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Value Engineering SG OMTI2014 V1CM

TOPIC 2 APPROACH TO VALUE ENGINEERING AND ANALYSIS

LEARNING OBJECTIVES

At the end of the session, participants should be able to:

1. Understand the systematic approach to VEA Project Study

2. Describe the procedure for carrying out a VEA Project Study

3. Know the features of the systematic approach – the Job Plan

4. Understand the applications of questioning techniques in VEA Project Study

5. Discuss the presentation stage and written report’s format to management

Value Engineering SG OMTI2014 V1CM

TOPICS

1. Introduction to VEA Systematic Approach

2. Information Phase - Cost and Function Analysis

3. Speculation Phase – Problem Identification and Creativity Techniques

4. Evaluation and Development Phase – Selection of Best Alternative

5. Presentation Phase - Oral and Written Presentation to Management

6. Implementation and Follow-up Phase – Installation and Maintenance of the Best Design

7. Example of A Report on Design on Bostitch Spring Crown Stapler

a. Group Activity 3 – Brainstorm the types of questions applied to each phase

Value Engineering SG OMTI2014 V1CM

INTRODUCTION TO VEA SYSTEMATIC APPROACH – THE JOB PLAN

VEA is a discipline which uses an organised creative approach to achieve an understanding of the function, values, and worth of products, processes, services and systems. It is a body of procedures and techniques which can be applied by every individual on a day-to-day basis as part of his/her job, or it may be applied by a multi-disciple group (team) of 3 or more members as a task force or in a workshop setting or as a project

VEA process is about change. It is a process which includes a series of distinct interrelated methods or techniques for achieving value improvements and maximising the effectiveness of engineering, manufacturing, servicing and programmes to identify and solve problems.

The objectives of VEA are to identify problematic area such as high lead time; high rejects or reworks; high costs; high labour costs, high scrap rate; too much paperwork; etc; and to create alternatives which have the optimum combination of value characteristics. This process is not a replacement for decisions that are normally made, but a step-by-step procedural tool that permits the consideration, weighing, and documentation of all important factors leading to a given decision. It is a process that permits justification of a chosen approach. In order that consistent decisions can be made and documented, the process is disciplined and formalised. It is therefore a proven management technique.

VEA is not the followings

 Design Review

 Just correcting omissions made in design drawings and calculations

 Cost Reduction Programme

Just cutting down costs by sacrificing needed quality, reliability and performance.

Value Engineering SG OMTI2014 V1CM

 Quality Audit

Just review fail-safe reliability status and of inspection/test procedures and methods.

 Method Study or QC

Just improvement of method, procedure, productivity, quality and services.

VEA is more than all the above. It helps to identify functions, to quantify worth and costs, to analyse competitors’ information, to create alternatives and to evaluate them to develop and innovate a breakthrough.

Phases of the Systematic Procedure

 Project Selection – Theme and Objectives

 Information – Functional and Costs Analysis

 Speculation – Problem Identification and Creativity

 Evaluation – Selection of Alternatives

 Development – Make it work

 Presentation – Obtain approval from Management

 Implementation and Follow-up Actions

Value Engineering SG OMTI2014 V1CM

Flow Diagram for the Procedure

PROJECT SELECTION

INFORMATION

SPECULATION

EVALUATION

DEVELOPMENT

PRESENTATION

DECISION

IMPLEMENTATION &

FOLLOW-UP

Yes

Value Engineering SG OMTI2014 V1CM

INFORMATION PHASE – FUNCTIONAL AND COSTS ANALYSIS

This phase has two parts: Information Gathering and Functions and Costs Examining. The goal of this phase is to identify areas of the project that are high in cost and low in functional worth. Another goal is to develop a common understanding of the project among the team members. This goal is accomplished by using a set of questioning techniques of which one of them is the 5 W 1 H Method (or the 5 W 3 H):

Purpose What?

Reasons Why?

Person Who?

Place Where?

Sequence When?

Mean How to do?

----------------------------------------

Quantity How many?

Costs How much?

