communication Machinery Mfr.
∗ Fabrication Industries
∗ Process Industries
∗ Metal, Fibre, Food, Chemical & Steel
∗ Architectural & Construction Firms and also
∗ All Service Sectors


VE is an analytical, Step-wise, organised, creative team-approach designed
to examine all the facets of cost & functions of a PRODUCT/EQUIPMENT/
SYSTEM to identify and eliminate unnecessary costs which are incurred in:
non-essential USE

Some Close Cousins of VE

Over a period many other terms or methodologies have evolved based on the
same functional approach but laying emphasis on some specific type of
objectives. Some of these terms do not even use the term “Value”. For
Value Management
Value Assurance
Zero Based Budgeting
Business Process Re-engineering etc.



Formula Value = Cost (Quality) Worth

Value = -----------
Questions ∗ What is it? ∗ What is it?
∗ How can we make it ∗ What does it do?
for less? ∗ What must it do?
∗ How can its functions
be performed for less
Aims Reduce cost of present Provide user-required
product functions at lowest cost

∗ ‘User-First’ Attitude
∗ Functional Approach
∗ Team Approach
∗ Creative Approach

Two elements necessary to implement the value methodology are:

1. The "problem" is describable in “function” terms.
2. The alternate approaches to achieve the functions are a valid

When organisations establish value programs, the most commonly cited

objectives are:
1. To extend the use of resources by eliminating unnecessary cost, without
sacrificing necessary quality.
2. To foster timely adoption of economically advantageous change.
3. To enhance cost effectiveness.
4. To offer value added product or service to customer.


Poor value creeps into almost any product or a system, however well
designed, during design and development. Alternatively, later in
manufacture, distribution or use. There are many causes of such poor value:
1. Lack of information
2. Decisions based on wrong beliefs
3. Habitual thinking
4. Negative attitudes
5. Reluctance to seek advice
6. Shortage of time
7. Changing technology
8. Lack of a yardstick for measuring value
9. Old specifications
10. Poor human relations

Change may threaten security

In a professional sense, many designers believe that it is their responsibility
to provide the most economical product for the client. A change

recommended to save money indicates that the old way is uneconomical, or
represents poor value. It is human nature for the decision-maker to feel that
change is a threat to his security. The decision-maker naturally tends to feel
that changes suggested to him cast a bad reflection on his original decision.


The basic framework for conducting a value study is the Job Plan. Value
Engineering is a systematic approach and it has a well-considered job plan
that needs to be adhered to maximise the effectiveness of the technique. A
typical job plan is given below:
• Selection of the project and the team members
• Collection of Information
• Function identification and analysis
• Creation idea generation
• Evaluation of ideas
• Investigation of alternative solution
• Final recommendations and presentation
The above plans provide a systematic and orderly approach to conducting a
study. The plan includes both analytical and creative phases. Each phase has
its rules that are designed to increase the effectiveness of the phase.


 Use good human relations
 Inspire team Work
 Work on specifics
 Overcome roadblocks
 Apply good business judgement
 Secure the facts
 Determine the costs
 Fix costs on specifications and requirements

 Define the functions
 Evaluate functional relationships
 Establish positive thinking
 Develop Creative ideas
 Refine and combine ideas
 Establish costs on all ideas
 Develop alternative ideas for functions
 Evaluate by comparison
 Use company and industry standards
 Consults vendors and specialists
 Use specialty products, processes and procedures
 Present facts
 Present costs
 Motivate positive action


Two important factors influencing time for VE application are:

1. The magnitude of the savings likely
2. The degree of receptivity of the environment in which VE is to be

Every cause of poor value that is identified provides an opportunity for

solution and an area for VE effort. Value Engineering may be applied
repeatedly at any point in the life cycle, as new information and details are
produced. However, the further you are in the life cycle phase, the smaller
the cost reduction potential, and the greater the investment required to


CONCEPT VE studies during this phase are directed at:
FORMULATION  Furnishing inputs needed to ensure the most
PHASE economical decisions to achieve the functions
achieving low total cost of ownership (rather
than just low acquisition cost)

TENTATIVE DESIGN VE studies during this phase add value by

PHASE analysing and developing alternatives for the
 Essential requirements
 Technical characteristics
 Design tasks

FINAL DESIGN VE studies during this phase are limited to:

PHASE  Eliminating unnecessarily restrictive detail
and eliminating items not necessary.
 Redesign effort at this stage cannot be
economically accomplished due to the
implementation costs involved.
CONSTRUCTION/ VE studies during this phase result in:
MANUFACTURING  Extension of an item's life
PHASE  Reduced repair costs
 Savings in energy and other operating costs
 Reduction in the number of supply items in
VE can be performed both internally and by
the contractor/vendor.



The best value study subject is one that is identified by an enthusiastic

employee, and fully sponsored by the organisation. Problems can be in the
form of Value Enhancement and/or Cost Reduction.

For a value program to contribute to the productive work of an organisation,

selection and identification of areas of opportunity for VE should occur
within the existing areas of work, at their normal times of "happening"

Very often though, organisations chose cost reduction as the primary purpose
of a VE exercise. In such cases, following Pareto's Law of “Mal-
distribution”, VE attempts to identify and isolate the small percentage of the
elements in a single system that contribute to a great percentage of the cost
of the system. Those with the greatest potential for impact on cost, then
become the candidates for application of VE.


Value studies are performed by teams. A value study plan to be submitted to

management, for resource sanction. It should contain the following
• A description of the objectives and scope of the study in specific
enough detail to ensure achievement of special results.
• The estimated study costs, expected benefits or target saving, and the
target return on investment if possible.
• The names of the members of the team, their skills, how much time
each will be required to spend on the study, and the name of the team
• The time limitations or milestones for completion of each phase of the
VE job plan.
• The target date for formal presentation of study results.


