Abstracts and Bios

Abstracts:

Bios:

 

 
by Martyn R. Phillips, and Shamsi B. Shishevan
 
There should be no doubt about the tremendously positive impact that a well conducted, Value Methodology (VM) workshop can have on a project’s outcomes. Much has been said elsewhere about how to conduct a VM workshop to maximum effect.
 
In practice, many factors influence the way in which a VM workshop is run. This paper deals with more than a VM workshop. It addresses how a broader framework for applying value improving tools and techniques across the entire lifecycle of both programs and projects can maximize the power and reach of the Value Methodology.
 
The paper discusses how to ensure that programs and projects can be influenced to start “on the right track” and remain viable in terms of: yielding best value and return-on-investment; delivery within the specified timeframe and allocated budget; stakeholder affordability; and be adjusted, as necessary, to suit changing conditions.
 
The framework comprises a process for ensuring best overall value through value assurance for a) value identification, and b) value realization over the longer term. This is accomplished through the application of well-focused, strategic value planning, followed by performance monitoring and value enhancement. Typical outcomes include optimum functionality, life cycle cost, return-on-investment and schedule; plus managed risk and stakeholder consensus, along with systematic assurance of best overall value and performance.
 
The Value Methodology is an integral force within this overarching, scalable and agile approach to managing for optimum value. As well, it nicely accommodates the trend toward shorter workshops / less full team facetime, while maximizing results.
 

Martyn R. Phillips ,CVS (L), CVM, FICE, FCIWEM, FHKIVM, P.Eng, PVM
 
Martyn Phillips is a management consultant living in Alberta, Canada and he assists organizations achieve their business goals. He is qualified as both an Engineer and a Value Specialist in Europe and in North America. In addition to having a vast repertoire of project and value management experience, he conducts strategic, program and project alignment consulting assignments, as well as performance improvement training / coaching, for a broad range of clients and topics worldwide. His leadership of group problem - solving situations and organizational effectiveness assignments has resulted in significant savings of time and cost, together with functionality enhancements, for a number of high profile international projects and services for both the public and private sectors.

 

Shamsi B. Shishevan ,MA, MIVMA, PMP, PMI-RMP
Shamsi Shishevan is a project, risk and value management consultant based in Alberta, Canada. She has been involved in research, project planning, development, execution, controls and training. Fields of practice have included construction, manufacturing, petrochemicals and public service. Shamsi is experienced in the design and implementation of quality management systems for various manufacturing companies for sustainable process improvement programs. Her particular interests lie in strategic applications of risk and value management, along with business process improvement and staff development.
 

by Prasad V. Rayasam, Kapil Punja, Mukund Tibrewal, Andrew King, Peter Taft, and Vikas Singh

This paper discusses how design for manufacturability can result in creating a lower cost product to meet all performance targets. Integration and collaboration between design and manufacturing teams result in questioning legacy product features and developing new ones that meet performance & manufacturing criteria. In this paper we discuss one specific example of design for manufacturing of airfoils for modern day Turbines. Generation of 5-axis CAM toolpath for airfoil machining is a complex process. There is high value in designing “manufacturable” or producible airfoil CAD models at the design phase to ensure reduced rework to fix geometry inconsistencies during the manufacturing phase. We discuss common issues faced during machining of airfoils and how they can be mitigated with better airfoil design in conceptual design phase. Though authors did not explicitly follow SAVE recommended value engineering steps during the execution of this project, in hindsight, the mindset required and employed by entire global team was no different than the spirit of value engineering. 
 
The main challenge faced in creating such mindset is many times lack of awareness and in-depth knowledge of design requirements by manufacturing engineers and lack of manufacturing constraints and cost functions by design engineers. One of the important enablers for breaking these barriers between design and manufacturing is CAD-CAM framework. What we learnt is the need for same set of tools or seamless integration of tools that is transparent to users in both communities and also need for “real time” feedback during design of features. An analysis was carried out of common problems faced during airfoil machining which are attributable to geometric inconsistencies. Algorithms were built to identify these geometry inconsistencies. These algorithms were used by preliminary airfoil designers to fix the identified problems in design phase. A steam turbine blade that was manufactured at GE Power business is used for this study. The results helped identify the airfoil geometric inconsistencies upfront and avoidance of re-work and failed toolpath creation during airfoil machining in the shop, resulting in several thousand dollars of benefit. Equally importantly, the process followed especially building an inter-disciplinary global team of design engineers and supply chain engineers/machinists has proven to be a best practice that is being replicated for other projects.  
 
 

By Vinay Haribhatta and Raghavendra Rao
A vast majority of modern-day products and equipment are Electromechanical in nature. These systems are typically an assemblage of electrical and mechanical sub-systems and components, which result in an actuation or motion. Many special considerations come in to play while engineering Electromechanical systems – such as packaging considerations, compliance to Electrical industry standards, thermal management and EMI/EMC requirements. Representatives of the VAVE CoE of HCL Technologies have executed several VE projects for clients across engineering domains, a sizeable number of which are related to Electromechanical systems. Detailed in this paper is the overall approach adopted, together with indicative examples from such experience with HCL clients. Of vital importance is the focus needed on the above mentioned considerations during the critical phases of execution, namely Function analysis, Concept development and Concept evaluation.
 

Vinay Haribhatta, HCL Technologies Limited, India
 
Vinay works for the Hi-Tech vertical under the Engineering and Research & Development Services (ERS) business of HCL Technologies. He currently leads new product design projects and executes Value Analysis /Value Engineering (VE) projects for clients across various domains. He holds a bachelor’s degree in Mechanical engineering and a master’s degree in manufacturing management. Vinay has over 15 years of total experience in product design and development across special purpose machinery and general engineering industry. He is a certified Associate Value Specialist (AVS) and has 5+ years’ experience in the application of Value Methodology. He is a member of SAVE International and a zonal council member of Indian Value Engineering Society (INVEST).

 
Raghavendra Rao, HCL Technologies Limited, India
 
Raghavendra represents the Value Analysis / Value Engineering (VA/VE) Center of Excellence (CoE) under Engineering and Research & Development Services (ERS) business of HCL Technologies. He currently mentors projects on development and implementation of best practices and guidelines related to VA/VE and Product Design, and supports several related business opportunities across engineering domains.
 
He holds a bachelor’s degree in Mechanical engineering and a master’s degree in Machine Tools Engineering. He has over 24 years of total experience in Product Design, Design Methods, Value Engineering, Machine Design and CAD/CAM applications. Raghavendra is a member, Indian Value Engineering Society (INVEST) and Vice-Chairman, INVEST Zonal Council. He holds AVS certification and has presented/published several papers at Value Engineering and New Product Development (NPD) Conferences.
 
 
 
by  Subbiah Gopalakrishnan
 
ND is a major cylindrical lock product in Schlage commercial portfolio which offers a variety of functions. Among them is a ND offering that can accommodate a competitor Cylinder. This product claims its importance in a situation where a customer wants to replace the existing lock with a Schlage lock while retaining his old key system. Customer complaints surrounding installation difficulties, misalignment and interference of components resulted in the discontinuation of this function. A root cause analysis performed on the failure, along with application of a VAVE approach not only gave us a robust design that addresses all the concerns but also allowed us to arrive at a cost effective design thus, efficiently bringing the product back to the market.
 

 
Mr. Subbiah Gopalakrishnan a Certified Associate Value Specialist, holds a Bachelor degree in Mechanical Engineering with 9 years of professional experience in the field of Consumer & Industrial, Security Systems Product design, Value Engineering, Value analysis, Project Management and Cost Management and also a GE six sigma Green Belt certified professional.

Application of VE and Carbon Reduction (Green Value Engineering) in the Taiwan Ankeng Light Rail

By Chien-Ming Lai

Since 1987, Taiwan track project has formally promoted the value engineering technology. During that period, the techniques were to transfer and cultivate. Until now, Government departments have been widely utilized this technology to apply various projects. Recently, Taiwan public works actively promote the construction goal of the humanism, high quality, and sustainability. By means of value engineering techniques, the real requirements guide the design to achieve the objective of saving and sustainability.

Recently, New Taipei City Government adopted green value engineering techniques to lead the design in promoting Ankeng light rail based on the comprehensive plan. Finally, the six proposals were submitted and accepted. A total saving cost of project is 251 million NTD and carbon emission reduction is 5,323 metric tons. In this paper, the concept, research method, analysis processes, carbon emission calculation, and the results of the combination of value engineering and carbon reduction technology (green value engineering) are represented. The relevant experiences could be referred to Value Engineering administrators in the future.


Chien-Ming Lai

Chien-Ming Lai is a AVS and professional expert with 15 years of experience in the designing of MRT system. He holds a master degree in Civil Engineering . Further he is currently Project Manager of the Sinotech Engineering Consultats,LTD..

 
by Michael Pearsall
 
A VA study on safety warning systems for Snow Plow equipment resulted in a new standards that are predicted to result in a 10% improvement in driver reaction to snow removal equipment, improving driver safety and a reduction of equipment downtime. The study was the first to bring a research based approach to developing and testing safety warning systems for snow removal equipment. The VA team for this study included members with experience with the harsh operating conditions of snow removal equipment, knowledge of equipment manufacture, equipment markings and lighting, knowledge of human factors and the latest science on driver perceptions and reactions, and general knowledge of operating fleets of equipment. As a result of Ontario developing a standard through this VA study, the Transportation Association of Canada adopted Ontario’s standard as a recommended practice. Therefore, drivers across Canada will eventually benefit from an improvement in the consistency of snow removal equipment visibility and they will therefore be better able to respond appropriately when approaching snow removal equipment. Learn how Ontario planned for the study, staffed the team, and followed up the study results with in field testing.
 