5 W 1 H

5 W 3 H

Value Engineering SG OMTI2014 V1CM

Part I – Information Gathering

The purpose of information collection is to gain as much information and knowledge as possible on the existing design in order to enhance the level of thinking at each phase of VEA. The process of information gathering shall not be stopped at this information phase and shall be continued to seek information if the phase requires additional information.

The following points to be considered for:

 Clarify what the necessary information is required by having definite purpose.

 Know the scope of information collection as well as the quality and quantity of information.

 Find out the right sources for information collection – publications; contractors; competitors; libraries; experts; consultants; manuals; brochures; catalogues; drawings; exhibitions; symposiums; factory visits; supervisors; workers; etc.

 Study the right methods of collecting information – surveys; feedback; interviews; focus group discussions; field tests; meeting; questioning techniques; etc.

 Ability to separate actual facts from opinions or surmise.

 Ability to choose the right timings for the collection of information and to adjust the length of the period for information collection.

 Do not assume things – make it a point that you do not know.

Value Engineering SG OMTI2014 V1CM

 Collect from people who know well

 Ask questions from all angles (i.e. not biased).

 Express your appreciation from the bottom of your heart.

Types of Information

 Specifications and Performance

 Markets and Competition

 Engineering and Technologies

 Materials and Pricing

 Manufacturing Processes

 Functions and Costs

 Suppliers and Contractors

 Techniques and Procedures

Value Engineering SG OMTI2014 V1CM

Part II – Function and Cost Analysis

The purpose of this part are important to:

 Clearly define the work involved and the requirements for the project.

 Separate those non-essential areas of the project that are being provided for support more than to perform by specified requirements.

 Identify both basic and secondary functions required for the project.

 Identify the cost and the work related to the project.

 Analyse the functions and costs by questioning techniques.

The key general questions to be considered are

 What is it for?

 What are the functions?

 What is the basic function?

 What must it do?

 What are the necessary support functions?

 What must be supporting its main or basic function?

 What does it cost?

Value Engineering SG OMTI2014 V1CM

 What is it worth?

 Why is it necessary to have such function

 What is the purpose of each part?

 Can we climinate the part?

 Can we combine the part with other part?

The Function and Cost Analysis and its techniques will be discussed in greater depth in Session 3 and 4. From this analysis approach, we can see several advantages:

 It forces conciseness and eliminates fog;

 It identifies what the buyers wants in term of functions, not things;

 It distinguishes between the parts and the functional approach;

 It forces us to think in greater depth;

 It helps us to communicate what we are actually doing into a more enthusiastic give and take discussion of cost versus worth and function, and

 It forces us to question the design in terms of quality, functions, costs and times

Value Engineering SG OMTI2014 V1CM

SPECULATION PHASE – PROBLEM IDENTIFICATION AND CREATIVITY TEHNIQUES

This is the creative phase of the Job Plan. Here the team’s goal is to generate as many alternative ideas as possible for accomplishing an identified basic function of the project. During this phase all critical judgement of the alternative ideas is withheld. Switching to the fun child ego state during the free-wheeling speculation phase, as many ideas as possible are recorded.

The key general questions to be considered are:

1. What else will do the job?

2. How will it work in other ways?

3. Can we find another ideas by combining ideas?

4. Can we find another ideas by reversing this idea?

5. How can its value improve by adding support functions?

6. Can we eliminate some functions to improved value?

Creativity is the thinking process that requires both the left and right brains to help us to generate ideas. It is an organised systematic idea generating process where many techniques have been developed to assist the team to achieve better ideas.

Value Engineering SG OMTI2014 V1CM

Innovation, on the other hand is the second part of the speculation phase where the team can generate ideas that will work. Ideas, which may be too imaginative or too impractical, shall be eliminated. And ideas, that will work, will be analysed, evaluated and developed into the best solutions later. Innovation can lead to a breakthrough, i.e., a complete new product or process or system which is completely different from

CREATIVITY PROCESS INNOVATION (idea) (breakthrough)

Refer to Session 5 for Creativity Techniques.

