Vol: 1 No: 3 September 1968

VALUE ENGINEERING In this issue Editorial - R. Perkins- Value Satisfaction and Profit

Contractual Value Engineering Provisions in the United States by K. M. Jackson

The Constraints to Creative Value Engineering by Ll. Colonel B. Decker

Stimulation of the Individual by F. S. Slier win

The New Management Tool - Value Administration by A. G. Chappell

The Contribution of Ergonomics to Value Engineering by K. F. H. Murrell

Ergonomics Checklist

The Challenge of Value Engineering - The Theory behind the Savings by F. R. Bowyer

The Numerical Evaluation of Functional Relationships by A. E. Mudge

Organising the V.E.-Effort in a Company by J. Burnside

The Application of V . E . Effort for Maximum Effectiveness by G. P. Jacobs

The Value Engineer's Bookshelf

Selected Abstracts of Recent Literature on Value Analysis/Engineering

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Pergamon Press

The Al M of Value Engineering is to encourage the wider use of value analysis/engineering techniques throughout industry.

Value Engineering

provides a link between those-who are practising and studying the subject all over the world.

It is the POLICY of the journal to contain information which promotes the wider and more efficient application of value analysis/engineering methods.

Its ABSTRACTING SERVICE will draw attention in a conveniently summarised form to the main publications on the subject throughout the world.

* * *

Key-word Index A number of readers have asked for the system for information retrieval to be explained more fully. The key-word system - unlike titles which sometimes cannot cover all the aspects of an article, book review or abstract - signifies those facets of the subject which are covered. For example, the article 'The Constraints to Creative Value Engineering' covers Value Standards yet this was not specifically indicated by the title. By referencing the article to two cards measuring 5" x 3", arranged alphabeti­cally the value engineer can build up a system of reference to articles on Creativity and Value Standards. The list of key-words will be built up issue by issue until a useful list of key­words covering value engineering subjects can be published in a future issue of the journal.

Reprint Service Reprints of the articles and checklists appearing in Value Engineering may be ordered in multiples of fifty copies and detachable ordering forms are provided opposite.

* * * Value Engineering is published bi-monthly by Pergamon Press Ltd. The Editor is Bruce D. Whitwell, 20 Pelham Court, Hemel Hempstead, Herts., England. Telephone: Hemel Hempstead 3554.

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Three Guineas a year isn't much to add to your firm's training bill, but

Industrial Training International every month is a great deal to add to your firm's stock of expertise on the com­

plicated subject of training.

Particularly in these days of rapid change and increasing use of new training

methods and aids, you should keep yourself well informed.

Write for a free specimen copy to 'Industrial Training International',

Pergamon Press, Headington Hill Hall, Oxford, England.

I n t h i s i s s u e :

C o n t r a c t u a l V a l u e E n g i n e e r i n g P r o v i s i o n s in t h e U n i t e d S t a t e s Kenneth M. Jackson Manager of Contracts, Dynalectron Corporation

T h e C o n s t r a i n t s to C r e a t i v e V a l u e E n g i n e e r i n g

Bert Decker Director of Project 3000 at the State University of New York at Buffalo

S t i m u l a t i o n of t h e Indiv idual Frederick S. Sherwin Value Engineering Coordinator, The Plessey Company Ltd.

T h e N e w M a n a g e m e n t T o o l -V a l u e A d m i n i s t r a t i o n Anthony G. Chappell Deputy Managing Director, Mead Carney & Company Ltd.

There is a great deal of interest in the way in which the U.S. Department of Defense operates V.E. clauses in contracts with its suppliers and this article describes such clauses in the Armed Services Procurement Regulation. After half a dozen years a vast potential still exists for savings for of the $45 billion to be spent in defense procurement in 1968 projected savings only amount to 0-3 per cent.

As well as describing the constraints - habitual, semantic, and educational - the author puts forward ideas for overcoming them. Managers, he says, cannot effectively manage that which they do not clearly understand, and the need is for a definition of value in verifiable measurable terms. The integration of value engineering into the organisation should be the aim. Teach those inside so it is they who cut the costs.

The article outlines how management can best stimulate the individual and overcome the barriers Jo motivation. The dangers which come from the 'extra effort' philosophy are highlighted. The amount of stimulation upon the individual should be proportional to the influence which the individual exerts on costs. Management leadership is prime to all techniques for cost improvement.

The author discusses the weaknesses in the methods of reducing overhead costs and advocates 'Value Administration' as an effective alternative. Value Administration' which is based on the functional analysis of activities has as its objective the comparison of the function with its cost. The vital need for Management support is stressed.

T h e C o n t r i b u t i o n of E r g o n o m i c s to V a l u e E n g i n e e r i n g K. F. H. Murrell Reader in Occupational Psychology, University of Wales Institute of Science and Technology

Value engineering should not stop short of its completion point - the perfor­mance of the product. This can be ensured by applying ergonomic principles to design, manufacture and use. Equipment which is produced for sale should be assessed for its overall efficiency when operated by a human operator.

T h e C h a l l e n g e of V . E . - T h e T h e o r y b e h i n d t h e S a v i n g s Frank R. Bowyer Consultant, Value Engineering Ltd.

T h e N u m e r i c a l E v a l u a t i o n of F u n c t i o n a l R e l a t i o n s h i p s Arthur E. Mudge Director of Value Engineering Services, JOY Manufacturing Company

O r g a n i s i n g t h e V . E . - E f f o r t in a C o m p a n y

J. Burnside Assistant to the Deputy Chairman (Engineering), Lindustries Ltd.

T h e A p p l i c a t i o n of V . E . E f f o r t fo r M a x i m u m E f f e c t i v e n e s s G. P. Jacobs Manager of Value Engineering, British Aircraft Corporation (Operating) Ltd. (Weybridge Division)

In this second of five articles the author asks 'Why bother about a theory of value engineering?' He puts forward forty postulates for consideration as a basis of a theory of value engineering.

Continuing the consideration of functional worth from the July issue the author points out precise functional balance is that which makes a product both work well and sell effectively at the lowest total cost. The article describes methods which the value engineer can use to evaluate functional relationships of products which he is called upon to analyse.

In the first of three articles a Profit Improvement Programme is discussed and the areas in which it can be applied are shown. The requirements of small as well as medium and large companies are given attention.

Attention is drawn to the need for employees to appreciate that their overall objective is to improve their company's ability to make profit. The value engineer has to judge the area in which his work is most likely to produce results, and he can often make his greatest contribution in 'upstream' work during the project definition stage. The need for a continuing programme of value research is stressed.

C H E C K L I S T S Ergonomics Checklist Pitfalls and Weaknesses to Avoid in Establishing Value Analysis or Engineering in a Company

B O O K R E V I E W S Ergonomics - Man and His Environment (Murrell, K. F. H.) Materials for Engineering Production (Houghton, P. S.) The Enterprise and Factors Affecting its Operation (Roberts, C. The New Materials (Fishlock, D.) Fitting the Job to the Worker (O.E.C.D.)

R.)

Value Engineering, September 1968 129

B O O K R E V I E W S — c o n t i n u e d Fundamentals of Operations Research (Ackoff, R. L. and Sasieni, M. W.) Design Engineering Guide - Value Engineering (Roberts, J . C. H.) Teach Yourself Statistics (Goodman, R.) Quality Control Handbook (Juran, J . M.) (ed.) A Search for V.E. Improvement (2 vols.) (SAVE) SAVE - Volume 3 (Proceedings 1968 National Conference) SAVE - Volume 2 (Proceedings 1967 National Conference) Application of Value Analysis/Engineering Skills (Blyth, J . and Woodward, R.) How to Cut Office Costs (Longman, H. H.) Modern Management Methods (Dale, E. and Michelon, L. C.) Design Engineering Guide - Electric Controls (Weaver, G. G.) (ed.) Design Engineering Guide - Adhesives (Philpott, B.A.) (ed.) Operational Research (Makower, M. S. and Williamson, E.) The Art of Decision Making (Cooper, J . D.) Design Engineering Handbook - Metals (Product Journals Ltd.) Propulsion Without Wheels (Laithwaite, E. R.) Machinery Buyers' Guide 1968 (Machinery Publishing Co. Ltd.) Creative Synthesis in Design (Alger, J . R. M. and Hays, C. V.) Purchasing Handbook (Aljian, G. W.) (ed.) Handbook of Fastening and Joining Metal Parts (Laughner, V. and Hargan, A.) Materials Handbook (Brady, G. S.) Measurement and Control of Office Costs (Birn, S. A., et al) Design Engineering Guide - Fluidics (Product Journals Ltd.) Value Analysis - The Rewarding Infection (Gibson, J . F.) Design Engineering Guide - Metrigrams (Product Journals Ltd.) Main Economic Indicators (O.E.C.D.) Mechanical Details for Product Design (Greenwood, D. C.) (ed.) Engineering Data for Product Design (Greenwood, D. C.) Engineering Materials Handbook (Mantell, C. L.) (ed.) Fundamentals of Numerical Control (Lockwood, F. B.) Municipal Work Study (Millward, J . G.) Product Engineering Design (Greenwood, D. C.) Quality Control for the Manager (Cowan, A. F.) Essays on Creativity in the Sciences (Coler, M. A.) (ed.)

A B S T R A C T S [36] to [45]

In future issues:

Value Control at the North American Rockwell Corporation Commercial Products Group by E. J. Williams, Vice-President of Manufacturing and Facilities

Patents for Inventions by Frank Newby, Information and Patents Officer, Hardman Et Holden Ltd.

Organising the V.E.-Effort in a Company; Parts 2 and 3

by J. Burnside, Assistant to the Deputy Chairman, Lindustries Ltd.

The Challenge of V.E. - Making the Theory Work; Training for V.E.; Value Engineering Development by F. R. Bowyer, Consultant, Value Engineering Ltd.

Insuring an Effective V.E. Workshop Seminar by J. J. Kaufman, Manager of Industrial and Value Engineering, Honeywell Inc. Aerospace Division

What is a Value Engineer? by Patricia B. Livingston, Management Systems Analyst, North American Rockwell Corporation, Space Division

Should V.E. be Value Engineering Itself? by J. Harry Martin, Manager of Value Engineering, General Electric Company, Ordnance Department

How Instant Money Works Describing the Kaiser Aluminium and Chemical Corporation's Accounts Payable System

Value Engineering - Dynamic Tool for Profit Planning by George H. Fridholm, George Fridholm Associates

The Value Manager

by Bert J. Decker, Director of Project 3000, State University of New York at Buffalo

Questionnaire - The Value Engineer in Private Industry

130 Value Engineering, September 1968

EDITOR: Bruce D. Whitwell, Industrial Economist

R E G I O N A L E D I T O R S

CANADA: Mr C. Bebbington,

Value Program Coordinator, United Aircraft of Canada Ltd., P.O. Box 10, Longueuil, Quebec.

NORTH EASTERN UNITED STATES:

SOUTHERN UNITED STATES:

Lt.-Col. Bert J . Decker, USAFR (Ret.),

Director, Project 3000, Millard Fillmore College, State University of New York at Buffalo, Hayes A, Buffalo, N.Y. 14214.

Mr F. Delves, Lockheed-Georgia Company, Marietta, Georgia.

WESTERN UNITED STATES: Mrs. Patricia B. Livingston, Management Systems Analyst, North American Rockwell Inc., Space Division, Downey, California.

UNITED KINGDOM: Mr R. Perkins, Technical and Works Director, Barfords of Belton Ltd., Belton, Grantham, Lines.

EUROPE: Mr. P. F. Thew, Manager - Industrial Engineering, I.T.T. Europe Inc., 11 Boulevard de I'Empereur, Brussels 1, Belgium.

T h e R e g i o n a l E d i t o r fo r t h e U n i t e d K i n g d o m

Mr R. Perkins, C.Eng., F.I.Mech.E., M.B.I.M., F.I.D.

Mr Perkins, who has contributed the editorial to this issue, began his career as an engineering apprentice at the London Midland and Scottish Railway Locomotive Works at Derby. After working as a Planning Engineer he joined the British Celanese Engineering staff.

In 1951 he became an adviser to the United States Air Force, coordinating American and British mechanical and electrical engineering practice. Mr Perkins then resided in the West Indies for seven years, where he held an appointment as Director of Electrical and Mechanical Services in the Ministry of Communications and Works, Jamaica.

For the last seven years, Mr Perkins has been with the Aveling Barford Group, where he is currently Technical and Works Director for the subsidiary, Barfords of Belton Ltd.

Mr Perkins is married with four children and takes a keen interest in golf. He is chairman of the South Lincolnshire Productivity Association which organises seminars and open meetings on behalf of the British Productivity Council.

Value Engineering, September 1968 131

Long Range Planning—The Journal of the Society for

Long Range Planning—a new quarterly publication from

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Editor: Bernard Taylor

The Management Centre, University of Bradford.

This is an international journal which aims to focus the

attitudes of Senior Managers, Administrators and

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Contents of Volume 1 Number 1

Long Range Planning—the Concept and the Need B y H. F. R. Pe r r in

Analytical Techniques in Planning

Long Range Planning of Managers

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Technological Forecasting in Corporate Planning B y E . J a n t s c h

The Fading of an Ideology B y C . C . B r o w n

New Methods of Economic Management must be developed B y J . B r a y

The Strategic Dimension of Computer Systems Planning B y C . H. K r i e b e l

Mergers and British Industry

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132 Value Engineering, September 1968

Reprint No. 1:3:1

Editorial:

Mr R. Perkins, the British Regional Editor o f V a l u e E n g i n e e r i n g is Technical Director of Barfords of Be/ton Ltd. He has kindly accepted the invitation to write the editorial. Readers, Mr Perkins. . .

Value Satisfaction and Profit I n business, coordination of effort leads to success, but to succeed

there must be a profit . Whether i t be a product- or a service-

oriented company, without motivation, involvement, uniqueness

and value, the goal of satisfaction wi l l not be reached.

A short statement of what business is all about is provided by the

Harvard School of Business: 'Businesses exist to creat value

satisfaction at a profit'. Y o u may well ask, how many people

keep such a simple axiom as this constantly before them? I

submit to you that the whole concept of value engineering is

bound up in providing the value satisfaction without which there

can never be any profit.

From my personal experience, value engineering and analysis

has produced increased profits, and facts and figures have been

produced time and again to support this statement. So the answer

to 'Why Value Engineering?' is equally s i m p l e - i t provides a

proven discipline which wi l l produce profit.

I t is interesting to note that one of the factors taken into account

when carrying out a creative corporate planning exercise is

'the return on sales'. This return on sales is a measure of a

company's uniqueness and i t shows the value given in its products

or services.

The Editors of Value Engineering are vitally concerned that the

techniques of Value Analysis and Engineering should be recog­

nised as a sure means of improving the profitability of a company

without losing any of the uniqueness and value satisfaction of

its products.

A l l companies of whatever type are part of a chain of demand

starting with the consumer and extending back through all

forms of industry to agriculture and mining. Each business takes

something f r o m another business, modifies i t i n some way and

passes i t on to others. I n modifying the company adds value and

obtains a return on sales which is proportional to that value and

its uniqueness. Whilst value i n this sense is affected by the

complete corporate plan, the part played by a sound Value

Engineering function within a company can make a tremendous

contribution towards ensuring an adequate return on the capital

invested by the company's shareholders.

I f a new way is found to produce a new or an existing product at a

lower cost while retaining the product value then a company wi l l -

for a time at least - lead its competitors.

The obvious enthusiasm and detail set out in the articles on value

engineering are a sure indication of the success i t enjoys. I t is

only fair to sound a note of warning. A l l real success in this field

is based on a methodical approach and unless this is taught the

practitioners could bring value engineering into disrepute.

Value Engineering crossed the Atlantic in 1957 and many British

companies have set up V.E. departments; others have found con­

sultants to be most useful in training their staffs and following up

the progress they are making. Personal experience of both ways

has given me a preferencefor the latter method. I t ensures that the

company line management can get on with their functions while

the V.E. department staff are trained in V.E. ' techniques and

methodology by someone f r o m outside. The outside con­

sultant brings a fresh mind to bear on the problems encountered

and - i f he be retained to make periodical visits - can supply an

independent report on progress to the Chief Executive.

A l l those who are engaged in value engineering wi l l be aware

that to be successful you need involvement at the top. The best

way to get involvement is to make involvement easy. There are

very few senior executives who are not prepared to listen to a

reasoned, honest report which wi l l save h im money. There are,

however, many executives whose day to day line management

activities preclude them giving of their best to supporting the

value engineering team. I t would appear in practice very difficult

for a senior executive to keep in the forefront of his thoughts

that 'Value Engineering equals guaranteed increased profits'.

The practice of V.E. is one of to-day's most satisfying activities

and greatest contributors to increased company profits.

Value Engineering, September 1968 133

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134 Value Engineering, September 196H

Reprint No. 1:3:2

Contractual VE - DoD - British Industry - Armed Services Procurement Regulations

Contractual Value Engineering Provisions in the United States by Kenneth M. Jackson

Over recent years there has been a great deal of interest in the way in which the U.S. Department of Defense has installed and applied V.E. clauses in contracts with its suppliers. This article describes the V.E. clauses in such-¬contracts. It summarises the Armed Services Procurement Regulation (Revision 23, Section 1, Part 17, dated 1st June 1967) in an easy-to- understand form. The author does a great service to British government and industry in drawing attention to what value engineering contractual incentives are and the kind of areas in which

they may be considered for application. He further offers to reply to any inquiries from readers. Through the ASPR V.E. provisions he says in the United States 'a new profit center has been added to many participating companies' and 'the pacing factor is managerial ingenuity and commitment'. In the U.S. a vast potential still exists for of the estimated $45 billion to be spent in defense procurement in 1968 projected savings only amount to $130 million or 0-3%.

I n t r o d u c t i o n The purpose o f this article is to describe the value engineering clauses used i n U.S. Department of Defense contracts, and to suggest the use of similar provisions in Britain by both govern­ment and industry procurement authorities. Value engineering provisions are needed in order to provide a vehicle fo r the parties to a contract to optimise its value to each of them. They are particularly appropriate in 'sell-make' indus­tries, such as construction, defense weapons, and other systems producers. The need for value engineering became apparent in 1960 after reviewing the rate of increase of defense costs in the preceding decade. To communicate this as a 'demand' for innova­tions and challenges to 'gold-plated' requirements, the Govern­ment, even as a monopsonistic buyer, was forced to offer rewards (comprised of increased sales volume through higher technical evaluation points in new procurements, higher profitability of defense contracts, and the like) before the sellers would be willing to seriously pursue value engineering.

The reluctance of sellers to participate was based upon the terms of the standard 'changes' article of Defense contracts: ' I f any change (to the contract, ordered by the Contracting Officer) causes an increase or decrease in the cost o f . . . this con t r ac t . . . an equitable adjustment shall be made in the contract price (or fee) . . .' I n practice, then, an accepted value engineering-based change proposal would result i n cost savings to the government as a consequence of the initiative of the contractor, but would also penalise the contractor by reducing his profit or fee originally priced against the costs being eliminated. I n addition, the con­tractor, by reducing expenses, lost part of the base which absorbs

* Mr Kenneth M. Jackson, Manager of Contracts, DynalectronCorporation, Washington,D.C, U.S.A., has recently produced a book N e w A S P R V a l u e E n g i n e e r i n g P r o v i s i o n s (published by Sci-Tech Digests Inc., 888 National Press Building, Washing­ton, D.C. 20004). He holds the B.A. and J.D. degrees from Southern Methodist University, is Chairman of the Procurement Regulations Com­mittee of the National Aerospace Services Associa­tion, and a member of the American Bar. Permis­sion of Sci-Tech Digests Inc. to publish this article is gratefully acknowledged.

overhead costs. I n a word, there was an incentive not to submit cost-reducing change proposals. Of course, the fixed-price con­tractor would retain all of any savings realised f r o m value engineering actions which did not require a change to the con­tract. This practice followed f r o m the legal relations of the parties. I n fixed-price contracts, a dollar saved is, generally speaking, a dollar earned. I f the customer must approve a change in the contract before the seller can take the action to save that dollar, the buyer must disregard his right to demand performance strictly in accordance with the contract or his alternative right to receive a partial price refund for any deviation. I f he does not wish to exercise his rights; i f he wishes to actively seek goods of better quality at lower cost, then he must motivate the seller, who has a right to f u l l payment for the supplies and services as originally contracted. Through the use of value engineering clauses, the Government buyer is able to motivate the supplier to submit cost-reducing change proposals by providing profit increases for changes which reduce cost. As a consequence, he has the opportunity to optimise the value of his purchase, and the seller may realise the optimum economic return for his efforts. Yet this mutuality of interest is not the key point in the evaluation of the effectiveness of the incentive clauses. Today we are operating on the positive notion that as long as the Government can realise one dollar of savings f rom the expected total cost of buying and owning a weapon system, no amount of reward payment to the contractor within the range of total cost minus $1 would be exorbitant. Both parties are in a better position than at the time of contracting, assuming adequate probabilities of return. I n addition to the direct profit incentives, the contractor is encouraged to participate in value engineering by (1) giving the successful contractor additional points in source selection evalua­tion, and (2) giving weight to past performance in generating value engineering savings i n determining the 'going-in' or negotiated profit or fee rate.

S u m m a r y o f t h e R e g u l a t o r y P r o v i s i o n s

The Armed Services Procurement Regulation, Revision 23, Section I , Part 17, entitled 'Value Engineering' may be divided into two parts. One provides statements of policy, and instructions for use of the contractual vehicle; the other provides standard clauses to be incorporated into defense contracts.

Value Engineering, September 1968 135

P o l i c y and P r o c e d u r e s The policy statements provide an accurate summary of the objectives of the value engineering program. They include an authorisation to purchase value improving ideas which are sub­mitted as unsolicited proposals. 'Value Engineering' has as many definitions as practitioners. For purposes of the defense contract, however, i t is defined as an effort to provide the essential function of an item or task at the lowest overall cost, which is embodied i n a cost reduction proposal for changing the contract. The proposal is submitted under one of two types of provisions, and may be originated by either the prime contractor or by one of his subcontractors. The first type of provision is called a 'Value Engineering Incentive', in which the level of value effort is entirely up to the contractor. The costs of developing a change proposal are not allowable; i f accepted, the development and implementation costs are deducted f r o m the gross savings before sharing. Under the second type, the 'Value Engineering Program Requirement', the Government funds a level of effort, including loadings and profit. Sharing of savings is, of course, reduced for the contractor under this clause. The incentive clause, with several exceptions, is used in contracts over ? 100,000, although it may, with special justification, be used in contracts under that amount. The program requirement clause is used in cost-plus-a-fixed-fee, system definition, or other contracts where the lack of firm specifications would likely render an incentive clause incapable of realising the savings potential. Both types may be included in the same contract i f their application can be identified to separate phases or portions of the work.