The effectiveness of ones effort in conducting a value study depends upon
the amount of co-operation he is able to obtain from his peers, co-workers,

and other segments of his organisation. “People problems” are usually
more difficult to resolve than technical problems. It is best to prevent them
before they start.


It has been shown that the optimum size for a team is five persons,
supported on a part-time basis by other elements of the organisation or
outside experts and consultants. The composition of the team should be
mixed and multi-disciplinary. Individual work experience or background in
the technology involved for the particular study is important, but not to the
exclusion of those who have no background in the study subject. A mix of
talent is desired to achieve different points of view and disassociation with
the subject of the study.

Emphasis should be placed on using the best talent available. Involve people
who are directly affected by the problem in arriving at the solutions. Human
relations play an important part in the successful conduct of a study.


Sometimes the team members are temporarily reassigned from their normal
duties to work full time on the value study, with the expectation that the
group will dissolve when it finishes its work. There is one distinct
disadvantage to the full-time team study. This type of study usually
compresses the time available for thought and incubation of ideas.

Another approach to team operations that is often more acceptable to

management is the full time team that works on a part time basis over a
longer period of time. Regardless of the method employed the team as a
whole should perform the function analysis and the development of ideas,
and all should agree upon the final selection of recommendations.


Generally intense need and desire to reduce costs is often equated with the
act of reducing quality or making sacrifices in requirements down to just
above the limit of tolerability, chopping frills. According to Miles both use
functions and aesthetic functions are important as they serve the needs of
the customer and should be part of the value analysis process. It is, however,

important to determine when an aesthetic function is required, and when it is
superfluous. Function analysis is a system to show exactly what one gets for
his money. It responds directly to the needs of the owner.

There is often a difference in point of view in performing function analysis

depending upon who you are. Are you a designer or manufacturer of a
product or are you a user of a product? What could be basic function to one
person might not be basic function to another. Basic function of a product
can change with the time and the end purpose for which it is used. In
searching for a proper classification of function, the value analyst can find a
clue in why he wants it.

VE methodology brings more objectivity to analysis of functions. The

methodology primarily concentrates on the use value of the "work" or
"sell" functions. However, aesthetic functions can become basic when desire
becomes as strong as need. Assessment of aesthetic functions is a subjective
matter, but the systematic approach adopted in VE for function analysis
helps group acceptance for these aesthetics functions.

There are four aspects of economic value:

Use Value Need
Esteem Value Want or Desire
Cost Value Cost to achieve desirables
Exchange Value Worth


Properties that accomplish a use, work, or service
Properties that make ownership of an object desirable

Properties, which are sum of labour, material, overhead and other costs
required to produce something
Properties of an object that make it possible to procure other items by

FAST: Functional Analysis System Technique

FAST diagram is a method of displaying all subject-oriented functions
in an organized manner so that their relation and relative importance
are understood. During the diagramming process, thought provoking
questions are asked which help in obtaining missing detailed
information (functions).

Functional Analysis System Technique (FAST) is a variant of Value

Analysis in which functions are written on 3" x 5" cards and
arranged in order so that cards to the left answer the question
'Why?' and cards to the right answer the question 'How?'.
Separate horizontal chains of cards are then arranged so that
functions in different chains that occur at the same time appear
above one another, as below.

Some relevant
A goal is a desired state of affairs. Goal statements are usually of value to
the highest-level management. Goals tend to be restated over time.
Objective is a definition of the benefits a program plan is intended to
accomplish. Impact of a program is measured against these objectives.
Purpose is often used in place of an objective.
An operation is the unit of work necessary to contribute to the
objective. Operation means action.

A Function is an action usually described by a verb and a noun without
identifying a specific method of performing an action. A function often
would describe a method of performing a preceding function.
Method is the type of work required to accomplish the operation. The
specific method of performing a Function/action is frequently recorded
within the description of a subsequent function/action.

Dependent Function
Dependent function is a function that depends on another function for
its existence. This function comes in to existence when a specific
method is selected.
Independent Function
Independent function’s existence does not depend upon one or
more other functions for its existence or on the method selected to
perform those functions.
Basic Function
A function, which describes the principal action, that must be
performed. It is independent of all other functions being considered.
Critical Path Functions
Any functions which describe specifically how or why another
functions are performed.
Support Function
Support function is a function, which assists a critical function in doing
its job so that it may be done in a reliable and acceptable manner.
Higher Order Functions
Higher order functions are reasons for the lower order functions to
exist. In the FAST diagram they appear in the left-hand portion of the
Lower Order functions
Lower order Functions serve the higher order functions. Their
existence depends on the relevance of higher order functions. In the
FAST diagram they appear in the right-hand portion of the diagram.
Preceding Function
It is a function, which comes before or to the left of another function in
the FAST diagram.
Succeeding or Subsequent Function
It is a function, which comes after or to the right of another function in
the FAST diagram.

Thought –Provoking Questions, helpful in FAST diagramming:

Problem 1. What subject or problem shall we discuss?

Higher level 2. What are we really trying to do when we
logic (H) -------------------------------?

1. What higher level function has caused

-------------------------- to come into being?

Higher level 4. Why is it necessary to - ------------------ -------?

and critical
Critical Path 5. How is ------------------------ actually
Logic (C) accomplished or how is it proposed to be

6. Does the method selected to --------------------

cause any supporting functions to come into
existence ?
Basic 7. If we did not have -----------------------------,
Function would we still have to perform the other
Determinati functions listed ?
on Logic 8. When we ---------------------------in the manner
conceived, does it cause the apparent
dependent functions to come into existence ?
9. What or who actually ----------------------------?