EVALUATION AND DEVELOPMENT PHASE-SELECTION OF BEST ALTERNATIVE

The purpose of this phase is to compare and analyse the different alternative idea among those generated during the speculation phase, and to evaluate and select the best workable ideas for further development. It is during this phase when we start to criticise the advantages and disadvantages of them and group them into our business objectives as well as our project objectives shall be evaluated by ranking or point system selection techniques to select the best ideas for development.

The key general questions to be considered are:

1. Will each idea perform the required function?

2. What does each cost?

3. What would each save?

4. Will each perform the basic functions better than the others?

Value Engineering SG OMTI2014 V1CM

5. Will each idea be safer, be lighter in weight or look better?

6. Will each idea meet the customer requirements?

7. Will each idea better than the competitors?

8. Will each idea reduce the number of parts per unit?

9. Will each idea employees No. of processes?

If the answers of some of the above questions are “no”, always ask the follow-up question, “Why not?” This will give you a list of objections that you should deal with one at a time by asking “How can we overcome that objection?” Modify each idea minimally – only enough to overcome the latest objection.

Each idea is evaluated against the others in sufficient details using the appropriate evaluation techniques to determine whether it could achieve better value if it will be able to work or make to work. The alternative ideas that have survived the analysis and evaluation phase are developed into firm specific and practical designs. Each idea is subjected to experiments, testing, costing, and trial runs to prove its values.

PRESENTATION PHASE – ORAL AND WRITTEN PRESENTATION TO MANAGEMENT

The presentation phase involves the actual preparation and presentation of the best alternatives to persons having the authority to approve your proposals. This is accomplished in two ways, i.e. an oral presentation and a written report.

Value Engineering SG OMTI2014 V1CM

An Oral Presentation

An oral presentation is designed to preview your written proposal. It is a good practice to submit the written report to the management personnel who will be the audience of your oral presentation two weeks before the oral presentation. This is to ensure that they can understand the project and can raise the right questions to you at the oral presentation. Your oral presentation will be more effective and easier to prepare if you follow the following format structure:

 Introduction

 Objectives

 Data Collection and Analysis

 Evaluation and Comments

 Recommendations and Results

 Budget and Approval

During the oral presentation, the following guidelines should be considered:

 Make it a formal presentation to seek approval for implementation.

 Make it a point to follow the above format structure of your written proposal report.

 Let the audience know why they should listen.

 Know your audience background and their wishes.

 Get feedback from the audience at each planned intervals of times.

 Use eye contact with the audience to gauge their attentiveness and responsiveness.

Value Engineering SG OMTI2014 V1CM

 Apply body gestures meaningfully.

 Speak at a volume so that all can hear.

 Ensure visual aids are clear, relevant, short and sharp.

 You should dominate the scene not the visual aids.

 Present the savings, benefits and simplicity of the proposals, as against the disadvantages, limitations, wastes and complexity of the present design.

 Ask for the “ORDER” – request a decision from management personnel.

A Written Report

It documents your team’s efforts and provides a detailed plan of action for each alternative. The first step is preparation. You should identify your readers and approvers of the project and decide what are the main purposes for the project. Then you should plan the contents of the whole report.

There are two approaches to write a VEA report:

VEA Approach

 Acknowledgement

 Executive Summary

 Contents:

 Chapter 1  Introduction

Background, Organisation, Roles, Objectives, Scope.

Value Engineering SG OMTI2014 V1CM

 Chapter 2  Information Collection and Analysis

Market, Competition, Design, Features, Performance, Costs, Prices, Surveys.

Feedback, Functions and Quality Standards.

 Chapter 3  Function and Cost Analysis

Flow Process Chart, Function Diagrams, Pareto Diagrams, FAST Diagrams, Tree Diagrams, Questioning Techniques, Comments.

 Chapter 4  Speculation and Brainstorming

Cause and Effect Diagrams, Why-Why Methods, How-How Methods, Why-How Methods, Creativity Techniques applied, New Ideas, Development of new ideas.

 Chapter 5  Evaluation and Selection

Criterion Weightage Evaluation Method, Decision Forcing Matrix, Cost Evaluation, Advantages/Disadvantages Comparison, Savings, Results Expected.