 
Michael Pearsall graduated from Queen’s University at Kingston with a B.Sc.(hons.) in Civil Engineering in 1992. He started working for the Ministry of Transportation Eastern Region as a student in 1989 first in the Geotechnical lab and later in Construction. Mike has continued working for MTO for the 23 years since his graduation. His career has mainly been involved with the planning, design, construction and maintenance of highways. Mike has held various positions at the Ministry of Transportation in two different Regions and Head Office. Mike has been involved with Value Engineering with the ministry since December 1996; he is one of the few Certified Value Specialists in Canada and currently serves as the Past-President of the Canadian Society of Value Analysis. Due to his many student outreach volunteer activities PEO has made him a member of the Order of Honour and he has been named a Fellow of Engineers Canada.

 

Applying VE in Aviation Cost Out Programs – GE

by Karthik Agara, Kaushal Jain, Seshu Mahankali, and Vinodh Rajagopalan

Value Engineering was first invented in GE in 1940s. There is a 1956 seminal book on Value Engineering written by GE employee in Schenectady [1]. Over the last 2 years we have been working to resurrect it in the Aviation business and applying the value engineering principles to various business critical programs. This paper describes the Cost-out approach of an engineering team and demonstrates the importance of value engineering principles through several case studies.
 
For the benefit of Business and Customers, it is imperative to ensure the engines are produced at minimal cost with enhanced product value. A global task force of dedicated “cost out/Value” engineers was formed to achieve this critical business goal. The cost out team collaboratively worked with cross-functional teams from design to manufacturing. The team visited shops, held action workouts (including classical SAVE recommended 5 day AVS workshops [2], identified improvement areas for cost reduction opportunities.
 
The team prioritized the ideas based on implementation effort vs cost impact. This approach enabled quick realization, and opened avenues for further cost reduction opportunities. Team used cost out levers, which included leveraging legacy experience, standardizing parts across engines, newer manufacturing techniques, novel design changes and simplifying manufacturing operations. Additionally, ‘non-advocate reviews’ were held to identify risks and define mitigation plan.
 
This paper describes a collaborative culture of practicing value engineering principles and imbibing the spirit.
 

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Bloody Functions: Synthetic Blood is Flowing

by Anna Schandl
 
Have you ever heard about synthetic blood? Maybe the answer is YES, but I wasn’t satisfied only hearing about it, I wanted to know more and get closer to this grandiose substance which could save millions of lives.
 
The reason why I chose this topic is not only due to the fact that it is a real opportunity, but synthetic blood is related to Hungary. According to a scientific article in Hungarian Minds, Dr. István Horváth, a biomedical scientist born in 1938, conducted further research beyond the original synthetic blood research in the USA. The difference lies in the fact that instead of other liposomes, the Red Blood Cells (hereinafter RBC) are encapsulated in cholesterol to make sure synthetic blood’s effect is long-term since cholesterol cannot by degraded by any enzymes. Prof István Horváth extracted free oxygen-carrying molecules from the RBC of Hungarian Grey Cattle.
 
According to one of the articles of Index.hu which came out on 17th of October 2014, it is highly recommended at most Hungarian Hospitals to obtain blood from relatives before undergoing elective surgery. Delaying surgeries due to blood shortage is a very well known significant problem, not only in Hungary, but around the globe. Less volunteer blood donors and more transfusion dependence is a global issue and thus synthetic blood could be a solution for patients needing urgent surgery.
 

 
 
Anna Schandl became Associated Value Specialist (AVS) in April 2014, after she got acquainted with Value Methodology, during her B.Sc. years. She wrote her thesis about Japanese Cost Management System and compared it with VM. She is going to publish her study “The QFD-TC (Quality Function Deployment – Target Costing) process – new Japanese “miracle” or re-make of Value Methodology” in the Hungarian Value Analysis Review 2014. Miss Schandl is studying M.Sc. at Budapest University of Technology and Economics in the faculty of Finance and Accounting. In the near future, she wants to get Ph.D. degree and do further research related to Value Methodology.
 
In her free time she likes to experiment with flavor trends of foreign kitchen and practice the newest aerobic exercises.

 
by Paul Scarbrough
 
What is an Activity? There is nothing in accounting that addresses this question, yet failure to effectively identify activities is one of the main contributors to ABC problems. The Value method is the most powerful tool we have to help define Activities—because an Activity is always related to a function. Additionally, the FAST Value methodology assists in addressing the other big problem with ABC, which is the expensive proliferation of Activities beyond the number needed to solve business problems.
 

 
Paul Scarbrough, MBA, Ph.D., Associate Professor of Accounting
 
Professor Scarbrough has been at Brock University since 1995 and has held several positions in the Faculty of Business. Prior appointments include Boston University and Bentley College. International teaching experience includes Waseda University [Tokyo] and Linnaeus University [Sweden]. He is also Vice President of the Asia Pacific Management Accounting Association.
 
Professor Scarbrough is co-author of two books on Japanese cost management and has written many articles on cost management in Japan. One of the bedrocks of the Japanese cost management approaches is the Value methodology. His general research interests are cost reduction and the effect of corporate culture on the use of cost reduction methods. He uses the Value methodology in teaching his Cost Accounting courses as a basis for both general analysis and ABC. He has extensive consulting experience, primarily in cost analysis for environmental and social responsibility projects.
 

 
by Kyle Schafersman, and Benjamin Robertson
 
The planning and design process already generates alternatives to meet the stakeholders’ needs within available budget, and there are already multiple reviews throughout the project development process to ensure projects stay on schedule and on budget. So, why are we forced to do VE? We’ve all heard this question numerous times and may struggle to respond. This paper will attempt to answer it by defining the function of value engineering. It is intended to provide support to the VE Community of Practice when communicating with project managers, designers, executive managers, stakeholders, consultants, and others on the specific purpose of value engineering and why it is uniquely different than any other planning, design, review, or problem solving processes currently employed to deliver projects. This paper will spell out what has to be done and/or accomplished to be considered VE and how someone can substantiate it was accomplished properly.
 

 
 
Kyle Schafersman, PE, CVS is a VE Team Leader and Project Manager for Strategic Value Solutions with over 12 years of experience. He is a professional engineer and CVS. Kyle has facilitated over 200 value engineering studies relating to all aspects of construction and design on a wide range of project types. He was honored by SAVE International as the 2008 recipient of the Rising Star Award “for enthusiasm and embracing of the Value Methodology and demonstration of VM accomplishments within the past five years.” Kyle is currently serving as the Chapter President for the MO-KAN-DO Chapter of SAVE International.
 
 
Kyle Schafersman, PE, CVS is a VE Team Leader and Project Manager for Strategic Value Solutions with over 12 years of experience. He is a professional engineer and CVS. Kyle has facilitated over 200 value engineering studies relating to all aspects of construction and design on a wide range of project types. He was honored by SAVE International as the 2008 recipient of the Rising Star Award “for enthusiasm and embracing of the Value Methodology and demonstration of VM accomplishments within the past five years.” Kyle is currently serving as the Chapter President for the MO-KAN-DO Chapter of SAVE International.
 
 

 
by Angela Serra
 
The purpose of the project carried out was to find design to cost opportunities on Gas Turbines. The aim was to improve product efficiency, reliability and availability, while minimizing impact on product cost and simplifying production process. The paper reviews how the TRIZ methodology has been applied to specific case study (Low Pressure Turbine Rotor and Exhaust Diffuser), finding productivity opportunities, followed by a discussion of the DTC strategies that commonly used in GE Oil & Gas and pros/cons of using this tools for specific problem solving. The comparison will involve Should Cost, VaVe, 3P and, of course, TRIZ.

 
Born in Cagliari in 1996, Married, 2 children. Graduated in 1996 in Aeronautical Engineering Università di Pisa, Italy. I started my career in Lucchini Steel Maker, where I worked as a researcher in Process Control of low lead steel. in 1997 I relocated in MATEC, knitting machine producer where I worked on new material and new process introduction. In 2004 I worked as a Technical Coordinator in a factory that built luxury faucets (Italian Design). In 2010 I moved to GE where I was appointed Engine Product manager for Hot Gas Expander. Responsible of building and growing Hot Gas Expander engineering team. In 2012 I was appointed Productivity Leader For Gas Turbine Machine and Package. I am responsible of reaching product cost out targets; agree programs content and priorities with Product Leadership, through a network linking Engineering, Manufacturing, Sourcing, Advanced Technology and Product Leaders, both with internal and external resources. My role is now Gas Turbine Solutions Cost Configuration Manager, I am focused on reducing standard configuration cost to increase Product competitiveness.
 

 
by Rahul Nagalkar, and Ann Jamison
 
The classic Value Engineering (VE) study assessing conceptual and preliminary design phases of a project offers significant value in impacting the engineering design of a project. However, on large infrastructure projects the effectiveness of VE beyond the 30% design phase begins to wane as many of the key project elements are already worked through with community stakeholders and jurisdictions making them difficult to modify. The value of a VE workshop at 60% or 90% level of design is greatly enhanced by shifting the subject matter expertise focus to the actual construction of the project. Construction focused VE’s at the later stages can be very effective in supporting the development of well thought out cost estimates, schedules, contract specifications, and ensuring a solid set of bid documents. The benefits can include reduced change orders during construction, improved risk mitigation/risk management, improved bids and better stakeholder interface and improved follow through on stakeholder commitments.
 

 
Rahul Nagalkar, CVS, Sound Transit Value Engineering Program Manager, is the past President of the Cascadia and Metropolitan New York Chapters of SAVE International, and currently serves on the SAVE International Board of Directors. Rahul has been practicing Value Management for the past 14years. His value experience has been both as a consultant and owner.
 
 
Ann Jamison, AICP, AVS, Vice President, HNTB Corporation. Ann has been a practicing City and Transportation Planner for over 35 years. For the last 16 years she has been focused on the early alternatives analysis, environmental clearance and PE phases of passenger rail projects. She is member of the American Institute of Certified Planners and an Associate Value Specialist.
 