Where an item serves but one function, the cost of the item is equal to the
cost of the function. However, in most cases, an item serves more than one
function. When this occurs, the cost of the item must be prorated to each

To determine satisfactory/unsatisfactory value
1. Does it contribute to value?
2. Is it proportionate to its usefulness?
3. Does it need all its features?
4. Is there anything better for the intended use?
5. Is any one buying it for less?
6. Can a useable part be made by a lower cost method?
7. Will another dependable supplier provide it for less?
8. Don't material, reasonable labour, overhead, and profit total to
its cost?
9. Is it made of proper tooling, considering quantities used?
10.Can a standard product be found which will be usable
Key Questions: What? When? How? Why? Where? Who?


When elements of utility can be quantified in monetary units, we call them

elements of worth so that they can be related to their corresponding elements
of cost. Function worth is the least cost to provide a given function. The
worth of a function is usually determined by comparing the present design
for performing the function with other methods of performing essentially the
same function. The rule is to determine the cost of functional equivalent
based upon the way it was accomplished previously.

To aid in determining worth, one might ask the following series of questions:
1. What is the cost of achieving the basic function as the item is presently
2. Do you think the performance of the basic function should cost that
3. If no, what do you consider would be a reasonable amount to pay for the
performance of the function (assuming for the moment that the function
is actually required) if you were to pay for it out of your own pocket.

4. What is the cost of achieving this function if some other known item is
5. Is this a common, easily accomplished function or one that is rare and
difficult to achieve?
6. What is the price of some item that will almost but not quite, perform the
In determining worth, the key rule to be remembered is that worth is
associated with necessary function or functions and not with the present
design of the item or system.

Some value specialists give worth only to basic function, automatically

letting the worth of secondary functions zeros. This view is taken because to
some, secondary functions only exist because of the design solution used to
satisfy the basic functions.


Creativity is the development of ideas new to the individual, not necessarily

new to someone else. It is the one basic element in the value methodology
that singles out effective VE performance by bringing one closer to the
attainment of optimum value. It takes creativity to discover alternate
designs, methods, systems or processes that will accomplish the basic
functions that need to be performed.

The creative approach is appropriate when there appears to be either no

solution or more than one solution to a particular problem. The creative
approach is an idea-producing process specifically intended to generate a
number of solutions, any of which will solve the problem at hand. Although
all solutions may work, one is the optimum among them.

The creative process is a mental process in which past experience is

combined and recombined (frequently with some distortion) to form a new
combination, which will satisfy some, need eventually.

The creative process is that process which the mind normally follows in
seeking a solution. It involves the follow steps.
• ORIENTATION: Defining the problem to be solved, and selecting the
approach that should be taken to solve it.
• PREPARATION: Information gathering and fact-finding.

• IDEATION: Production of alternative solution to the problem.
• INCUBATION: Sorting and combining the information, and slowing the
pace to invite illumination.
• SYNTHESIS: Bringing all the ideas together into a complete whole.
• VERIFICATION: Evaluation of the proposed solution or resulting


There are mental attitudes or influences, which serve to retard or block the
creative process. These blocks are categorised as habitual, perceptual,
cultural or emotional in nature. One can enhance creative ability try
specially counteracting them, once recognising that they exist through self-


• Continuing to use "tried and true" procedures although new and better
ones are available.
• Rejection of alternate solutions which are incompatible with habitual
• Lack of a positive outlook, lack of determined effort, conformity to
custom, and reliance on authority.

• Failure to use all the senses of observation.
• Failure to investigate the obvious.
• Inability to define terms.
• Difficulty in visualising remote relationships.
• Failure to distinguish between cause and effect.

• Desire to conform to "proper" patterns, customs or methods.
• Over-emphasis on competition or on co-operation.

• The drive to be practical above all things and being too quick to make
immediate judgements.
• Belief that all indulgence in fantasy is a waste of time.
• Having confidence and faith only in reason and logic.

• Fear of making a mistake or of appearing foolish.
• Fear of supervisor’s distrust of colleagues and subordinates.
• Over-motivation to succeed quickly.
• Refusal to take any detour in reaching a goal.
• Inabilities to reject decisions, which are adequate but which, are sub-


factors can be developed through effort and concentrated practice.


Being aware, that problem exists.
Being able to produce ideas in copious quantities.
Being open-minded and adaptive in the approach to problem.
The ability to produce a great number of new and unique ideas.
Dissatisfaction with existing conditions with an attitude of mind, which
seeks to improve the conditions. This type of person usually asks why and
Alertness to the environment.
The ability to combine and recombine information in a variety of ways.
Development of proper frame of mind toward creativity.
The mustering of the necessary energy to work toward a goal and achieve it.

The environment in which new ideas are encouraged.

Evaluation may be accomplished either by the generating group or by an
independent group.

Normally, value teams use at least the following five criteria/factors as a

rough screening process for the first idea judging:
. State-of-the-art of the idea
. Cost to develop the idea
. Probability of implementation
. Time to implement
. Potential benefit

The above five factors are scored by the team on a 1 to 10 scale with 10
being the score for least cost, least time, most benefit, highest probability of
implementation, and most current state-of-the-art. It is most important in
conducting a screening step that no ideas be discarded without being scored.
Scoring will be difficult and it will be subjective.

The team should try to anticipate all of the effect, repercussions, and
consequences that might occur in trying to accomplish implementation of
one idea as a solution. This probing should result, in a sense, as a measure
of sensitivity to problems, which might be inherent in changes, caused by
the new idea. Here are some questions to ask.
1. Will the idea work?
2. Can it be modified or combined with another?
3. What is the saving potential if it does work? 4. What are the chances for
5. What might be affected?
6. Who might be affected?
7. Will it be relatively difficult or easy to make the change? 8. Will it
satisfy all the user’s needs?
9. Is there enough time to implement it?
The answers to these questions will vary depending upon the
Objective of the value study and the time frame and resources available.

