Value Analysis and Engineering Reengineered: The Blueprint for Achieving Operational Excellence and Developing Problem Solvers and Innovators

188 Pages·2016·5.46 MB·English

by  Kassa

Quality & Six Sigma / Value Thinking K
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S Va l u e A n a l y s i s
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Value Analysis and Engineering Reengineered
The Blueprint for Achieving Operational Excellence
E n g i n e e r i n g
and Developing Problem Solvers and Innovators
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If you are engaged in the pursuit of excellence and are ready to make the leap
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from good to great and generate an immediate and measurable payback, you
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R e e n g i n e e re d
will want to empower your people with the knowledge and skills of value analy- l
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sis & value engineering (VA/VE) provided in this compact book. e

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There are myriad books on improvement methodologies, such as Six Sigma, n
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Lean Thinking, Business Process Reengineering, Total Quality Management,
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Kaizen, and Project Management. VA/VE, as presented in this book, will help to y
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positively disrupt the status quo of their fragmented application and siloed i
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thinking that limits their effectiveness.
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The Blueprint for Achieving Operational Excellence
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What is unique about this reengineered value-engineering book is that it solves d

this problem by (a) capitalizing on VA/VE’s customer-centered functional E and Developing Problem Solvers and Innovators
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approach of the scientific method known as the value methodology (dubbed by
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the author PISERIA) and by (b) integrating the aforementioned improvement i
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methodologies into the PISERIA value methodology based on the whole-system e
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thinking approach—thereby developing a dynamic hybrid and broader body of
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knowledge to help organizations achieve dramatic improvements. i
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In other words, the reengineered VA/VE is like a Swiss army knife that combines R
several individual functions into a single unit. e
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Thought leader Abate Kassa rides high among simplifiers by slicing through the g
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world of complexifiers in blending these improvement methodologies, thereby n
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earning him an acclaim as “the Peter Drucker of value management.” In this
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book, he takes the power of VA/VE to the next level by reducing business r
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process complexity—enabling you to meet and even exceed your customer d
requirements more effectively and efficiently.
VA/VE helps employees find meaning in their work while helping your organiza-
tion get results. Meaning at work drives higher workplace productivity and
VA/VE makes work meaningful by providing people with the opportunity for
Abate O. Kassa
self-actualization and achievement.
K26529
ISBN: 978-1-4987-3725-8
90000
9 781498 737258

Va l u e A n a l y s i s
E n g i n e e r i n g
and
R e e n g i n e e re d

Va l u e A n a l y s i s
E n g i n e e r i n g
and
R e e n g i n e e re d
The Blueprint for Achieving Operational Excellence
and Developing Problem Solvers and Innovators
Abate O. Kassa
Boca Raton London New York
CRC Press is an imprint of the
Taylor & Francis Group, an informa business
A PRODUCTIV ITY PRESS BOOK
CRC Press
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© 2016 by Abate O. Kassa
CRC Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Version Date: 20151012
International Standard Book Number-13: 978-1-4987-3726-5 (eBook - PDF)
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To my beloved wife, Waka, and the amazing
long journey we traveled together,
my remarkable and loving sons, Mengistu and Alem,
my precious granddaughter, Sofia, and her
wonderful and beautiful mother, Paola.

Contents
Foreword .............................................................................................xiii
Acknowledgments ................................................................................xv
Introduction: Making the Case for Value Analysis
and Value Engineering .......................................................................xvii
Section i the Value Perspectives
chapter 1 Genesis, Goals, and Definitions ........................................3
chapter 2 The Value Equation ..........................................................11
What Is Value? ............................................................................11
The Value Equation ...................................................................12
Value-for-Money ........................................................................14
Value Innovation and Ways to Add Value ..............................15
chapter 3 Achieving Excellence .......................................................19
Principles of Excellence ...........................................................20
The Excellence Model ...............................................................21
chapter 4 The Integrated Value-Improvement Methodologies .....23
Lean Thinking ............................................................................24
Six Sigma .....................................................................................25
Quality Function Deployment .................................................26
Project Management .................................................................26
Supply Chain Management and the Supply Value Chain .....27
chapter 5 Change Management .......................................................31
The Change Equation ................................................................32
The Process of Change .............................................................34
The Forces of Change ................................................................36
vii
viii • Contents
Section ii the Value Methodology
chapter 6 Overview of Thinking Methodologies ...........................41
Intuitive Thinking versus Value Thinking ..............................41
Inductive Reasoning & Deductive Reasoning ......................42
DMAIC ......................................................................................42
Project Management Process ..................................................43
Scientific Method .......................................................................45
Whole System Thinking ............................................................45
Piseria, the Value Methodology ..............................................46
The Five Basic Questions ........................................................48
chapter 7 The Preparation Phase .....................................................49
Candy Wrapper Case Study ......................................................51
Select VA Project and Project Worker(s) ............................51
VA/VE Goal Setting ..............................................................52
Project Charter .......................................................................52
Spend Analysis .......................................................................53
Value-Improvement Project Candidates ...........................54
Red Flags for Project Selection .............................................58
chapter 8 The Information Phase ....................................................59
Candy Wrapper Case Study ......................................................59
What Is It? ....................................................................................59
What Does It Do? ......................................................................60
The Anatomy of Function .....................................................61
Kinds of Functions (Function Identification) ....................61
Purpose–Function–Method .................................................63
Functional Analysis Systems Technique .................................63
Value-Stream Mapping ..............................................................65
Root-Cause Analysis .................................................................66
The Five Whys ............................................................................66
Where Do We Get the Information? .......................................67
How Do We Gather and Record Information?.......................67
Specifications .........................................................................68
Function .................................................................................68