 
Stuart Sokoloff, PE has more 40 years of experience on varied bridge and highway projects located throughout the US and Canada as contractor, construction engineer, program/project manager, value engineer, forensic engineer and prime consultant. Project types include highways, bridges (long span, suspension, cable stayed, network arch, segmental, etc.), foundations, marine structures, mass transit, buildings and design-build efforts. Public sector clients/project owners include: Ministry of Transportation Ontario, Indiana DOT, New York City DOT, Mass Highway Dept., New York State Thruway Authority, Illinois Tollway Authority, Wisconsin DOT, Tri-borough Bridge and Tunnel Auth., Michigan DOT, New York State DOT and New Jersey DOT.
 
Mr. Sokoloff’s constructability clients include many of the largest contractors including Skanska, Perini, Granite, Kiewit, Carillion, etc. His experience includes construction designs and cost estimating for multi-million construction projects while employed by Slattery/Skanska.
 
Mr. Sokoloff has participated in over 150 formal VE Studies for 35 different CVS over the past two decades. Formal Value Engineering and constructability assessments for bridge and highway projects include geotechnical, foundation, structural, and constructability issues with construction cost ranging to $2.0 billion.
 

 
by Fu-Lai Su
 
The application of Value Engineering (VE) in Taipei MRT, with the popularity and the ripe experience, has enhanced the level of the MRT system design. And through the combination of VE and communication management, it will enable the VE study to proceed more smoothly, and the VE team will be more capable to take challenges and practice innovative solutions that they haven't done before. In the process of value realization, the implementation of the communications management and stakeholder management will ensure its success. In this paper, there are three aspects should be mentioned. First, explain the innovative alternative solutions of the combining of MRT Station and Daan Forest Park, which are created by the VE Team for civil works of MRT. Second, illustrate how the VE Team created alternative solutions through the value methodology with the combination of the strategies of communication management and the implement of the stakeholder management and overcome all the challenges from VE study, design and construction stage. Last, show the achievement of the innovation alternative solutions and share the practical experience to the VE practitioners.
 

 
Mr. Fu-Lai Su is a professional engineer with 28 years of experience in the design, construction, and project management of MRT system. He also has been participating in Taiwan MRT design projects and applying Value Methodology in design alternatives for more than 20 years. He served as Project Manager and Supervising Engineer of Sinotech Engineering Consultants, Ltd., Taiwan (SINOTECH). He holds an EMBA and a master degree in Civil Engineering. Mr. Su is currently Manager of Transit Engineering Department in SINOTECH and is the board member of Value Management Institute of Taiwan (VMIT).
 
Mrs. Ai-Hsia Chang has more than 29 years of experience in the design, construction, and public infrastructure projects, including MRT system, railway, highway, bridge and architecture, and has rich experience in leading the professional design team, using Value Engineering and creating new design or construction method for saving cost and/or adding value. She has served as project manager and technical advisor in Sinotech Engineering Consultants, Ltd., Taiwan.
 
 

 
by Laura Kingston
 
What requirements are needed for software affecting a broad spectrum of users across an organization? How do you keep most of the users happy most of the time and spend the budget on the most beneficial functionality? How do you educate users on the trade-offs that may need to be made to meet varying needs? How do you make an IT project successful? How do you select what on-going enhancements should be made to the software. Value analysis was used to help answer these questions for two software solutions with different business histories and challenges. This presentation will discuss how value analysis and functional performance specification assisted in the development of a successful IT solution implementation and supports decisions for on-going maintenance of the IT solution.
 

 
Laura Kingston has worked for the Ministry of Transportation Ontario since 1995 and is the Land Information Coordinator in the Geomatics Office. She is responsible for coordinating Geographic Information System services, cartographic services including the production of the Official Road Map of Ontario, MTO remote sensing services and linear referencing.
 
Laura received a Ph. D. in Geomatics from the University of Toronto in 1995. She has taught at the University of Toronto and Niagara College.
 
 
by Lori Brake
 
The Ontario Ministry of Transportation monitors and inspects commercial motor vehicles and drivers through a network of fixed inspection facilities (truck inspection stations) and mobile patrol units to ensure legislative compliance with highway safety standards and to protect road infrastructure. Truck Inspection Stations have evolved over time to meet changing business priorities, changes in commercial motor vehicles, inspection procedures, and changes in legislation. The business of Road User Safety is constantly evolving whereas the business of highway planning and construction is generally based on well-defined highway engineering standards. This presentation will highlight how Functional Performance Specification and Value Analysis bridged the gap between engineering and enforcement to define the requirements for two truck inspection facilities in Eastern Ontario. The presentation will highlight the critical importance of the information gathering during the Pre-event phase, and how Functional Performance Specification (FPS) and Value Analysis were instrumental in achieving senior management direction on facility requirements.
 

 
Lori Brake is a Traffic Specialist who has been with the Ministry of Transportation for 14 years. She has lead MTO’s pilot projects for the design and installation of solar power to operate a signalized intersection, design and installation of a low visibility detection and warning system and lead eastern regions pilot projects for the use of technology to provide real time traffic monitoring and queue end detection in construction projects. Lori participates on design teams as traffic specialist for projects with a variety of complexities and has been part of MTO’s VE committee for the past 2 years.
 
 
by Renee L. Hoekstra
 
We all like to think we’re good at facilitation skills, which are critical skills to leading VE teams. Some believe that facilitation is an “easy” job, but if we really want to ensure quality outcomes from our studies and our teams, much depends on more than the team, but the effectiveness of the facilitator/ team leader. This includes work that must be accomplished by the facilitator in the preworkshop phase, not just the workshop phase. The facilitator/team leader role is a very important role to the success of any study, however, it is also very important to continue to grow the viability of value engineering. This paper is about improving facilitation skills by better understanding the roles and responsibilities as well as the many of the skills required.
 

Renee L. Hoekstra, CVS – Managing Partner, RHA, LLC
 
Renee is the Managing Partner of RHA, with offices in Seattle and Phoenix and she is a Certified Value Specialist. She is responsible for providing facilitation and training for Partnering, Value Engineering, and Risk Analysis workshops for planning, design, and construction projects, including alternative delivery methods throughout the United States and abroad. Renee has been involved in the built industry for over 30 years. She has most recently provided training and facilitation services in the construction and value engineering field for the past 22 years. Renee has been facilitating partnering workshops for construction and over the years has noticed an escalation of claims which has led her to integrate risk analysis into project planning, design, construction management and value engineering teams. She has helped to develop programs to integrate Risk Analysis in the Value Analysis process as well as a “Risk-Based” Partnering program.

 

 
by Stephen Holmes
 
Today’s market place is highly competitive, with significant downward pressure on margins and increasingly high customer expectations of performance. New product introduction timescales are constricted in order to deliver first to market and increase competitive advantage, in parallel increased cost pressures at point of launch and positive contribution margin expectations during ramp up reduce the scope to pass cost challenges down the chain to serial product cost out programs. Enhancement of traditional New Product Introduction through Design to Cost and Value therefore becomes critical to drive customer value whilst also delivering product to launch phase with acceptable margin. The result of this is to ever more closely tie together supply chain strategy, technology development and concept design such that the cross functional team is engaged during all phases within NPI to deliver cost efficient and value enhanced solutions. Therefore developing cost models and affordability targets by function during concept, a common strategy between supply chain and engineering and supplier input to concept design iteration becomes critical to NPI success. Furthermore this approach is required to enhance development velocity through rapid decision making and reduced rework in order to support the time to market challenge and avoid additional burden to the overall NPI cycle. This study will present the application of Design to Cost & Value within NPI, with experience from implementation within GE Distributed Power for a new product and for an existing product upgrade program.
 

 
by Donald E. Parker
 
This paper provides a case history in facilitation using of one of SAVE’s Technology Templates (Value Index – Highway Function). It was the contributing and leading cause of the success of a VE Workshop on a 4.3 mile highway project. Technology Templates also exist for Manufacturing and Construction work and the same methodology as described in this paper applies to those areas as well.
 

 
Don joined SAVE in 1967 when he became the value engineer for the Chesapeake Division of NAVFAC and completed his 28 year career for the Federal Government as the Director, Value Management for the General Services Administration, Public Buildings Service.
 
For the past 30 years he has been in the private sector as an independent Building Consultant performing value engineering, developing project business plans, and serving as a cost engineer for many large projects.
 
His cost expertise extends to authorship of a book titled Parametric Cost Modeling for Buildings, 2014, Routledge publications. It is with this extensive knowledge of cost that he was compelled to draft this paper on function worth which is at the heart of value engineering.

 
 
 
by April N. Hiller
 
Value Engineering (VE) is in a current state of crisis. Not only is there a lack of understanding of what it truly means to those with exposure to it (vis-à-vis VE as being viewed purely as a cost-cutting measure), there is an overwhelming lack of exposure to it at all. Increasing competition from other value-enhancing techniques and systems (e.g., Lean methodologies, systems engineering, Lean Six Sigma, operations research, etc.) means its market share is diminishing at a furious pace. This results in several consequences that make it even more difficult to ensure VE’s future.
 
This paper will communicate how certain language, rivalries, and concepts have impacted the market for business and product improvement methodologies, while presenting certain creative branding approaches to overcome the barriers to increasing market dominance for Value Engineering as a whole.
 

 
April Hiller is a Certified Value Specialist and an Envision™ Sustainability Professional (ENV SP). Ms. Hiller has a Bachelor’s degree in Communications from San Diego State University, and Master’s degree in Mass Communications from Virginia Commonwealth University.
 
April has assisted on roughly 60 VE studies and editing over 250 VE study reports on all types of projects, including highway/transit, bridges, water/wastewater facilities, military facilities, infrastructure construction, port and navigation/marine facilities, manufacturing, business process improvement studies and strategic planning workshops.
 
Using her education in mass communications, Ms. Hiller is also a trained copywriter and copy editor for a variety of media and formats, from web content to manuscripts to marketing/collateral to proposals to white papers.
 