All criteria /factors are not equally important. Their relative importance
is accounted for using a Weighted evaluation technique. This practise in VE

and is specially suited to selecting alternatives that optimise criteria and
factors not readily measurable by cost such as, aesthetics, safety, time,
quality, etc.


An important strategy in selling an idea is the preparation of a fully

developed implementation plan. An effective implementation plan
answers these questions:
1. How should it be implemented?
2. What should be changed and in what sequence?
3. Who should do it?
4. How long should it take?
5. Is any deadline required?
6. What is the implementation cost?
7. What are the consequences of delay?


Presentation of VE idea should always be made in written form. Yet, the oral
presentation of study results often clinches the decision. The content of the
report to management must be clear and concise.

VE proposal reports should contain sufficient discussion to assure the

reviewer that:
• Item/system performance is not adversely affected.
• Supporting technical information is complete and accurate.
• Potential savings are based on valid cost analysis with break-even and
return on investment.
• The change is feasible.

Introduce team
Acknowledge other contributors
Outline scope of study
Use an abbreviated FAST diagram
Identify basic functions
Indicate the cost of the item
Relate cost to function
Indicate worth of functions
Relate how many ideas were considered
Explain weight evaluation attributes
Relate the performance criteria required
Show selection from top 2 - 3 candidates
Recommend specific changes
Review life cycle costs
Review break-even analysis
Review return on investment
Explain intangible benefits
Propose a plan to implement
Indicate implementation cost and timing
Indicate consequences of delay
Offer your services
Be prepared to answer questions

- An Outline
∗ Ordnance Corporation Of Army.
∗ Navy Bureau Of Weapons.
∗ Army Signal Corporation.
∗ Air Force Ballistic Missile Agency.


∗ “VE” technique shall be utilised by contractors and activities, wherever
they can profitably be employed on systems and equipment and materials
being designed, developed, procured, produced, maintained, modified
and stored”



∗ Clause applied to any cost reduction proposal (VECP) submitted after

contract award, by the contractor, for the purpose of changing any
requirement of this contract.

∗ VECP’s contemplated are those that would result in net savings to the
govt. by providing and decrease in the cost of performance of the
contract, VECP’s must result in savings without impairing any required
functions and characteristics such as.

∗ Service Life ∗ Ease Of Maintenance

∗ Eligibility ∗ Standardised Features
∗ Economy Of Operations ∗ Aesthetics
∗ Level Of Opn. Performance ∗ Fire Protection Features
∗ Safety Features

∗ However nothing herein precludes the submittal of VECP’s where the

contractor considers that the required functions and characteristics could

be combined, reduced or eliminated as being non-essential or excessive
to the satisfactory performance of the work.

The govt. desires to benefit from the experience and knowledge of it’s
contractors in the area.
∗ New Materials ∗ Industry Standards
∗ New Techniques ∗ New Processes


∗ Asst. Sect. Of Defence (Installation And Logistics)

∗ Dy. Asst. Sect. Of Defence (Equip. Maint. Readiness) Alongwith Defence
supply Agency. Through :-
∗ Eliminating ‘Goldplating’ In Specifications
∗ Refining Requirement Calcutations.
∗ Increasing Use Of “Excess Inventories”.
∗ Reducing No. Of Sizes/Varieties Of Items Stocked.
∗ Incentive Contracting.
∗ Terminating Contracting.
∗ Terminating Unnecessary Operations.

% Of Total Factor D,M VE Action
Savings Responsible P,S
23% Advantage In (M.P) Incorporation Of New
Technology Material Components
Techniques & Processes

Not Available At Time Of


22% Excessive Costs (D) Design Were Technically

Adequate But Cost Analysis
Revealed Excessive Costs

18% Questioning (D) Users Specifications Were

Specifications Examined, Questioned And
Found Inappropriate Out-Of
Date, Over Specified

15% Additional (D) Application Of Additional

Design Effort Skills, Ideas, And Informations
Available, But Not Utilised
During Previous Design

12% Change In (D) User’s Modification Or

User’s Need Redefinition Of Mission
Function Or Application Of

D: Design, M: Methods, P: Process, S: services

Put to other uses? New ways to use as is? Other uses if modified?

Adapt? What else is like this? What other ideas does this suggest?
Does past offer parallel / What should I copy? Whom
could I emulate?

Modify? How twist? Change meaning, color, motion, sound, odor,

form, shape? Other changes?

Magnify? What to add? More time? Greater frequency? Stronger?

Higher? Longer? Thicker? Extra Value? Plus ingredient?
Duplicate? Multiply , exaggerate?

Minify? What to subtract? Smaller, condensed? Miniature?

Lower? Shorter? Lighter? Omit? Streamline? Split-up?

Substitute? Who else instead? What else instead? Other ingredient?

Other material? Other processes? Other power? Other
place? Other approach? Other tone of voice?

Re-arrange? Interchange components? Other pattern? Other layout?

Other sequence? Transpose cause and effect? Change
pace? Other schedule?

Reverse? Transpose positive and negative? How about opposites?

Turn it backward? Turn it upside down? Reverse roles?
Change shoes? Turn tables? Turn other cheek?

Combine? How about a blend, an alloy, an assortment, an ensemble?

Combine units? Combine appeals? Combine ideas?
Combine purposes?

Basic Wants? Personalise, emulate, senses, anticipated? Unexpressed?

List attributes of product and attach one by one.


I. Questions to uncover appropriate information.

II. Questions to generate solutions to the problem.
III.Questions to give consideration to the operator
IV. Questions to guide to further cost reductions.


In the early stages of a value Analysis - When the cost performance

problems must be defined - this checklist will help to uncover background
on how thorough you are during the information phase.

