A key component
of success in the producing the results we obtain for clients
and performance of the Value Method process is the use of
a carefully crafted and tested job plan. Adherence to the
job plan focuses efforts on a decision-process that contains
the right kind of emphasis, timing, and elements to secure
a high-quality product. It does this by highlighting and focusing
everyone on the involved issues, essential needs, criteria,
problems, objectives, and concerns. We use the job plan that
we belive has the highest level of success-- the eight-step
job plan, that is briefly described below.
Phase (Occurs before the formal value study)
is the first step. Some of our clients have attained dramatic
returns from our application of this first step alone. (One
client obtained five million dollars for a three day selection
anything can get some benefit from Value Method use. However,
some activities have enough potential to warrant more formal
value study use. During the selection phase, we use specialized
Value Method procedures to examine activities (programs,
processes, projects, designs, etcetera) to see if certain
indicators are present. Then we examine the potential return
on investment through formal value study application. If
it is great enough, we recommend formal Value Method use.
Otherwise, we submit our report and include any value enhancing
options that were identified during the selection phase.
formal use means forming a value study team. This value
study team uses the value study part of the job plan to
examine the activity. The value study generates alternatives
that show promise of increasing the value of the activity
to the customers, owners, or both. If the potential is high
and the client accepts use of a formal value study, we use
a another process to select the type of value study, and
if any, team. This selection optimizes the resources that
will take part in the study. (Each activity needs specific
technical expertise and experience, customer and owner involvement,
independence, and team facilitation resources to obtain
optimum performance of the value study team.) Note:
an on-line course
about this phase and selection computation form is available
at this web site.
an estimate of value engineering / analysis study results
Phase (Beginning of formal value study)
is the first step in the formal Value Method value study.
The individuals have been selected and an expected scope
of operations established. Before the first meeting, we
identify, collect, and disseminate to the value study participants,
all possible information operational features within the
scope of the study activity. To minimize resource losses,
we make a Value Method preliminary analysis.
for the value study. The value study participants examine
and analyze the components making up the features and their
costs, identify the criteria and limits affecting the activity,
and if prudent, ranked and/or assigned values. Now that
the activity pieces are in manageable chunks, they examine
these components are examined in terms of their function
and generate a functional logic diagram (referred to as
a Function Analysis System Technique or FAST diagram). This
FAST shows the relationship of the performed "why"
and "how" and "supporting" functions.
The value study categorizes and assigns costs to functions
of note. Finally, they identify the future concentration
of value study effort. This make sure the client gets the
most worth out of the value study for its cost. They use
two procedures: identify items that have high potential
for added value and items that are present now and have
less than optimal value.
is where innovation begins. Once the value study determines
the frame (value-base), creativity process begin. When a
team is present, high-performing team processes are in full
affect by now. We usually use at least four creativity techniques.
Two brief ones actually occur during the information phase.
Two very extensive ones occur during this phase.
common technique most Value Method specialist use for creativity
is"focused brainstorming." But we don't stop there.
To generate the maximum quantity of ideas for the development
phase (below), we usually add a modified affinity techniques.
Three techniques are used within it: innovation, improvement,
key feature in our application of the Value Method is that
we truly adhere to quantity principle theories. We do this
because they pay off. But like so many things, they exact
their price too. The price is paid during the analysis phase.
The key is to pay this price with techniques so efficient,
that they wipe out most of the costs.
this phase the value study orders, collects, solidifies,
and ranks the ideas generated in the creativity phase. Many
techniques are available and we are well versed in most
of them. The two most common Value Method techniques used
for ranking are "criteria weighting matrix and evaluation
analysis ranking," and "performance of the function
determination and study team consensus ranking." We
use these as well as other Value Method procedures.
This is where the value study payoff starts showing up. The really
great ideas become "concepts" here, and by the
end they are "proposals." During this Value Method
phase, the value study participants develop the ideas into
the high value return product that typifies the result we
talk about and show in our results and clients
happens during this phase is that the value study participants
use a high-product producing activity to evaluate the best
ideas surviving the analysis phase. As a part of the process,
they make a specialized benefits, disadvantages, and risks.
Only the highest-potential concepts are taken further. The
Value Method process we use makes sure, as much as possible,
that the value study produces the most product for the least
cost. Value study participants then develop the concepts
that survive into viable, efficient, and cost-effective
alternative proposals. Each developed alternative proposal,
that is carried to completion, has a high expectation of
increasing the value (its worth versus its cost) for the
product or process customer, owner, or both.
Phase (Ends the formal value study part)
best results must be made known or no one will be able to
use them. Also, the people that make the decisions rarely
can take out the time to fully participate in the value
study. Further, that is not their function, the good decision
is their task.
concepts which make through the development are, by definition,
displaying "added value." This may be by monetary
or non-monetary means. First your value study group place
the value study results in a written report. This is so
you have a document to refer to and use to make your decision.
Next a presentation of the value study results is made of
the "alternative proposals." These are the concepts
that have sufficient projected benefits, such as: usefulness,
reduced cost, increased income, more timely results, and
so on; such that they outweigh the proposal's potential
disadvantages and risks. (It is rare to find anything that
does not entail some kind disadvantage and risk and you
probably want to know about it before you decide.)
that everyone knows about the proposals, the discussions
made in the presentation are used in a final process. This
is the last value study check to smooth the final product
and make sure you get the optimum product from the value
like a lot of optimizing? We think it is. But it takes little
time compared to its worth. It has proven itself many times
over. A good decision usually saves far more than it costs
the decision-maker has to do their work. They have the data,
know it has been well thought out, and it is before them
in a concise, well presented format that breaks the complexities
down into understandable, usable, summary results. It can
be used quickly, and it is backed up by supportable evidence.
the owners users, clients, and others can make the decision.
After all, its your business, customers, client base, and
so on that is at stake. But you have the best data and process
behind you. During this phase you consider and evaluate
the decide what to implement of the value study recommendations.
We can help, but only you know all the final issues and
help consists of use Value Method procedures to document
and monitor implementation of the added value features.
A part of the process is knowing how it turns out. This
means that you establish the final value of recommendations.
is time for you to help us help you. You have the final
status of the recommendations (e.g., accepted, rejected)
and the estimates for their added value. Sharing them with
us as you go, through feedback, allows us to generate Value
Method statistics. We will not reveal your name unless you
want us to. These statistics and value study activity results
show us the overall effectiveness for your applications,
and identify potential process improvements.
you want, we share the results with you. That way you can
learn with us. If you decide you would like to create a
value program with your own Value Method expertise in your
organization, we will be glad to help; and the lessons we
learn can help your people do what you would like to get
from your program.