 
 
by Jim Rains
 
One of the main objectives of the Function Analysis Phase is to determine the best opportunities to improve value. In other words what functions of any given project should be used in the Creative Phase. From a list of forty to eighty functions for any given project, which functions should be selected to meet the project and team objectives.
 
To select the best and proper functions for the Creative Phase, there are three essential elements:
 
  1. Specific and agreed upon project objectives,
  2. A complete function analysis phase that results in a FAST diagram with the measured resources (cost, time, weight) for each function,
  3. Function selection for the Creative Phase, which means functions are used for creativity.
 
It has been stated many times that if you do not do function analysis it is not value analysis/value engineering (VA/VE). This author also believes that if you do not brainstorm by function you also are not doing VA/VE. It does not make any sense to go through a function analysis effort and not use the resulting information in the remainder of the VA/VE job plan. VA/VE gets its strength by using function oriented thinking to divert the team member’s minds away from specifics. To not brainstorm by function means that the minds of the team members are not being stretched to obtain the best possible results. Ideas taken to the Evaluation Phase should also be evaluated by function. We need to implement the best ideas that reliably perform the function. This paper will address each of the above mentioned essential elements.
 

 
James (Jim) Rains is President of the Advanced Value Group, LLC (AVG). Formed in 2000, AVG specializes in value engineering and synchronous process improvements (lean manufacturing) in the factory and/or office environment. Training in target costing, which includes Quality Function Deployment and Voice of the Customer is also a part of AVG’s long list of services. Jim has been trained by Yoshihiko Sato to conduct Japanese style competitive benchmarking tear-down workshops. This workshop integrates the Design for Assembly methodology. Jim has conducted numerous construction-oriented VE workshops throughout the Middle East. He has also worked in Australia, China, Korea, India and many European countries. Jim is retired after more than thirty-one years with General Motors. He has served on the SAVE International Board of Directors in several capacities, including President and Chairman. Mr. Rains became a Certified Value Specialist® in 1988 and is currently a Life - CVS®. He was elected into the SAVE International College of Fellows in 2002. He has volunteered over 20 years to the Lawrence D. Miles Value Foundation Board of Directors and serves on its Executive Committee.
 
Jim has facilitated over 800 projects in the past 35 plus years. Just in the past ten years he has worked with over 50 different top global companies. These projects conducted in 21 different countries obtain significant results by adding value and profit for manufacturing businesses. In addition he has achieved superb results for US government projects and international construction projects.
 
 
 
by David Wilson
 
The Regional Municipality of York’s new sanitary servicing strategy for planned development growth in the Upper York Region communities of Aurora, Newmarket, and East Gwillimbury, identified the need to sustainably treat wastewater generated by this future development within the Lake Simcoe basin. The strategy integrates three key components - Water Reclamation Centre (WRC), modifications to the York-Durham Sewage System (YDSS), and a total phosphorus off-setting program.
 
An innovative value engineering study was undertaken to further enhance the value of the Water Reclamation Centre. The Region envisions the WRC to be a key sustainability component of its environmental stewardship and this objective has influenced the design of the facility. A unique feature of the WRC will be its capability to utilize the advanced treatment processes to produce reclaimed water for potential appropriate area customers. The facility will also serve an educational tool to illustrate how advanced wastewater treatment can contribute to sustainability.
 
This presentation provides an overview of the value process and presents several key strategies using a case study approach to demonstrate how the value program was utilized to enhance this critical infrastructure project.
 

 
David Wilson, P.Eng., CVS-Life, FSAVE, CPF, is President of NCE, a value engineering firm specializing in infrastructure projects, located in Markham, ON, Canada. He is a civil engineer with 34 years of experience in both the public and private sectors. During his career, Mr. Wilson has led major infrastructure projects through the planning, design and/or construction phases, including several design/build projects. He has been involved in value management projects since 1995 and is a member of the SAVE International, Value Analysis Canada, and the Institute of Value Management. He served a four-year term as the President of SAVE International and was elected to the College of Fellows, the value industry’s most significant honour, in 2012.
 
Mr. Wilson has a Bachelor of Engineering Science (BESc) degree from the University of Western Ontario in London, ON, Canada, and is a licensed Professional Engineer in five jurisdictions. He is also a Certified Professional Facilitator.
 
 
 
by Manuel Teles Fernandes
 
Value Analysis (VA), as it was originally conceived, was defined and applied mainly as a cost cutting tool, in order to make products more competitive in the market place.
 
Many different and alternative applications of the value concept and of its original methodology have taken many professional practitioners and scholars to theorize and apply new and derived concepts and methods. We can find many different application tools and some theoretical evolution from that work, but that has not yet answered some aspirations regarding the concept of value and value analysis.
 
This paper introduces a new and more comprehensive understanding to professional practitioners, scholars, trainers and students, about some major concepts and applied methodologies in the discipline of Value Analysis (VA). In that regard, a revision of the literature about the concept of value will be made, in relation to the tangible and intangible dimensions of value, namely “use value” and “economic value”, and “cultural value” and “perception value”, respectively. However, more important is the presented redefinition of the current understanding of value, function, and their applications. New concepts and terminology will be introduced and explained by this paper; such as “emotional attributes” and “utility attributes”, “esteem service functions” and “use service functions”, and “soft-product cultural functions” and “hard-product technical functions”. As a result of this new concepts application in value analysis exercises, the process of function analysis needs to be revised.
 
Therefore, this paper brings a new perspective of “value” and “Value Analysis” to professional practitioners, scholars, trainers and students in VA, VE and VM.

 
 
Manuel T. Fernandes is a BM in International Business, MBA in International Management, and a certified TVM and PVM.
Manuel is a researcher in the disciplines of value and innovation, and he has published several books and academic and professional articles. He has developed the models “value based strategy” (MAP?) and “value based innovation” (VBI?), comprising full assessments and a dynamic software application, professionally applied in companies of all sizes. His latest research work focused on value creation and innovation, resulting in new analitical models in the realm of “tangible and intangible value” and “technological and cultural innovation”.
 
 
 
by Azzeddine Oudjehane and Christopher Raghubar
 
Value management (VM) is not necessarily a key component of project management in most demolition projects unless the demolition precedes a new construction project. On the other hand it has already been argued and most recently (Oudjehane 2014) that VM has the potential to deliver sustainable projects. This paper aims to integrate some environmental perspectives with value management principles in the scoping and planning of deconstruction and demolition activities. Using a case study of a 10-story pre-cast concrete building planned for demolition, a value analysis for the reusability of the building components and materials is conducted: two alternatives of deconstruction processes are evaluated; the various impacts on project management such as cost, or environmental factors are measured and compared.
 
 
 
by Marc Pauwels
 
The product development process is a complex one, even if there are merely national requirements to be met. This will be increased by globalization and the increasing need of customer orientation. The influence of the internet, the development of mass transportation and the possibilities of modern communication allow the people of all countries to get closer to each other. A lot of products are sold worldwide and observing people in Shanghai, New York and Berlin could lead to the assumption that they are all “the same”: clothes, smartphones and bags. But there are still a lot of differences based on culture: open and hidden. This has influences on both, the need for adapted products on the one hand and integrated product development processes on the other hand.
 
This paper gives a short overview of the product development process against the background of intercultural aspects. It begins with a description of the basics of culture and the basics of the product development process. As a consequence of these findings, the product development process will be enlarged to the Intercultural Product Development. The paper is concluded by a cogent example.
 
The full approach of Intercultural Product Development is described in /PAU01/.
 

 
Dr. Marc Pauwels is co-president of Krehl & Partner in Germany, the leading Value Management Consultant Company in Germany. Since his start with VA/VE/VM, Dr. Pauwels performed hundreds of VM-related studies in Germany, whole Europe, USA, Mexico, Singapore, Saudi-Arabia and China and trained personally thousands of future VA/VE-specialists. In parallel to his work and since around 15 years, Dr. Pauwels is president of the German Value Management Society, where he is – for instance - responsible for the development of technical guidelines and the annual German Conference of VA/VE. In SAVE International®, Dr. Pauwels is assigned Regional Director Europe.
 
Dr. Pauwels holds the European Certificates of Professional for Value Management and Trainer for Value Management as well as the CVS certificate. He is a certified trainer for VM1 – VM3 and the MOD

 
 
by K S Deep
 
In today’s highly competitive environment, the market determines the sales price. If corporations don’t address product cost, profit margin will continue to shrink. Thus getting detailed knowledge of what goes into the cost of a product has become very important. Bottoms up should cost enables corporations to better understand cost structure of their product. For should costing to be trust-worthy and useful, a validated cost model is mandatory. A bottoms up should cost model is comprised of components like material, machine, process, and cost algorithm. In order to validate models, one needs to validate all these components to match the physics of the process and rates applicable for the particular organization or region of manufacture. Due to innumerable variables involved and lack of well-defined baseline data, validating a cost model is very challenging. In this study we present a systematic and physics based approach that can be adopted by organizations to validate should cost models. We discuss the process and challenges involved in doing such a validation and showcase key use-cases of a validated should cost model during sourcing negotiations and design to cost studies.
 

 
Mr. K S Deep is a Sub section Manager at Advanced Design Tools group of GE Aviation and his focus area is development of should cost models and tools for multiple GE business. His group pioneered validation of bottoms up should cost models at GE. The models/tools developed by his group are utilized across GE business for performing design to cost studies and supplier negotiations. His group also focuses on development of design optimization and system integration tools. Deep has a master’s degree in manufacturing sciences from IIT Kanpur.
 
 
 
by Dorine A. Cleton
 
The City Council of Rotterdam wanted to redevelop an area of the city. Cleton&Com used Value Engineering as a method to improve the plans of the project and to prevent time consuming law suits from stakeholders.
 
Urban redevelopment has significant impact on the lives of the people in the designated area and many of these projects are received with distrust and resistance. PPBS is a special form of mediation dedicated to urban development projects. The purpose of PPBS is to avoid these emotions, by bringing together the stakeholders in an early stage of a project. Value Engineering played a decisive role in this project as the main part of PPBS.
 