A. Specifications

1. What are the specifications?

2. Are the specifications realistic? (That is are all specified characteristics
both necessary and sufficient?)
3. Would the modification of a specification simplify the design and
manufacture of the item?
4. Are the specifications required by the customer or are they guidelines
5. What are desired life and reliability requirements?

B. Function

1. What does it do? What are functional requirements?

2. Is the function needed secondary function or an imposed secondary
3. What does it do unnecessarily?
4. Can this function be eliminated?
5. Have the functions that the customer requires been made clear by
6. Have Functions and specifications been separated?
7. What is the cost ratio of basic function to secondary function?
8. Have functions been separated into work and sell?

C. Design

1. Does the design do more than the specifications require?

2. Is it designed to be made on existing manufacturing equipment which
will not allow a design which would perform its function in a more
simple way? Why?
3. What alternatives were considered?
4. Why were alternatives rejected?
5. Within the device are there any secondary design solutions to primary
problems? Design apologies?
6. Is the present design overlay similar to its predecessor? Should it be?
7. In what stage of maturity is design?
8. What has been the design and development history?

D. Special requirements

1. Is a severe environment involved?

2. What special performance or operating characteristics required?
3. Are there special requirements relative to installation? Maintenance?
Testing? Safety?
4. Are special treatments, finishes, and/or tolerances required?

E. Materials

1. Are special, hard-to-get or costly materials specified?

2. What alternative materials were considered? Why were they rejected?
3. Are the ;materials used difficult to handle, process, or work? Are they
4. When was the material specified? Have new materials been developed
which would perform the function for less cost?
5. Is storage of the material a problem?

F. Manufacturing

1. How are the component parts made? Why?

2. Who makes it? Vendor or In-plant?
3. Have Cost Visibility forms been completed?
4. Who else makes it or something similar?

5. Are there any particularly costly operations required in its manufacture?
What do they result from? High labour? Expensive equipment? Tooling?
Indirect materials?
6. What quantities are required per unit? Per year? Per production order?
7. What will be the Economical Order Quantities (EOQ)?
8. What tolerances are important?
9. What are potential sources?
10.What elements contribute to high cost?
11.What methods, machines, process are used?

G. Miscellaneous

1. Are there any special problems associated with handling, packaging,

storing, or transporting the item?
2. Have costs been divided between work and sell functions?


This checklist of questions can provide new points of view. To gain the most
from such a list, twist each question around until it applies to you problem.

A. Marketing concept

1. How closely does the product fit true customer needs?

2. Does it have too many features (secondary functions) i.e. features
that the user really does not want?
3. How much of the design is the result of custom, tradition, or
4. Are there several distinct customer needs, one of which might be
considered a separate market and be satisfied by a simplified
version of the present design?
5. Does the product still have a market?
6. What have been the largest customer complaints that the sales
people are aware of?

B. Design

(a) Idea stimulators

1. Has the problem or basic function been defined?

2. If all specifications could be forgotten, how else could the basic
function be accomplished?
3. Can the design be changed to eliminate the part?
4. Could a standard part be used?
5. Would special parts be more economical?
6. If the part or feature is to improve appearance, is its cost justified?
7. Can the design be altered to simplify the part?
8. Can it be made safer?
9. Would a less expensive material perform reliably?
10.Have all ideas been written down?
11.Is the principle of operation still appropriate in view of recent
technical advancements?

(b) Eliminate parts or finishes

1. Change another part to perform its function.

2. Check accessory items and features, possibly the need for them no
longer exists.

(c) Combine functions

1. Incorporate functional forms into one part to replace a separate part

or second operation.
2. Change design of part to perform function of several parts.

(d) Change physical shape of parts

1. Reduce the size or thickness.

2. Reduce scrap or skeleton.
3. Reduce operation by changing shape.

(e) Substitute materials or finishes

1. Aluminium for brass and vice versa.

2. Use Zn - Cu - Be instead of brass.
3. For larger die cast parts, check aluminium.
4. It may cost less than Zinc.
5. Powder metals for machined metals.
6. Die casting for machined parts.
7. Plastics for metals.
8. Lower grade critical materials for higher grade.
9. Machinable steels for less machinable steels.
10.Plated steels for other steels and vice versa.
11.Brass for nickel silver.
12.Metallised materials for fabrics.
13.Zinc for nickel and vice versa.
14.Preplated steel.
15.Breprinted steel.
16.Steelclad with aluminium. Stainless, monel etc.
17.Fibreclad steel.
18.Rubberclad steel.
19.Embossed metal.
20.Expanded metal.
23.Micalex, etc.

(f) Simplify it

1. Put all the tapped holes into one part-eliminate them from others.
2. Use available fastening devices and eliminate tapping entirely.
3. Challenge secondary punch press operations or secondary screw
machine operations or other secondary operations.
4. Make the parts straight instead of curved straight fittings cost less
than elbows.
5. Don’t plate copper parts which are later painted.
6. When blind holes are needed. Show minimum depth with notation,
‘Don’t drill through’, rather than specifying depth limits.
7. Use squared ends grounds ends double the cost the spring.
8. Instead of two tapped holes for set screws at 90 put set screws one
top of the other in the same hole.

9. Avoid underouts on moulded plastics to eliminate mould cycles
and slower machine cycle.
10.Question chrome plating or polishing on screw heads.
11.Question unusual machined surfaces. It may require secondary
operations to obtain them.
12.Consider pal-nuts to eliminate nuts and lockwashers on light parts.
13.Stamp the nut impressions into the part-eliminate fastening
14.Don’t bend it.
15.Use a miniature casting in lieu of several small assembled a
16.Use square instead of rounded corners on stampings.
17.Use roll pins to eliminate reaming.