 Chapter 6  Implementation and Follow-up

Final Design, Implementation Chat, Responsibility, Procedures, Status Reporting, Follow-up Actions.

 Chapter 7  Conclusion

Achievements, Future Development.

Value Engineering SG OMTI2014 V1CM

Method Study Approach

 Acknowledgement

 Executive Summary

 Contents:

 Chapter 1  Introduction

Background, Organisation, Roles, Objectives, Scope.

 Chapter 2  Present Situation/Design

Flow Process Chart, Description of Present Situation/Design, Market, Competition, Design, Features, Performance, Functions and Quality Standards.

 Chapter 3  Data Collection and Analysis

Prices, Surveys, Feedback, Function Diagrams, Pareto Diagrams, FAST Diagrams, Tree Diagrams, Questioning Techniques, Comments.

 Chapter 4  Speculation and Brainstorming

Cause and Effect Diagrams, Why-Why Methods, How-How Methods, Why-How Methods, Creativity Techniques applied, New ideas, Development of new ideas.

 Chapter 5  Evaluation and Selection

Criterion Weightage Evaluation Method, Decision Forcing Matrix, Cost Evaluation, Advantages/Disadvantages Comparison, Savings, Results Expected.

 Chapter 6 - Implementation and Follow-up

Final Design, Implementation Chart, Responsibility, Procedures, Status Reporting, Follow-up Actions.

 Chapter 7 - Conclusion

Achievements, Future Development.

Value Engineering SG OMTI2014 V1CM

VALUE ANALYSIS PRESENTATION CRITIQUE

Team Members:__________________ Dry-Run Critique Date _______________

_______________________________ Final Presentation Date _______________

Value Analysis Project: ____________

_______________________________

Content SAT UNSAT Comments

I. Introduction

A. Attention Grabber B. Orientation Statement (Benefits)

(Why Listen?) C. Team Members D. Presentation Preview

II. Body

A. Background 2. State Objectives 3. Opportunities Discovered 4. Value Technique Used

B. State Proposals 1. Short Term 2. Long Term 3. Before and After Picture 4. Present Cost 5. Proposed Cost 6. Implementation Cost

Value Engineering SG OMTI2014 V1CM

Content SAT UNSAT Comments

7. Implementation Plan/Schedule 8. Implementation Responsibilities 9. Risk Factors 10. Cost Saving 1

st Year, 2

nd Year,

5 th Year

(This Lot, Future Lost)

III. Conclusions

A. Summarise Proposals B. State Benefits, Cost Savings, Quality Improvement C. Mention Contributor D. Ask for Commitment (Action) E. Team Involvement to Complete

Visual Aids I. Lettering

A. Size B. Quality

II. Number of Visuals

A. Too Few B. Too Many

III. Sketches A. Clear B. Labelled

IV. Number of Lines

A. Too Few B. Too Many

Value Engineering SG OMTI2014 V1CM

Content SAT UNSAT Comments

V. Other

Delivery

I. Pacing

II. Volume

III. Style

IV. Presence

V. Enthusiasm

VI. Gestures

VII. Other

Use of Form

I. VE Proposal Form

II. Spider Chart

III. Economic Zone Chart

IV. Opportunity Matrix

V. Pie Charts

VI. Other Graphs

VII. Implementation Plan

Value Engineering SG OMTI2014 V1CM

General of Specific Comments:

Critiqued By ____________________

______________________________

Value Engineering SG OMTI2014 V1CM

IMPLEMENTATION AND FOLLOW-UP PHASE – INSTALLATION AND MAINTENANCE OF THE BEST DESIGN

The purpose of this phase is to develop an implementation plan and use it to monitor the status of the progress. The implementation plan designates responsibilities to take charge of the activities and makes visible the proposed schedule and the set of tasks required to accomplish the proposals. During the reviewing and monitoring, the results and savings are recorded and published, ensuring everything is on track.

The key general questions to be considered are:

1. What are the implementation activities or steps?

2. Who is responsible for each activity?

3. Who is the project manager?

4. What is the status of progress?

5. Can we have more savings and better results?

6. Is everything on schedule?

7. Any alternate plan if the original plan is our of control?

8. Is the budget for implementation approved?

During the Follow-up phase, parts of the proposals or new design may have to be changed.

