Value Engineering Job Plan

VA process is called VA job plan. Later, several approaches have emerged. Some typical steps of a job plan are:

1) Preparation
2) Problem selection,
3) Information
4) Evaluation
5) Creation
6) Selection and presentation
7) Implementation and Follow-up

The job is divided in the following seven steps:

(1) General phase (2) Information phase (3) Function phase (4) Creation phase, (5) Evaluation phase, (6) Investigation phase and (7) Recommendation phase. Each phase has a set of techniques, carried in the work sheets. VA is to be applied for those products where cost reduction potential is substantially high. It is the general phase which acts as a frame work for other phases. The brief description of these phases follows:

The brief description of these phases are as follows:

The resistance is generally of the following types:

1) We tried this couple of years ago but it was not successful. (Conditions change. Why not try again now?)
2) It can’t be done (If it has not been tried how does one know?)
3) The customer is satisfied with the price as it is. (If this is so he will be more satisfied and so will many others if the price is reduced).
4) Sampling is not as accurate as 100% inspection. (This is not always true but in any case, does it need to be that accurate?)
5) This way processing would produce too many rejects to the specification. (Then are the design limits too tight?)
6) There is no other technique. (Have you looked for one?) People have a natural resistance to change which may be further conditioned by experience, but favorable experience will help to reduce the resistance.

While thinking of doing VA, we must exercise good business judgment by being resourceful, thinking and innovative. The general phase is the foundation. We then enter the next phase the information phase.

General Phase:

It is the most demanding phase of a VA Job Plan. It creates the right environment for successful VA. In this phase, emphasis is placed on human interaction to seek co-operation of the team to implement VA. Work is done on specifies, rather than on generalities. The resistance to change is to be overcome. Some typical beliefs, habits and attitudes are given below:

1) It will set a nasty precedent
2) It won’t work
3) Cost too much
4) The Public won’t touch it,
5) It is impracticable
6) The Production Dept will have none of this.
7) Why change it – it works
8) There is no other source of supply
9) That is not our responsibility
10) The management will not accept it
11) It’s company policy.

Information Phase:

Here an attempt is made to assess the potential of value improvement. Project is studied in detail and all important facts are gathered and considered. In this phase, facts which are in the form of technical specifications or environmental specification are considered. Also, the engineering drawings, production sample, production data are all kept in mind. The cost data and work specification are secured. Consumer preferences are jotted down. Development and testing are studied. Quantities and scrap are taken into account. A relationship is to be established between costs and specifications or requirements. Next stage is the functions phase. You will appreciate that lack of information is overcome in this phase.

Lack of Information:

Most people who design a product are quite often not too sure of the real needs of a user and usually over-design the product by providing it with features that the user just does not use.

One of the facts of the manager community is that they lack cost information. Most of them feel that they have a rough idea, but how rough is rough?

The world is advancing exceedingly fast and new technology, new products, new materials and new processes are coming up almost every day. They create obsolescence in respect of the old materials or processes. Costs which were considered satisfactory yesterday become unnecessary today. In the face of competition the royal road to ruin is to adopt the methods of yesterday to the business of today.