(g) Alter it so high speed method can be used

1. With a slight change, perhaps it can go on a header or upsetter.

2. Make it of round or flattened wire on a wire forming machine
rather than a complicated terminal.
3. Strike the slot in the screw instead of sawing it.
4. Design parts for die cast threads. A small flat in the parting line
claimants flash difficulty.
5. Drill and tap small parts in the strip before cutting apart.
6. When cross drilled screws or bolts are needed, design so that
random drilling is permissible.
7. Make irregularly shaped parts of assembled laminations thin
enough for stamping to avoid costly machining jobs.
8. Eliminate insulting sheets, strips, punching and welding operations
by making a composite moulded parts for electrical applications.
9. Instead of long screw-machine parts for fitter housing, etc., use
flared copper tubing and a small internal flare nut.
10.Mould gears from powdered iron to save cost of machining the
teeth. If extra strength is needed, impregnate the iron with copper.
11.Use permanent mould iron castings for lower cost and better
12.Use projections and resistance weld in one operation rather than
spot-weld one spot at a time.
13.Consider magnesium-it machines twice as fast as aluminium and
five times as fast as steel.
14.On thin gears-alter for punching instead of broaching.

(h)Alter design so that standard parts or materials may be used.

1. Design around standard rivers, eyelet’s, washers, spacers, etc.

2. Speciality vendors provide standard materials in many classes. For
example, use standard terminal boards, standard switch contact
blades, standard contact blade spacers, etc.
3. Design for standard bushings-don’t make it necessary to cut them
4. Instead of fabricating terminals, buy them from a specialist in parts
made from tubing.
5. Try ‘Johnson’ weld nuts for resistance welding to sheet metal.
They cost less than half the price of most others.
6. Use stamped ‘weld’ nuts for even lower cost.
7. Use standard sizes for raw material to avoid ‘extras’ in cost.

(i) Determine where the design might be altered for automated assembly

1. Don’t use a complicated terminal when simple flattened wire

applied by an automatic stapler would do as well.
2. Don’t have springs pressing against all of the assembly parts.
3. Don’t assemble concealed parts between plated. Make up some
sub-assemblies which are made openly and snapped together.

(j) Redesign to use lower cost processes and fabrication techniques.

1. Consult the Value Control Design Guide.

2. Refer to manufacturing processes check list in this section.
3. Impact extrusions.
4. Adhesive fastening.
5. Epoxy resin castings for plastic parts.
6. Printed circuits for copper wire and soldered circuits.
7. Ultra-sonic or gold welding.
8. Machine assembly.
9. Do the operation in tumbling barrel. If the parts are too heavy and
too precise-mount them on fixtures in the barrel and let the
abrasive mixture flow through them.
10.Use automatic dial tapping machines.
11.Dip in paint rather than spray.

12.Design parts for barrel plating rather than hooking in still tank.
13.Use multi-slide machines to eliminate secondary operations.
14.Stamp parts in punch press rather than hand stamp.
15.Use tubular rivets rather than solid rivets which have to be peened
over slowly in a high speed hammer.
16.Lithograph or print rather than etch.
17.Permanent mould rather than sand cast.
18.When desired, actually reduce the size of the shank on a screw by a
special thread roller arrangement.

(k) Use a higher cost material, which, by its nature and properties will
afford a simplified design lower cost assembly.

1. Consider fixture heat-treated beryllium copper, when phosphor

bronze won’t quite do the job. Eliminate adjusting labour.
2. Use silicones - for innumerable benefits and savings.
3. Make the whole tip and support from silver tip and brass support.
Eliminating welding may offset the cost of additional silver.
4. Use Micelle in flux paths. High permeability may save many
5. On very small parts with intricate forming use stainless to
eliminate plating cost.
6. For high temperatures and high dielectric strength use Teflon to
produce various savings.
7. Use brass instead of steel on very small screw machine parts. The
saving in labour more than offsets the increased material cost.

C. Manufacturing

(a) Use other methods of fabrication

1. Fabricate it.
2. Die cast it.
3. Extrude it.
4. Permanent mould cast it.
5. Roll and weld it.
6. Roll form it.
7. Lost wax casting.
8. Miniature casting.

9. Miniature casting on wire, cord, tape or rod.
10.Miniature casting automatically with inserts.
12.Low cost, low quality stampings.
13.Fabrication from copper or brass tubing.
14.Powder metallurgy.
15.Refer to the additional and more detailed checklist of speciality
products and processes.

(b) Miscellaneous lower costs

1. Use a good sampling method instead of 100 percent inspection.

2. Make an entire sub-assembly smaller reducing material
3. When buying adjacent parts from a vendor, have them pre-
assembled if practicable.
4. Don’t spend money for sizing if supplementary operations are
necessary anyhow.
5. Make as many parts as practicable on a particular job of identical
raw material.
6. Design part and tools to hold scrap in machining to a minimum.
7. Use carbolic.
8. Hopper feed parts in assembly.
9. Provide proper tooling to eliminate need of expensive labour.
10.Conveyors to facilitate material handling.
11.Avoid complicated equipment that requires continuous scrutiny
and maintenance.

(c) Survey the purchasing with the buyer

1. Are the available highly specialised low cost suppliers being used?
2. Have the suppliers’ engineers been given sufficient facts and
pressed for suggestions which would produce equivalent
performance at lower cost?
3. Has the buyer taken advantage of the know-how of other
purchasing units using larger quantities of similar materials?
4. Should some minor changes suggested by the supplier which
afford lower cost material, be considered further?
5. Are parts obtained in best economical lot size?

D. Don’t be stopped

If your project seems to have slowed prematurely before results are

accomplished, keep in mind the basic philosophy. “There is a lower cost way
to get equivalent quality, only as yet it has not been thought of’.

It is important not a waste time going around in mental circles. If progress

towards lower costs seems stalled some of the following or similar actions
must be taken.