Value Engineering SG OMTI2014 V1CM

The importance of the Follow-up phase is best put in the book “In Search of Excellence”.

“The scarce people are the ones who have the know-how, energy, daring and staying power to implement ideas”. Since business is a “get thing done” institution, creativity without action-oriented follow through is a barren form of behaviour. In a sense it is irresponsible”.

During this phase, the following guidelines should be considered:

1. Construct a good implementation schedule plan stating the activities in sequence, the person in-charge of each stages and the time frame required.

2. Conduct regular reviews to keep all concerned informed of the progress and need of their supports. Report to management on the status of progress of implementation.

3. Continue “Protected Times” i.e., meeting on regular intervals with team to review progress and to determine follow-up actions required.

4. Allow people to fail with dignity.

5. Always recognise and reward successes.

Value Engineering SG OMTI2014 V1CM

GROUP ACTIVITY 3

Brainstorm the types of questions applied to each phase

List of questions:

a) Information Phase:

b) Speculation:

c) Analysis/Evaluation Phase:

d) Development Phase:

e) Implementation/Follow-up Phase:

Value Engineering SG OMTI2014 V1CM

EXAMPLE OF A REPORT ON DESIGN ON BOSTITCH SPRING CROWN STAPLER

Contents Page

1. Background/Objective/Data collection

2. Information phase

2.1 Information A 2.1.1 What is it 2.1.2 What does it cost? 2.1.3 How many parts are there? 2.1.4 What can it do? 2.1.5 How many required? 2.1.6 What are the users feedbacks?

2.2 Information B 2.2.1 Exploded view of the stapler 2.2.2 Outline process chart 2.2.3 Function analysis table 2.2.4 Functional Analysis System Technique (FAST) 2.2.5 Product and cost analysis

3. Speculation phase 3.1 Root cause 3.2 Development stage

3.2.1 What else will do? 3.2.2 Design of new alternatives

 Stapler remover

 Stapler pusher

 Plastic cap

Value Engineering SG OMTI2014 V1CM

Contents

Page

4. Evaluation phase

4.1 Selection stage 4.1.1 Function rating grid 4.1.1 Matrix evaluation chart

4.2 Cost evaluation stage 4.3 Present and proposed cost evaluation

5. Planning phase 5.1 Job plan schedule

6. Conclusion

Abstract

The purpose of this project is to effect Improvement and Cost reduction on the functions and components of “Bostitch” stapler without compromising its quality and reliability.

The experiment examines the functions of a bostitch Stapler as well as Cost Improvement through developing new alternatives using the value analysis techniques.

Four alternatives are proposed and they are:

 Removing the existing staple remover by incorporating it to the lower body of the stapler.

Value Engineering SG OMTI2014 V1CM

 Improve the staple pusher for easy loading by forming a thumb grip on the top surface of the pusher guide.

 Changed the plastic base catch method of fastening into the slotting method to eliminate wear on the plastic catch and better fitting of the base to the lower body to the stapler.

 Incorporating a plastic casing at the bottom of the base to act as staple container. This will prevent cracking of the base when it was dropped onto the floor and to reduce the effort of searching for staples when the user may have forgotten to bring along a box of stapler to another place.

Our group had spent a total of 10 meeting session indulging in this project and one thing for sure, we had learnt to discipline ourselves in understanding the concept of value engineering.

Background

Stapler has been part and parcel of our daily needs whether you are at home or at work as it comes in handy when you have piles of documents to file.

“Bostitch” spring crown stapler is grouped under medium duty stapler. Due to its extra driving power, it is more suitable for compiling thick documents and for stapling the flaps of the carton during packing. As a result it is normally used in office and production areas.

The added advantage over the light duty stapler is the additional force to push the staple into a thick cardboard where light duty staple will crumble.

Although with its additional features such as locking system and stability provided by the plastic base, there are lots of feedback on its deficiency by the users. This prompt us to look into the necessary areas for improvement on the stapler.