The key problem with both provisions is to provide an opportu­nity for a return to the contractor which substantially exceeds the loss resulting f r o m the decrease in volume on present and future contracts. The point varies, of course, between contractors, and is a function of volume, competition, type of contract, priced profit , and so on. To provide a substantial base against which the policy of increasing profits by a 'fair proportion' of saving is applied, three types of savings are shared: (1) savings under the instant contract, i.e., the contract under which the change propo­sal was submitted; (2) savings in future or contemporaneous acquisitions of the item or task for a stated quantity or time period, either in a lump sum advance payment or on a 'royalty' basis, as additional units are procured; and (3) savings in Govern­ment operations ('Collateral' savings). The proportion of savings paid to the contractor varies as a function of type of savings, type of contract, and type of provision. The following chart sum­marises these rates:

A . Instant Contract Savings Type of Clause Type of Contract Fixed Price Incentive Fee

Incentive Range Norm 0-75% 50% 0-50% varies

according to overall cost incentive and accuracy of savings estimate

Program Range 0-25% 0-25%

Cost-Plus-Fixed-Fee N / A 0-10°

Norm not stated varies according to overall cost incentive and accuracy of savings estimate

10%

B. Future Acquisition Savings Range 1. Wi th Incentive Clause

2. W i t h Program Clause (a) Fixed Price and

Incentive Contracts

(b) Cost-Plus-Fixed-Fee 5 % normal.

20-40% depending upon period of sharing.

10-20% depending upon period of sharing but not to exceed share under instant savings provision.

C. Collateral Savings Definitely specified as 10%, except that savings resulting f rom a reduc­tion in the amount of Government furnished material required under the instant contract is rewarded at the instant contract rate.

Payments made as a result of accepted change proposals are treated in 1-1705.4 as 'payments for services rendered', and not as profit or fee, which are subject to statutory limitations in cost-reimbursable type contracts. While earnings f r o m value engineer­ing are subject to renegotiation (a process for obtaining refunds of excess profits realised over all government sales of the con­tractor), f u l l consideration is given to the statutory factors reflect­ing the contractor's contributions, initiative, and risk. I f a change proposal applies to other Government contracts, whether or not held by the submitter, he shares in the acquisition savings realised under such contracts.

C o n t r a c t C l a u s e s The same clause is used for both the incentive and the program requirement methods, except that the latter references the stated level of effort in the contract schedule and the military specifica­tion, MIL-V-38352, i n accordance with which the program is performed. The clause specifies the data to be submitted with the proposal, e.g., technical description and evaluation of the proposed change and cost impact. The instant contract sharing paragraph states the method of adjusting the contract price, costs or fees in order to vest the sharing payment, which varies between types of contracts. Paragraph (e) provides the formula for arriv­ing at the net savings amount on sub-contractor-originated changes. Another paragraph provides that, while the contractor may restrict the Government's use of the data supporting the change before acceptance, the Government receives f u l l rights to use and disclose the data upon acceptance. Paragraph (i) defines 'instant contract' i n cases where there are options, increases in contract scope, and indefinite ordering arrangements. Then follow the clauses for both types of future acquisition savings with their detailed formulas for computing savings and sharings.

N o t e s C o n c e r n i n g S p e c i a l P r o v i s i o n s Of interest to the general reader are the following notes. Refer­ences are to the paragraphs of the Armed Services Procurement Regulation. 1-1701. Value engineering is not limited to improvements in hardware. The ASPR committee clarified this in Revision No . 23 by referring to the reduction of cost in 'any contract item or task'. 1-1702. A change proposal is acceptable even i f it causes the deletion of contract line items. However, the contractor wi l l not share in savings resulting solely f r o m quantitative evaluations of defense requirements. 1-1703(b). I n negotiating sharing rates, this paragraph reminds the parties, it is the Government's policy to provide strong financial incentives for maximum effort in value engineering. Deleted f rom prior regulations is the additional test which provided that the Defense Department would be generous in sharing only i f it could be assured of definite cost reduction sav­ings. Because of the accomplishments of V.E. , it is will ing to take reasonable risks by payment of shares before savings are 'assured'. 1-1703.2(f). Cost savings to be shared are calculated as follows:

1. Total decrease in contract price (or target cost); minus

2. Contractor's costs of developing the value engineering change proposal, provided (a) they are properly direct charges under the contract involved, and (b) they are not otherwise reim­bursed through either program requirement funding or ASPR Section X V (Cost Rules); minus

3. Contractor's cost of implementing the change. 'Development Costs' are those costs incurred after the contractor has identified a specific value engineering project. 'Contractor's implementation costs' are the costs of incorporating a change which are incurred after acceptance of a change proposal. 1-1703.3. The period of time for sharing of savings on purchases made in the future shall be sufficient, within the stated limits, 'to induce a significant value engineering effort ' . 1-1703.4. Collateral savings wi l l be shared net of any change, up or down, or with no change in acquisition costs. l-1704.2(c). Provides, as does its corollary, paragraph ( f ) of the basic clause, that the amount of collateral savings determined by the contracting officer is unilateral. The amounts of present and

136 Value Engineering, September 1968

future acquisition savings are subject to negotiation and settle­ment procedures. 1-1705.2 Where a single change proposal substantially affects the basis for computing performance incentives in a multi-incentive contract, an equitable revision wi l l be made in the performance provisions. Experience to date indicates that value engineering change proposals enhance performance, so that incentive profits are increased as well. However, there may be degradations in incentive profit elements where i t would be desirable to reduce performance targets.

1-1705.3. Advance consideration should be given to the treatment of all types of costs to be incurred in implementing a value engineering clause, e.g., testing costs. Allowable costs incurred are allowable as indirect charges except to the extent they must not be charged, but only deducted f r o m gross savings in accordance with l-1703.2(f). The costs may not be charged direct, except in the case of the program requirement clause, and then only to the extent proper to cover the required program. 1-1707. Basic Clause Paragraphs.

The Value Engineering Change Proposal contents specified by paragraph (b) should be supplemented by additional 'sales' language, and the contractor ought to specify the duration of his offer, whether i t is 'al l or none', and he may wish to protect his data rights in accordance wi th paragraph (h). While 1-1703.1(a) states that expeditious processing of change proposals is an essential element of an effective incentive, para­graph (c) (1) states that the government shall not be liable for any delay in action on a proposal. The decision as to acceptance of a proposal is final and is not subject to the 'disputes' clause. Paragraph (c) (2) provides that the contracting officer may accept a Value Engineering Change Proposal by issuing a change order to the contract. A change is a unilateral document when issued, and the contractor must comply. Only then can negotiations take place, and the change order superseded by a bilateral contract amendment. I f the parties are unable to agree on amount or other terms of the proposal, a disputes remedy may be available. However, Paragraph (c) (2) also provides that the contracting officer may accept the Value Engineering Change Proposal in whole or in part. Only i f the proposal is conditioned to require acceptance on an 'all or none' basis would any partial acceptance or any acceptance varying the terms of the offer in such a manner as to constitute a counter offer be improper. The final sentence of paragraph (e) states that, while payments of shares to sub-contractors may be treated as part of the sum of development and implementation costs, the Government's share on additional purchases may not be reduced by such payments. Consequently, special attention to sub-contracts with Value Engineering incentives is needed to achieve a balance of motiva­tion of the sub-contractor and compensating return for the volume decrease realised by the prime. The problems of cost

allowability, method of charging, and adequate return are particularly troublesome in this sub-contracting area, which constitutes a significant portion of the procurement dollar and savings market.

Paragraph ( f ) (2), apart f r o m its literal provision, is intended to compensate maintenance, overhaul and repair contractors when the end item is a unit of serviced Government equipment, rather than a unit of hardware, at the higher sharing rates. Otherwise the contractor would be limited to sharing at the ten per cent collateral savings rate.

Under paragraph (g), instant contract sharing is permitted under more than one contract, whether held by the submitter or another contractor, except that collateral and future savings are shared only under the contract under which the proposal is first received. Obviously, the contractor should evaluate sharing calculations under all affected contracts in order to determine under which contract a proposal should first be submitted.

C o n c l u s i o n

I t is hoped that the reader of 'Value Engineering' has now acquired a knowledge of why value engineering contractual incentives are needed and a flavour of the clauses and provisions used in the U.S. Department of Defense to fill the need. As a novice in the ambience of Britain's government procurement, it is recognised that wholesale application of the U.S. provisions to its contractors likely would encounter serious difficulties. A t the same time, our experience is that initial reactions of government and industry to the effect that 'value engineering incentives are not applicable to my area of interest' are proven to be incorrect. Today even our Post Office Department is using value engineer­ing. Some companies having design control offer incentives to sub-contractors even where no incentives are payable through prime contracts. The writer w i l l be glad to respond to any inquiries forwarded through the editor.

I n the United States, a vast potential still exists. Of the estimated $45 bill ion to be spent in defense procurement in fiscal year 1968, projected gross savings f r o m contractor-originated change proposals before sharing amount to $130 mil l ion annually or only 0-3 %. Savings in the magnitude of upwards of 1 % of the defense dollar are readily projected, and 10 % is not an impossible goal. Approximately for ty percent of the gross savings is paid to contractors. A t a profit rate of 10%, this is the equivalent of half a billion dollars in sales, a substantial market. I n short, a new profit center has been added in many participating companies. The contractual incentives provide a unique opportu­nity for joining the conflicting interests of each party to defense contracts; optimum economic return and maximum usable military output. The pacing factor is managerial ingenuity and commitment.

Miscellany

T h e P e r g a m o n P r e s s Pergamon Press was founded joint ly in 1948 i n London by Butterworth & Co. (Publishers) L td . one of the oldest publishing houses in England (established circa 1600), and by Springer-Verlag of Heidelberg and Berlin, the leading European scientific publishing house, under the title Butterworth-Springer L t d . A change of share ownership in 1951 made it possible to change the name to P E R G A M O N PRESS.

Pergamon was the name of a Greek town m Asia Minor , famous for one of the great works of art, the Altar of Pergamon, dedicated to Athena. The P E R G A M O N PRESS colophon is a reproduction of a coin found at Herakleia, dating f r o m about 400 B.C., showing the head of Athena. Athena is recognised as the presiding divinity of states and cities, of the arts and indus­tries - in short, as the goddess of the intellectual side of human life.

R e d u c e s d r a g by 40 per c e n t As little as one part per mil l ion of Polyox in water reduces drag by 40 per cent.

Polyox resins are widely used in adhesives, hair sprays and toothpaste. The Polyox solution is viscoelastic. Chemically i t is a long chain polymer of ethylene oxide.

When i t is stirred i t 'rebounds' after coming to rest and starts to move in the opposite direction.

I t flows uphil l . Once the flow is started by tipping the beaker containing Polyox solution i t continues like a siphon without a tube to contain i t . The siphon effect does not always empty the beaker. The height the l iquid wi l l climb up inside itself depends on how far i t falls outside. To empty a beaker containing four litres (a bit less than a gallon) D r D . F. James of the California Institute of Technology found he needed a fa l l of eleven feet.

Value Engineering, September 1968 137

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138 Value Engineering, September 196K

Reprint No. 1:3:3

Creativity - Value Standards

The Constraints to Creative Value Engineering by Lt. Colonel Bert Decker

In this second article. Colonel Decker aptly quotes the Assistant Secretary of Defense's reference to value engineering as a 'rebellion from beneath'. The purpose of , every rebellion is to overcome some organised constraints ' and the author goes on to show how managers may improve individual creative behaviour and optimise group creativity. Problems in the main yield best to interdisciplinary innovative efforts which are constrained in various ways. Colonel Decker, as well as describing these constraints -habitual, semantic, educational, and so on - offers sug­gestions for overcoming them. Whilst not knowing of the creative techniques is a con­straint, knowing of them does not eliminate the constraint unless one knows when and where to use them. People, too, are attracted in differing degrees to the various

techniques. The need for a definition of value couched in verifiable measurable terms is urged for managers cannot effectively manage and control that which they do not clearly under­stand. Differentiating between 'competitive' and 'integrated cooperative' value engineering the author refers to the failure of the former in the long run. Integrate value engineering into the organisation; teach those inside so it is they who cut costs and simplify design. G.E., over a three-year period, saved $25.75 for every dollar spent on value engineering but-as an additional benefit - they reduced engineering development time by 25per cent. Achievements like this come from the creation by management of a climate that is conducive to the application of value engineering principles.

When one considers the constraints to creative value engineering, one wonders how it ever happens. To some extent, resistance to creative attempts seems to be built into man's genes. However, i t is the dynamic apathy and myoptic negativism which has retarded value engineering for two decades that convinces one that traditional firms are unfortunately most efficiently organised to cause both unnecessary costs and detrimental conformity. I n fact, one must evaluate value engineering as creative solely on the basis of its persistence. I n spite of its many constraints, i t persists and accelerates.

The many and complex constraints to the profitable innovation concerning value derive f rom many sources. Education inculcates them, training shapes them, and organisations build constraints to creative activities into their procedures. However, the greatest barrier to increasing value is our own habitual verbal patterns and our own unconscious, erroneous assumptions concerning how to achieve industrial innovation. The Honorable George Fouch, Assistant Secretary of Defense, has correctly called Value Engineering a 'rebellion f r o m beneath'. I t was a shrewd, intuitive observation which makes one realise that we must somehow change Value Engineering into a 'creative crusade by chiefs'. The purpose of every rebellion is to overcome some organised constraints. I n the industrial world, 'organised constraints' should be very much the concern of managers. I n fact, i n their complex, over-specialised environment, their most pressing prob­lem concerns the optimisation of the group creative behaviour of

* Colonel Decker, USAFR (Ret.) is Director of Project 3000 at the State University of New York at Buffalo. He wrote on 'The Creative Aspects of Value Engineering' in the first issue of the journal. His address is c/o Office for Continuing Education, Millard Fillmore College, State University of New York at Buffalo, Hayes A, 3435 Main Street, Buffalo, N.Y. 14214, U.S.A.

their subordinates. Improving the creative behaviour of an individual is relatively easy in comparison to optimising creative cooperation. Value Engineering is very much a group activity. That, i n itself, is a constraint. Today's problems are interdiscipli­nary. Few can be solved by one man alone. Interdisciplinary integration and innovation is the obvious answer and pressing need. Profits derive f r o m creative change. The average industrial product rarely remains unchanged for more than three years. The constraints to creative value engineering and the interdisci­plinary innovation which i t strives to be can be classified under five general headings as follows:

1. Habitual human responses deriving f r o m both evolutionary and industrial survival factors.

2. The General Semantics difficulties involved and the inability to resolve them.

3. Lack of understanding in and practice of the creative concepts and techniques and especially the inability to optimise group creative behaviour.

4. Lack of understanding of value engineering and especially of why i t is different, radical, and difficult to manage.

5. Lack of understanding of how education, training, and daily industrial practices shape conformity rather than creative behaviour.

Hab i tua l C o n s t r a i n t s I n 'The Creative Aspects of Value Engineering', i t was stated that man is instinctively creative in that all of life rebels against its harsh environment and attempts to change i t . Creative rebel­l ion does seem to be a characteristic habit of all creatures. How­ever, another almost instinctive habit which characterises man seems to negate effective creative behaviour as defined today. That constraint can be called the 'swift habitual signal response'. The 'swift habitual signal response' is an automatic, instanta­neous, discriminative, manipulative, evaluative reaction to danger or threat of danger in the environment. I t is deeply ingrained since i t is a survival product. The caveman who instantaneously discriminated the spot of yellow in his green jungle manipulated

Value Engineering, September 1968 139

i t i n his cerebric memory banks, evaluated i t as the Sabre Toothed Tiger, and automatically jumped for the nearest tree, survived. Because he survived, he gave that capability to instan­taneously discriminate, manipulate, evaluate, and react to his children. Down through the ages that swift, habitual signal response has been perfected. I t is almost a reflex action. Korzybski warned us about that 'signal response'. Alex Osborn gave us techniques for overcoming i t . The swift habitual signal response was and still is a survival necessity. We must react instantaneously to some dangers. Fortunately, however, the caveman discovered that a fire at the cave door kept the tiger out and gave man time to think. The bow and arrow, however, which he created to reduce the danger of the large cat was not the result of a swift habitual signal response. I t was a product of extended creative effort. I t was developed slowly. The sharp stone came first. Fastening i t to a branch followed and the new unique combination was used as a spear. Much later came that unique set of verifiable functions provided by that weapon system called the bow and arrow. The extended creative behaviour of many men produced i t . I n the economic jungle, the greatest danger is the boss. He is today's Sabre Toothed Tiger. I t is his whim, his fancy, his words that subordinates instantaneously discriminative, manipulate, evaluate, and react to. Unfortunately, that swift habitual signal response to the words of the boss is not very creative. But he, being human, likes i t . I t becomes even more of a habit. I n economic life, managers are for the most part a self-elected elite. Managers pick managers; few stockholders bother to use their vote. This means that every ambitious subordinate studies the behaviour of his boss, apes i t to a large degree, uses the values of the boss as evaluative criteria and, in general, reacts in a manner that keeps the boss happy. Thus our economic life is organised to shape excessive detrimental conformity. Effective managers claim they want no 'Yes-men' but still tend to be the victims of their most persuasive specialists who tell them what those managers want to hear. Naturally such conformity negates the innovation upon which modern organisations thrive and without which they stagnant. We hear much of 'permissive' and 'participating' management but not in scientific terms. We flounder towards the solution.

S e m a n t i c D i f f i c u l t i e s Today's 'swift habitual signal responses' are mostly verbal. People skilled in General Semantics call them 'Conventional Wisdoms' or 'unverifiable generalities'. Others, skilled in the detection of propaganda, call them 'glittering generalities' because they 'sound' so good but mean so little. They include such statements as 'The effective leader is a professional manager' or 'The effective manager must, at all times, retain a safe margin of psychological distance while participating wi th subordinates'. One finds no verifiable functions in such statements. Scientifically, they are meaningless. They cannot be verified as either true or false. Their only justification is that they aid and abide economic survival. They please managers because they justify and reinforce manager behaviour. Managers like being called 'professional'. I t sounds impressive. Managers interested in having innovation happen and value increased must be very much aware of these habitual constraints called the swift, habitual, signal response, conventional wisdoms and glittering unverifiable generalities. As covered in 'the Creative Aspects of Value Engineering', the greatest constraint to creative behaviour is semantic. We assume and operate upon the erroneous assumptions that the word is the thing and that a word has meaning by itself. I n fact, research wi th six-grade children has demonstrated that Korzybski-type training in General Semantics increased their verbal flexibility and fluence both of which influence creative behaviour. The need for semantic clarification in our dialogues concerning industrial organisation, management, decision-making, problem-solving, etc., is obvious. Such dialogues are almost completely void of verifiable functions. Words such as authority, responsibi­lities, and decision have yet to be defined in scientific terms. This does'not say that they wi l l not be. For instance, i t is possible and might be highly advantageous to define a decision as a verifiable

statement; i.e., a verifiable set of verifiableTunctions which has a tendency to evoke behaviour which increases or decreases verifiable value. Unfortunately, far too few industrial people have had adequate training in General Semantics although some corporations have published excellent papers on the subject for their people.

I g n o r a n c e C o n c e r n i n g C r e a t i v e C o n c e p t s The world abounds wi th intuitively creative people. Far too few are deliberately, consciously creative in accordance with creative rules. Many erroneously consider lack of discipline as creative and associate creative behaviour with unique, different, 'screw­ball ' behaviour only. However, creative behaviour must be both unique and profitable. To be creative, i t must increase value. To creatively increase value requires a unique creative discipline, a discipline which consistently follows creative rules in a con­sistently flexible manner. I t is behaviour disciplined to be habitually unhabitual in extended creative effort. Further, many people pay ' l ip service' to the creative concepts they know. Like Christian principles, the creative guides for action may be known but not practised. No t enough creative concepts have been stated in scientific terms. However, some creative guides for action have been research-proven. Alex Osborn's principles concerning 'deferred judgment' and that 'quantity breeds quality' have been proven by research. I f people do defer judgment, criticism, and evaluation at first, i t can be demonstrated that there is a significantly high degree of probability that they wi l l generate a bigger percent of ideas which they themselves evaluate as 'better'. 'Deferred judgement' also increases value as value engineering has demonstrated time and time again. The fact that creative behaviour has only recently been defined in verifiables is very definitely a significant constraint to creative value engineering. The fact that creative concepts have not been research proven does not necessarily negate their usefulness. I t is useful to know that the creative process is advantageously defined as a cyber­netic 'feedback' system of 'Objective-Finding', 'Fact-Finding', 'Problem-Finding', 'Idea-Finding', 'Solution-Finding', and 'Acceptance-Finding'. Creative techniques such as the 'Forced-Relationship Technique', 'Synectics', Bionics', the 'Catalog Technique', etc., all obviously generate divergent behaviour and exploit the research proven principle of 'Quantity breeds Quality'. Not knowing of a creative technique is a constraint but knowing of a technique does not eliminate the constraint unless one knows how and where to use i t . Further, because many creative guides for action are not stated in scientific terms, but instead in very vague terms, many fa i l to understand them. The advice to 'Think Big ' or 'Broaden the Scope', for instance, leave a lot of people cold, yet those statements evoke a lot of creative behaviour f rom others. Further, just because people have been taught the value of 'looking at the advantages of an idea before even considering the disadvantages' does not mean they wi l l do so.

V a l u e E n g i n e e r i n g I g n o r a n c e During the American Civil War there was an attempt to sell repeating rifles made on a mass-production basis to the U.S. Army. The Army would have no part of it for two reasons. Their addition indicated that they could not logistically support rifles being fired that fast! Second, they were afraid that i f one man did not make the complete rifle there would be no pride in craftsmanship. History has demonstrated that their first reason was nonsense but their second does indeed have some justifica­tion. Prior to mass-production, the manager's job was simple. He hail one man under him, the craftsman, responsible for the value of the product. I f that craftsman did not produce an item the manager could sell at a profit , he either changed the behaviour of the craftsman or fired him. W i t h mass-production and its specialisation of tasks, the mana­ger's value problem became completely out of hand. Everyone on the production line directly influenced the value of the product. I n addition, every other part of the organisation either directly or indirectly influenced the value of the product or else we could not

140 Value Engineering, September 196H

justify their existence. Wi th everyone being responsible for value, no one is. Wi th no way for the manager to measure the degree of influence that each department had upon the value of the product, he soon became the victim of his most persuasive specialist. I n fact, unt i l twenty years ago, he had no way to precisely measure value for the simple reason value had not been defined in verifi­able measurable terms. Few managers are aware of the opportu­nities which the value concepts gives them. Their ignorance of those opportunities does constrain value engineering.

When Value Engineers first asked 'What causes unnecessary costs?' they found that the list was long. These constraints to value and the creative effort required to increase i t included such things as split authority, split responsibilities, failure to use avail­able specialists, excessive over-specialisation, Empire Building, Selfish Sectional Efficiency, knowledge hoarding for power's sake, lack of effective coordination, lack of group creative plan, lack of ideas, and excessive conformity. Value Engineering is actually a creative, systematic organised attempt to overcome these organisational discrepancies and constraints. As noted above, their attempts to overcome those organisational con­straints have been called a 'rebellion f r o m beneath', for the simple reason that those constraints come under the jurisdiction of middle management. No t understanding the purpose, techni­ques, or promise of that 'rebellion', middle managers intuitively counter attacked. Besides, the more successful value engineering is, the more middle management looks bad. Looking bad is not conducive to economic survival.