 
Dorine Cleton is a strategic advisor, senior lawyer for spatial planning and environment, mediator and Value Engineer, as well as director-owner of the firm Cleton & Com in Rotterdam. She advises on strategic level about and search for creative solutions for various parties in the field of city and area development estate, spatial planning and environment. In this work she uses mediation and Value Engineering. She has held positions as a lawyer and senior advisor with several companies in the past.
 
 
 
by Joel Wao, Robert Ries, Ian Flood, and Charles Kibert
 
Conventionally, value engineering focuses on giving the owner the needed value by reducing the cost and improving the performance and quality standards of systems, projects, or processes. In this paper, the value engineering (VE) methodology was reviewed with the aim of improving its power in giving value to the project owners. Over-emphasis on cost was identified as a limiting characteristic of the current VE and performance worth (PW) was developed as a potential solution to address it in the function identification and analysis phase. Value engineering practitioners were surveyed and their feedbacks used to test and/or validate the PW approach. SAS v.9.4 was used to analyze the survey data. The results showed that PW was better than current VE approach. It was concluded that its inclusion in the VE job plan would benefit the owners in achieving high value in their projects.
 
 
 
by Xiaoqi Zhang, and Vince Thomson
 
It is difficult to deliver products on time and within budget, and with ever increasing product complexity, the design of a product suffers greater risk of undermined estimation for project completion. Bashir and Thomson (1999a) introduced a method based on functional decomposition (FAST diagram) and a product complexity metric to estimate project effort. The present paper introduces a new complexity metric from the perspective of knowledge. A product is considered to be the result of integrating knowledge-intensive functions; so, the metric measures the complexity of individual functions as well as integration tasks. The application of the new method is illustrated with an example of a hydroelectric generator.
 
 
 
by Kurt Lieblong
 
The Florida Department of Transportation implemented its Value Engineering in 1978, nearly 30 years before the United States federal mandate for highway projects. Early on the department realized the benefits that this improvement process could bring to its projects, processes and standards. Not only could you get the best value out of the limited infrastructure budget, but it also improved the communication and synergy between department employees. This presentation will highlight several of the elements of FDOT’s VE program that has led it to becoming a recognized leader among US VE programs.

 
Kurt Lieblong is the State Value Engineer for the Florida Department of Transportation (FDOT). He manages the Department Value Engineering (VE) program, Cost Savings Initiative Program and the Electronic Review Comment (ERC) System. He is a member of the Statewide Risk Analysis Team and has participated in several Cost Risk Workshops. He has been managing the FDOT VE & CSI programs since 1999. Kurt has also served on the American Association of State Highway and Transportation Officials (AASHTO) VE Technical Committee for the past 15 years, serving as the committee chairman and conference chairman. He is a Professional Engineer, Certified Value Specialists (CVS), Certified Public Manager (CPM) and a graduate of Auburn University.
 
 
by Won Jin Sunu, Hyeon-Cheol Woo, Joon-Dong Ji, and Kui-Yong Choi
 
The Korea’s best ice maker manufacturer utilizing VE/VM methods is leading the global refrigerator ice making with energy saving of 50% compared with the competitors coupled with creating cost savings over life cycle period of 116 times over the first year’s cost savings. Low-end technology ice makers are trying to survive in the low margin refrigerator market as OEM suppliers. However, this company exceeds the global requirements by reducing costs over 27.4% and also reducing energy consumptions by 50% using their state-of-the-technology acquiring more than 50 patents per year. Not only this company provides quality ice makers to the premier customers, but also it fulfills the future needs and demands of the consumers offering very critical differentiation competitive edge in the global market.
 
Refrigerator market can be attractive with its $20 billion market size and an average annual growth rate of 2~4%, but only the companies with the competitiveness and differentiating offerings can enjoy in this market. The U.S. market is environmentally friendly oriented by establishing very stringent energy consumption requirements. The Department of Energy mandates with its DOE standards along with the State agencies by conducting elaborate assessment and analysis as described in DOE Refrigerators Final Ruling executing the requirements of the flow diagram of analyses for the energy conservation standards rulemaking analysis process, including market & technology assessment, screening analysis, engineering analysis, energy use, markups for equipment price determination, shipment analysis, life-cycle cost and payback period analysis, national impact analysis, preliminary manufacturing impact analysis, life-cycle cost sub-group analysis, utility impact analysis, environmental assessment, and regulatory impact analysis. While the pricing has been discounted from $2,000 to $500 for an average size refrigerator since 1972, the power or energy saving is moving at a much faster rate, which offers significant benefits to the consumers and will be the most important product attributes. The impact of the energy savings will be even greater as the life cycle period is equated in the value modeling.
 
To produce the world class results, the VE/VM methods are utilized extensively. The Enhanced FAST with Sensitivity Matrix is used for enterprise level planning during the implementation phase. After defining the functions, the FAST, Function Analysis and Value Indexing using Paired Comparison Analysis are used in streamlining the functions and processes resulting in cost reduction of 27.4%. Also, for the new technology development, innovative ideas and concepts are developed using TRIZ Technical Contradictions with Inventive Principles and Lotus Blossom Technique, which contributed significantly in reducing the energy consumption by 50% or a total of 42.1 kWh per year. In appreciating the environmentally friendly society, the invaluable assets of the society must be sustained and consequently developing life cycle valuation practices is very critical in pursuing the value creation.
 
The most important performance of VE/VM is to institute an entire organization with innovative minds and capability focusing on the human aspects pursuing the excellence of VE/VM producing VE/VM specialists who contribute for the best of the company as well as in the society by increasing the intellectual capabilities tremendously. In order to prepare for the long-term sustaining growth, instituting VE/VM is the necessity, and the scope must expand from research to sales and services.
 
 
 
by Korneilia Zarandne Vamosi, Ferenc Nadasdi, and Totth Gedeon
 
Researches indicate that today’s hectic world puts more and more emphasis on retaining our health. In order to remain healthy, it is essential to do regular physical exercises, which is the key to mental and physical freshness. More and more people want to move more all over the world, the cheapest way of which is running. If we want running to truly strengthen our health, we need to do it using the right technique and equipment. Medical science has proven that physical exercise made under improper conditions may actually worsen our physical conditions. In our research, we were examining those ergonomic characteristics of sports shoes which are indispensable for running. Based on consumer reports and long-term medical experience, we were focusing on the sole part, more precisely, the insole. Our research indicated that many consumers choose either cheap or aesthetically pleasing shoes for sport, although the product may prove to be inadequate once they start using it. All the experience and research accumulated by experts indicate that most of the pain, symptoms and complaints concerning the feet boil down to sole structure which does not fit the general arch of the foot. Even though forming the right sole structure from quality material is not cheap, it is still worth it in the light of long-term use and possible medical consequences.
 
 
 
by Hisaya Yokota, and Kayo Uchida
 
Value engineering (VE) has gained a world-wide recognition as a superb method for improvement. This has remained true since VE was invented in 1947. At this very moment, people somewhere in the world may be benefiting from VE and improving what they want.
 
However, the biggest drawback with VE lies in time and labor. Still, to improve what we want, we have called on many members on duty, and have spent much time for each VE activity. This is because VE is designed as a methodology to maximize its own effect with great time and labor. For many great years, we have taken this for granted.
 
Recent years have seen the new change that people have paid more attention to VE practices which can be done for a shorter period of time (Short-Time VE). In fact, Short-Time VE and its application have been frequently reported at the SAVE Value Summit and the SJVE Annual Conference in the past several years. It goes without saying that Short-Time VE has established itself as a new methodology field.
 
This technical paper will summarize four effective Short-Time VE techniques, which have been developed and practiced in Japan. It will further present three case studies of the latter two techniques – the authors’ inventions: “4-Meeting VE” and “5-Step VE.”
 

 
Hisaya Yokota is a Certified Value Specialist both by the SAVE International, USA and by the Society of Japanese Value Engineering and also is a Professional Engineer, Japan (P.E.Jp), certified by the Institution of Professional Engineers, Japan. He has been a leading VE Consultant over the past 18 years, having promoted the application of Design-phased VE to public works projects for the Ministry of Land, Infrastructure, Transport and Tourism, the Urban Renaissance Agency, Prefectures, Cities, Towns, and Villages, etc. He has conducted approximately 90 Design-phased VE Studies, creating a total savings of about 200 billion JPY in cost reductions. In 2010, after having worked as Director of the Value Engineering Center at Pacific Consultants Company Limited, he started the Functional Approach Institute Company Limited in Tokyo where as President and Chief Executive Officer, he offers business management strategies, project consulting services, and VE education.

 
 
Kayo Uchida holds a Bachelor of Dental Science (BDS) from Tokyo Medical and Dental University, Japan. She currently works as a dental hygienist, anti-aging medicine trainer, and smile trainer. As a smile trainer, she has conducted numerous lectures and seminars throughout Japan, including the one for Ms. Universe Japan. She has also made many appearances on Japanese TV programs and in Japanese magazines – most notably, the one on the Japan Broadcasting Corporation’s TV program: Magic to be beautiful. Meanwhile, as a freelance dental hygienist, she has provided consultations for dental clinics throughout Japan. At Functional Approach Institute Co. Ltd., she serves as a Functional Approach Consultant, and has applied VE to the dental industry for its improvement.
 
 
 
by SteVE Holmes(MTO), P.Eng., CVS-Life
 
Strategic planning is used to set organizational goals and priorities. Traditional organizations are changing to respond to internal and external changes such as disrupter technologies. Maintaining the status quo is not a viable tactic for organizational survival. Rapid and strategy informed change is necessary for success. This presentation will demonstrate how function analysis, function diagramming, and functional performance specifications can be used to develop a strategy map for an organization. The use of function diagraming establishes the how and why behind the strategy map. By using elements of the VA job plan, your team can agree upon, develop and prioritize strategies and tactics. Examples will be drawn from case studies.
 