Value Engineering SG OMTI2014 V1CM

Objectives

The objectives of this value analysis project are:

 To improve the function performance of the stapler.

 To analyse the user’s feedback and put up a solution to satisfy their requirements.

 To effect a cost reduction on the components through detail investigation of its function through value analysis techniques.

 To ensure all improvements made do not have any prejudices to its quality and reliability.

Data/Facts Collection

Most data presented came from estimation by experience. The facts collected from the users are from the interview done on the clerks, secretaries, engineers, production analysis and supervisors.

Majority of the decisions made on the improvements came from the group’s consensus.

Information Phase

Information A

 What is it?

A medium duty “Bostitch” spring crown stapler with remover.

 What does it cost?

Selling price : $13.60 (Emporium price)

Manufacturing price : $7.97 (Estimated)

Value Engineering SG OMTI2014 V1CM

 How many parts are there?

There are total 14 parts.

 What can it do?

 Compile loose papers or documents.

 File thick documents together.

 Remove staples without damaging the papers.

 Can be used in packing of carton boxes.

 Can staple papers onto hard cardboard without difficulty.

 How many required?

Current production : 100000 per annual

Forecast : 2 years at the same rate

 What are the user’s feedback?

 Stapler breaks into 3 pieces when it dropped onto the floor.

 Plastic base catch wear out after a period of use and it have a tendency to loot its advantage, i.e., to provide stability.

 Staple remover is obstructing the figures when carrying it on the palm during stapling.

 Tendency to forget to bring along the staple with them when using it in other areas and have difficulty in getting it from others.

Value Engineering SG OMTI2014 V1CM

 Always misplaced the box of staples in their work areas.

Information B

With all the information regarding its purposes, further details of relevant information are collected and deduced. They are:

 Exploded view of the stapler (refer to Figure 1)

It shows the breakdown of the assembled parts in isometric view.

 Outline process chart (refer to Figure 2)

It outlines the actual (refer current process required produce the components.

 Function analysis table (refer Figure 3)

It shows the primary and secondary functions to be performed by each parts.

 Function analysis system Technique (refer to Figure 4)

Indicate the sequences of step of why, how and when it was done on the function of the staple.

 Product cost analysis (refer to Figure 5)

Analysis of the cost of each components and its sources.

Value Engineering SG OMTI2014 V1CM

Figure 1 Exploded View of Bostitch Stapler

Value Engineering SG OMTI2014 V1CM

Figure 2 Outline Process Chart

Value Engineering SG OMTI2014 V1CM

FUNCTION ANALYSIS OF BOSTITCH STAPLER

Ve Description Comments

Stapler Remover Plastic base Lower Body Staple Pusher Spring Guide Rod Spring Stopper Stapler Holder Spring Crown Slide Catch

Remove Staple Provide Stability

Improve Appearance

Form Staple Resist Corrosion Locate staple Provide Retention Resist Correction Transmit pressure Provide Guide Provide Retention Secure Rod Provide Retention Provide Seat Locate Assembly Resist corrosion Transmit pressure Form Staple Provide lock

Pu Ps

Pu Su

Pu Pu Ss

Pu Pu

Pu Pu Su

Pu Pu

Individual piece attached to the plastic base A moulded thermoset Plastic Galvanised steel former Chrome Plated Position staple in place Hold Staple Chrome plated Exert pressure to pusher Guide pusher in position Hold pusher and spring Hold rod in position Retain spring to exert Pressure Seat for staple Hold pusher, spring & Rod Chrome plated Exert pressure on staple Ensure staple is formed Lock the upper body and Middle body together

Value Engineering SG OMTI2014 V1CM

Thumb Rest Upper Body Pivot Pin Rivet

Resist corrosion Provide Seat Improve Appearance Provide Retention Resist Corrosion Transmit pressure Provide Retention Locate assembly Hold parts

Su Ss

Pu Ps Pu

Pu Pu

Chrome plated Forthumb to seat in position Plastic moulded Hold Crown Improve Appearance Provide pressure for crown Hold the three bodies together Allow movement flexibility Attached the thumb rest to the Upper body