The swift habitual signal responses and conventional wisdoms generated in reaction to successful value engineering still fill today's engineering and management literature. 'Value Engineer­ing is just good engineering under a new name!' is heard too often. Those making such statements cannot define 'good engineering' in verifiables and overlook the advantages of being able to so define 'value'. The statement that 'Our System Cost Effectiveness people eliminate all unecessary costs before design' overlooks the fact that System Cost Effectiveness has been based upon traditional cost analysis which value engineering has demonstrated as inadequate for determining precise value.

Ignorance is always a constraint. I t is an erroneous assumption that managers can effectively manage and control that which they do not understand. Knowing the value concepts is not enough. Managers must understand the implications of those concepts, their impact upon the traditional organisation, the degree to which those concepts are in conflict with what all of us call 'the stupid system', the shaper and creator of 'the organisational man'. The most important lesson learned f r o m the list of organisational constraints which cause unnecessary costs is that traditional organisation is very effectively established to cause them and excessive detrimental conformity. Further, they are creative clues for those imaginative managers who are interested not only in overcoming those constraints but in eliminating them.

One of the greatest retardation factors to value engineering over the last twenty years has been 'competitive value engineering' in contrast to.'integrated cooperative value engineering'. 'Competi­tive value engineering' is when a team f r o m outside an organisa­t ion or division goes in and does that unit's value engineering task. To do this, they must 'pick the brains' of those in the organisation, go through their files and in general waste their time. However, because they use the V.E. techniques, they invariably drastically reduce costs and simplify design. I n fact, they usually make the original design look like a Rube Goldberg. This naturally shatters the self-image and self-confidence of those in the organisation who were responsible for the original design. Worse still, i t threatens their survival capability in the economic jungle. They naturally react against both the outsiders and value engineering.

Time and time again in American corporations, 'Competitive Value Engineering' has started out with startling profitable results and slid slowly to a complete halt. The second time around the insiders just do not allow their brains to be picked. Records can­not be found. Protective tactics dominate. Reactive rationalisa­tions take over. Value engineering becomes 'just good engineering

under a new name!' Soon everyone goes back to 'good engineer­ing' and doing things in the old traditional wasteful way. The tactic to overcome 'competitive value engineering' is simple. D o not do i t . Instead, integrate value engineering into the organisation. Teach the insiders so they cut costs and simplify design. Most important, start f r o m the top down and teach the managers to value engineer so they understand its implications and can creatively exploit its profitable possibilities. Further, blame the original 'Rube Goldbergs', the faulty designs and all the waste in the past upon the 'stupid system'. D o not blame any one person. To do so stops value engineering cold. Reinforce the new creative behaviour: blame the system for past mistakes. Blame and criticism stifles creative behaviour. The need to integrate value engineering into the organisation does not negate the need to have a small group in the organisation devoting f u l l time to insuring that value engineering is planned, funded, manned, and does happen. Further, the Value Manager must be up close to the top manager or i t just doesn't happen.

J Time is naturally a constraint to creative value engineering to some degree as it is to any creative effort. I t is because we think so slowly that creative effort must be extended. However, value engineering is noted for saving time i n relation to traditional design practices. For instance, a Vice-President of General Electric Company reported that not only did GE save $25.75 for every dollar spent on value engineering over a three-year period but, as an additional benefit, they also reduced engineering development time 25 %. This, of course, is because value engineering does not have the designer working all alone and forced to do a lot of research to optimise his design. Instead, the designer is provided wi th a team of experts, a fast information gathering team, who either have the required information in their heads or know whom to phone for i t .

One bit of ignorance concerning the creative utilisation of time is a constraint to value engineering or any other type of problem. Too many people solve problems sequentially. I f they have five problems to solve in a week, they attempt to solve one a day. This allows them to incubate only one day on each problem. However, i f they spent an hour and a half on each problem on each day thus giving themselves five days to incubate and extend creative effort on each problem, the improved quality of their solutions would amaze them. Students in creative problem-solving courses have demonstrated this to themselves time and time again. Example of ignorance of value concepts constraining the value effort abound in industry. One follows.

I n a large American electronic firm i t was decided to hire three Value Analysts for the Procurement Department. They were told that their task was to 'challenge all requisitions and ascertain whether a better, less expensive item than that ordered could be purchased'. Two did just that and naturally saved a little money but the third didn't; i n fact, the third could be rarely found in the Purchasing Department, so three months later the head of procurement fired him.

The firing of procurement's third Value Analyst caused an uproar in , of all places, the Design Department. Three Design Engineers went to the Vice-President in charge of manufacturing wi th evidence that the fired Value Analyst had helped each of them reduce costs by tens of millions of dollars before they requisitioned anything. His theory was 'Challenge a man's requisitions and you challenge his pet ideas, his creative behaviour, and shatter his self-image. Y o u must get to h im before he has ideas and insure he both obeys the creative principles and obtains all the required expert help his design task demands'.

Needless to say, the Vice-President was curious. He asked to see the fired Value Analyst for 'fifteen minutes' but listened to h im fascinated for an hour and a half. Highly impressed, he then compounded his procurement man's mistake. He rehired the Value Analyst and put h im in charge of a $600,000 four-month project. He made h im a manager. I t didn't dawn on the Vice-President that the Value Analyst had been saving more than that per month by being free to work straight across all departments. Six months later the Value Analyst left the firm seeking a more creative climate. The Vice-President couldn't figure out why.

Value Engineering, September 1968 141

One sees incidents like that happen in organisations every day. Ignorance of the value concepts and their organisational implica­tions is one of the most damaging constraints to interdisciplinary innovation. The results are dollar diarrhoea and small dividends.

E d u c a t i o n a l C o n s t r a i n t s Research concerning Creative Education by D r Paul Torrance and others has demonstrated the degree to which both educational objectives and methods slowly but surely reduce the curious, imaginative questioning behaviour of our children. A l l five and six year olds test out as highly creative. By seven, however, only f i f ty percent of them do. By the time the children are in their teens only three or four are still behaving creatively according to the tests given. Questioning has stopped. Divergent behaviour has ceased. The children have become adults. Those adults still creative are often called 'childish'. One general educational objective which has resulted in detri­mental conformity has been the one based upon the idea that 'the child must be taught to adjust'. Actually, we do not desire that our children 'adjust' to the present world stupidities. On the contrary, we hope they rebel against those stupidities and creati­vely make some order out of this mess we have given them. Industry also has its 'adjust' objectives. I t is called 'indoctrination'. Unfortunately, there is effective and detrimental indoctrination especially when 'creative indoctrination' is not included.

A survey by D r Paul Torrance of educational objectives has indicated that less than 2% was aimed at inculcating divergent many-answer behaviour. Everyone is familiar to the degree to which education, industrial training, and day-to-day practices shape convergent one-answer behaviour. Engineers are taught to 'go by the book!' The motto of most teachers is 'Heed my words and write them for me in the exams!' Facts are stressed. Getting by in such training is a 'guessing game' only in the sense that the student must guess about which part he is to be tested. That guessing is just about the only questioning behaviour reinforced. The above indicates that to optimise creative value engineering requires a reorientation of practically everyone in the organisa­tion. Much habitual complex behaviour must be clarified and changed where i t is found that conformity is detrimental. Some conformity is not. Only that which retards our efforts to increase verifiable value must be changed. A l l of us have been aware of and burdened by the constraints of the 'stupid system'. The creative value concepts provide both a promise and an opportu­nity. They wi l l eliminate the stupidities not only because 'the dollar talks' but because all men yearn to learn and can't wait to create. Those human desires may be curbed and stifled but they are there.

'So the future wi l l hold nothing less Than the flowering of our creativeness.' Today requires more than luck To make that extra, profitable buck!

Miscellany S a v i n g T e l e p h o n e W i r e s A telephone system in which up to sixty-three subscribers can be connected to an exchange on only two pairs of wires has been devised by M r P. A . Wing of the Department of Electrical Engineering at Lanchester College of Technology, Coventry, England. By replacing sixty-three pairs of wires with two pairs the new system is far more economical wi th copper than the present tele­phone installations. M r Wing's system makes use of pulse code modulation - P C M for short. This is a method of transmitting signals, such as speech, by electronically translating the signal into a code made up of patterns of pulses having the same size and shape. I n several respects P C M systems are simpler than conventional telephone links, and have the advantage that the quality of the signal is not degraded by the switching device it has to pass through at the telephone exchanges. I n M r Wing's system two pairs of wires connect sixty-three subscribers to an exchange and can carry up to eight conversa­tions at once. This is achieved by interleaving the pulses making up the eight channels. According to the inventor, the chances of more than eight channels to the exchange being needed at any time is small enough to make the system practical. What happens is that when one of the subscribers lifts the handset of the telephone a signal f r o m the telephone searches for an empty channel among the P C M pulses. When one is found, the conversation can start. A number of precautions built into the system maintain privacy for the subscribers.

S e l e c t i n g potent ia l v a l u e e n g i n e e r s Many people of obvious intellectual ability gain low scores on conventional intelligence tests but high scores on tests containing questions to which there is no one correct answer. Such people are defined as 'divergers'. 'Convergers', on the other hand, gain

higher marks on intelligence tests than on open-ended tests. Tests carried out by D r Hudson, of Cambridge, noticed other distinctions between the convergers and divergers. The convergers were less likely to express unusual, liberal or non-authoritarian attitudes; their range of interests was narrower than the divergers and their hobbies tended to be practical. Should you seek a 'diverger' value engineer?

T h e H u m a n B a l a n c e S h e e t Previously, employees have always been shown as an expense on the balance sheet. Now James S. Hekimian and Curtis H . Jones (writing in the Harvard Business Review) show how people can be counted as company assets. Using the system which these two authors propound, a company can assess its needs for the skills i t has bought, invest in their maintenance and improvement, and allocate their supply to the most promising divisions and projects in the same way as raw materials and machinery are allocated. A costing system that gives the value of an asset when there is an alternative use for i t is recommended. Placing a monetary value on employees has considerable advantages. Accurate allocations of human resources can be made in accordance wi th company goals, and having made these allocations, managers are motivated to make efficient use of the abilities of the new employees. Michigan University's Institute of Social Research is working to develop ways by which any company can keep account of the money i t has tied up in people and tell how much i t would cost to replace them, and whether their worth is falling, rising, or standing still. Professor Likert, who is directing this investigation, thinks that i f a company in trouble knew how much money i t had tied up in its employees' skills and loyalty i t might look elsewhere for economies rather than immediately cut back on its people.

142 Value Engineering, September 1968

Reprint No. 1:3:4

Management Appreciation - Human Relations

Stimulation of the Individual by Frederick S. Sherwin, B.S.M.E.*

The author, in pointing out that the only source of cost reduction lies in the efforts of individuals, outlines how management can best stimulate the individual. I ntra-functional jealousies. Not Invented Here factors and the like can prevent cost reduction motivation. Leading on from an analysis of why people do things, Mr Sherwin discusses the problems and dangers which can arise out of the 'extra effort' philosophy. He holds that

the amount of stimulation should be proportional to the influence which the individual exerts on costs. Finally, the dramatic impact which value engineering (which is product-oriented) has had on costs is dealt

ywith and the author contends that, although many tech­niques for cost improvement can be used effectively, management leadership is prime to them all.

T h e I m p o r t a n c e of Indiv idual E f f o r t a n d M a n a g e m e n t D i r e c t i o n The only source of cost reduction is individual effort. Thus, the effectiveness of any profit improvement programme based on the reduction of product and operating costs is directly proportional to how well the individual contributor is motivated to produce and implement changes which minimise costs. Generally, employee motivation is a management responsibility, first top management and then middle and lower management. I t is management who must establish the climate under which improvement and change flourish. This is one responsibility that i t is very difficult for them to delegate. Many have tried and some do attempt to avoid this aspect of their job by assigning certain people or functions the task of stimulating the individual, but usually i t doesn't work. People do first what they think the boss wants done first, and they give priority to these things. Some staff or sub-functional head cannot usually establish cost effectiveness as a high level of priority on a broad enough base to affect profits substantially. Only general or profit oriented management can do this. Thus, stimulation of the individual must originate with the top man in each profit centre.

W h o S h o u l d be S t i m u l a t e d Starting wi th this as a basic concept let's look at some of the techniques that can be employed by management to stimulate the decision maker who really influences the cost of doing business. But first, perhaps we should define 'individual'. Just who is this individual who should be stimulated? Well, he is many people -the engineer, the researcher, the methods man, the industrial engineer, the buyer, the salesman, the accountant. A l l of them, individually and as functional groups, have an influence on costs. More often than not, the inter-relationship of this influence is complex and is deeply involved in human relations, the modern business structure, industrial politics, organisation and physical location. For instance, suppose the industrial engineering section is strongly cost improvement motivated. I n the course of their work they may uncover many opportunities for cost reduction, which requires implementation decision making and/or study by other groups or individuals. Suppose, however, these other

* Mr Sherwin is the Value Engineering Coordinator of The Plessey Company Ltd., Vicarage Lane, Ilford, Essex, England, and a Past President of the Society of American Value Engineers.

groups are not similarly motivated or are wholly engaged in other work. Who can provide the motivation for an equal level of effort by these other functions? Intra-functional jealousies and N . I . H . factors can erupt to prevent action. Thus, something more than individual stimulation is required. Perhaps it is individual stimu­lation plus an integration of functions which can capitalise on the motivated individual. Now we are back to an area which only top management (General) can control because of mult i­functional decision making required for maximum cost reduction achievement.

M a n a g e d M o t i v a t i o n Consequently, more than just stimulation is required, managed motivation is essential, on a broad and cross-function basis. So when we are discussing stimulation of the individual we should be considering those management oriented techniques which do two things: 1. Motivate the individual whose decisions affect the cost of

doing business to take aggressive action to initiate cost savings changes.

2. Motivate all the functional areas of the business to so inte­grate and coordinate their efforts that maximum utilisation of individual efforts and skills is made.

This is managing fo r total cost effectiveness and I believe i t is unwise to consider stimulation of the individual within any other framework. Certainly stimulation of individuals without provid­ing the channels for the fulfilment of their efforts would only lead to frustration and eventual defeat of the whole programme.

W h a t M o t i v a t e s P e o p l e ? Now - within this context let's talk about techniques to motivate people. First, why do people do things? Well - for many reasons, but they can be summarised simply as: 1. They like to d o i t . 2. They need to do i t . 3. They are directed to do i t . People generally have a natural desire to create, to gain personal recognition, to improve their economic position, to advance their social position and to contribute to society. Those things which appeal to these natural desires wi l l stimulate them to take action. The social scientist has many intricate explanations of why and how people are motivated. However, to get into these in depth is beyond the scope of this discussion. Instead, let's look at some of the things that management can do to set the climate under which the individual can be stimulated to be productive in the cost reduction and avoidance areas.

Value Engineering, September 1968 143

E s t a b l i s h i n g a R e c e p t i v e C l i m a t e Probably one of the first things, to establish both the climate and personal motivation, is to inform the employee that cost reduc­tion is part of his job. Position descriptions in industry today run the gamut f r o m loose verbal descriptions to an extensive detailed written document which identifies the job's responsibilities, accountabilities and measurements.

A w a r e n e s s of N e e d - P o s i t i o n R e s p o n s i b i l i t y Whatever the f o r m used each employee should be told by his immediate supervisor that efforts to minimise all costs are apart of his work. The individual thus feels the need to do i t , the same as he feels the need to perform other work elements. Of course, this instruction to make cost reduction a part of each job must originate at the top. Each functional manager and supervisor must know that cost reduction is part of his job and part of the responsibility of the function he manages. Thus, cost reduction becomes a way of life, as much a part of the job as any other element on which the employee's salary, progress and advance­ment depends.

Suppose on the other hand, where the supervisor orients the new employee to his job he makes no mention of cost but emphasises schedule, accuracy, quality and other performance factors. The individual's attention wi l l be focused on those things which his boss feels are important. These get top priority and the employee feels no need to do cost reduction work. Thus, management must establish cost effectiveness as a part of the job of all individuals whose decisions influence cost. The individual is thus stimulated by recognition of the need to do cost reduction as a part of his job and as a part of the company's profit improvement programme. A campaign to advise all employees of this need is essential i f a favourable cost reduction climate is to exist. This can be done in many ways such as f o r m job orientation, supervisor-employee discussion, job descriptions, brochures, company publications. Whatever the means, the message must get across - Cost Reduc­tion is a part of your job.

P e r p e t u a l A w a r e n e s s A n initial awareness of the importance of cost reduction actions is not sufficient. A continual effort must be made by management to keep this fact before employees - Company profit , your job and your welfare depends on your efforts to minimise costs. How well you do as an individual determines how well we do as a company. This continually reinforces in the mind of each indivi­dual the need to reduce costs.

D i r e c t i o n o f E f f o r t Very closely allied to management's efforts to create a general understanding of the need to do this work is the effort of manage­ment to direct specific cost avoidance or reduction work. This more specifically orders the individual to carry out certain defined tasks wi th established goals and schedule. I t is desirable that the recognition of need climate is established prior to the direction of effort, because the employee is more receptive to carrying out the order expeditiously i f he is convinced that his and the company's welfare is dependent on his efforts.

T h e H a z a r d s of E x t r a E f f o r t P h i l o s o p h y There is a tendency in American industry to look upon cost reduction work as an extra effort to be rewarded by extra com­pensation in one f o r m or another. Prizes, bonuses, cash awards and other forms of recognition are associated with the field of cost reduction. Suggestion systems of various types are devised to motivate the employee to create and submit changes to minimise cost. No t only do some of these programmes require high administrative costs but also they may be actually detrimental to overall cost reduction. For one thing, this thesis of extra com­pensation for cost reduction implies that such work is not part of each individual's job. I t is saying in essence - we are not paying you to reduce inefficiencies and unnecessary cost. This is a dangerous climate to establish because it removes the recognition of the need to do i t , and such a climate may permeate functional areas where a key job responsibility should be cost reduction.

While i t may be desirable to encourage employees to keep their eyes open in areas other than their own job responsibility, i t may be more desirable to manage improvement in areas of deficiency by strengthening those areas rather than expecting someone else to fill the gap. Moreover, by recognising cost improvements as an extra effort i n one area or wi th one group of employees i t is hard to avoid this same climate f r o m penetrating other areas. Possibly i t would be more profitable to devote management attention to more systematic, organised methods of reducing unnecessary costs and stimulating the individual to do his total job effectively.

C o s t R e d u c t i o n P r o g r a m m e s - A s a S t i m u l a t o r Formal cost reduction programmes which assign responsibilities, establish goals and measure results often serve as an effective stimulant. However, they often can deteriorate into an admini­strative effort to document normal efforts. I f that is all that is achieved, a company is better off to save the cost of administering the programme. I f on the other hand the programme is well structured to motivate excellence in the area of cost effectiveness then i t may well serve as a good rnanagement tool. Such a programme should identify for employees all areas where cost improvements are desirable, all techniques by which cost savings should be achieved, the need for continual effort and manage­ment's endorsement of cost reduction work. Since cost reduction activities are multi-functional and multi-discipline they must be under the direct guidance of general management. As any formal programme the return on investment should be measured to insure the gained benefits are worth the cost.

P r o p o r t i o n e d S t i m u l a t i o n The amount and intensity of stimulation should be in proportion to the influence which each individual exerts on costs. For instance, i t does not make sense to motivate the janitor to reduce costs i f the plant superintendent is not motivated. I f we are con­cerned with product costs, engineering personnel must be highly stimulated since their designs probably have the greatest impact on cost. Their drawings and specifications establish a certain foundation of inherent costs based on existing material and production knowledge. Without breakthroughs in these areas, costs cannot be further reduced. By having control over process, configuration, tolerances, material and often source or product make the design engineer exerts significant influence on product cost. His motivation to take action to reduce this cost is thus a key factor in any cost improvement, which requires change in one of the elements under his control. Purchasing and Manfacturing can only control costs in areas under their decision making authority.

C o s t T a r g e t P r o g r a m m e a s a S t i m u l a t o r Thus, much of managements efforts to stimulate the individual must be centred in their engineering organisation. Where an insufficient degree of cost proficiency has existed in engineering design one management technique to force improved efforts is called 'Cost Targeting'. I n this technique management establishes cost targets for production cost of the product at an early stage of design. Each responsible engineer is assigned a goal for product manufacturing costs on that portion of the product for which he is responsible. As the design progresses the projected production cost is audited by the engineer, his supervisor, a design review team or a cost target team to insure its meeting target. This method provides a real incentive for the engineer, as well as others who influence product cost, to perform well i n the cost area. I t makes the designer cost conscious and encourages him to seek methods to minimise cost because he knows he wi l l be measured in this area. The same concepts can be applied to product improvement or re-design as to original or new designs. I n either case, they hit right at the source of product costs and to provide an important stimulation for cost avoidance or reduction work. Such a programme also does much to establish an overall cost-conscious climate under which all profit improvement activities flourish. I t also motivates an integrated effort between engineering and manufacturing.

144 Value Engineering, September 1968

T r a i n i n g P r o g r a m m e s - fo r S t i m u l a t i n g t h e Ind iv idual The last method of stimulating the individual which wi l l be dis­cussed here is Training Programmes. Such programmes can stimulate participants in several ways. First, they serve to make people more aware of the cost and profit problem. Second, they make them aware of the personal and company benefits of reduc­ing costs as a means of profit improvement. Third, they help the individual be better qualified to eliminate unnecessary costs and because they are better able to do the job they like to do i t . More­over, they stimulate greater job satisfaction and personal sense of achievement and contribution. Such things appeal to the basic motivation instincts mentioned previously: It's creative work, i t gains personal recognition, i t improves their economic position, and they feel they have contributed to society (and company).

Some training programmes aim directly at profit improvement, others help by setting the climate. Some illustration of the latter are:

General Company orientation programmes Management training programmes Industrial psychology.

Some of the programmes which help directly in cost reduction motivation are:

Work simplification Better methods Value analysis - Value engineering Time and motion studies Operations research Profit improvement and Cost reduction PERT/Time/Cost Purchasing methods, Manufacturing methods Materials and Processes Creative engineering - Creativity.

Miscellany I n s t a n t P r in ted R e p o r t s A method for producing instant printed reports of conferences and committees is being developed at the National Physical Laboratory at Teddington, England. The system uses a keyboard machine directly linked to a com­puter system. As the spoken word is taken down by operators of the Palantype mechanical shorthand writer i t is converted automatically into a f u l l English text. This is printed out or punched on to a paper tape which can be fed into an automatic typesetting machine. Normally the Palantype unit prints the spoken word on to a strip of paper and typists transcribe this into typewritten script, a process that takes five times as long as the original Palantype recording. D r W. L . Price, one of the designers, says that for practical application many shorthand writers would be linked into one computer system.