 
Stephen Holmes is a Professional Engineer and a Certified Value Specialist with the Ontario the Ministry of Transportation with experience in the planning, design and construction of highway infrastructure. Stephen has coordinated the Ministry of Transportation’s VE program since 1999. Stephen has also led the ministry in using the Value Methodologies in service delivery and organizational change.
 
 
by Hussien Al-Battaineh
 
Value engineering is a well-defined and robust methodology based on a six-step job plan, each step focusing on achieving certain targets that will either be used in the following step, or contribute to the overall study purpose. The methodology, however, leaves the use of tools in each of the steps open, which is why value engineering/analysis has been thriving and has stood the test of time.
 
The paper does not propose any changes to the methodology; rather, it presents a new tool that could be used to enhance the evaluation phase in case value engineering is used to optimize the project design and identify/select the highest value option (design alternative). Thus, this enhancement would not be suitable for a workshop that aims to identify creative ideas for a project or process.
 
Evaluation consistency could be critical during a value engineering workshop when the objective is to identify a preferred option to be pursued. In case of civil engineering applications, for instance, the task of improving consistency at this point can often be best addressed by using systematic methodologies, such as the Analytic Hierarchy Process (AHP). AHP offers a useful methodology for supporting decision making since it is simple to understand and it fits a workshop context. What is more, this can translate into effective “buy-in” on the part of the workshop participants because it can be smoothly integrated with expert input.
 
This paper describes a methodology for improving the evaluation phase through integration of the AHP model and expert input. By resorting to the present methodology one can quickly resolve all the inconsistencies, in part through the expert advice. As a result, the transparency of this approach allows improving the evaluation phase and the overall value engineering program enabling the participants to better justify the options that are selected as having the highest value.
 

 
Hussien Al-Battaineh is an expert in infrastructure management, value engineering, risk analysis, and project management for civil engineering applications. He has been recognized for his work in these areas through a number of awards and scholarships including the Canadian Society for Civil Engineering’s Award for Governmental Leadership in Sustainable Infrastructure (2012) and the Consulting Engineers of Alberta Award of Excellence and Award of Merit (2013) for the Risk-based Infrastructure Management System (RIMS); the Joseph D. Thompson/Zurich Canada Graduate Award, (2005); the Award of Excellency, Annual Conference of the Canadian Society for Civil Engineering, Toronto (2005); the Province of Alberta Graduate Fellowship (2004); the NASTT North West Chapter, Graduate Student Scholarship (2004).
 
Dr. Al-Battaineh is the founder of EHan Engineering Ltd., a consulting company that specializes in infrastructure analysis, value engineering/analysis, and project management. He has completed risk and value analysis for major civil projects including drainage, light rail transit, highways, airports, tunnels, wastewater treatment plants, water treatment plants, buildings and bridges initiatives throughout Western Canada.
 
Current Positions:
  1. EHan Engineering Ltd. President
  2. Western Michigan University
    Adjunct Professor of Civil and Construction Engineering
    College of Engineering and Applied Sciences
  3. Value Analysis Canada Director-Western Canada Region
 
 
by Mei-yung Leung, and Qi Liang
 
The design and construction of public projects should take into consideration of the needs and wants of the people affected, especially those of elders who are easily affected by their environment. The concept of public engagement (PE) has been gradually applied in public projects in order to ensure the projects’ success and the satisfaction of the stakeholders. However, because of differences in the various stakeholders’ backgrounds, values, interests, and so on, it is not easy to implement PE successfully. For this study value management (VM) was integrated into the PE process with the aim of improving the design of a public area so as to satisfy the special needs of elders.
 
The participants, including members of the community and outsiders who could affect the decision making, went through the entire three-stage VM-embedded PE process. A logical, systematic VM plan was integrated, and various VM techniques – including Function Analysis Systematic Diagrams (FAST) and star diagrams, brainstorming and so on – were purposively incorporated into the process. The participants identified the major function of the public area, developed a FAST diagram and, in the different PE stages, put forward numerous ideas to improve the project. All the participants were fully satisfied with the final design option, which focused on the needs of elders. The high average score (4.8/5) the client gave on the feedback form also demonstrates the success of the VM-embedded PE process. The key factors in the success of the VM-embedded PE process are pointed out in the discussion section.
 
 
 
by GREGORY W. BRINK
 
Effective risk management seeks to allocate risk to the party that can best manage it. The challenge is in determining which party truly is suited to manage the risk for the best overall value. Allocation of risk includes trade-offs in performance, quality, cost, and schedule. These variables of projects and programs require uncertainty and risk assessment to complete a Value-based analysis of which party should manage various risks that manifest themselves in facets of performance, cost, and time.
 
This paper will present an innovative method to allocating risk using a Value-based decision making approach. Content will cover techniques to assess performance, cost, and schedule risks, as well as techniques that employ Monte Carlo simulation and Value Metrics for decision making. The target audience of this presentation is Value practitioners of all skill and experience levels. Participants of the session will learn methods for estimating risk, value-based decision making techniques, as well as risk management and risk allocation tools and techniques.
 

 
Gregory Brink is the Director of Risk Management and Decision Economics for Value Management Strategies, Inc., a Value Engineering and management consulting firm based in Escondido, CA. He is a Certified Value Specialist, Risk Management Professional, Project Management Professional, Professional in Business Analysis, Certified Cost Estimator/Analyst, and an Envision Sustainability Professional. Mr. Brink has 14 years of experience in management consulting, leading Value Studies, facilitating Risk and Decision Analyses, managing projects and programs, and performing Economic Analyses. Mr. Brink’s specializations through the use of Value Methodology include quantitative/qualitative risk modeling and analysis, risk management, value analysis/engineering, decision modeling and analysis, cost estimating, and program/project management for both private sector and government organizations. Mr. Brink has used his expertise to help various clients improve the performance, reduce costs, control schedules, and manage the risk of their business processes, infrastructure development, and vertical construction projects and programs ranging from under one million dollars to multi-billion dollar engagements.
 
 
by Hein B.A. de Jong
 
Value Engineering often delivers remarkable results and food for thought. This article tells another remarkable story of a strategic value engineering study with four Ministries, a shipping company and matter experts. The study was designed and executed by Timme Hendriksen and the author of this article Hein de Jong. In this article, also the Design for Value® model is introduced and describes how the study is designed with elements of that model.
 
The key success drivers for the study are generic and commonly known for successes of value engineering: sharing information, analysing functions, mutual understanding, group wise idea generation, iterative designing, and formulation of the next actions. The area of application and scale of this case are somewhat unusual: how can four ministries and a shipping company optimise the utilization of their 12 sea vessels and reduce that number? In the meanwhile, some reorganisations occur and needs are changing rapidly in the years to come (e.g. internet, international databases, GPS controlled vessels, drones). To start well, is was necessary to investigate the client’s needs prior to the workshops, and to position the team within the organisation to get the necessary acceptance and support for the study and its outcomes. Therefore, this large and prolonged study is shaped with the Design for Value model, addressing topics insight, organisation, and design. It resulted in some well-prepared VE-workshops in which the fifty participants (from engine-driver to colonel) discovered how to reduce the number of ships while improving performance for their business and organisations. The solution is found in cooperation, clever planning, time sharing and multipurpose vessels, reducing the need with 5 (from 12 to 7) vessels in the coming years and insight in the fleet renewal strategy for the next 10 years.
 
 
 
by Patrice Miller
 
Having passed the AVS exam, this paper’s author was determined to achieve “Certified Value Specialist” within two years. While her journey to certification was longer than she had originally anticipated, she learned a lot about the VM methodology and herself along the way. At times, the dreaded “certification package” and “CVS® exam” seemed overwhelming; how could she manage this in addition to her other work and family responsibilities? While the path to CVS® can seem daunting, this paper focuses on the lessons learned from the school of hard knocks that the author found helpful in her journey. The learnings presented here expand on the SAVE International® Certification Program Manual (13th edition, effective January 9, 2015) with the author’s personal observations that may offer additional guidance to those on the fence about taking further steps to certification.
 

 
Patrice Miller is a Certified Value Specialist and Managing Partner of RHA, LLC, a woman-owned business headquartered in Arizona. Having worked in the Architecture/Engineering/Construction industry for over 20 years, she leads teams through the SAVE International® value methodology to improve project performance and lower project cost. She teaches the Module I workshop and is advisor to several AVS candidates pursuing their CVS®. Patrice is President of the SAVE Arizona Chapter. She earned her Master’s in Business Administration from Arizona State University in 2002. Patrice lives in Scottsdale with her husband (Mark), two children (Colin and Elise), and dog (Hyde).
 
 
 
by Warren Knoles
 
The Lexington Blue Grass Airport’s Taxiway Safety Enhancement Program was to be phased over a five-year period to match the available federal funding allocated to the airport. Such five-year phasing unavoidably introduces risk that construction costs may rise more than current estimates, and/or out-year allocations of funds may be less than current estimates.
 
Thus the project design team thought it prudent to identify and develop options for reducing the project costs as a risk-management approach for the airport. The design team subsequently commissioned an internal value analysis workshop (which utilized a compressed value-methodology job plan) to identify and develop such options. This paper summarizes the process and the ensuing results of the value analysis workshop along with some lessons learned and conclusions drawn from this application of the value methodology.
 

 
Warren Knoles has over 40 years’ experience in the transportation/civil-site engineering industry. Mr. Knoles is currently Senior Consultant and Principal Value Specialist with Crawford, Murphy & Tilly, Inc. (CMT). His responsibilities include senior project advisor; QC/QA reviews; constructability reviews and value studies on highway, bridge, aviation and land development projects; client relations and business development. Professional affiliations include the American Society of Civil Engineers; Institute of Transportation Engineers; International Bridge, Tunnel and Turnpike Association; American Society for Quality Control; and SAVE International.
 