Value Engineering SG OMTI2014 V1CM

Product Cost Analysis (By Parts)

Description

Cost ($) Source or Manufacturing Method

Material Direct Over- Head

Sub- total

Stapler Remover

Plastic Stapler Base Lower Body Stapler Pusher Spring Guide Road Stapler Holder Spring Stopper Leaf Spring Crown Slide Catch Lock Thumb Rest Upper Body Pivot Pin Rivet

0.45

0.50

0.90

0.10

0.15

0.50

1.20

0.02

0.50

0.10

0.20

0.50

0.11

0.07 -

0.13

0.02 -

0.10

0.20

0.01

0.10

0.02 -

0.18 - -

0.13 -

0.30

0.80 -

0.30

0.40

0.01

0.20

0.08 -

0.30 - -

0.65

0.50

1.33

0.20

0.15

0.90

1.80

0.04

0.80

0.20

0.98

0.11

Blank, Pierce, Form Chrome

Sub-Contracted Blank, Pierce, Form, Chrome Blank, Pierce, Form, Chrome Purchased Capstan machining Blank, Pierce, Form, Chrome Blank, Form, Chrome Blank, Form, Heat Treat Blank, Form, Chrome Sub-Contracted Blank, Pierce, Form, Chrome Purchased Purchased

Total 5.34 0.83 1.80 7.97

Value Engineering SG OMTI2014 V1CM

SPECULATION PHASE

After compiling all the relevant facts and data, each functions and facts are critically examined to determine its root cause as depicted below.

Root Cause

 Plastic base catch

The catch is made of thermoset-plastic material and is used to clip the plastic base to the metal parts. Due to its weak resistance against the metal parts after a period of use, the catch wears off. This resulted in loose base and came off easily when handle it roughly.

 Staple remover

Remover is placed in an awkward position and is obstructing the user’s fingers while holding it on the palm. It is attached to the stapler by the plastic catch and became loose when the catch wears off. This made the remover to dig into the staple in order to remove it and resulted in tearing the paper. Moreover, it made the staple look bulky.

 Staple pusher

The pusher is chromed and provide a corrosion-free and smooth surface. Due to the strong force of the spring, the user has tendency to loose its group during the refilling of staple. This made the user to use its finger nails to push the pusher backward causing a painful experience.

Value Engineering SG OMTI2014 V1CM

Development Stage

A brainstorming session is conducted to develop as many ideas as possible. During this time, no killing of ideas put fore is allowed and a total of 15 ideas were developed during this 3

rd sessions of meeting.

All alternatives are sorted out and only 9 alternatives are critically examined as show below.

What else will do?

Alternatives Advantages Disadvantages

1. Remove plastic base. 2. Incorporate the remover to the lower body. (refer to Figure 6)

3. Design an attachment for

light duty performance. 4. Form the thumb grip on the top surface of the pusher. (refer to Figure 7)

5. Change all metal parts to plastics.

Reduce cost Reduce cost Reduce weight No obstruction to finger when hold it. More rigid as no attachment required. Can be use for light duty staple. Additional function. Better grip. Reduce pain on the thumb for frequent use. Better performance and reduce frustration during loading. Reduce cost

Stapler instability Poor Appearance High cost added. Additional weight. Troublesome when frequency of changes are high. Additional cost on tooling. Cannot withstand high force. Less reliable for medium duty function. Cracked easily when dropped. Easily wear and tear after frequent use.

Value Engineering SG OMTI2014 V1CM

6. Riveting the plastic base instead of plastic catch. 7. Change all metal parts to mild steel 8. Change the plastic base into sliding catch method. (refer to Figure 8) 9. Incorporate plastic cap at the bottom of the base for containing staple refill (refer to Figure 8)

Permanent attachment to the metal parts More Rigid Reduce cost. More staple Will not come out when dropped Can be changeable. Less prone to wear as compared to plastic catch Less material cost. Additional function. Reduce search for refill. Eliminate bringing staple along in container Reduce cost of staple container.