M e g a t e c h n i c s a n d R o c k e t r y Lewis Mumford's recent book The Myth of the Machine (pub­lished by Seeker and Warburg) reminds us that the mechanisation of men long preceded the mechanisation of their working instruments. The mechanisation of man himself Mumford calls the 'megamachine' - the organisation of men's bodies into a vast constructive force capable (with no mechanised tools) of building the pyramids. He explains how - during thousands of years of history - this megamachine served the ambitions of kings. I t was the basis of the creation of the 'military machine'. Mumford quotes Keynes' notion of pyramid-building as a device fo r coping wi th the surplus labour force in an affluent society whose rulers were averse to social justice and economic equality. Rocket building, he concludes, is our modern equivalent.

V a l u e E n g i n e e r i n g T r a i n i n g One of these which has made rather dramatic impact in American business in recent years is Value Engineering. This systematic method for identifying and removing unnecessary costs (mostly product oriented) was developed after Wor ld War I I and is today applied in most companies either formally or informally. I t is taught for the most part by means of in-plant, workshop, team oriented seminars. Usually, these seminars take the f o r m of lecture, demonstration and practice (tell-show-do) wi th the practice applied to products or parts f r om production items. The teams consist of f r o m three to five people of different back­grounds and responsibilities. The seminar duration is 40 hours or longer and split about 50-50 between lecture-demonstration and workshop. One advantage to this approach is that in addition to developing skill it actually pays for itself f r o m the cost saving ideas that are generated. I n addition to the formal training effort Value Engineering programmes usually include the assignment of Value Specialists, whose function is largely catalytic in nature designed to motivate people and provide consultant services to stimulate and assist each line decision maker to do a better job of profit improvement through cost reduction.

T h e P r i m e R o l e of M a n a g e m e n t While I have discussed a number of techniques for stimulating the individual to reduce costs, I believe all of them can be sum­marised by emphasising the role of top management in any motivational effort. Continuing, effective profit improvement wi l l only come about when the individual is stimulated to take aggressive action to reduce costs. Such action can only be sustained by a top management directed programme which comes down through the management chain to all individuals whose decisions affect cost, and finally so integrates and coordinates this decision making that cost improvements are promptly imple­mented. Many techniques can be used effectively but manage­ment leadership is prime to them all.

His conclusions are too awful to contemplate: 'Wi th this new megatechnics the dominant minority wi l l create a uniform, all-enveloping, super-planetary structure, designed for automatic operation. Man wi l l become a passive, purposely, machine-conditioned animal or strictly limited and controlled for the benefit of de-personalised, collective organisations.'

O f c o u r s e , y o u k n o w al l t h i s Of all the factors which improve one's attitude to work, none is more potent than recognition. We all have a basic need to be recognised - and wanted. Oscar Wilde said, T can live on a good compliment for a month'. M r D . J. Slingsby's Human Relations in Industry contains one of the best checklists I have seen fo r anybody who has half an hour to spare and wishes to search his heart about his relations with his staff and his superiors. Here are a few examples. Do try to realise that . . .

people are often motivated more by emotions and impressions than by facts . . . security is like happiness, the harder you seek it, the more elusive it becomes . . . people's wants and motives change as their circumstances change.

Do try to . . . fit people into jobs worthy of their ability . . . let them know how they are doing . . . decide promptly unless there is a good reason for delay . . . consider the suggestion, not the person making it . . . be honest with yourself - question your own judgment.

Of course, you know all this. To get a copy send 4s. to Hi l l foot , Ben Rhydding Drive, Ilkley, Yorkshire, England.

Value Engineering, September 1968 145

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Value Engineering, September 1968

Reprint No. 1:3:5

Indirect costs - Value Administration

The New Management Tool— Value Administration by Anthony G. Chappell*

The application of the proven principles of Value Analysis to the overhead as well as the direct costs incurred by companies has shown that these indirect costs can be substantially reduced and controlled. The author discusses the weaknesses in the present four-methods used for reducing overhead costs and he puts forward 'Value Administration' as an effective alternative approach.

Value Administration is based on the functional analysis of individual activities in a company and the objective comparison of the value of the function with its total cost. The six steps in Value Administration - Organisation, Evaluation, Speculation, Investigation, Recommendation, and Implementation - are described. The vital need for whole-hearted support from manage­ment is stressed.

O v e r h e a d s an I n c r e a s i n g P r o p o r t i o n of T o t a l P r o d u c t C o s t I t is characteristic of industry that overheads account for an ever increasing proportion of total product cost. Typical proportions found in companies today are:

direct labour 10/15% direct materials 40/45 % overheads 45/50%.

The growth of overheads has arisen because of the increasing complexity and competition in industry. Companies have acquired more and more administrative and specialist personnel, wi th the objective of reducing direct costs, increasing sales and production volume.

But the acquisition of these specialist functions has not always been economic. The financial return to companies has not always matched the expense invested in them, wi th result that many companies are faced with the problem of controlling indirect costs and bringing them into a balance with direct costs. As you have heard, the application of work study and Value Analysis is now well established in most companies and enables direct costs to be reduced, on average, by 10 per cent. Unfortunately, the amount of scientific effort applied to the development of effective techniques for overhead cost reduction has been less significant.

F o u r M e t h o d s of A t t a c k i n g O v e r h e a d C o s t s Attacks on overhead cost have fallen generally into four cate­gories:

(a) Budgetary control This conventional approach stems f r o m the accounting practice which compares the direct costs of products with their sales value. Costing of overheads is restricted to the secondary purpose of allocating charges against the gross margin of products. I n this context, budgetary control is usually restricted to a comparison of current items of over­head expense with the equivalent in preceding periods. I t is not unusual to find that a growth in turnover allows a

* Mr Chappell, Deputy Managing Director, Mead Carney & Company Ltd., delivered this paper at a meeting of the Institution of Works Managers (Notts, and Derby Branch) in March 1968. Grateful acknowledgement is made to the Institution for allowing this important paper to be published in this journal. Mr Chappell's address is 46 Park Lane, London, W. 1., England.

corresponding growth in overheads, simply because, in this respect, overhead cost is treated as a variable related to total product cost.

(b) Organisation and methods control (O & M ) Organisation and methods departments can do a great deal to simplify and improve the detailed communication and paperwork procedures within a company but they are rarely given the authority to examine the real need for major functions as a whole. The introduction of pre-determined time standards to establish numbers of staff required to carry out clerical activities has done a great deal to eliminate over-staffing but neither this method nor the straightforward systems analysis have made much impact on the elimination of functions, which are unnecessary for a company's prosperity.

(c) Inter-firm comparisons Some years ago, the American Management Association ( A M A ) obtained the co-operation of approximately one thousand American companies in attempting to establish the average levels of various overhead functions in the various branches of commerce and industry. More recently, the idea of companies comparing their costs and performance with others of equivalent nature or in a similar trade has gained some acceptance in this country. However, the experience in both the United States and the United Kingdom is that the advantages of this comparison are small, because of the difference in detail that exists between companies, not only in their structures, but in the way in which they analyse their costs. There is a danger in these circumstances that misleading conclusions can be reached.

(d) Arbitrary cuts in overheads I f a company does not exert real control over the cost of its overhead functions during times of prosperity, expendi­ture may be increased on activities which are not neces­sary. When recession follows, there is the risk that crude across-the-board cuts, which take little account of the relative merits of individual functions, may not only leave considerable surplus fat i n areas which are superfluous to the profitability of the company but may easily destroy other activities which are vital. Furthermore, this type of action must be isolated to emergency conditions and can never f o r m the basis of any continuing control.

These methods are not satisfactory because management has no yardstick whereby the value of overhead expenditure can be assessed.

Value Engineering, September 1968 147

The weakness lies in the attempt to control overheads on a departmental basis.

V a l u e A d m i n i s t r a t i o n is a N e w A p p r o a c h Value administration is a new approach providing a more effec­tive control of overhead costs. What then is value administration ? Value administration is a technique of overhead cost reduction and control based on two principles:

(a) Individual activities in a company are analysed on a functional basis. Currently, costs are summarised on a departmental basis. Value administration summarises activity costs within individual functions. For example, the function of wage payment can involve activities in the following eight departments:

operation planning payroll rate fixing or work study cashier production control security shop clerks personnel.

(b) Objective comparison of the value of a function with its total cost. This requires the same challenging appraisal as applied to a product by a Value Analysis team. Each activity is treated like a component in a product. The value of its contribution to the function is compared with its cost.

T h e S t e p s in V a l u e A d m i n i s t r a t i o n O R G A N I S A T I O N

(i) Discussions take place wi th top management to gain an understanding of the operating business cycle, that is, how the company operates, its aims and ambitions, and the actions being taken or proposed to achieve these. Specifically, these discussions would encompass the spheres of activity of the company. What are the pro­ducts, how are they initiated, designed, sold, produced, delivered and serviced. What is the labour force, how are they attracted to the company, how are they em­ployed, paid, controlled, trained and what services are provided for them? What materials are used, how are they purchased, stored, controlled and paid for? What physical assets are owned by the company, how are they acquired, installed, maintained, controlled and disposed of?

(ii) As a result of these discussions, the Value Administration team determines the essential functions necessary for successful operation of the company and agrees them with top management.

(iii) A listing of these functions is then made; as far as possible this list is i n the chronological order in which the functions are performed.

E V A L U A T I O N (iv) A census is then taken of all personnel employed on work

of an indirect nature. This census asks for name, clock number, title, department, to whom responsible and a brief description of their work. Departmental heads are then asked to add remuneration, departmental overhead, and to check that the supplied information is correct.

(v) The facts as presented by the census are then analysed to function and department, resulting i n a head count and cost of each function and each department.

SPECULATION (vi) This analysis is compared with the list of essential

functions to determine non-essentials and duplications. A t this stage, each function in the business has been defined and costed. This information is presented to a Value Administration team of executives, who determine the value of each through a series of challenging ques­tions, which I mentioned earlier. These are:

what does i t do? is i t i n the best place? is it necessary? is some output unused? is i t good value? is i t duplicated?

148

can i t be combined with another function? does output go where i t is not used? is a demand for output unsatisfied? are more economic methods available? is a key function missing?

We suggest that the team should meet regularly each week and should comprise one executive f r o m each of the major departments of the company, these generally being sales, accounting, purchasing, production, engineering, personnel and management services where applicable. We have found that the use of such a team in this type of exercise leads to a high degree of co-operation throughout a company in challenging and eliminating unnecessary expenditure and secondly i t facilitates the development of a company-wide view of each function and its value. I t is also the responsibility of this team to instigate, assess and approve proposals arising f r o m the investiga­tion stage, which runs concurrently.

I N V E S T I G A T I O N (vii) Functions considered by the team to be non-essential or

duplicated are subjected to closer investigation by the consultant and, in conjunction with team members and departmental managers, proposals are generated for corrective action to be taken.

(viii) A further area of investigation takes place within those functions agreed to be essential, areas of high cost are located f r o m the analysis and these are subjected to detailed costing and scrutiny with the objective of reduc­ing the cost to the company.

R E C O M M E N D A T I O N S (ix) Proposals approved by the team are documented and

submitted to management in the f o r m of recommenda­tions for action.

I M P L E M E N T A T I O N (x) There are certain essential steps in the implementation

of a Value Administration programme. These are: stop recruitment agree essential company functions agree new organisation and manning establish manpower budget and controls declare redundant positions set up training and inter-change centre train and transfer redundant staff as vacancies arise D O N O T FIRE.

We must emphasise that the steps shown here should be initiated at the very start of a Value Administration exercise, anticipating that redundant positions and unnecessary expenditure wi l l be found.

V . A . T h i n k i n g B e c o m e s a W a y of L i fe We have found that the thought process of Value Analysis and Value Administration becomes a way of life in those companies where such techniques have been started. I n short, we have engen­dered an attitude of mind, which automatically searches out the cost and real worth of every activity or function performed and evaluates its contribution to the company prosperity. The success of Value Administration primarily depends upon the whole­hearted support of the management in a company and the infectious and progressive attitude of mind, which judges activi­ties not by their size but by their quality and performance. The financial advantages of the Value Administration approach are best illustrated by quoting two examples: I am not at liberty to give the names of the companies concerned but, i n the headquarters organisation of a major industrial corporation, an annual saving of £400,000 was achieved for an outlay of £30,000. I n another major electrical group, a saving of £500,000 was achieved, again for an outlay of £30,000. These results show an average return on investment of fifteen to one. One final point, these savings are achieved at relatively high speed. I n the instances quoted, they were achieved in approxi­mately one year.

Value Engineering, September 1968

Reprint No. 7:3:6

Ergonomics - Design

The Contribution of Ergonomics to Value Engineering by K. F. H. Murrell, M.A.(Oxford), F.R.P.S., F.B.Ps.S.*

Ergonomics does not seem to have found its way into the thinking of many practising value engineers. V.E. should not stop short of its completion point which is the perform­ance of the product. This can be ensured by applying.' ergonomic principles to design, manufacture and use. Describing how man and machine interact, the author considers discrete once-and-for-all actions and where the

machine works at a fixed rate. Input displays and Output controls require detailed consideration if they are to be efficient. 'Equipment which is produced for sale, 'according to the author 'should be assessed for its overall efficiency when operated by a human operator' and he goes on to describe the ways in which such an assessment may be made.

When the Editor first asked me to write a piece about the con­tribution Ergonomics could make to Value Engineering I must confess that I could see no very clear way in which this could be done. I n the first place, i t was not by any means clear how Value Engineering differed f r o m a variety of activities already being carried out in industrial concerns to keep costs down. Secondly, there seemed to be an overwhelming preoccupation wi th the minutae of the 'nuts and bolts' of production. I have now had an opportunity of reading the first issue of this Journal, the contents of which suggest to me that Value Engineering can be regarded as an integration of a number of activities which hitherto may have operated independently. Thus i t seems to be important that consideration of the human factor should also be included although, to judge by the articles, i t has not yet found its way into the thinking of most of those who are practising Value Engineer­ing.

I wi l l start therefore f rom the definition of Value Engineering, given by G. P. Jacobs in his article in the first number of this Journal: 'Value Engineering is an organised effort directed at; (i) identifying the necessary functions to be performed and (ii) achieving those functions for least cost, commensurate with performance and time scale.' There are two parts of this definition which can be expanded into the human factors field. The first is cost. Y o u can design a product which can be produced at low cost f r o m the engineering point of view, but i t still has to be produced by people and these people have to be serviced. I t is true that many processes are now automatic, but this merely transfers the human control to a different level, f r o m the turner to the programmer for instance, and puts a greater emphasis on the requirements for efficient maintenance. Therefore Value Engineering cannot stop at the assessment of the engineering and material costs of the product (as a number of the articles suggest) but must also consider the efficiency of the means of production, and this includes the people who are engaged in production and the equipment with which they work.

* Mr Murrell is Reader in Occupational Psychology at the University of Wales Institute of Science and Technology, 8 Cathedral Road, Cardiff, Wales. He has been a leading figure in Ergonomics since its inception, having practised in industry and conducted University and Technical College courses in the subject. He is a founder member of the Ergonomics Research Society.

The second factor is the product performance. Here again we must remember that most products service man in some f o r m or another, to a greater or lesser extent. But without man they would be useless chunks of metal, or collections of wires, printed circuits or what-have-you which are incapable of any activity of their own. The finest Rolls Royce wi l l stay in the car park and eventually wi l l rot i f no-one ever comes along to drive i t away. Therefore the performance of the product cannot be considered without also considering the performance of the men who are going to be involved in its operation, and in its servicing. Far too often equipment is designed which is highly efficient f r o m the engineering point of view, but which because of lack of considera­t ion of the relationship between machine and man wi l l give performance at a level of efficiency which is below the optimum. Thus both cost and performance must subsume consideration of man as well as hardware.

U s a b i l i t y of E q u i p m e n t Interest in man/machine developed during the last war particu­larly in the Services when i t was found that man was often the limiting factor in the performance of military equipment. This interest has continued since and has crystallised into ergonomics. Perhaps because industry since the war has had a relatively plushy time, interest first developed by the military has not been taken up and extended by industry to the extent that many had hoped. There must be a number of reasons for this but two which I believe are of primary importance are the predominance of engineering considerations and an attitude of mind, which when I was working for the Admiralty I called the 'Nelson complex' which accepts uncritically too many situations which have existed in their present f o r m f r o m grandfather's time and even f r o m that of his grandfather before him. Thus how many people purchasing a centre lathe for use in a tool room wi l l take into account any­thing other than the engineering specification? How many wi l l consider whether the machine can be operated efficiently; whether the basic design wi th its horizontal bed which forces the turner to bend over the machine in order to see the tool cutting is the best lay-out? I t is true that lathes have been like this fo r the last 4,000 years but the poor posture which results may be a contributing factor to the low cutting time of only 21 mins/hour which we measured in one large engineering company. I n an experiment which we conducted in a dock-yard on two capstan lathes making identical parts we found that one machine was producing 50 % more than the other, irrespective of which of the two operators involved were working i t . This was mainly due to the lay-out of the controls. I t is, therefore, reasonable to suggest that when considering the purchase of alternative

Value Engineering, September 1968 149

machines as a means to production their operational efficiency as well as their mechanical efficiency and price should be taken into account. I t is of little use purchasing a machine which appears fractionally cheaper than another i f the cost of producing a product on the machine is going to be higher because of man/ machine incompatibility. Rather, a detailed analysis of the kind carried out by Singleton (1964) on a capstan lathe should be carried out. I n his paper Singleton makes a detailed examination of all the control and operational design and as a result of modifi­cations he showed that a standard operation could be carried out in a time which was 11 % less than before the machine was modified. Nothing that he did however could make the machine perfect because, as he pointed out, to operate i t efficiently the man should be only 4 f t tall and have a reach of nearly 9 f t . I have spoken of the 'Nelson complex'. A n example of this is the method of giving information about the position of the tool on the centre lathe. Conventionally this is done by a circular graduated scale attached to the lead screw of the cross slide. The scale wi l l have a scale maxima which is determined by the pitch of the lead screw, and the information it gives is by differences; it gives no information about the actual diameter being cut. A digital device to replace this scale was proposed more than 16 years ago and was developed commercially; we conducted experiments wi th it on a pair of lathes in a large industrial concern and showed that cutting time was increased by 15% on the average; one subject increasing by as much as 30%. Similarly an experiment wi th highly skilled men using digital micrometers showed that errors of reading were reduced f r o m about 3i% to less than half of 1 %. I t is well known that sub­stantial scrap is made through reading errors of micrometers of 5 or 25 thou. Our experiment confirmed that the errors were of this kind. But in spite of the time saving which could follow f rom the use of these devices and the probable reduction in the amount of scrap made to the best of my belief neither has found accept­ance in British Industry to any great extent and yet their use must contribute to cost reduction.

The examples which have been given so far have related to the assessment of equipment procured f rom others for a firm's own production. Under these circumstances a choice is often limited by what is available and this in turn can often lead to a vicious circle in which, so long as some fool is prepared to buy a piece of unsatisfactory equipment some other fool is equally willing to make i t , using the excuse that he can readily sell his product as a reason for not improving i t . The fact that between them the producer and the purchaser are depressing productivity is lost sight of. When firms design their own production equipment it is equally important that they should apply the same criterion of usability as they would apply when purchasing equipment f r o m others, and i f they are themselves producers of hardware which wi l l be used by others in production it is of even greater impor­tance that the usability should be considered. I t is only in this way that the vicious circle referred to above can be broken. I n using the term usability I refer not only to the efficiency with which components can be produced but also to the efficiency with which fault-finding, maintenance, tool changing and so on can be carried out. Most of these are human activities and they should be assessed both when equipment is designed and when i t is purchased.

M a n a n d M a c h i n e A man and his machine can interact in two ways. First action can be discrete or once-and-for-all. A n action is taken, something happens and that, for the time being, is that. Such an event might be the starting of the engine in a motor car, or the switching on and dipping of the head lights. Secondly, action can be continu­ous in which case the man wi l l act as the controlling element in a closed-loop system. This occurs when the driver puts the car on the road and controls movement through traffic. I n either event two things must happen; the machine must have a means of communication wi th the man, this is known by the jargon term 'display' and the man must have communication with the machine, which is known as 'control'. The efficiency of both these functions wi l l be predicated by the physical lay-out in relations to the man or woman who is involved. A great deal has been

written about the factors which wi l l contribute to the efficiency of this communication (e.g. McCormick, 1964; Murrel l , 1965) so it is not intended to go into any detail here other than to give examples and to set out the general principles on which work in this area should be based. A first principle is that the demands for information intake or control output must match the capacity of the human operator. Consider an operator moving a lever-type control. I f this control is spring-loaded the output wi l l be proportional to the applied force; the harder you push the further wi l l the control move. I f the control has viscous fr ict ion then the output w i l l be propor­tional to the first time integral of the applied force; the harder you push the faster wi l l the control move. Finally the control may operate a system with inertia in which case the output wi l l be proportional to the second time integral of the applied force; the harder you push the faster wi l l the control accelerate. Thus for the same output, the application of force, the result obtained wi l l depend upon the dynamics of the control system. Now i f a completely free control is used and an operator is called upon to accelerate at a particular rate he wi l l be unable to do this con­sistently or efficiently. On the other hand i f he is given a control where the acceleration depends upon the pressure applied he wi l l very rapidly learn the amount of pressure required to produce a particular acceleration and be able to reproduce this consistently. The reason for this is that human beings are very bad integrators and differentiators and i f the feed-back f r o m the action being taken requires one or more integrations the result is inefficient and inconsistent. I f however the operator is able to use his built-in feed-back mechanism in the muscles of the l imb being used (known as kinesthesia) which he can only do when he has to apply pressure, he can make up for the deficiency of the mechani­cal feed-back system. I n the same way information is often given on control panels and so on in a f o r m in which the operator has to make one or more differentiations before he can make a decision for action. He may be given a pressure gauge and be expected to judge, f r om a slow displacement of the needle giving a difference in pressure in pounds, the rate or even the accelera­t ion of a change of pressure. A piece of equipment which includes this feature wi l l always be inefficient because a man cannot carry out this function well however well he has been trained. A second area of interaction between operator and his machine is when the machine works at a fixed rate and the operative has to service the machine at fixed intervals. Variability is a characteris­tic of all human activity; so that here we have a situation where a variable function is matched to a rigid one. When human perfor­mance is expressed in terms of rate rather than cycle time (i.e. a harmonic transformation has been applied to cycle times) the distribution becomes approximately normal and can be plotted as a straight line on normal probability paper. From this is a fairly easy matter to predict the proportion of occasions on which the operative wi l l be unsuccessful in feeding a machine in the time allowed and the proportions on occasions on which either the machine wi l l have to be held or a position wi l l go through unfilled. I n either case a reduction in the potential production of the machine wi l l ensue. When plotted in terms of output against machine rate the output wi l l reach an asymptote and then start to fa l l as the machine rate is increased. I t is quite clear that it is not possible to obtain increased output beyond a certain point merely by increasing the machine speed, and ideally the speed of each machine should be matched to the individual working upon i t . This puts a premium on choosing, wherever possible, machines on which the speed can be varied always assuming that the process permits this. I f the process does not permit this the initial design of the process should include consideration of the capacity of the operator to service the machine under optimum conditions.