1. Select a well-qualified vendor-put the problem up to him and press

him to produce. Get me information and a new idea from him.
2. Break the problem down into tow or three specific but smaller
problems and assign each to a qualified specialised vendor for
3. Talk it over with the project engineer again. Jointly agree that a
hypothetical 20 per cent of the cost must be removed and study
with him how to start.
4. Determine how similar hobs are being done in other areas of your
5. Determine how competitors are doing it.
6. Counsel another company buyer who may have a similar problem.
7. Find in your company a proponent of ;the idea and foster it through
8. Talk about it to a man in one of the laboratories-tell him the
problem-get some ideas form him.
9. Discuss it with the Standards group. Frequently they have assisting
10.Take it over with a man in manufacturing.
11.Mentally review all of the new processes and products reviewed in
trade magazines for their applicability.
12.Make a quick list of a dozen or hundred suggestions no matter how
impractical some of them seem-them study the list.
13.As part is studied-imaging that you are forbidden to use it. How
then would the job be done?
14.If it is big enough, talk it over with the boss.
15.Don’t accept first effort-challenge further endeavour Value
Analysis pays off after the first answer is ‘no’.


At several stages during the development of equipment it is useful to review

the human engineering requirements. The following CHECK LIST can be
used for this purpose.

1. System design.

(a) Is it quire clear that functions assigned to a man cannot be done

more efficiently by a machine (or vice versa)?
(b) Is there provision for monitor system performance, and for giving
the operator adequate feedback information?
(c) Have the implications for maintenance been clearly appreciated?
(d) If data-sensing is assigned a human operators, has the most
appropriate use been made of visual, auditory, or combined
sensory displays?
(e) Are human time-large in the system acceptable?
(f) What time is allowed for decision-making?
(g) How much learning-time is required for the human task? Could
aiding or quickening be introduced to reduce training-time and
improve system performance?
(h) Have training devices been considered as an integral part of the
system or as separate requirements?

2. Environment.

(a) Is the space provided around the equipment adequate for operators
and maintainers?
(b) Is the operator’s seating and working symptom, may suitable for
prolonged periods of operating, as in watch-keeping tasks?
(c) What lighting is required in compartments to ensure efficient
operations? Have steps been taken to avoid sources of glare and
unwanted reflections?
(d) Is special care necessary to avoid extremes of temperature and
inadequate ventilation?
(e) Should steps be taken to reduce noise in the working environment?
(f) In considering the design features for operation and maintenance,
will the system ever be in motion and if so, has this been taken into

3. Communications

(a) Are the requirements for communication between System

operators clearly defined?
(b) Will ambient noise in the compartment interfere with voice
communications? Can visual communications be introduced
without overloading the operator?
(c) Is position identification provided if there are two voice channels?
(d) Have all steps been taken to maximise intelligibility on vile

4. Dials, indicators and displays

(a) Are the sensory capacities of human operators adequate for the tasks
(b) Do any displays carry more information then is really required?
(c) Is the information displayed in the most directly usable form, or does it
require interpretation?
Does the same man have to report and interpret?
(d) Are the displays compatible with associated control tasks?
(e) Are the scale marks and number systems, etc. on dial displays suitable for
reading under operational conditions? Is the contrast between displays
lettering etc., and the background as great as possible?
(f) If there are several displays, have they been properly gouged?
(g) If cathode ray tubes are used, have special precautions been taken to
ensure suitable lighting?
(h) Do essential displays include a means of indicating when they are out of

5. Controls.

(a) Has the correct control-display relationship been provided? Do

both controls and displays move in ‘expected directions’?
(b) Are the control forces required well within the capacities of human
(c) Has the best type of control been provided for the particular task?
Does it meet speed and accuracy specification ? How has the
optimal control sensitivity been determined?
(d) Are limb supports provided for sensitise operation?

(e) If one operator has several controls, on which principles have they
been grouped? Is each one within the operators normal reach? Is
there space for each to be handled as required? Could some tasks
assigned to the hand be transferred to the foot?

6. Console design

(a) Have the dimensions been matched to the physical characteristics

of the operators?
(b) Have postural requirements been accounted for, and the need for,
operators to relax? Can all displays be seen, and controls be
reached, without forcing the operator into uncomfortable postures?
Are parallax errors eliminated?
(c) Are maintenance controls and displays segregated from the those
used for operational purposes?
(d) Have the optimal areas been utilised to locate an operator’s display
and control? Do the hands mask any display whilst they are
operating controls?
(e) Are all controls and displays correctly related and clearly
identifiable? Are they suitably grouped?
(f) Is the lighting for a console appropriate? Has proper care been
taken to obtain a good distribution of brightness and colour

7. Accessibility and maintenance

(a) Are working conditions for the maintainer the best possible as regards
(a) Lighting , (b) Ventilation and (C) posture?
(b) Can maintenance work be conducted without interference to
operation? Has segregation of maintenance equipment been
considered? Are there requirements for preventative periodic) control

(c) Can the performance of the equipment be adequately monitored and

(d) Can definite components be rapidly replaced? Are components with
high failure rates the most readily accessible?

(e) Can components be readily identified and located by reference to
handbooks or maintenance cards.
(f) Is any removable chassis part too heavy (i.e. greater than 30 lb.) or
awkwardly-shaped to be lifed manually and carried? Are special
slinging and carrying facilities advisable?
(g) Can maintenance work be carried out without special tools? Is there
room to manipulate controls and tools in various parts of the
equipment? Is there space for the development of necessary test

8. Safety.

(a) Have adequate precautions been taken to protect the operator from
all hazards? (Electrical, mechanical, chemical, radiation, not and
cold surfaces)?
(b) Have the dangers to maintainers of encountering the above hazards
been minimised? Are there instructions or warning notices to
acquaint maintainers with these possible dangers? (Should special
instructions be promulgated more widely?) Have special protective
clothing or insulated tools been considered?
(c) Do the precautions take into account operation during motion if
this possible? Are guards provided against moving machinery?