Additional cost. Base cannot changed Additional process. Rust easily Wear easily on moving parts Less rigid than galvanised steel Slight additional cost product.

Value Engineering SG OMTI2014 V1CM

Figure 6 New Design of Built-in Staple Remover

New Design of Built-in Staple Remover

Value Engineering SG OMTI2014 V1CM

Figure 7 Pusher with Formed Thumb Grip (New Design)

Value Engineering SG OMTI2014 V1CM

Figure 8 New Design of Plastic Base

Plastic Base (old)

(break easily)

Plastic Catch

Plastic Base (New)

Slide with tight fit

Plastic Cap

Value Engineering SG OMTI2014 V1CM

EVALUATION PHASE

Selection Stage

A list of selected criteria are shown below using function rating method to identify its priority.

Function Rating Grid

With the priorities identified and based on the user’s feedback, alternatives are selected using the matrix evaluation chart as shown below:

A. Reduce

B. Better Performance

C. Provide stability

D. Provide rigidity

E. Good appearance

F. Resist damage

G. Resist corrosion

H. Easy to handle

Value Engineering SG OMTI2014 V1CM

Matrix Evaluation Chart

Value Engineering SG OMTI2014 V1CM

Cost Evaluation Stage

The cost of 4 alternatives selected is evaluated and shown on the new alternatives cost analysis chart, depicted below.

Cost Analysis Chart

Description of alternatives

Cost ($) Sub-total

Material Direct Overhead Incorporate the

Stapler remover to the lower body (staple former) Thumb grip on The staple pusher Change plastic Catch into sliding Catch (plastic Base). Plastic cap for stapler refills. Total

1.00

0.10

0.45

0.10

1.65

0.13

0.02 - -

0.15

0.30

0.09 - -

0.39

1.43

0.21

0.45

0.10

2.19

Value Engineering SG OMTI2014 V1CM

Present and proposed cost evaluation

Description

Cost ($) Difference

Present Proposed

Stapler remover

Plastic base Stapler pusher Plastic cap

0.65 0.5 0.2 Nil

Nil 0.45 0.21 0.10

(0.65) (0.05) 0.01 0.10

Total 1.35 0.76 (0.59)

Note: Figures indicated in bracket is cost saving.

Based on the above evaluated results, a cost saving of $0.59 will be realised.

PLANNING PHASE

Tabulated below is the Job Plan Schedule of the above value analysis “Bostitch” spring crown stapler project.

Value Engineering SG OMTI2014 V1CM

Job Plan Schedule

1 2 3 4 5 6 7 8 9 10

3 3 3 3 3 3 3 1 1 1

INFORMATION PHASE INFORMATION (SUPPORT)

What is it? What does it do? What does it cost? What does it cost? What is it worth?

SPECULATIVE PHASE

ANALYTICAL PHASE

PLANNING PHASE

EXECUTION PHASE

SUMMARY AND CONCLU- SION PHASE

FINAL PRESENTA- TION

5. What else will do the job?

6. What does that cost?

OVER SIMPLIFY

TRY EVERYTHING

ELIMINATE THE FUNCTION

PUT $ IN EVERY DECISION

USE YOUR OWN JUDGEMENT

 Develop and finalise ideas

 Gather convincing facts

 Select your first choice

 Have at least 2 alternative plans

TRANSLATE BARE FACTS INTO MEANINGFUL ACTION TERMS

Prepare material for Final presentation

 Written

 Charts

 Live project

Value Engineering SG OMTI2014 V1CM

CONCLUSION

The overall result of the project after evaluation had shown a cost saving of $0.59 and the stapler function performances was reinforced.

The intangible results will be:

 Ease in refilling the staple with better gripping on the staple pusher.

 The stapler will not break into 3 part when it dropped onto the floor.

 User will not have to search for staples if they forgot to bring along a box of staple.

 The plastic cap will act as a buffer to prevent the plastic base from cracking when it dropped onto the floor.

 There will be no obstruction to user’s fingers when handling the stapler on the palm during filing of documents.

In conclusion, this project had built our knowledge of value engineering techniques. It not only discipline our taught, it also build up our teamwork during our course of group decision making