From what has been said i t wi l l be seen that to achieve the desired functions at the least cost the human operator must be con­sidered alongside the machine. A t the outset therefore it is necessary to ask whether there should be a human operator at all , i f so, what are his capabilities and limitations and what input and output does he need to achieve his planned purpose and how wi l l these be organised around him. The role of a man in a system is fu l ly discussed in the textbooks, including those already

150 Value Engineering, September 1968

mentioned and so does not need to be dealt wi th at length here, other than to say that man is at his best when he is used as a sensing device, as an amplifier or as a maker of complex decisions. He does not perform very well when called upon to differentiate, to integrate or perform at high speed. I n addition, he wi l l intro­duce delay and imprecision (noise) into any system of which he forms part.

Input - D i s p l a y s Having decided that a man is required and the role which he is to play the first matter to be considered must be the information which he requires and how i t is to be presented to him. On some occasions this wi l l be very evident, but on other occasions the situation may be very complex and may even require investigation before a decision can be made. Too often I suspect the easy way out is taken; a convenient instrument is installed which is related to the mechanical, electrical, or other convenient characteristic of the system rather than to the needs of the operator. Perhaps a pressure is available so a gauge is fitted to give this function when the operator needs to know the rate of change of pressure; but our grandfathers before us fitted a pressure gauge in this situation and so we do the same without question. The process of considering information needs can be illustrated in an allegorical fo rm. We have by the side of the bed a device which makes us an early morning cup of tea, which (apart f r om being suitable for only about 8 % of the population who are left-handed !) presents a problem in information every evening when the kettle is filled. I t is intended that i t should be filled to within 1 inch of the top, a distance which is difficult to judge through the rather small filling hole, especially when the kettle is tilted to go under a wash-basin tap. I f it is over-filled the teapot wi l l overflow with the possibility of an electrical short circuit. I f i t is under­filled my wife does not get her second cup of tea. To avoid this trouble we might imagine that a pressure gauge is fitted to the bottom of the kettle; but to use the information pressure would have to be converted into depth, and knowing the total depth, to calculate when the level was correct. The calculation would be even more difficult i f the gauge gave the contents in cubic inches. A better approach would be to install a depth gauge, but i f this is graduated in inches, i t would still be necessary to remember the total depth and continue fi l l ing unti l the reading was one inch f r o m the top. However, i f this depth gauge had a single mark showing when the level is correct the task would be quite simple (in practice a ridge cast on the inside of the kettle would give the same information). I t might be thought that as the kettle is filled every night i t would be quite easy to learn the pressure or depth reading at which i t was f u l l . This is of course true, but learning is necessary and i f someone was fi l l ing a number of different kettles of different sizes i t would take some time to become acquainted with all the correct values and there is a high probability that a mistake might be made. This example (which is taken f r o m real life) illustrates a situation which can be seen over and over again in one f o r m or another i n industrial equipment. I have already referred to the scale fitted to the cross slide of a centre lathe which gives readings as differences whereas a turner really needs to know the diameter which he is cutting. This i t is impossible for h im to get f r o m the conventional scale and he has to stop the machine in order to check diameters with a micrometer (on which he may make an error!). Far too often when an operator merely needs to know whether a tank is half or quarter f u l l he is given a gauge showing depth in feet or inches or contents in gallons ( I have even seen depth gauges being marked in decimal feet with the minor marks representing inches!). When there are many instances of this k ind the task of the operator is made unnecessarily difficult and mistakes are more probable because he is being given quantitative information wi th a degree of precision in excess of that which is needed. I n other words he gets the right k ind of information but in the wrong form. I n other instances however he is given the wrong informa­tion as well. I t may tell h im quantity when all he needs to do is to check whether a function has departed f rom a set point. Man is a mechanism with a strictly limited channel capacity and he acts as a single channel mechanism at the cortical or decision­making level. His apparent ability to do more than one thing at a

time is due to alternate sampling: i f this strategy is insufficient to give h im enough information then he can carry out only one activity at a time. His information handling capacity can be greatly increased i f information is coded so that instead of passing through the channel as a series of discrete items at the limited rate of about two per second i t can go through as one unit, thereby greatly increasing his efficiency. To sum up, therefore, before the efficiency of any display can be assessed i t is essential to review the quality and the quantity of information which the operator wi l l require in order to carry out his job efficiently. When this is done the display system must give this information directly and unambiguously.

O u t p u t - C o n t r o l s The study of controls should always include an assessment of whether the control provided is the best for the function which i t is intended that i t should carry out. There are in the literature a number of tables which enable this to be done, but far too often controls follow convention and are accepted because they have always been that way. The layout of controls and displays around the operative usually leave much to be desired (the work of Singleton in this connection has been referred to) and again fol low a convention too often. For instance, the keys on card punching machines are usually oriented in a horizontal plane; now, the natural position of the arm is wi th the hand vertical or nearly so, the more the palm is turned downwards the greater the muscular effort involved and i f the keys are high in relation to the operative then she may have to adopt a 'Praying Mantis' position which can cause muscular strain not only on her arms but in her back as well. This can reduce the time which is spent at the machine or in extreme cases cause inflamation in the hand and arm which wi l l require medical treatment. Y116 (1962), who is medical officer at the Volvo Works at Gotenberg was concerned at the number of girls who reported to h im with inflammation of this kind. He therefore did a detailed study of their task and found that i f he moved the keys to a position near the knee and slanted about 30° f r o m the horizontal the disability disappeared and the girls' output went up by 100%. I n the same way we found in a typing pool that when the girls were using tables and chairs that were too high they were absent f r o m their places of work for 20 minutes in every hour. When we fitted the furniture to the girls they were absent f r o m their work for only eight minutes in every hour; there was a resulting increase in production of 25 %. I t is true that these examples have been drawn f r o m office work but they can be repeated in other spheres in industry. They do illustrate that most of the factors referred to could have been assessed when the work situation was first established and this nearly always involved the assessment of the potential of equip­ment being purchased. I n the card punch example the individual negotiating the contract wi th the supplier could have insisted on the keys being placed in the position where the strain on the musculature of the girls would be at a minimum. Competition is such that I doubt that insistence of this by a large firm would have had other than a beneficial effect. This appears never to have been done and most of the card punching situations are such that they cause difficulty to the girls working upon them.

C o s t a n d E f f i c i e n c y Readers who have proceeded so far through this article wi l l have begun to realise that what I am suggesting is that Value Engineers should go more deeply into the means of production including assessment of the efficiency of equipment which is going to be used, looking at i t f r o m the over-all stand point of the man/ machine interaction. By the same token, equipment which is produced fo r sale should be assessed fo r its over-all efficiency when operated by a human operator. There are various ways i n which this assessment can be done, the best certainly involves some f o r m of user tr ial . These are almost essential i n the Services but seem to be less prevalent in industry. When a firm's own means of production are being designed user trials should ideally be carried out in the design stage preferably in a mock-up. Mock-ups can have other purposes as well i n assisting in design for efficient production. To be

Value Engineering, September 1968 151

carried out efficiently user trials require properly trained per­sonnel who have the capacity for putting themselves in the place of the individual who wi l l operate equipment and who are able to supervise properly controlled trials. When purchasing equip­ment and several alternatives are available for a particular purpose these trials could take the f o r m of comparisons of per­formance on a standard task. Particular care would have to be taken to plan trials so that the results were not confounded by unwanted personality variables. Far too often have I seen both in the Services and Industry a great deal of money wasted on carrying out experiments or trials under conditions which made it impossible for any valid conclusion to be drawn f r o m the results. I t is too often not realised that experiments with people cannot be carried out in the same way as experiments in the laboratory in chemistry or physics. I t cannot be too strongly emphasised that for these trials to be a success they must be done by somebody who has a special aptitude for this kind of work, somebody who can put himself completely in the place of the housewife, turner or other person who may eventually be working wi th the equip­ment. Somebody who has an understanding of experimental method and statistics, and who has extensive knowledge of all factors which are likely to effect efficiency of equipment, which come under the general heading of Ergonomics. I t would seem that i t is possible that the activities of the Value Engineer should not stop at ensuring that the best machines or equipment have been procured f rom the man/machine stand­point ; these do not work in vacuo, and so cognizance may have to be taken of the organisation within which the man/machine wi l l have to work. For example, I have referred earlier to the

matching of operatives to machines running at a fixed speed, and have pointed out that this depends upon the variability of the operative. Now variability increases with time as the operative becomes fatigued so that i f a machine is run continuously throughout a period o f work the speed of the machine wi l l have to be set to the variability of the operative at the end of work otherwise too many parts might go through unprocessed or the machine efficiency might be too low. This can be avoided by giving the operatives rest at regular intervals and i t has been clearly demonstrated that a higher output can often be achieved in this way than by running machines continuously. So that i t could be argued that even the work-rest schedules of operatives on particular types of work might have to be taken into account when, to go back to Jacobs' definition, functions are being achieved at least cost.

To return to the beginning, to assess the 'value' of a situation only in terms of the hardware involved is looking at only one side of the coin. Machines are the servants of men and industry exists for man not the other way round, so a complete assessment must include man as well i f the job is to be done properly.

R e f e r e n c e s McCormick, E. J. Human Factors Engineering. New Y o r k : McGraw-Hil l (1964). Murrel l , K . F. H . Ergonomics. London: Chapman & Hal l (1965). Singleton, W. T. A preliminary study of a capstan lathe. Int. J. Prod. Res. 3, 213-225 (1964). Y116, A . The biotechnology of card punching. Ergonomics 5, 75-80 (1962).

Miscellany O n t h e j o b t r a i n i n g One commentator on the Fulton Report* stated: 'Coming to training, I cannot help thinking that the committee has made too much of formal training and too little of training on the job. Work is done by chaps working. And in responsible work lies the best training.

'Some formal training of course is needed . . . '

Q u i e t e r c o m p o n e n t s

Studies in the mathematical prediction of the type of noise which a newly designed car component wi l l make have led General Motors Research Laboratories, at Warren, Michigan 48090, to develop a technique known as 'mechanical frequency modulation'. This technique is expected to go a long way towards turning unpleasant whines which are hard to suppress into broad spectrum white noise which can be lost in the background noise of a travelling vehicle. For instance, blade spacings in a fuel pump impeller were made according to a non-uniform mathematically calculated pattern which destroyed the build up of energy on a single pure tone. Tyre tread patterns were similarly arranged, cutting road whine to a very low level. Mechanical vibration, too, can be similarly reduced.

50th A n n i v e r s a r y o f Ins t i tu te of P a t e n t e e s a n d I n v e n t o r s To mark its 50th anniversary, the Institute of Patentees and Inventors, is holding the first London International Inventions and New Products Exhibition ( L I N P E X '69) in the Royal

*The Civil Service—Report of the Committee 1966-68 (Chairman: Lord Fulton) H.M.S.O. (Cmd.3638)

Horticultural Society's Halls, Westminster, f r om 6th to 11th January 1969. New products do not just happen. They start by being ideas or a new application of existing ideas. L I N P E X '69 wi l l be attended by manufacturers, licensing consultants and others seeking new products and processes, new applications and new ideas. Further information may be had f r o m Business Conferences and Exhibitions L td . , Mercury House, Waterloo Road, London, S.E.1, England.

I t 's a q u e s t i o n of i m a g i n a t i o n 'Too many people (according to the man working on the SIRA handbook on adhesives) think adhesives are for sticking soles on shoes, and they don't realise that there is a huge area waiting to be explored. It 's a question of imagination.' The new handbook (to be published in 1969) wi l l contain informa­tion to help people design for adhesives. I t wi l l help them 'elimin­ate the impossible' and then decide for themselves. The Scientific Instrument Research Association w i l l be trying to close the information gap between manufacturers and users wi th its book.

B u i l d i n g w i t h e l e c t r o n i c g l u e 'It 's extraordinary the lengths people wi l l go to push a process to its limits and beyond before they'll even look at change,' says M r Perdue, manager of the Electron Beam Group of Hawker Siddeley Dynamics at Hatfield, England. Carl Zeiss developed the first electron beam tool i n 1948 and it is not uncommon to find 'new' ideas which are 20 years old, like this one. But still there are welding engineers f r o m quite big companies who know nothing about electron beam welding.

152 Value Engineering, September 1968

Reprint No. 1:3:7

Ergonomics Checklist The following checklist is a 1968 revision of the Ergono­mics Checklist published at the 2nd International Congress of the International Ergonomics Association held at Dortmund in 1964. It is the work of Dr K. Boer and Prof. G. C. E. Burger - it is not an official publication of the I.E.A. The authors have kindly consented to its publication. The original checklist was the work of Prof. G. C. E. Burger. Dr Ch. Frieberger, Dr G. V. J. Hultgren, Dr J. R.

De Jong. Prof. G. Lehmann, Mr K. F. H. Murrell and Prof. E. Grandjean. The checklist in cyclostyled form is entitled 'Checklist for Ergonomic Taskanalysis' (C.E.T. II). Dr K. Boer is Head of the Occupational Health Service at N. V. Philips Factory at Stadskanaal, Netherlands. Prof. G. C. £ Burger is Director of the Coronel Laboratory of Occupational Health at the University of Amsterdam.

T h e H e i r a r c h i c a l Q u e s t i o n S y s t e m

The list contains four categories of questions -A,B,C and D. They have been arranged so that it depends on the answer to an A-question as to whether the subsequent B-question(s) has to be considered. In the same way a C response D question has only to be answered when the preceding B response C question gives an indication to do so. This heirarchical system allows for the omission of all non-relevant questions and thereby reduces the time required for a complete analysis.

T h e U s e of t h e C h e c k l i s t

1. In the case of existing functioning work systems the analyst is advised to make himself first of all acquainted with the task of the worker with the available data (method- and time studies, quality reports, etc.) and with the technical demands of the job. Then he should study the job by personal observation and by interviewing some workers and supervisors about their experience concerning the demands of the task on the worker. After this it will be easy to answer the ten general questions (section A) of the checklist. This preliminary study being done, he will decide whether a complete analysis in the presented order of the sections of the checklist has to be made or another sequence of sections will be preferable or some sections can be omitted. A model form in which the answers obtained may be efficiently recorded is given at the end of the checklist, and this may be used as a basis for preparing a report.

2. When the checklist is used in the case of a new product the analyst (engineer) will first study the technical demands of the product. He can then use the checklist to find out what are the critical points in construction which have to be watched and allowed for. The preliminary design of the product can be checked against this list.

3. In complicated machines a mock-up may be of great advantage. It can be studied on its ergonomical merits in the same way as has been described for functioning working systems in paragraph 1 above.

S e c t i o n s of t h e C h e c k l i s t

A . G e n e r a l Q u e s t i o n s

B. W o r k s p a c e

I Physical demands II Mental demands

1. visual system 2. auditory system 3. other senses 4. way of information

C . W o r k M e t h o d

I Physical demands

II Mental demands

I la Mental demands; f low of information

D. E n v i r o n m e n t a l L o a d

E. O r g a n i s a t i o n of t h e W o r k

F. F u n c t i o n a l a n d In tegra l (Tota l ) Load

G . S y s t e m O u t p u t

A . G e n e r a l Q u e s t i o n s

/ What is the operator expected to do and what kind of data does he require to carry out his task? II Does the task carry an important physical load?

(see chapter Bi, C F question A60, B129-131, question A61-66). III Does the task carry an important mental load?

(see chapter B„, C„, Cll3, A65, 66)

IV Are motivation, alertness and power of concentration strongly involved ? (chapter IIa) V Has the work environment an important influence on the worker? (chapter D)

VI Has the work organisation an important influence on the worker (speed, rest pauses, etc.) ? (chapter E)

Value Engineering, September 1968 153

VII Is it desirable to replace the human operator partly or entirely by a machine performance, or the reverse ? VIII Does the task require a learning period of:

- less than one week? - less than one month ? - more than one month ?

IX Have social-psychological factors in the work situation an unfavourable effect on the worker? Are these factors present in the task of the worker (monotonous, insignificant, disagreeable or unworthy) or in the environment (interhuman relations, mental 'climate') ?

X Does the work situation imply potential sources of physical or mental harm (e.g. accidents, occupational diseases, etc.) and may the task convey fear or repulsion ?

B. W o r k S p a c e

I Physical demands A 1 Has the correct choice been made between sedentary, standing and ambulatory work or a combination of these ?

B 1 Can sitting be promoted by the location of instruments, controls and work pieces ?

A 2 Is an altered position of the machine desirable ? A 3 Does the operating area offer sufficient space, whatever the operator's position is during work ?

B 2 Is there sufficient room for the legs, knees, feet, elbow, etc ?

A 4 Is a correct work posture promoted by the location of instruments, controls, and workpiece ?

B 3 Is an unfavourable work posture due to: - machine ? - work piece ? - instruments ? - controls ?

A 5 Is the height of the work surface adapted to the posture and correct in regard to viewing distance ?

A 6 Are the properties of the work surface correct in regard to: - hardness ? - elasticity ? - colour ? - smoothness ?

etc. ? A 7 Is the workshop sufficiently spacious ?

B 4 Is the lack of space principally due to: - sharing the work space with other workers ? - distance to other machines ? - protruding parts of the machines ? - incorrect position of containers, material, etc. ?

A 8 Are operations carried out by hand ? B 5 Is correct control by hand promoted by the location of instruments, controls and work piece ?

C 1 Does the positioning of controls demand a considerable static component in the muscular load? C 2 Are the controls located within easy reach in regard to the work posture ? C 3 Are the grips correctly positioned (location, direction of movement) in regard to required forces

and movements ? C 4 Does the positioning of instruments, controls and work piece correspond with sequence and

frequency of required actions ? C 5 Are the shape, size, surface and materials of the hand controls correct in regard to the required

forces?

A 9 Is finger control by means of push buttons necessary or desirable ? B 6 Is the surface of the button large enough to have contact with whole fingertip; is the surface concave to

fit the fingertip; is the surface too smooth ? B 7 is the counterpressure small enough in regard to frequent use (errors) and large enough when the button

is used as a starter (danger) ? A 10 Is foot control by means of pedals used necessary or desirable ?

B 8 Have pedals been avoided in standing work and limited to two in sitting work ? B 9 In standing work if the use of pedals is imperative, must the worker stand almost continuously on one

and the same leg or is alternating use of left and right foot possible ? B 10 If the work is done in a sitting position, is a variation in posture of the rest of the body hampered by the

use of one or more pedals ? C 6 Can the pedals be used while sitting and can the feet be alternated ? C7 Is the location, size and construction of the pedals correct ? C 8 Does the type of pedal used correspond with required force, range and rate of movement? C 9 is the counterpressure of the pedals correctly chosen ?

154 Value Engineering, September 1968

A 11 Is foot control by means of push buttons used necessary or desirable ? B 11 Is the counterpressure of the push buttons correctly chosen ? B 12 Can the buttons be pushed down by the toes instead of the heel?

A 12 Are the required forces acceptable ? B 13 Can the degree of loading be decreased by:

- decrease of weight of the objects to handle ? - use of counter weights ? - use of electric, hydraulic or pneumatic devices ? - conveyors ? - cranes, pulleys ?

B 14 Can the degree of loading be decreased by: - changing the direction of forces ? - use of stronger muscle groups ? - limitation of the time of muscle contraction ?

B 15 Is the movement in accordance with the force required for handling controls acceptable ?

B 16 Are moving work pieces correctly conveyed and stopped, (use of gravitation, conducting shoots, etc.) ? B 17 When force is required is the control located so that this can be applied without undue strain and without

the need to maintain static load? C 10 Are jigs used as much as possible ?

A 13 Are chairs and stools available to obviate unnecessary standing? B 18 Is the chair or stool correct in regard to:

- dimensions of the worker ? - upholstering ? - back rest ? - work height ? - adjustability of seat and back rest ? - possibility of standing up ? - variation in work posture ?

B 19 Is a (horizontally or vertically) adjustable chair required for adaptation to the daily task ? B 20 Is the use of a one-legged stool desirable ?

A 14 Is a foot rest necessary? B 21 Is a correct foot rest available ? B 22 Is there sufficient room for a foot rest ? B 23 Is the foot rest correct in regard to:

- position ? - size ? - inclination ? - surface ?

A 15 Is a support for elbows, forearms, hand, back, necessary? B 24 Are the supports for elbows, forearms, hand or back correct in regard to:

- position ? - size ? - movability and adjustability ? - surface ?

A 16 Is the floor of the work space (shop) correct? B 25 Is the floor correct in regard to:

- friction between floor I supports, floor/sole and floor/tools and product ? - horizontal level? - evenness? - thermal conductance ? - hardness, elasticity ?

A 17 Are hand tools used? B 26 Is the weight of the tool too much, too little or correct ? B 27 Is the hand grip correct in dimension and shape ? B 28 Does the tool used for fine manual work provide sufficient contact surface with the hand? B 29 Is the operational part of the tool correct in dimensions and shape ? B 3- Is the length of the shaft correct in regard to work posture and performance ? B 31 Has the shaft a correct elasticity ? B 32 Is the surface of the tool correct in regard to:

- friction between hand and grip ? - thermal conductance ?

B 33 Have different tools been combined if possible into one tool?

Value Engineering, September 1968 \ 55

B 34 Is the length of the tool correct in regard to fine manual work in order to avoid or diminish the effects ol tremor?

B 35 Have the tools a planned location ?

A 18 Are containers (boxes, etc.) used? B 36 When so are they appropriate in regard to:

- weight ? - dimensions ? - safety ? - location ?

A 19 Can the speed of the machine be adjusted in accordance with the skill of the performer when necessary ?

A 20 Has the variability of performance time been taken into account?

A 21 Does the machine construction allow for good maintenance and repair (accessibility, risk of accidents, lighting, tracing of technical troubles) ?

A 22 Is there any risk of burns ?

A 23 Are any parts of the body exposed to undue constant or intermittent mechanical pressure ?

A 24 Does the work require the use of personal protection devices: - clothing ? - shoes? - gloves ? - eye protection ? - ear protection ? - masks ? - safety helmets ?

B 37 Does the personal protection impede the intake of information ?

B 38 Does the personal protection impede action and movements ?

A 25 When devices are used for protection of products, do these impede the performance of the worker?

A 26 Does the machine cause significant vibration ? B 39 Has the vibration any perceptible effect on the body ? B 40 Has vibration any perceptible effect on performance ? B 41 Is inconvenience caused by continuous or intermittent vibration ?