 
 
by Armin Maes, and Sebastian Meindl
 
If, after many years of consistent application of the instruments and methods from purchasing management in industrial purchasing, further cost reductions, process optimizations or the improvement of the customer benefit become urgently necessary, the purchasing officer reaches his limits in actions when using conventional methods.
 
Value analysis and value management offer expanded options for action and significant potentials of success for purchasing officers. The challenge of purchasing in the mechanical engineering industry, however, is primarily to secure acceptance and support for the purchaser’s approach in fields commonly controlled by the technical departments. Many fail already in the beginning of their attempt for their own lacking technical qualifications, sketchy knowledge of methods, or insufficiently developed soft skills required for leading interdisciplinary teams.
 
This document is to show the possibilities that are available to industrial purchasing in to make value analysis and value management a success under their own responsibility and at eye level with the technical departments, and to implement it securely for the long term in the company organization.
 

Armin Maes, Director Strategic Purchasing at EMG Automation GMBH and ELEXIS AG
 
Armin Maes is Head of Strategic Purchasing at EMG Automation GmbH and elexis AG. elexis AG develops and produces systems for production automation and quality control. Mr. Maes introduced the new organizational unit of Strategic Purchasing in the company structure. Upon successful implementation, he transferred the knowledge gained in the process to the subsidiaries of the EMG Group and thereby established a cross-site purchasing organization. As a value analyst accredited by the VDI [Association of German Engineers], he furthermore implemented the methodology of value analysis at the companies of elexis AG and initiated corresponding projects. Since then, a multitude of VA/VE projects and thus, substantial improvements in the cost structure, as well as business processes have been realized.

 
Sebastian Meindl, PVM, TVM, President of Krehl & Partner
 
Sebastian Meindl is co-president of Krehl & Partner in Germany, the leading Value Management Consultant Company in Germany. Since his start with VA/VE/VM, Sebastian Meindl performed hundreds of VM-related studies in Germany, whole Europe, USA and Mexico. He is active for his clients in their Asian facilities as well. He trained thousands of future VA/VE-specialists. In parallel to his work and since more than 15 years, Sebastian Meindl is engaged in the VDI [Association of German Engineers] as an honorary member of VDI Technical Guideline Commissions. Sebastian Meindl holds the European Certificates of Professional for Value Management and Trainer for Value Management and the German Certificate Wertanalytiker VDI.
 
 
 
by Sebastian Meindl
 
The WALDNER Laboreinrichtungen GmbH & Co. KG Company is a company of the successful WALDNER Group with its commercial residence in Wangen/Allgäu. Its range of products includes essential laboratory fume cupboards, laboratory tables and laboratory cabinets as well as the related media carriers (media covers, media cells, etc.).
 
The side-installed laboratory fume cupboard (SI fume cupboard) is the most important safety device which is used to protect the users during experiments and analyses. The extracted air volume stream from the fume cupboard ensures that hazardous gases and concentrations are extracted from the internal workspace.
 
The market penetration of the SI cupboard, which already exists in a 2nd generation, was very small during the entire lifecycle and thus lagged substantially behind expectations which caused the executive management to initiate a concentrated value analysis project. Through this project, the manufacturing costs were supposed to be significantly reduced in order to thus be able to attain more attractive pricing and thus higher sales unit figures.
 
During the project, the existing product was fundamentally scrutinized. Initially, the customer requirements were investigated in order to understand how the customer “functions” and/or what characteristics and features are truly important from the customer’s perspective. By intensively examining the current competing products as well as a determination of the position of the own product in the market environment, additional important findings were able to be attained.
 
For the subsequent creative phase of the product design, some guidelines were defined which were based on the findings from the analytical phase. The basic requirement for the successful product design was the examination of the steel processing and steel working. This was crucial–even if it corresponded to a change in paradigms in comparison with the previous fume cupboard–because WALDNER instead used wood materials for its products in the past.
 
Through the aide of the value analysis method, the interdisciplinary project team succeeded in designing the SI3 fume cupboard based upon the customers’ requirements and even exceeded the prescribed goal for reducing manufacturing costs.
 

Sebastian Meindl, PVM, TVM, President of Krehl & Partner
 
Sebastian Meindl is co-president of Krehl & Partner in Germany, the leading Value Management Consultant Company in Germany. Since his start with VA/VE/VM, Sebastian Meindl performed hundreds of VM-related studies in Germany, whole Europe and USA. He is active for his clients in their Asian facilities as well. He trained thousands of future VA/VE-specialists. In parallel to his work and since more than 15 years, Sebastian Meindl is engaged in the VDI [Association of German Engineers] as an honorary member of VDI Technical Guideline Commissions.
 
Sebastian Meindl holds the European Certificates of Professional for Value Management and Trainer for Value Management and the German Certificate Wertanalytiker VDI.
 
 
 
by Rob Kivi
 
The Ontario Ministry of Transportation has undertaken a number of Value Engineering studies on 2 lane highways that were being converted to 4 lane freeways, referred to as 4-laning projects. Planning studies for 4-laning projects are often completed years in advance of funding becoming available for the construction of the project. This presentation will demonstrate the benefit of applying VE on 4-laning projects, particularly when the planning study was completed years before the project is funded. Examples will be drawn from VE studies performed during the planning study, studies performed after the planning studies but before detail design, and VE studies undertaken with the detail design team.
 

 
Rob Kivi, P.Eng., is Vice President, Transportation (Ontario and Atlantic Canada) with WSP|MMM Group. He has over 32 years of experience in planning, preliminary design, detail design, contract administration and EA studies for a wide variety of transportation projects on behalf of clients in Ontario, nationally and internationally. Much of this experience has involved complex multi-disciplinary freeway projects. Rob has also been Principal in Charge and Project Manager for numerous Value Engineering studies undertaken for the Ontario Ministry of Transportation and other clients. He has also been involved in a number of Risk studies related to transportation infrastructure. Rob has completed Module 1 and 2 training in Value Engineering.
 
 
by Erika Ikeda
 
There has been few VE applications in the service industry, since the evaluation from the customer sensibility must be prioritized in the service industry. Therefore, in Saizeriya Co., Ltd. (hereinafter Saizeriya), the assessment method was introduced to quantify the customer sensibility by measuring the brain wave. Consequently, this method enabled to measure the sensible impression by customers quantitatively.
 
In this paper, the restaurant lighting was focused and suggested the breakthrough example of the improvement of the lighting by using the assessment method that the customer sensibility is quantified by the brain wave analysis of the customers.

 
Erika Ikeda, Innovation Driving Department, Saizeriya Co., Ltd., Japan
 
Erika Ikeda joined SAIZERIYA CO., LTD. in 2011. She is operating the Italian chain restaurants in Japan. She has started her VE career since 2013 and experienced several VE workshops. Currently, she is working on the VE training and planning as a coordinator.
 
 
 
by Stephen J. Kirk, and Stephen E. Garrett
 
The concept of resiliency or disaster mitigation has become more critical as both public and private organizations make significant investments near areas where natural disasters may occur. As the world’s population increases, it creates added risk to large swaths of occupied areas as weather events grow in severity. The typical response is the add resiliency features for a premium that reduce the risk to life or property damage but these often do not meet the requirements for project budgets or can add significant lengths to the completion schedules. In some projects, the focus can be shifted away from sustaining a way of life and more on what it means to live in a resilient community.
 
This presentation will discuss a number of value strategies for improving resiliency. The focus will be on identifying hazards, assessing vulnerabilities, determining the probability of risk or hazards, establishing the stakeholder importance, creating performance targets, and determining a best value response. Two case studies will be used to illustrate how these strategies have improved resiliency to reduce risk. Use of strategies such as, the value methodology, FAST, needs analysis, project performance measures, risk analysis, collaborative workshop iteration for maximum creativity, and evaluation techniques, Life Cycle Costing will be also used to continuously explore, and improve, options for maximum project success.
 

 
Stephen J. Kirk, PhD, FAIA, FSAVE, CVS-Life, LEED® AP is Partner and Chief Executive Officer of Kirk Value Planners (A Member of Kirk Associates), which specializes in project planning, VE, sustainability, life cycle costing, and post occupancy evaluation services. He has over 35 years of experience in applying value based design decision-making techniques to corporate offices, educational buildings, museums, embassies, research facilities, hospitals, airports, national parks, and roads & highways. Dr. Kirk is a registered architect, a Fellow of the AIA, a CVS Life, and is a LEED Accredited Professional. Steve is a Senior Fulbright Scholar in architecture and received his doctorate degree at the University of Michigan. He is the author/co-author of nine books related to project planning, VE & LCC including his text, Enhancing Value in Design Decisions. Dr. Kirk received the prestigious Gold Award from the Engineering Society of Detroit in 2010 which recognizes the Michigan “Engineer of the Year.” Steve served as President of SAVE International from 1998 to 1999. He is currently serving as Director and Vice President of Education for the Miles Value Foundation. Dr. Kirk is a Fellow of SAVE International and is the Dean of the College of Fellows. Steve is on the faculty of the School of Architecture at Arizona State University.

 
 
Stephen Garrett, CVS is Partner and Chief Operating Officer of Kirk Value Planners, which specializes in provide comprehensive facility economics, value planning, education, and value management services. Steve has over 25 years of professional experience including extensive skills in value based decision making, project criteria development, costing, scheduling, quality assurance / quality control (QA/QC), strategic planning, and program management for large, complex projects for national and international clients. As partner, he typically leads highly skilled, multi-discipline teams in generating strategies and recommendations for projects ranging from hundreds of thousands to billions on 5 continents. He is also skilled in life cycle costing with his experience including office, government, manufacturing, institutional, health care, education, and laboratory facilities. Steve received his Bachelor of Architecture degree from Lawrence Technological University. He is a guest instructor for Lawrence Technological University and the University of Michigan. He is a Certified Value Specialist (CVS), has been a member of SAVE International for over 10 years, teaches certified SAVE International courses, is the former President of the Greater Michigan Chapter and is currently serving as a member of the SAVE International Certification Board
 
 
 
by P. Arjunraj, Senior Engineer, Engines-Research and Development, Mindra and Mahindra Limited, Mahindra Research Valley
 
The primary function of the intake manifold is to evenly distribute the combustion mixture (or just air in a direct injection engine) to each intake port in the cylinder head(s). Even distribution is important to optimize the efficiency and performance of the engine. The cost of the intake manifold are higher which finally results in the cost increase of the component. Hence the value study needs to be done in engine air intake manifold to reduce the cost of the component without affecting the performance of the engine. The value of the air intake manifold needs to be improved with reduction in cost without affecting the basic function.The quality, reliability and performance of the intake manifold needs to be maintained as they are the front runner to achieve the basic and higher order function.
 