This convenient checklist tells where to look, what to do, when analysing

1. Prepare a complete cost list of labour, material and annual requirements

for all parts or apparatus. List merchandise loss and maintenance figures
where amount appears significant.

2. Determine where cost reduction is indicated:

(a) Labour
(b) Material
(c) Merchandise Loss
(d) Maintenance of Tools Machines

3. Investigate the following cost reduction possibilities:

I. Design

(A) Eliminate parts or finishes

1. doubtful function or duplication of function exists

(a) Reduce number of screws
(b) Reduce number of rivets
(c) Eliminate washers of insulators
(d) Eliminate leads by rewiring
(e) Eliminate components
(f) Eliminate brackets
(g) Finish not required.

B) Combine function

1. Incorporate functional forms in one part to replace a separate part or

second operation.
2. Change design of part to perform function several parts.

(C) Change physical shape of parts

1. Reduce size
2. Reduce thickness
3. Reduce scrap or skeleton
4. Reduce operations by changing shape/

(D) Liberalise tolerances and / or design requirements consistent with


Eliminate unnecessary requirements.

Change form engineering to shop or unlimited requirements.

(E) Substitute materials or finishes

1. Aluminium for brass and vice versa.

2. Plated steel for other steels and vice versa.
3. Machinable steels for less machinable steels.
4. Brass for nickel silver.

5. Lower grade critical materials for higher grades.
6. Powdered metals for machined metals.
7. Plastics for metal and vice versa.
8. Die castings for machined parts and vice versa.
9. Metalised materials for fabrics.
10. Zinc for nickel and vice versa.
11. Enamel for plating and vice versa.

(F)Use commercial parts or apparatus

1. Substitute standard commercial parts or apparatus for own design

and vice versa.
2. Substitute special commercial parts or apparatus for own design
and vice versa.
3. Substitute standard commercial parts or apparatus for special
commercial parts or apparatus and vice versa.

(G) Substitute high production, low cost parts for low production, high
cost parts.

1. Screws, rivets, eyelets, terminals, etc.

(H) Redesign to utilise improve fabrication processes.

1. Impact extrusions.
2. Epoxy resin castings for plastic parts
3. Printed circuits for complex wire and soldered circuits.
4. Adhesive fasting.
5. Ultra-sonic or gold welding.
6. Machine assembly.

II. Fabrication

(A) Eliminate unnecessary operations

1. Deburring. Redrilling Polishing. Reaming. Adjusting, detailing,


(B) Combine operations

1. Progressive punch and dies

2. Dial feed machines.
3. Special attachments for screw machines and punch presses.
4. Conveyors operations
5. Special multiple operation machines.
6. Multiple parts tool.
7. Produce parts of more than one design in same tool.

(C) Substitute facilities

1. Machine operations for hand operations.

2. Power screwdrivers for other types.
3. Automatic detail or inspection machines.
4. Higher production machines.
a) Screw machines with higher spindle speeds.
b) Higher RPM presses.

5. Automatic feeds for second operations

6. Separates scrape from parts at operation.
7. Clean automatically at operation.

III. Miscellaneous

(A) Reduce expense supplies

1. substitute tool of longer life to reduce unit cost.

2. Utilise less expense tool.
3. Provide for tool repair or reclamation.
4. Specify procedures for use of tools and other expense supplies:

(a) Dressing grinding wheels, correct mixtures and amount of
cutting oils and tool lubricating oils, etc.

5. Reclaim expense supplies:

(a) Oils, diamond dust, gloves, wiping clothes etc.

(B) Reduce plans service costs

1. Steam
2. Compressed air
(a) Intermittent air for part ejection and automatic air shut-off
when machine is stopped.

3. Water (fresh and/or recirculated)

4. Electrical power

(a) Unnecessary illumination, stopping equipment when not in


5. Industrial gas.

(C) Materials handling

1. Conveyorising

(a) Transfer conveyors between machine and/or operations, etc.

2. Bulk handling

(a) Tank storage and pneumatic transfer of materials, etc.

(D) Packaging

1. Cheaper packing materials.

2. Automatic packaging.
3. Automatic stamping/labelling.
4. Bulk packaging or palletising

(E) Inspection

1. Reduce inspection by use of control charts.

2. Review ampling plans and process averages with a view to
reducing inspection effort.
3. Use indicator type gage for better control of the process.
4. Combine operations in one gage to reduce inspection effort.
5. Reduce walking time of inspectors.

(F) Tool, Machine and plant design.

1. Specify simplest mechanism to perform job

2. Design for ease of maintenance.

(G) Maintenance (tool and machines)

1. Specify preventive maintenance where indicated

(a) Periodic cleaning of conveyors

(b) Specify length of run for tools before tool sharpening
and/or/repair when indicated.

2. Use of automatic lubrication facilities or devices for stock and/or

3. Check facilities for adequate capacity.
4. Change design of tools and/or machines to remove maintenance
trouble sports.

(H) Look for cost reduction through:

1. Lower office costs

2. Better inventory controls
3. Improved traffic operations
4. Improved methods
5. Standardisation
6. Improved quality of purchased parts
7. Make or buy
8. Improved purchasing techniques.

( A Unit Based Programme For Whirlpool of India Limited)


Day 1 FN Introduction To Value Engineering HVB
August 25 , 03 AN Function Identification And Analysis HVB
Day 2 FN Creative Idea Generation And Refinement HVB
August 26 , 03 AN Integration Of Ideas And Their Evaluation HVB
Day 3 FN VE Project Identification & Data Collection HVB
August 27 , 03

FACULTY: Prof. Harsh V Bhasin