B. W o r k s p a c e

II Mental demands 7 Visual system?] A 27 Does the work imply heavy demands with respect to quality and/or quantity as regards visual information and

does it involve special demands on illumination ? B 42 Has the difference between the level of illumination in various parts of the operating area any detrimental

effect on the working conditions ?

B 43 Does the size of the objects present difficulties for perception ? C 10 Is the use of optical aids required?

D 1 Are the optical aids adequate in regard to: - visual field? - resolving power? - sharpness depth ? - enlargement? <•• •

B 44 Does a small difference in brightness and/or colour between parts of the object or between object and surrounding present difficulties for perception fcontrastj ?

B 45 When the objects are moved mechanically by the machine, does this movement present difficulties for perception and handling ? C 11 Does the movement ask for special measures of adaptation ?

B 46 Are there any special requirements in regard to colour perception or should introduction of this element be advocated? C 12 Are the colours used adequately detectable in daylight and artificial illumination (colour, con­

trast) ? C 13 Is the environmental situation, the brightness of illumination and the choice of colours such that

the chance of confusion of colours is neglectible ? C 14 Are the colours adequate and appropriate in regard to:

- nature of the work ? - desirable contrast? - compatibility of generally accepted rules or habits (signalling of danger) ?

B 47 Is there any glare from the work space or surroundings ?

, cf- Value Engineering, September 1968

C 15 Is glare caused by: - unprotected sources of light ? - reflecting surfaces ? - windows ? - other sources ?

B 48 Is the level of illumination adequate in regard to visual demands ? C 16 Does the illumination level (brightness) call for improvement:

-general day/night? - local day/night ?

C 17 Is improvement of the rest of the qualities of lighting desirable or necessary ?

C 18 General illumination : 1. undue flickering (stroboscopic effect) 2. colour 3. location of light source 4. distance for adequate vision (accommodation) 5. binocular vision 6. size and location of the viewing field in regard to:

- instruments "' (

- work pieces and surroundings - controls

C 19 Local illumination: 1. undue flickering (stroboscopic effect) 2. colour 3. location of light source 4. distance for adequate vision (accommodation) 5. binocular vision 6. size and location of the viewing field in regard to:

- instruments - workpieces and surroundings - controls

A 28 Are warning lights attention-getting and are they placed in the central part of the visual field under working conditions (sunlight, or obstructing objects) ? B 49 Are warning lights adequate in number and quality ?

C 20 Are the warning lights placed in the central part of the visual field?

B. W o r k s p a c e

II Mental demands

2 Auditory system

A 29 Are auditory signals used?

B 50 Have the auditory signals the right qualities ? C 21 Can auditory signals with different meanings be easily distinguished from each other by differ­

ence in quality: - duration ? - frequency ? - sound level? - pattern ?

C 22 Does the noise level of the workspace hamper the perception of the auditory signals ?

A 30 Does the task imply verbal communication ? B 51 Is normal verbal communication impeded by the noise level in the workshop ?

A 31 Does the task imply the perception of other auditory information ? B 52 is the perception of these data hampered by signals or the noise level of the workspace ?

B 53 Does the task require a reduced noise level?

B. W o r k s p a c e

II Mental demands 3 other senses A 32 Does the work imply special demands of other senses (tactile perception, proprioception, equilibrium, smell,

taste) ? B 54 Does the work imply special tactile demands ?

C 23 Can different parts, control knobs and tools easily be recognised by touch ? C 24 Can parts, control knobs and tools be recognised by their position ?

B 55 Does the work imply high demands on equilibrium ? B 56 Does the work involve accurate manipulation or precise control of forces (proprioception) ? B 57 Does the work imply high demands on smell or taste ?

Value Engineering, September 1968 157

B. W o r k s p a c e II Mental demands 4 Way of information A 33 Are dials (panels) displays and/or controls used?

B 58 Can measuring instruments and controls be easily located, distinguished and correctly used ? C 25 Is tbe positioning of instruments correct and easy to be recognised?

D 2 Does reading of instruments require undue movement of head or body ? D 3 Is the display and size of dial or panel correct in regard to:

- work posture ? - arm reach ? - viewing distance ? - viewing direction ?

C 26 Can measuring instruments easily be distinguished from each other by: - position ? - shape? - colour? - other qualities ?

C 27 Can grouping of instruments decrease the mental demands ? Is it possible to group different categories of dials in different planes of mounting ? Can groups of dials of a specific category be divided by area or colour patterning ? Are the breakdowns of scales of dials identical as far as possible ? Is the dial located near its corresponding control? Have the most important and I or the most frequently used instruments the best position in the normal visual field? Are the most frequently used instruments grouped together in one and the same area of the visual field?

C28

C29

D 4 D 5 D 6 D 7 D 8

D 9

Is the D 10 D 11 D 12

D 13

D 14 D 15 D 16 D 17 D 18 D 19

D 20 is the D 21 D 22 D 23

Can the required data be quickly obtained from the dials with the desired accuracy ? Is the scale correctly graduated and as simple as possible ? Do the letters, numbers and markings conform to the relevant standard in relation to the required reading distance ? is the pointer simple and clear, and does it allow the numbers to be read without obstruc­tion ? Is the pointer mounted so that visual parallax is minimised? Have great differences in brightness between panels, dials and surroundings been avoided ? Is the legibility of dials impaired by reflection of light sources ? Has glare from displays been avoided? Has shadowing by pointers, edges or controls been avoided? Is the reading distance limited to ± 70 cm if during reading of dials the control knobs have to be handled? Does the chosen numerical progression minimise reading errors ?

Is the accuracy of the instruments compatible with the required reading accuracy ? Are reading errors minimised by the design of the instrument ? Does the instrument present the required information correctly and fast enough ? - are digital types (direct reading) of dials used where necessary? - is a moving pointer used for quick estimation of the degree of deviation and for adjusting

deviations ? - is the dial as simple as possible in regard to the desired information ? - can coloured zones be used instead of numbers and markings, when only check

information is required? C 30 Is a sufficient conformity (compatibility) existing between signals ?

D 24 Does the grouping of dials conform to the reading sequence of these dials ? D 25 Do pointers in their correct working position point in the same direction (horizontal or

vertical) ? D 26 Has the direction of the pointer movements a similar meaning in different dials ? D 27 Is the positioning of dials in different panels the same if these panels serve a similar

purpose ? D 28 Is a sufficient compatibility existing between signals and actions (controls) ?

C 31 Is an attention-getting signal used to indicate the breakdown of a measuring instrument? C 32 Are controls (switches, push buttons) correctly positioned and constructed ?

D 29 Is it possible to avoid positions of rotating control switches differing by 180 degrees ? D 30 Is it possible to see immediately which situation is indicated by the position of the con­

trols (e.g.: on-off) ?

158 Value Engineering, September 1968

D 31 Does the controlling hand impede the reading of the dial?

D 32 Is it possible to indicate the zero position by a stop ? D 33 Is it possible to promote the recognition of controls by means of differences in shape,

colour, size ?

C . W o r k M e t h o d

I Physical demands A 34 Has the work posture any unfavourable effect on the muscular (dynamic, static) and energetic load ?

B 59 Has the correct choice been made between sedentary, standing and ambulatory work or a combination of these ?

B 60 Are large groups of muscles subject to important static exertion induced by the work posture ? C 33 In which way can this static load be decreased (variation in work posture) ?

B 61 Is the work posture such that the muscles take the dynamic load correctly ?

C 34 Is variation in work posture desirable and possible ?

A 35 Are energetic and muscular load (static and dynamic) insignificant or low ? B 62 If the load is very low, are additional tasks„desirab/e and possible ? B 63 Is there any risk for undue local muscular fatigue in small muscle groups ?

A 36 Is the daily energetic and muscular (dynamic^ load heavy or strenuous ?

B 64 Have heady loads to be lifted and/or carried ? C 35 If loads have to be lifted and I'or carried:

- what are their normal weights ? - have they to be carried on the shoulders ? - have they to be carried on the arms ? - have they to be lifted from the floor level? - can they be lifted in the correct posture ? - is the passage way free from obstacles ?

B 65 Is the heavy load caused by walking, climbing, pulling, pushing or any other physical activity ?

C 36 Can this load be decreased in any way ? B 66 Is the heavy load caused by (frequent) peak loads (not by a constant daily load) ?

C 37 What is the frequency and duration of peaks ? C 38 Can these loads (degree, duration, rate) be reduced by technical measures ?

B 67 Does the work provide for a good alternation of work and rest pauses and of static and dynamic elements in regard to energetic and muscular load ?

A 37 Does the work imply a heavy static load ? B 68 Are groups of muscles subject to static exertion induced by ho/ding of the material or the tools or by an

unfavourable work posture ? C 39 Are groups of large muscles involved (posture, carrying loads, etc.) ? C 40 Are groups of small muscles involved?

B 69 Is there a good alternation in work and rest as we/las of static and dynamic elements in the muscular load ?

A 38 Is the muscular (dynamic, static) load adequately divided over different muscle groups ?

B 70 Are large or small muscles or muscle groups involved? Is the muscular load predominantly on: - arms ? - legs ? - neck? - trunk ? - small muscles of hand, fingers ?

B 71 Do secondary activities inherent in the work method provide for alternation in muscular loading ?

B 72 Does the control of movement require much muscular exertion ? C 41 Has the number of active muscle groups been restricted by means of a support ?

C 42 Is the sequence of activity in muscle groups correct ? C 43 Can undesirable displacement of centre of gravity and I or rotation of the body be avoided ?

A 39 Is the pattern of movement correct? B 73 Does the pattern and the control of movement cause unnecessary muscular load ?

C 44 Does the usual pattern of performance include superfluous movements ?

C 45 Is simplification of movements possible and desirable ?

C 46 Can controlled movements be replaced by free (ballistic) movements ?

C 47 Is kinetic energy correctly used? D 34 Can loss of kinetic energy be avoided?

C 48 Is there any avoidable combination of precise movement and strenuous muscular exertion ?

Value Engineering, September 1968 159

B 74 Has the worker adequate freedom in the pattern of movement? C 49 is there sufficient possibility for free movement ? C 50 Are the direction, location and length of movements correct in regard to:

- required force ? - required accuracy ? - required time ? - prevention of static muscular load? - symmetry ? - rhythm ?

C 51 Are the movements in the joints within acceptable limits ? C 52 Is it desirable and possible to make the pattern of movement less variable ?

B 75 When the worker follows a prescribed pattern of movements, is this pattern correct ? C 53 Are the movements symmetrical? C 54 Are the movements rhythmical? C 55 Are left and right arm (leg/foot) used alternately if necessary, when symmetrical movements are

not acceptable ? C 56 Can simultaneous movement of left and right hand be promoted by:

- location of information sources ? - location of controls ?

C 57 Do imposed subsequent actions fit into one pattern of movement ? C 58 Do the actions consist of precisely controlled movements ?

C . W o r k M e t h o d

II Mental demands A 40 Does the work imply the use of controls ?

B 76 Is the relation between the direction of movement of control and the effect compatible ? C 59 Have the following control movements always the following corresponding effects:

- forward: on, advance, more, +, down - to the left: off, to the left, less, -- backward: off, backward, less, -, up - to the right: on, to the right, more, +

C 60 Is the position of information providing instruments compatible with the position of corresponding knobs and handles ?

B 77 Are the controls positioned in the sequence of task performance ? B 78 Can the controls easily be recognised by shape, size, labelling, colour, for normal use and for emergency ?

B 79 Are the controls located as near as possible to the corresponding sources of information ?

A 41 Does the work imply high demands on accuracy of movements ? B 80 When accuracy is required does the control allow for accurate movement ? B 81 Are the tools correct in regard to accuracy of movement?

A 42 Does the work imply the use of signals ? B 82 Can signals easily be confounded ?

C 61 Can confusion of signals have serious consequences ? B 83 Have signals always the same meaning? B 84 Does the worker use unofficial signals ?

C 62 Are these unofficial signals as reliable or perhaps even more reliable, or are they preferred because they are easier to perceive ?

C 63 If easier but less reliable signals are preferred, does it mean that the official signals should be improved?

A 43 Does the work imply the use of data ? B 85 Have the data to be processed before the required action can be taken ? B 86 Is the use of tables (lists, etc.) required and is this efficient? B 87 Have different data to be compared before action can be taken ?

B 88 Is the action to be taken on the basis of received information rigidly prescribed or should it be improvised?

B 89 Have data to be estimated?

B 90 Are standards of comparison (control norms) actually present and regularly used?

A 44 Are errors easily made ? B 91 Can accessories, objects easily be confounded ?

C 64 Can confusion of these parts have serious consequences ? B 92 Can movements easily be confounded ?

C 65 Can confusion of movements have serious consequences ? B 93 Are the parts to be assembled supplied in a correctly pre-adjusted way ?

C 66 Can preadjusting, aiming and assembling be performed quickly and correctly by tactile sense ?

160 Value Engineering, September 1968

A 45 Do the workers receive the necessary information (qualitative and quantitative) regarding the process flow and the output (production) at sufficiently short notice ?

A 46 Is there any possibility for pauses in monitoring tasks ?

C . W o r k M e t h o d

Ma Mental demands; f low of information A 47 Does the rate of information imply high mental demands ?

B 94 Is the rate of information likely to exceed the mental capacity of the operator and to overload him ? C 67 Is reduction possible in the number of signals per time unit, the number of signals per source,

the number of sources ? B 95 Are all these data necessary for performance ?

B 96 If any of the sensory channels is likely to be overloaded, can the load be more evenly spread ?

B 97 Is the rate of information likely to underload the operator?

A 48 Do the qualities of information imply high mental demands? B 98 Are the data required to carry out the task obvious, unequivocal and to the point ?

C 68 Do the various displays of different information differ in more than one aspect ?

C 69 Is the method of displaying information too detailed ? B 99 Have signals to which preference has to be given the highest attention-getting value ?

C 70 Does critical information have an attention-getting value of its own? C 71 Are there any rare signals carrying nevertheless important information? Have they more than

usual attention-getting value ? C 72 Does the information which had to be taken at one glance exist of more than 5 different items ?

B 100 Is the correct sense to be used in regard to the meaning of the signal (danger, alarm - ear; normal machine performance - eye; discrimination of controls, etc. - tactile sense) ? C 73 Are urgent signals given through the auditory sense ? C 74 Is it desirable that visual signals are replaced by other signals ? C 75 Have signals the usual meaning (e.g. red for danger) ?

B 101 Are different answers possible to one and the same signal whereas only one is the most suitable ? C 76 Can the worker be immediately aware of the effects of a wrong choice ? C 77 Are the effects of a wrong choice important?

A 49 Does the time for processing of information imply high mental demands ? B 102 Are all the factors relevant to a decision presented at the right time and in the right sequence ?

C 78 Are any misleading or ambiguous factors present which might cause errors ? B 103 Is adequate time allowed in machine or process cycle for decisions and resulting action ? B 104 Do the workers receive the necessary information (qualitative and quantitative) regarding the process flow

and the output (production) at sufficiently short notice ? B 105 Can rapid feed-back of the effects of adjustment to a system be given ? B 106 Is it possible that signals of different sources occur simultaneously ?

C 79 If this can happen, is there any preference to be given ? B 107 Have signals to be detected when the worker's mind is occupied by monitoring actions ? B 108 Do identical or similar signals occur for a long time and are they frequently repeated? B 109 Is received information to be retained for longer than a few seconds ? B 110 Isthe duration of an important signal not shorter than one second; are the signals repeated; do they appeal

to different senses ? B 111 Isthe attention span longer than about 20 minutes, if a signal can occur at any time but does it occur less

than about four times per half hour ?

D. E n v i r o n m e n t a l L o a d

A 50 Are the climatic conditions within the comfort zone ? B 112 If climatic conditions are not within the comfort zone, is this especially due to:

- air temperature ? - humidity ? - air movement? - radiation ? C 80 Is the work performed in extreme temperature (high or low) ? What is generally the range of air temperature in the department: - in summer time ? - in winter time ? C 81 Does the room heating guarantee a more or less homogeneous air temperature in tho work

environment ?

Value Engineering, September 1968 161

C 82 What is generally the range of relative humidity in the department: - in summer time ? - in winter time ?

C 83 If there is any radiation to or from the worker, does it produce any uncomfortable or excessive warmth or cold?

D 35 Is the work place near cold or hot surfaces ?

C 84 If there is any undue cooling effect caused by air movement, is this uncomfortable or excessive ? C 85 If the work is not performed within the comfort zone: are the working time and rest pauses

adapted to heat or cold?

D 36 Have preventive measures been taken against uncomfortable climatic conditions ? D 37 Do these preventive devices impede performance ?

C 86 Is the man during his daily work exposed to rapid changes in climatic conditions ?

D 38 Is the rapid change of climatic condition caused by the work process ? D 39 Does the rapid change of climatic conditions occur because the worker has to chanae his

location ?

A 5 1 performance*?* ^ W ° ' k e n v i r o n m e n t c a u s e inconvenience to the worker and/or does it interfere with his

B 113 Is there any risk of hearing loss due to noise ?

C 87 What is the level and the quality (frequency spectrum) of the noise ? D 40 Is there a predominant pitch or does the pitch fluctuate ?

B 114 Is the noise intensity and quality constant or changing ? B 115 Is the source of the noise:

- outside the factory ? - in the factory ? - in adjoining departments ? - in the department itself?

C 88 Is the noise produced by the handling of materials and tools or by the machine ? B 116 Is isolating or absorbing material adequately used?

C 89 Have the sources of noise been adequately isolated?

C 90 Have adequate preventive technical measures been taken at the source ?

D 41 Have the most noisy machines been located as far as possible from the workers ? A 52 Does the work method imply the emission of other radiating energies inconvenient or harmful to the worker (U V'

ionising radiation, etc.) ? ' '

A 53 Does the work method imply exposure to chemical agents and/or dust?

B 117 Do the chemical agents and/or dust cause inconvenience or health risks to the worker ?

C 91 Is the use of technical preventive measures against chemicals and/or dust necessary and present (GXfidUSt, GtC.) P

D 42 If a product protection is used does it impede the performance ?

A 54 Is the use of personal protective devices necessary because of the environmental load ?

B 118 If product protection devices are used, do they impede the performance ?

A 55 Are the qualities of illumination adequate ?

B 119 Is the illumination level acceptable ?

B 120 Are the differences in illumination level not too large ?

B 121 Does the colour of the light give any difficulties ?

B 122 Is the direction of the light flow correct in regard to the causation of glare ?

B 123 Does the heat production of artificial illumination have an unfavourable influence on the worker (heat radiation) ?

E. O r g a n i s a t i o n of t h e W o r k

A 56 Is the work performed in shifts ?

B 124 What is the organisation of shifts: - 2 shifts system ? - 3 shifts system ? - 4 shifts system ? - changing time in shifts ? C 92 What are the official working times:

-per day? - per week ?

C 93 What are the official paid rest pauses ? D 43 What is the average overtime in hours:

- per day ? - per week ?

162 Value Engineering, September 1968

A 57 Are there definite rest pauses included in the work method itself?

B 125 How long are the definite rest pauses included in the work method itself?

C 94 How are these definite rest pauses included in the work method itself, distributed over the working period?

D 44 Does the work method allow the operator spontaneous rest pauses ?

A 58 Is the work rigidly paced ?

B 126 Is the worker paced by the machine ?

C 95 Is rigid pacing of operatives by machines or belts essential or can it be avoided by the introduction of buffers or queues ?

C 96 When pacing systems are used is the speed of the machine regulated: - to the paced performance of the operatives as distinct from the unpaced performance ? - to the natural variability of the operative as distinct from the levelled performance ?

C 97 is the maximum tolerance ('feeding' time as a proportion of the operation cycle time) allowed? B 127 Is the worker tied to incentive payment and is the average speed of work acceptable ?

C 98 Has allowance for work speed variations due to performance fluctuations been made in organisa­tion of work?

B 128 If workers in a production line are selected to form a proper team, are they compared then by criteria of work speed ?

C 99 Are adequate buffer stocks between workers in the production line allowed?

D 45 Is a maximum variance allowed (e.g. time for positioning of work piece in relation to time for operation cycle) ?

B 129 Are suitable operatives selected in terms of variability as well as speed of performance ?

A 59 To what extent can the load be decreased by modifying work layouts and fob distribution ?

F. F u n c t i o n a l a n d Integra l (Tota l ) L o a d

A 60 Is the work physically -light? - moderate ? - rather heavy ? - heavy? - very heavy?

B 130 Is in continuous daily work the average heart rate (average during working day in a group of normal workers) within the following limits ?

average permissible limit qualification < 85 < 95 light

85-88 95-98 moderate 89-94 99-105 rather heavy 95-100 105-112 heavy

101-110 113-130 very heavy

B 131 Is in continuous work the respiratory rate per minute during working hours on the average (without pauses): -< 15? - 15-30? ->30?

B 132 is in continuous work the estimated energy expenditure in Kcalper minute during working hours on the average (basal metabolic rate included; without pauses): < 2-5 Kcal/min light 2- 5-3 „ moderate 3 - 4 „ rather heavy 4 -5 „ heavy

>5 „ very heavy

B 133 In discontinuous work (peak load) determine pulse rate within 15 seconds after the peak.

B 134 Does the pulse rate recover completely between peak loads ?

A 61 Does the work cause continuous visible sweating?

A 62 Can a rise in body temperature (> 0-5°C) be expected during working hours ?

A 63 Is there any reason to expect either short term or long term effects on well-being and health of the workers ?

B 135 Evaluate the number and reasons of transfers and dismissals ?

B 136 Evaluate occupational health data: - symptoms and signs - medical transfers - sick absence

Value Engineering, September 1968

A 64

A 65

A 66

Is the work suitable for man, woman, young workers, older workers in regard to physical and/or mental load?

Try to evaluate the physical (BI and CI) and mental (BII and CII) load of work space and work method, environ­mental (D) and organisational (E) load, each in five classes: light, moderate, rather heavy, heavy, very heavy and cross the corresponding squares:

load by workspace and - method

physical mental light

moderate

moderately heavy

heavy

very heavy

Does a combination of physical and mental load impede performance either by asking simultaneous action or by causing a too heavy combined stress.

environmental organisational

G . S y s t e m O u t p u t

A 67 Does an analysis of performance or production errors exist ?

B 137 Does analysis of: - operator's errors ? - non conforming product? - tool wastage, etc. ?

(possibly as a function of the hour of the day or rate of performance) give clues with regard to the effectiveness of: - measuring instruments ? - controls ? - lighting ? - feed back of results ? - learning methods ? - fatigue ?

A 68 Is a change in output criteria desirable ?

B 138 Is alteration of product design or output standards desirable in view of: - required accuracy of movement ? - forces to be exercised? - accessibility ? in: - production ? - transport ? - use by customers ? - maintenance ?