 
 
by Paul Scarbrough
 
This study describes how Target Costing (TC), which is strongly associated with the Value methodology, was attempted as an addition into a traditional Stage-Gate (SG; Cooper, 1990) product development process. We find conflict between the Stage-Gate method and TC that is consistent with criticisms of SG raised by Sethi and Iqbal (2008). This includes limitations to learning due to truncation of sub-projects without the iterations in TC. We identify the aspects of TC that are in conflict with SG-type design processes, in particular, the lack of effective use of Value Engineering and Quality Function Deployment.
 
 
 
by Raj Pillai, and Anita Lukose
 
Since inception, Sobha Limited has always strived for benchmark quality, customer centric approach, robust engineering, in-house research, uncompromising business ethics, timeless values and transparency in all spheres of business conduct, which have contributed in making it a preferred real estate brand in India. As a global leader in the construction industry, Sobha always give importance for perfection and continual improvement. To keep this pace of growth, it is imperative to deliver innovative and competitive products and services. To ensure effectiveness and efficiency, VE is applied in all phases of the product creation process.
 
A review of the business goal using the function analysis aligning with the sustainability aspect helped Sobha to identify different areas of improvement. One such area where a commonly adopted construction activity was avoided by enhancing the material used is presented as a case study in this paper. Function analysis in different levels and Analytic Hierarchy Process (AHP) helped the team to streamline the procedure to reduce the project duration, reduce wastage, and reduce the carbon emission. All these was possible at a reduced project cost. This case study demonstrates the power of VE in different areas of business operation.
 

 
Raj Pillai, is presently Executive Director at Sobha Ltd, a Bangalore based, and India’s leading Real Estate Company.
 
A graduate in Civil Engineering from Bangalore University with over 25 years of multidisciplinary experiences in the field of construction of buildings, factories and highways in India and abroad with major construction companies, Raj has also undertaken his two year managerial course from Doncaster- UK.
 
Raj Pillai was also Chairman of ‘Indian Concrete Institute –Bangalore Centre’ during the year 2008-11 and Vice President {South} Indian Concrete Institute during 2011-13. Raj Pillai is also member of various Committees {Government and Professional} at national and International levels, the most recent one being the member of committee revising National Building Code of India.
 
Raj has presented various technical papers in national and international seminars, the most notable international ones being ‘ICCEX @ BERLIN -2006’, ‘OWIC @ SINGAPORE-2010, SMART BUILD@ Cape Town - 2014 and ‘Affordable housing summit 2014 @ Singapore and Smart Build conference 2015 @ Kuala Lumpur.
 
For his contribution to Ready Mixed Concrete Industry in India, Raj was awarded ‘CHANGE MASTER’ award by Tasmac University and Business-Gyan Magazine in the year 2006 Very recently, Raj Pillai has been conferred swith Prestigious ‘VISHWAKARMA AWARD 2012’ by CIDC- a body of Planning Commission-‘Govt of India’, for his contribution to the Indian construction industry.

 
 
Anita Lukose is currently Head of the Department of Value Engineering and Technical Purchase Audit at M/s Sobha Developers Ltd., a premier real estate company based in Bangalore, India. She also holds the additional responsibility of heading the Innovation committee that spearheads the Innovation activities in the company.
 
A Civil Engineer by profession, Anita is also a CVS from SAVE International. She has presented different papers in national and international conferences. She is the recipient of prestigious Soundaram Kannappan medal instituted by INVEST for propagating VE in India during 2013. She was awarded the SAVE paper of the year award during the SAVE International Value Summit 2014. She is the secretary of INVEST South Zone Council and a member of INVEST National Council. She is also a member of the SAVE International Certification Board and E06 Subcommittee of ASTM on Building Economics (E06.81).
 
 
 
by Michael Mladjenovic, The Sensei Group
 
In today’s rapidly changing, complex, and global environment, the ability to create value through innovative products and services, faster and more profitably than competitors is a matter of survival and sustained success. That goal and objective of sustainable value creation and retention can be achieved only by implementing simultaneously Value Engineering, Lean and Six Sigma methodologies that share common scientific methodology based Structure.
 
This session will highlight key characteristics of development and implementation or Organizational Excellence architecture based on the integration of Value Engineering, Lean and Six Sigma methodologies and tools.

 
Dr. Michael Mladjenovic is the Master Black Belt, whose professional experience includes senior leadership positions in manufacturing, engineering, continuous improvement, and quality assurance for LifeLabs, Maple Leafs Food, Magna Int., Intier Interiors, General Electric, PPG, and SKF (IKL). In 1995 he received Six Sigma training and certification while participating in General Electric Six Sigma deployment.
 
Dr. Mladjenovic has published over 20 papers related to business improvement, strategic management, integrated risk management, and problem solving methodology. During his work in automotive, food, electronic, and health sectors Dr. Mladjenovic has lead a number of initiatives related to development of the Enterprise Business systems development and improvement Strategies and Quality Systems implementation. He has conducted trainings and workshops on Six Sigma, Design for Six Sigma, Business Process management, Project Management, Value Engineering, Lean Manufacturing, Theory of Constrains, Triz, TPM, Kanban, Kaizen, 5 S, and Value Stream Mapping.
 
Dr. Mladjenovic is an ASQ Certified Quality Auditor, Reliability and Quality Engineer, Registered Professional Engineer, and holds a B.S., a Master’s and Doctor’s Degree in Mechanical Engineering and Business.
 

 

 
by Nalini Nanrudaiyan, and Yogesh Potdar
 
There are different forms of innovation models developed and used by companies, many of which are a top-down approach of structured innovation which is slow and expensive. Very recently it has been realized that in many cases, a bottoms-up approach would enable a cost effective, faster process of innovation which caters to the needs of the diverse global population better. Particularly there are enormous opportunities in developing countries utilizing frugal innovation. Frugal innovation aims at removing all unnecessary features from a product and reducing the cost; which, in turn, increases its market [1-3]. Frugal innovation is not about making things new, but making things better using fewer resources. In this paper we want to discuss the opportunities/ needs for frugal innovation, describe some of the frugal innovations across the globe and explain how value engineering and TRIZ trimming tools can handle the non-essential or the harmful functions of a product that can lead to frugal innovation. The paper will make a case for use of value engineering and TRIZ in frugal innovation through a case study of medical devices for low and middle income countries. Statistics show that about 76% of medical devices are used by the 13% of the global population who are able to afford it [4]. In the past, this issue has been addressed by the “globalization” approach, which intended to remove the features of the high tech products for low income groups. Now, the mind-set of the medical device companies is changing as they have started analyzing the key challenges in these high tech products such as their power hungry nature and their inability to cope with heat, humidity and dust. GE is a company that sees the commercial potential of frugal innovation, and one of our most successful products to come out of this effort is “Lullaby baby warmer” which costs around one fourth of the cost of the device sold in US [5]. The tool described in this paper, enables private sector companies to make headway in the development and deployment of low cost medical devices which can help provide high technology health care to the vast majority of population in rural areas. In India, for example, 60% of population lives in rural areas. Value Engineering is a systematic approach to increase the value of the product by using an examination of the function, while TRIZ is a structured and algorithmic approach to solve any problem creatively. We believe the combination of these tools will enable frugal innovation that lays a pathway to reach the ‘last mile’ of the people.
 

 
Nalini Nanrudaiyan has been with GE Global Research for the past five years. She is an electrical engineer by training and has got certified as an AVS very recently. She along with the team in GE global research, Bangalore is passionate about value engineering and is very keen in being part of spreading this culture across GE. One of the key initiatives the team in Global Research Bangalore is to get rid of the unstructured creative phase of value engineering, replace it with the more structured TRIZ problem solution technique, adapt and use some of its well proven TRIZ tools.
 

 

 
by Mark Watson
 
VE is a project-management tool that project managers should employ to improve their project. The definition of improvement can vary depending on the project manager's and the stockholder’s vision of the project. Although traditionally VE is considered a cost-control process, it can be utilized in a variety of ways, such as: defining project goals, improving schedule, and as a means of solving engineering problems. When the project manager understands and applies the basis of the VE process, it becomes a tool similar to TQM, critical path scheduling, and estimating. When the project manager takes control of the traditional VE process and integrates it into the project, they eliminate much of the uncertainty of the VE process. Understanding and applying VE as an integral part of the project-delivery process will allow the project manager to utilize the benefits of VE and in the end create a better project.
 

 
Mark Watson is a registered professional engineer, certified value specialist, and certified project management professional. He is Vice President of Value Management Strategies, Inc. and has been facilitating value studies since 1999. Mark's experience includes facilitating a multitude of value-optimizing studies and analyses on a wide array of projects that cover the gambit of the design and construction industry. He has conducted value analysis, value engineering, and value planning studies on roads, bridges, water and wastewater facilities, transit facilities, airport facilities, and drainage facilities, as well as buildings for education, health care, prisons, military, and embassy and consulate operations. He has also assisted in development of decision analysis models and process improvement efforts for multiple government organizations. He has conducted research on risk analysis methods, techniques, and tools and their applicability to design and construction projects. He has applied these analysis techniques in combination with his decision process expertise in supporting organizational decisions, ultimately leading to development of decision support models capable of analyzing all resource allocation decisions.
 


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