Total number of detailed questions A 68 B 138 C 99 D 45

General questions

Total

350 10

360

Question no

A\B\C\D

Situation acceptable

Explanation of cases

'undecided' and 'no'

Further observation and measurement needed in cases:

'undecided' and 'no'

Result of further

observation and

measurement

Localisation of Unsatisfying conditions

Co o CO to

Advise: 1 = On short notice

simple measures 2 = On longer notice

more complicated measures

3 = Measures difficult to realise in pre­sent conditions

164 Value Engineering, September 1968

Reprint No. 1:3:8

Management Appreciation - Theory of V.E.

The Challenge of V.E. - The theory behind the savings by Frank R. Bowyer*

in this second of five articles Mr Bowyer refers to the ever­growing number of articles and books on value engineer­ing which fail so far to provide any theory (per se) of the subject. Why bother, asks the author, at this late stage, about a theory ? After tracing the evolution of value engineering the author puts forward some forty postulates which he considers might be a basis of a Theory of Value Engineering.

He concludes this article in the series by grouping the subjects connected with the Value Concept under these six headings - Costs and Cost Reduction, Function, Creativity, Personal and Personnel Development and Individual and Departmental integration. Then he provides readers with a general and specific list of references on value engineering.

T h e C h a l l e n g e of V . E . Why Bother? A search through the rapidly growing pile of books and papers being written about Value Analysis and Value Engineering on both sides of the Atlantic has so far failed to provide any theory {per se) of V . A . and V.E. albeit that it is not difficult to dig it out i f one has the patience and considers the task worthwhile. There are thousands of references to 'techniques, philosophies, new concepts, disciplines, skills, procedures, organisation' etc. so why bother to add the word theory at this seemingly late stage? Un t i l just over a year ago there would have appeared to have been no justification, but somewhere around this time it became apparent that although starting f rom a common ancestory V.E. had evolved along different lines in Europe to those of the United States, despite the fact that ostensibly the techniques and disciplines shared a common jargon. This in itself would not have mattered too much i f the differences had been confined to semantics but any reader of case histories that had crossed the Atlantic (in either direction) was soon led to the surprising conclusion that not only were the same words being used to mean entirely different things but that the large scale increase of American influence in this country often led to the wrong things being done, despite the fact that they were being done for the right reason. Undoubtedly, were the British influence as strong in the States the same thing would happen in reverse, and during a recent visit to the States the writer met two British Value Engineers who had gone over there to work and they admitted to a state of temporary bewilderment over adjustment to acceptable management action in the differing environments. Wi th the growing pressure of American Consultancy in this country i t becomes a matter of expediency that the underlying theory be derived. I f one adds to this justification the fact that theory is often the map that allows new territory to be explored, this is in itself a further incentive.

Of necessity this wi l l in the first instance be tentative and insular, it is hoped, however, that once the analytical stage (with appro­priate corrections) is over, others wi l l add to the postulates unt i l there is a solid foundation for a theory of V.E. that w i l l allow the required environmental differences without the embarrassment of contention.

During the course of this work i t often became startlingly evident that the evolution had thrown up almost new species even in such a small area as the British Isles and i t was extremely

* M r Frank Bowyer, the author, is a Consultant employed with the firm of Value Engineering Ltd., 60 Westbourne Grove, London, W.C.2, England. Vol. 1, No. 2, July 1968 carries the first article in this series-'The Challenge of V.E. - First Appraisal'.

difficult i f not impossible to decide whether this was due to the entrepreneural nature of the disciplines or the fact that as yet formal education has had only a small part in their dissemination. These differences are so marked f r o m one side of the Atlantic to the other that only extensive sampling can truly decide that which is truly archaic and that which has the potential of a new biologi­cal spur. This too is evident f r om one company to another in this country, so in assessing the merits or demerits of the derived theory one must be constantly aware of one's own position in the developmental stream.

In t h e B e g i n n i n g Near the end of the second Wor ld War, Harry L . Erlicher, Vice-President for Purchasing and Traffic of the General Electric Co. noticed that many of the wartime material substitutes had not been replaced by the originally specified material despite the fact that these were now again available. Further enquiry revealed that not only were many of the substitutes less costly but that many of them also performed more reliably. Arising f rom this he went on to think about costs in general and systematic cost reduction in particular. He noticed too how many creative ideas were being generated purely out of necessity and wondered why this should not continue when the immediate necessity had disappeared. He found a ready supporter in the Vice-President for Engineering, H . Winnie, and a little later, Larry D . Miles was given the task of developing a series of techniques specifically designed to cut costs without impairing the quality or reliability. I t is extremely important to note here that these early techniques appeared naively simple to many of the engineers and designers first asked to use them and that Larry Miles had considerable difficulty in obtaining a project on which to work in order to convince people that what he had come up wi th was really effec­tive. W i t h the benefit of hindsight we can now recognise how important i t was that these techniques should be simple (see first article in series) but at the time this was construed as lack of sophistication. Since that time many attempts have been made to sophisticate the disciplines in the mistaken belief that this would make them more acceptable, whereas it would, in fact, only narrow the fields of application. I t is also extremely interesting to note that those Companies who have very successful pro­grammes develop all the sophists ask for, but this is unique to that particular organisation and could only be repeated in very similar organisations. When therefore we try to deduce the theory behind the savings we not only have to go right back to what was originally intended but also try and see what has been made of il in the intervening years. This means that whilst the theory rests on the past it must take careful note of the present and I K sufficiently flexible to suit the future, anything static would I K lo invite the self-annihilation that has been the fate of so many ol' the 'techniques of the moment'.

Value Engineering, September 1968

A T h e o r y o f V a l u e E n g i n e e r i n g I f , then, one starts w i th Larry Miles, takes a long look at current practice and then seeks to make the two sufficiently flexible to encompass the future, there is a fair chance that one could derive some postulates that could be the basis of a Theory of Value Engineering. I n this connection these suggestions are put forward:

1. That in a society that insistently demands ever higher stan­dards of quality and reliability (and rightly so) the factor that must ultimately determine the fittest to survive wi l l be the LOWEST COST f o r A N ACCEPTABLE Q U A L I T Y L E V E L .

2. That COSTS fa l l into two categories (a) those legitimately required to adequately f u l f i l the required function and (b) Unnecessary Costs.

3. That U N N E C E S S A R Y COSTS are I N H E R E N T in any organisational system and are not necessarily symptomatic of inefficiency, they may often be occasioned by the rate of techno­logical change, speed of product innovation, lack of suitably qualified personnel and many other such variables. 4. That Cost Reduction and Control must therefore be a con­tinuous process of disciplined analysis and revision.

5. That a single cost expert can rarely encompass enough experience and skills to detect, analyse and recommend alterna­tives fo r al l the unnecessary costs generated.

6. That a cross-functional team of diverse management expertise is far more likely to succeed.

7. That i f cost control is to ultimately make way for profit planning this cross-functional expertise must not only be bent to the project, but must also ensure that the method of analysis and cost correction is itself constantly under review in order that the disciplines remain sufficiently flexible to meet the demands of the latest technologies and new management systems.

8. That i f a costing system is to remain sufficiently flexible to meet all the requirements of technological innovation it must be F U N C T I O N based rather than part oriented.

9. That funct ion (like costs) can be divided into R E Q U I R E D or desirable functions and U N W A N T E D functions.

10. That the B A S I C F U N C T I O N is the specific reason why a device was designed and made.

11. That S E C O N D A R Y F U N C T I O N S are all other functions that a device performs and are subordinate to the basic function.

12. That A E S T H E T I C F U N C T I O N S may be basic (as in jewellery) or secondary (as in machine tools).

13. That U N W A N T E D F U N C T I O N S wi l l always be SECOND­A R Y and w i l l usually detract f r o m the value of the product but may well be exploited as a sales feature (e.g. exhaust noise in a popular sport car). 14. That Value Analysis/Engineering exercises taking the elimination of unwanted functions as their objective wi l l have a strong bias to competitive marketing. (Consider for example the fol lowing unwanted functions: Occupies space, has weight, makes noise, smells, gives heat, kills people etc. etc.) 15. That fo r the promotion of performance or as a means of enhancing reliability F U N C T I O N can be ranked in order of susceptibility to failure in exactly the same way as piece parts provided one tests on the basis of function as opposed to parts.

16. That the discipline of functional thinking has classically been unique to the designer and research and development engineer, once Value Analysis and Value Engineering practi­tioners become used to this new way of thinking i t is i n itself the promoter of enhanced creativity and cost consciousness.

17. That companies seeking to maintain a competitive lead need creative management.

18. That Creativity need no longer be considered dependent upon intuitive inspiration. Whilst i t can never be denigrated to a set of techniques or a routine, sufficient is now known about the way i n which the mind works to enable an environment and disciplines to be used that wi l l substantially enhance innovation.* 19. That considerable enhancement of creativity is experienced i f the discipline of separating imaginative and judicial thinking is practised.

20. That the following represent just a few of the accepted methods for improving creativity. Using new and unexpected combinations. Using plenty of material (ideas). Acceptance of alien territory. The use of free association. Ideas on ideas, snow­balling. Making much more use of the sub-conscious mind.

21. That the following represent just a few of the Personality Factors derived f r o m highly creative people. Enthusiasm and tenacity. Depth and Urgency of interest. Insatiable Curiosity. Open-minded flexibility. Positive Motivation.

22. That Creativity can be further enhanced by an understanding of the different types of thinking and their fields of application. The following represent those particularly pertinent to V .A. /V .E . Convergent and Divergent Thinking. Group Psycho-dynamics. Situational Thinking. Rigidification and Flexibility.

23. That Psychological analysis has shown that A L L people are creative; the inability to produce ideas can be due to several variables amongst them being, wrong environment (now or early in life). Disbelief in one's creativity. Incorrect learning methods. Wrongful emphasis on security and the subsequent fear of any­thing new. A n d many other forms of mental blocking all of which inhibit creativity.

24. That one cannot just jab creativity into Value Engineers like a vaccination. I t is a slow learning process in which reward (not necessarily monetary) and motivation have powerful roles to play.

25. That since modern management psychology recognises the release of creativity as one of the basic requirements of personality development, regular participation i n disciplines of this nature are profitable not only to the product but also to the executive.

26. That the Value Disciplines are in themselves a powerful tool for management development. I n terms of the Managerial Grid, unless a Value Engineer is a 9-9 executive equally concerned wi th the people wi th whom he deals as he is with the product he is handling, he is unlikely to last very long. That furthermore this is not an academic self-assessment but a dynamic exercise in achievement.

27. That, as well as the Value Engineer, there is often spectacular executive development for those who participate in V .A . /V .E . exercises due to the following: enhanced creativity, involvement in functions of management normally departmentalised, cross fertilisation of techniques, the need for self-discipline, team loyalty and shared objectives, contact wi th outside specialists, increased cost consciousness and analysis (the latter often for the first time) the need to deal with people outside one's particular speciality etc., etc.

28. That several organisations have recognised the efficacy of this development and are making V.A. /V .E . part of management training and development.

29. That i t is not advisable to change the team too frequently in the pursuit of this development since a good team (as i n sport) only get the best out of each other after working together fo r several sessions. I f V .A. /V .E . is envisaged as part of management development it is better to have several teams independently working on several projects, which not only meets the require­ments of the executive development but contributes substantially to profit improvement.

30. That much of the research laboratory work on 'effective groups' is extremely applicable to V.A. /V .E . exercises. The ideal team size being 5 or 6 people. Groups of 4 or less tend i n time to be dominated by one or two people. Groups much larger than six (excluding visiting specialists) tend to (a) slow down output (b) develop into two contending teams of creators and critics wi th sub-group loyalties and pressures.

* These disciplines above all others in Value Analysis/Engineer­ing M U S T remain flexible and eclectic. Creativity is as individualistic as a person's fingerprints, some people require elaborate checklists, whilst others produce major technological breakthroughs f rom a few hieroglyphics on a torn envelope. What can be analysed and recommended is the method of operation, and a study of the personality factors, of highly creative people.

166 Value Engineering, September 1968

31. That most groups readily accept as a leader, one whose knowledge is superior to their own. I t is advisable therefore that the Value Engineer thoroughly understands V . A . and V.E. in depth,

32. That the Value Engineer be picked for competence in 'Social Skills' or be trained in them.

33. That all practitioners have a working knowledge of 'Resis­tance to Change' and methods usually effective in overcoming 'Roadblocks'.

34. That resistance to change wi l l be lowered by team participa­t ion either directly on project work, by involvement in programme monitoring or specialist consultancy. The wider therefore that project work or the organisation for V .A . /V .E . can be spread the more effective wi l l be the implementation. Over emphasis on the departmentalisation of V .A . /V .E . wi l l often increase resistance to change.

35. That departmental esteem being an extremely important factor in resistance to change the V .A . /V .E . team should never appropriate credit for the accrued savings individually but seek at all times to credit the supporting functions of management represented, e.g. Design, Production, Work Study rather than M r Smith, M r Jones, etc.

36. That resistance to change is increased by lack of knowledge of how the changes are to be brought about and Value Engineers and Practitioners that seek to promote their status and expertise by insularity inflate the problem of implementation and deny the company the benefit of the 'Value Bonus' or profit f r o m intan­gibles.

37. That whilst i t is difficult i f not impossible to measure the profit f r o m intangibles it is reasonable to expect that a company with a well established programme wi l l derive as much monetary worth f r o m enhanced functional integration as f r o m direct savings f r o m the product.

38. That Value Analysis/Engineering contains within itself most of the attributes required by the proponents of functional inte­gration (see for example Likert, Schein, McGregor, Argyris, etc.)

39. That functional integration must be f i rmly established before the introduction of Value Assurance/Control/Administration, etc.

40. That these postulates f o r m only a basic skeleton around which Value Analysis/Engineering/Assurance can be built. The ful ly operational method must be developed in the environment.

In C o n c l u s i o n Any Value Engineer reading the above suggestions wi l l recognise that no originality is claimed for them, they are available to any­one in return for the toi l of searching. Some wi l l appear to be repetitive but this is due to the minor deviations recognisable f r o m one geographical area to another (mainly the U.S.A. and U . K . ) . I t w i l l also be readily apparent that they can be con­veniently grouped under six subject headings that f o r m the basis of the Value Concept, COSTS A N D COST R E D U C T I O N , F U N C T I O N , C R E A T I V I T Y , PERSONAL A N D PERSON­N E L D E V E L O P M E N T , RESISTANCE TO C H A N G E , I N D I V I D U A L A N D D E P A R T M E N T A L I N T E G R A T I O N .

The work has been done i n far too short a time and the writer would have liked to have had access to a much larger industrial sampling; i t is hoped that i f nothing else has been done than to point out the need, others w i l l i n turn criticise and possibly co­operate to further improve and validate these findings. The references at the end have been deliberately separated into V . A . / V.E. bibliography and a reading list which deals in depth with the six subject headings utilised for the search. Any Value Engineer or Manager wishing to know the subject thoroughly wi l l soon recognise the co-relation existent between the two bibliographies and w i l l detect the movement of material f rom the last list into the steadily growing literature on V.A. /V .E . No reading matter on F U N C T I O N as a subject in its own right could be found outside of V .A . /V .E . references but undoubtedly this wi l l be remedied as its value becomes more widely recognised.

V . A . / V . E . R e f e r e n c e s Miles, L . D . Techniques of Value Analysis and Engineering. McGraw H i l l . Gage, W. L . Value Analysis. McGraw H i l l . Gibson, J. F. A . Value Analysis - The Rewarding Infection. Pergamon Press. Mandelkorn, R. S. Value Engineering. Chapman & Hal l L t d . Value Engineering in Manufacturing. American Society of Tool and Manufacturing Engineers. Prentice Hal l Inc. Value Analysis Value Engineering. American Management Ass. SA VE Vol. 1. Proceedings of American 1966 National Convention Proceedings of the 4th, 5th and 6th Value Analysis Conference (U.S.A.). Edited by V . A . Inc., Schenectady. Proceedings of the 1st and 2nd European Value Analysis/ Engineering Conference. Edited by V.E. L td . , London.

S u p p l e m e n t a r y B i b l i o g r a p h y

Costing and Cost Reduction.

Wheldon, Cost Accounting and Costing Methods. Macdonald & Evans. Scott, J. A . Budgetry Control and Standard Costs. Pitman. Pritchard, T. A . and Samuel, W. Organised Cost Reduction. British Productivity Council.

Creativity

Osborne, Alex F. Applied Imagination. Scribner, New York. Creativity and its Cultivation. Edited by H . H . Anderson, Harper & Row. Williams, John K . The Knack of Using your Subconscious Mind. Prentice Hal l Inc.

Personal and Personnel Development

Readings in Managerial Psychology. Edited by H . J. Leavitt and L . R. Pondy, University of Chicago Press. Maltz, M . Psycho-Cybernetics. Simon & Schuster Inc. Maslow, A . H . Toward a Psychology of Being. Van Nostrand.

Resistance to Change

Judson, A . S. A Manager's Guide to Making Changes. Wiley & Sons. Rice, A . K . Learning for Leadership - Interpersonal and Inter-group Relations. Tavistock. Power and Conflict in Organisations. Edited by R. L . Kahn and E. Boulding. Tavistock. Argyle, Michael. The Psychology of Interpersonal Behaviour. Pelican Books.

Integrating the Individual and the Organisation Likert, R. New Patterns of Management. McGraw H i l l . McGregor, D . The Human Side of Enterprise and the Professional Manager. McGraw H i l l .

Drucker, Peter F. Managing for Results. Heinemann. Argyris, Chris. Integrating the Individual and the Organisation. Wiley & Sons. Schein, E. H . Organisational Psychology. Prentice Hal l Inc. Maslow, A . H . Eupsychian Management. Richard D . I rwin , Inc. The Scanlon Plan. Edited by Frederick G. Lesiur. M . I . T . Press, Mass. Institute of Tech.

Errata To M r Bowyer we owe an apology. I n the last issue of this journal we published M r Bowyer's article 'The Challenge of V.E. - the First Appraisal' wi th the following errors:

Page 107. 'ther' should have been 'their'; 'taken' should have been 'takes'; 'itinerant' should have been 'inherent'. The final word in the sentence at the head of the column should have been 'over­simplification'.

Page 108. 'V.E. ' should have been ' V A ' at first use and 'organised' was omitted before the word system.

Page 109. 'gimic' should have read 'gimmick'.

Value Engineering, September 1968 167

I I I I I I L

To the Sales Director

Thermo Plastics Ltd. Luton Road, Dunstable, Bedfordshire

I understand you are Britain's foremost plastics moulders, and can offer outstanding expertise in design and technical service.

Please send me further information.

Name

Position

Company

Address

V.E.

This coupon could cut

your costs by

(and improve shape) Control knob for hydraulic Trolley Jack. Price in steel eventually reduced to 3/-.

Price for better- looking article of improved funct ional shape, in an ABS material, 1 /3 .

(and increase life) Column cap. In spun a luminium, 4 / - . In much more durable H.D. Polythene 1 /6.

/ / ( a r , d save weight) / M n u J Cable pulley. In cast iron, 30/ - . ^ " In in ject ion-moulded Acetal Resin, saving f ive sixths of the weight , carrying loads of 1 ton p.s.i., 8/- .

^ (and take 9,000 p.s.i.) Piston Guide. In hardened and ground EN1 5, 1 2 / - . In steel-backed Acetal Resin

wh ich absorbs dirt particles and wi thstands cylinder pressures of 9,000 p.s.i., 5/-.

The above results derive from a value analysis carried out by one of our customers.

168 Value Engineering, September 1968

Reprint No. 7:3:9

Functional Worth

The Numerical Evaluation of Functional Relationships by Arthur E. Mudge*

This paper continues the consideration of functional worth which was begun in the previous issue of this journal. As the author points out precise functional balance is that which makes a product both work well and sell most effectively at the lowest total cost. To start toward the attainment of this balance, the analyst must

first have an understanding of the required and desired functional relationships. The paper describes the Numerical Evaluation of Func­tional Relationships in a manner which will enable the value engineer to apply this tool to the items he is developing or analysing.

I n t r o d u c t i o n There must be within the Functional Approach a method of determining the delicate balance between the functions of the Product* being analysed. This balance is determined only through a comparative process which in its turn leads to a pre-ceptual evaluation. ' I t can be said almost without fear of contradiction, that i f there is no comparison, there is no evaluation' - L . D . Miles. 1

The Functional Approach is that part of the Value Engineering Methodology which differentiates it f r om cost reduction and makes it usable on any product at any phase in the business cycle. This Approach encompasses three phases, i.e. Define Function, Evaluate Function and Develop Alternates. Although these are stipulated as three distinct phases, they do, in actuality, overlap and interlock. The first phase - Define Function - has been discussed and described in detail in the paper, 'The Preparation and Use of the Value Engineering Functional Chart. ' 2 The present paper, due to the overlap mentioned is, to a degree, a continuation of the 'Define Function' Phase of the Functional Approach. Its content, however, deals mainly with the determination of the balance between the functions, this being the major portion of the second and equally important phase - Evaluate Function. Before undertaking a discussion and detailed description of the establishment of this balance, certain facts must be reiterated. Before this phase can be started, the f u l l requirements of the previous phase must, of necessity, have been met. This entails the compilation of complete factual data f rom the areas of Market­ing, Engineering, Manufacturing and Purchasing f rom which the product's functions are concisely defined in two words - a verb and a noun. The degree of the functions must also have been determined, i.e., as to whether they are Basic or Second Degree Functions both at the part and the assembly levels. Furthermore, it must also be realised that the relative importance of the func­tions must be established before a worth or value can be assigned to the various functions or alternate methods developed for the accomplishment of them.

The constant nature of this balance between the functions can only be appreciated when there is a complete understanding of the interrelationship between them. Numerical Evaluation of

Functional Relationships is one concise, yet simple, method of determining the necessary interrelationships among the functions. The Numerical Evaluation of Functional Relationships method is capable of determining and/or verifying the Basic Function of the product being studied as well as determining the descending order of importance of the Second Degree Functions. I t further helps the user by aiding in the positive determination of which func­tions are in the product because of the User's or Producer's specifications or requirements and which functions are included because of an earlier design approach.

Starting f r o m this common ground, the 'Numerical Evaluation of Functional Relationships' method can be discussed. This dis­cussion, in order that the method can be fu l ly understood, wi l l be described in two forms. The first wi l l be a general and broad account of the method; the second, a detailed step-by-step delineation of the method as applied to a specific example.

N u m e r i c a l E v a l u a t i o n of F u n c t i o n a l R e l a t i o n s h i p s 'Value being a relative rather than an absolute measure, the comparison must be used in evaluating functions' - L . D . Miles. 1

Numerical Evaluation of Functional Relationships is accom­plished with the aid of Functional Worksheets Nos 2 and 2B (Figures 1 and 2 respectively). Functional Worksheet No . 2 should be completed before this approach is undertaken. The basic function of each part of the item being studied, as defined and so checked in columns three and four respectively (Worksheet No . 2) is placed in the appropriate space at the top of Functional Worksheet No. 2B.

The functions are then evaluated each one against all the others, one at a time, to determine which one of each pair is the more important. This importance is indicated in the chart by marking the Key Letter of the more important function in the appropriate block in the evaluation chart. A t the time of the comparison of each pair of functions, the magnitude of difference in importance is also determined and indicated by a number following the letter. This difference in importance should be given a value o f ' 1', '2 ' or '3' according to your judgment wherein ' 1 ' indicates a minor difference in importance, '2 ' a medium difference of importance and '3' shows a major difference of importance.

'Mr Mudge is Director of Value Engineering Ser­vices with JOY Manufacturing Company, Oliver Bui/ding, Pittsburg, Pennsylvania, 15222, U.S.A. He is also President of International Affiliates of the Society of American Value Engineers. This is the second of three articles written by Mr Mudge on 'The Functional Approach'. The third article will appear in the November issue.

* Product - As used in this paper, it is considered in its broadest definition 'The result of someone's labour,' i.e., a physical product, process or procedure.

References 1 Miles, L . D . Techniques of Value Analysis and Enghwerinn

(McGraw-Hi l l ) . 2 Mudge, A . E. The Preparation and Use of the Value Engineer inn

Functional Chart (Journal of Value Engineering, 3:1 (1965)

Value Engineering, September 1968 169

Fig. 1 Sheet 2

F U N C T I O N A L W O R K S H E E T

Fig. 2 Sheet 2B

F U N C T I O N A L W O R K S H E E T

DRAWING NO. D R A W I N G NO.

BASIC FUNCTION

QUANTITY and PART

FUNCTIONS(S) VERB I NOUN

FUNC. PART

B. i S.

LEVEL ASSY.

B. I S.

I t is important to note that no two functions ever have the same importance, i.e., there is always at least a minor difference of importance between two functions.

When a weighted importance has been determined for each func­tion relative to every other function, a summation of this data is compiled in the Evaluation Summary - Weight Column (Work­sheet 2B) beside the listed functions. This is accomplished by totalising the weight factors, both horizontally and vertically, for each function (key letter) i n the numerical evaluation chart. From a comparison o f the totalised figures in the weight column, the Basic Function of the item being studied is determined and/or verified. This wi l l be the function which has the highest totalised weight factor. The descending order of importance of the Second Degree Functions is determined by a similar comparison of the function's weight factors for the various functions; i.e., by the descending value of the functions totalised weight factors. After the details of the Functional Relationships have been determined, i t is possible for the Analyst to study the results and determine many conclusions on the product's complexities. I t allows him to determine which functions are incorporated due to specifications or requirements and which functions are there because of an earlier design approach. Wi th this knowledge, he can objectively analyse the product wi th confidence. When a worth has been established on each function, this knowledge provides a more positive means of relating each function's worth to that of the whole. A l l of these are aids in directing cost pre­vention and/or cost improvement efforts toward areas which contain high and/or unnecessary costs.

Having thus broadly outlined the Numerical Evaluation of Functional Relationship Method and its basic uses, a step-by-step application to a case example wi l l be described. The case example in this development wi l l be the Connector shown in Figure 3.

Evaluation Summary

KEY LETTER

FUNCTIONS WEIGHT

A

B

C

D

E

F

G

H

1

J

K

L

M

N

B c D E F G H I J K L M N

B

c

D

E

F

G

H

NUMERICAL EVALUATION Note: Evaluation Weight Factors

•1 = Minor difference in importance I

2 = 3 =

Medium difference in importance Major difference in importance J

K

L

M

This example has been chosen for a number of reasons. First, it is a small sub-assembly yet is sufficiently complex to cover the necessary points of the approach. Second, i t is an actual part of a complex piece o f equipment and the evaluation can be carried through to a logical conclusion. Third, it is the same case example used in 'The Preparation and Use of The Value Engineering Functional Chart ' , 2 thereby preserving continuity between the

Fig. 3

170 Value Engineering, September 1968

N U M E R I C A L E V A L U A T I O N G R A P H

CO

o I-u <

I CD

o c 'tn °

3

10

Second Degree Functions

11 12 13 14 15 16 17

papers and giving a clearer understanding of their interdepen­dence.

Before starting the step-by-step description of this method, cer­tain vital points must be stressed. First, before this or any analysis can be undertaken, detailed fact-finding must have been accom­plished. Second, these facts must include an understanding of both the User's and Producer's specifications and requirements.

S t e p I. D e t e r m i n a t i o n of P e r t i n e n t D a t a When the detailed facts have been secured and Functional Work­sheet No. 2 has been completed, see Figure 4 -Func t iona l Worksheet No. 2 on the example connector, the numerical deter­mination of functional relationships can be undertaken.

Using Functional Worksheet 2B, the basic functions of the parts us noted in the 'Function(s)' column and checked in the 'Func­tional Part' column (Figure 4) are listed in the appropriate area as shown in Figure 5, eliminating all direct redundancy. I t should be noted that as each function is noted down, it is automatically uviiyncil a key letter.

Fig. 5 Evaluation Summary

K E Y

L E T T E R F U N C T I O N S W E I G H T

A PROVIDE CONNECTION

B INDUCE FRICTION

C APPLY PRESSURE

• TRANSMIT PRESSURE

E PROVIDE SEAL

F CONDUCT CURRENT

G

H

1

J

K

L

M

N

Value Ijifii'ieering, September IV68 171

Sheet 2 F U N C T I O N A L W O R K S H E E T

REF. NO.: MEA -3116

D R A W I N G NO.: 9090547

CONDUCT CURRENT 30 A M P S CURRENT

B A S I C F U N C T I O N

Q U A N . P A R T F U N C T I O N ( S )

V E R B | N O U N

F U N C T I O N A L P A R T

B A S I C 1 S E C O N D

L E V E L

A S S Y .

B A S I C | S E C O N D N O T E S

2 i" BRASS NUTS

PROVIDE j CONNECTION PROVIDE | LOCATION CONDUCT 1 CURRENT APPLY { PRESSURE

! v ! V ! v

j V MUST BE READILY DISCONNECTABLE

1 i * LOCK WASHER TRANSMIT 1 PRESSURE INDUCE j FRICTION RESIST 1 MOVEMENT

v i " ! v SUBJECT TO SHIPPING VIBRATION

1 i" BRONZE NUT

APPLY j PRESSURE PROVIDE 1 LOCATION

~J ! 1 v

! v

1 i" LOCK WASHER

TRANSMIT ] PRESSURE INDUCE 1 FRICTION RESIST | MOVEMENT

v i " \ v

SUBJECT TO SHIPPING VIBRATION

1

2

RECESSED WASHER

i" GASKETS

PROVIDE 1 LOCATION T R A N S M I T ] PRESSURE PROVIDE | SEAL PROVIDE 1 LOCATION

• i ' v ! 1 V

! v

I v MUST SEAL 7 p.s.i.

1 4 i " STUD T R A N S M I T ! PRESSURE PROVIDE I LOCATION CONDUCT ! CURRENT RESIST 1 MOVEMENT PROVIDE ] CONNECTION

! v

v I " • V !

v

v !

1 SPECIAL NUT PROVIDE 1 LOCATION CONDUCT ] CURRENT APPLY ] PRESSURE PROVIDE 1 CONNECTION

i v

V \ v ! v

MUST BE READILY DISCONNECTABLE

1 COPPER TUBE PROVIDE i CONNECTION CONDUCT 1 CURRENT PROVIDE | LOCATION

v ! ! V

V !

v

1

MUST BE READILY DISCONNECTABLE

Fig. 4

D A T E : 9 - M 2

ASSEMBLY: C O N N E C T O R

30 A M P S CURRENT

S t e p II. C o m p a r i s o n a n d W e i g h t i n g of F u n c t i o n s A t this point, Functional Worksheet No . 2 is set aside and Worksheet No. 2B fu l ly undertaken. This step of the approach is carried out using the 'Numerical Evaluation' portion of Work­sheet No . 2B. This is done by comparing one function to only one other function at a time and determining which is of the greater importance as well as the magnitude of the difference in impor­tance.

Starting with Function ' A ' - 'Provide Connection', compare it to Function ' B ' - 'Induce Friction' . This comparison is made as they each relate to the complete assembly to determine which is of the greatest importance. I f the analyst has compiled all the pertinent data, a knowledgeable decision can be made. When this decision has been determined, the Key Letter corresponding to the function having the greatest importance is placed in the ' A B ' block (Figure 6). I n this case, i t was determined ' A ' 'Provide Connection' was more important than ' B ' - 'Induce Friction' .

Fig. 6

Numerical Evaluation

A

B C D E F G H 1 J K L M N

A

B

As the above decision is being formulated, the extent of the magnitude of the difference in importance is also being rationa­lised. That is to say, it is being determined whether the difference in importance is of a minor, medium or major magnitude. As this difference is determined, it also is marked in the ' A B ' block (1 indicating a minor difference, 2 a medium difference and 3 a major difference). I n the above comparison of Function ' A ' to Function 'B ' , the analyst determined that there was a major magnitude of difference in importance; therefore, a '3' was placed in the ' A B ' block after the ' A ' as shown in Figure 7.

Fig. 7

Numerical Evaluation B C D E F G H I J K L M N

A A3

B

The Analyst now continues his comparison of Function ' A ' -'Provide Connection' to each of the other Functions in their turn, i.e., he compares Function ' A ' to Functions ' C , ' D ' , 'E ' and 'F ' . As each weighted comparison is made, the Key Letter and weight factor is marked in the appropriate block in the Numerical Evaluation. When the Analyst completed his weighted compari­son of Function'A' in the example case, the chart was filled in as shown in Figure 8.

Fig. 8

Numerical Evaluation B C D E F G H 1 J K L M N

A-3 A-3 A-3 E-2 F-3

B

When the Analyst has completed his evaluations of Function ' A ' to every other function and determined a weighted com­parison for each, he, i n a similar manner, makes similar evalua­tions for all other functions. I n the example case, Function 'B ' , ' C , ' D ' , 'E ' and 'F ' were individually compared to every other function, one at a time, and a weighted comparison established. When this had been accomplished, the 'Numerical Evaluation' portion of Worksheet No. 2B was completed as shown in Figure 9.

172 Value Engineering, September 1968

Fig. 9 Numerical Evaluation

B C D E F G H I J K L M N

A-3 A-3 A-3 E-2 F-3

B B-1 B-1 E-3 F-3

C C-1 E-3 F-3

D E-3 F-3

E F-3

S t e p III. P r e l i m i n a r y S u m m a t i o n When the evaluations have been completed and a weighted importance has been determined in the comparison of each function to every other function, the Preliminary Summation can be undertaken. This summation is recorded in the 'Evaluation Summary' portion of Worksheet No. 2B. Here, the weight factors of each Key Letter are totalled and placed in the 'Weight' column beside the corresponding letter, as shown for Function ' A ' i n Figure 10.

F ' S - 1 0 Numerical Evaluation

B C D E F

A g Ag) A@ E-2 F-3

B B-1 B-1 E-3 F-3

Evaluation Summary

KEY FUNCTIONS WEIGHT LETTER

A PROVIDE CONNECTION 9

B INDUCE FRICTION

In the example case, the 'Evaluation Summary' when completed by the Analyst was as shown in Figure 11.

I n the example case, 'Conduct Current' has been verified as the Basic Function by the fact that its weighted importance is greater than any other function. Since none of the other functions have a similar weight factor, they are Second Degree Functions. Figure 12 shows the example case functions when listed in their descending order of importance.

Fig. 12

Basic Function . . . . . . . . . . . . . . 15 Second Degree Functions - Provide Seal 11

Provide Connection . . . . 9 Induce Friction . . . . 2 Apply Pressure . . . . 1 Transmit Pressure . . . . 0

I f it is desirable to depict this difference in importance more graphically, the functions' weight factors can be plotted on graph

' , paper as shown in Figure 13.

Fig. 13

16

o 14 S 12

LL.

- 10

'5 8

\ \

\

\

\ Basic \ Basic ru i i cuon

Co

nd

uct

C

urr

en

t

Pro

vide

S

eal

Pro

vide

n

ne

ctio

n

Ind

uce

F

rict

ion

Ap

ply

're

ssu

re

f ra

nsm

it 'r

ess

ure

o

Functions

Fig. 11 Evaluation Summary

KEY LETTER

FUNCTIONS WEIGHT

A PROVIDE CONNECTION 9

B INDUCE FRICTION 2

c APPLY PRESSURE 1

D TRANSMIT PRESSURE 0

E PROVIDE SEAL 11

F CONDUCT CURRENT 15

G

S t e p IV. F ina l S u m m a t i o n From the data now compiled in the 'Evaluation Summary' portion of Worksheet No. 2B, the Analyst can now make his final summation. This step entails determining or reconfirming the Basic Function by assessing which function has the greatest total weight factor. In the example case, this is Function 'F ' - 'Conduct Current' with a total weight factor of 15. Al l other functions listed, unless they have the same weight factor, arc second degree functions. The descending order of importance of these second degree functions can be and is determined by the descending magnitude of their corresponding weight factors. I hc Basic Function and Second Degree Functions should now

I K listed in their descending order of importance. A t the same ni iK . Ihc relative difference in importance can be noted.

Note: The charting approach, as shown in Figure 13 is of particular benefit when two or more people are analysing the same group of product functions. I t pinpoints variations in understanding of the basic data. For examples of this use, see the paper in the next issue.

E x a m p l e C o n c l u s i o n s From the data compiled in Figures 12 and 13, a number of vital conclusions can be ascertained. 1. The functions of 'Provide Seal' and 'Provide Connection' are major Second Degree Functions. Because of their high rating, the need for them should be questioned and/or the possibility of their de-rating studied.

2. The functions of 'Induce Friction' and 'Apply Pressure' are minor Second Degree Functions due to the drop in their related importance compared to the functions above them as shown in both the listing and graph forms. Definite study should be under­taken to determine i f these can be eliminated or combined with other functions.

3. The function, 'Transmit Pressure' (although at this time still considered necessary) cannot be accomplished until one or more of the functions above it is accomplished.

4. I n analysing the Final Summation data, it can be determined that the first three functions are in the product because of the User's or Producer's specifications and/or requirements. It can further be determined that the remaining functions arc included in the product due to the present design approach.

Value Engineering, September 1968 173

When the foregoing was completed and analysed, i t was con­cluded that changes could be made without affecting the reliability or maintainability while reducing the total cost of the connector. W i t h this knowledge, added to that already determined by the definition of the functions, i t was determined by the designer that necessity of the function 'Provide Seal' was in reality an 'Honest Wrong Belief and therefore could be eliminated. This, then, eliminated the last two special parts f r o m the assembly and provided a total cost improvement in the assembly of 92%.

G e n e r a l C o m m e n t s When the Basic Function of the Product being studied cannot be determined as stipulated in the reference paper, the Numerical Determination of Functional Relationships is accomplished in the same manner. The variation is made in the handling of Functional Worksheet No . 2. I n this type of situation, the Basic Function line of Worksheet No . 2 is left blank. The parts and their functions are filled in and the Functional Leve l -Par t column is completed. A t this point, the Numerical Determination of Functional Relationships is undertaken. The results of the evaluation, in this type of situation, instead of verifying the Basic Function, determines the Basic Function. When this has been accomplished, Worksheet No . 2 can be completed. On occasion, when the 'Evaluation Summary' portion of Work­sheet N o . 2B is completed, i t is found that two Second Degree Functions have similar weight factors. When this problem arises, the order of importance can, quite easily, be determined. This is done by going back to the 'Numerical Evaluation' portion of Worksheet No . 2B and determining which of the two functions when compared to each other, had the greater importance. Whichever function had the greater importance in this evaluation then has the greater importance in the total evaluation. Examples 1 and 2 show additional applications of this approach to sub-assemblies. The final paper shows and explains how this basic approach to a problem can be applied to other products, i.e., 'products' used in the fullest sense of its meaning.

Example I - Roof Exhaust Fan Wheel Figure 14: 4S N O L Wheel Figure 15: Worksheet No . 2 on 4S N O L Wheel Figure 16: Worksheet No . 2B on 4S N O L Wheel Figure 17: Final Summation 4S N O L Wheel Figure 18: Graphic Listing 4S N O L Wheel

Example 13 - Control Enclosure Figure 19: Tabulated Listing on Control Enclosure Figure 20: Graphic Listing on Control Enclosure Figure 2 1 : Worksheet No . 2B on Control Enclosure

R e l a t e d E x a m p l e I Roof Exhaust Fan Wheel - 4S N O L I n reviewing this example, the reader wi l l ascertain that it embodies not only the points covered in the basic paper, but a number of the points covered in the General Comments. As can be seen f r o m Figure 14, this sub-assembly is large and of a different nature than the case example.

Fig. 14

Design 4S NOL Wheel

Fig. 15 S n e e t 2

F U N C T I O N A L W O R K S H E E T

D A T E C 7 - 7 - 6 5

A S S E M B L Y : R O O F E X H A U S T F A N W H E E L

R O T A R Y F O R C E C O N V E R T E N E R G Y K I N E T I C E N E R G Y

I N P U T B A S I C F U N C T I O N O U T P U T

Q U A N . P A R T

F U N C T I O N ( S ) V E R B L N O U N

F U N C T I O N A L P A R T

B A S I C J S E C O N D

L E V E L A S S Y .

B A S I C ; S E C O N D N O T E S

1 T A P P E R L O C K B U S H I N G P R O V I D E | S U P P O R T P R O V I D E L A D J U S T M E N T P R O V I D E | L O C A T I O N T R A N S M I T ! F O R C E P R O V I D E L C O N N E C T I O N

! V V

I V ! v

1 K E Y T R A N S M I T | F O R C E P R O V I D E L L O C A T I O N " i v ! v

3 C A P S C R E W S T R A N S M I T ! F O R C E P R O V I D E 1 L O C A T I O N A S S I S T J D I S A S S E M B L Y

' i v j V

1 L O C K W A S H E R I N D U C E ] F R I C T I O N

T R A N S M I T ] F O R C E " ! • ! v

1 H U B T R A N S M I T ] F O R C E P R O V I D E I S U P P O R T P R O V I D E t L O C A T I O N ' i v

1 ^

6 C A P S C R E W S T R A N S M I T ! F O R C E P R O V I D E j L O C A T I O N P R O V I D E | S U P P O R T

! v

" i v i V

1 B O O K P L A T E P R O V I D E | L O C A T I O N P R O V I D E | S U P P O R T T R A N S M I T L F O R C E

! v V i v

i v

1 S H R O U D P R O V I D E ! L O C A T I O N P R O V I D E | S U P P O R T D I R E C T ] A I R

v V i

1 V

12 B L A D E S P R O V I D E L O C A T I O N P R O V I D E ! S U P P O R T T R A N S M I T L F O R C E C O N V E R T ] E N E R G Y

1 V ! v V j

R E F . N O . :

D R A W I N G N O . : 4 5 - N O L

174 Value Engineering, September 1968

Fig. 16 Sheet 2B

D A T E : 7-7-65

ASSEMBLY: R O O F E X H A U S T F A N W H E E L

REF. NO.: W - 4 0

D R A W I N G NO. : 9090547

Evaluation Summary

K E Y

L E T T E R

F U N C T I O N S W E I G H T

A PROVIDE CONNECTION 8

B TRANSMIT FORCE 7

C INDUCE FRICTION 3

D PROVIDE SUPPORT 3

E PROVIDE LOCATION 0

F DIRECT AIR 9

G CONVERT ENERGY 18

H

1

J

K

L

M

N

Fig. 18

G R A P H I C L I S T I N G

co i_ o

* J o CO LU -C

"5 5

M N

A-2

B-2

A-3

B-2

C-1

A-2

B-2

F-2 G-3

C-2

D-3

B-1

F-2

F-3

F-2

G-3

G-3

G-3

G-3

G-3

NUMERICAL EVALUATION Note: Evaluation Weight Factors

1 = Minor difference in importance 2 = Medium difference in importance 3 = Major difference in importance

F ina l S u m m a t i o n

rig. n Tabulated Listing Basic Function: Convert Energy Second Degree Functions: Direct A i r

Provide Connection Transmit Force . . Induce Friction . . Provide Support Provide Location

R e l a t e d E x a m p l e II

Control Enclosure This example is a control enclosure or to put i t i n other terms, it is a special conduit box used to provide a place for electrical connections and to house various major equipment controls. The tabulated and graphic listing of the Final Summation are shown below:

Fig. 19

Tabulated Listing Basic Function: Provide Protection Second Degree Functions: Support Weight

Provide Access . . Provide Connection Provide Seal Provide Movement

Fig. 20

G R A P H I C L I S T I N G

14 11 9 3 2 0

o cs

D)

14

13

12

11

10

9

8

7

6

5

4

3

2

1

—

— \ A

\

\ >

\ \ \ IBasic \ IBasic

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Functions

Vulue I'Jiglnevring, September 1968 175

Contents

Message from the Minister of Technology

Pictorial review of achieve­ments of the British Electrical Industry

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Directory of Manufacturers including summary of products manufactured and addresses of overseas agents, companies etc.

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176 Value Engineering, September 1968

Reprint No. 1:3:10

Basic concepts - Management Appreciation - Methodology

Organising the V.E.-Effort in a Company by J . Burnside, C.Eng., M.I.Mech.E., M.I.M.C*

The author provides answers to questions which face Managements when they are considering the introduction of value engineering in their companies. In the first of a series of three articles Mr Burnside dis­

cusses the Profit Improvement Programme showing the areas in which it can be applied. He deals with the requirements of large, medium and small companies, and then focusses attention on the establishment of V.E. effort.

I n t r o d u c t i o n Companies wishing to set up a value engineering facility fre­quently f ind difficulty in deciding how best this should be done. The problems which beset them usually stem f r o m the inability to answer satisfactorily the following questions. 1. Should we have a full-time or part-time value engineer? 2. Should we have a value engineer at all or can existing staff

cope; Should the Value Engineer have his own staff? How wi l l the Value Engineer f i t into the organisation? Should he operate in isolation or be part of some existing department ? To whom should the Value Engineer report? How wi l l his activities f i t into the general scheme for reducing costs and improving profit contribution? How best can we 'sell' value engineering to the staff as a whole so that suspicion and distrust of value engineering may be minimised, or better still , eliminated?

I t is the purpose of this paper to discuss the issues involved and thus to arrive at a sound basis for answering these questions. Companies of varying sizes have different organisation structures and different needs. What is right for one company may not be right for another and i t is the intention, in this series, to highlight where the differences lie. By this means i t is hoped that some guidance may be given to those companies wishing to set up a value engineering facility for the first time. For simplicity discussion is grouped under three main headings as follows:

Part I The Profit Improvement Programme. Part I I Organisation. Part I I I Records and Documentation.

Par t I. T h e Pro f i t I m p r o v e m e n t P r o g r a m m e Value Engineering is sufficiently flexible for i t to be applied on a once-only basis to a particular product (or process), or, going to the other extreme, as a procedural activity carried out as a matter of course on a selection of products. How i t is applied depends to a very large extent upon size of company, production volume and degree of competition encountered and i t is these same factors which usually determine the vigour with which profit improve­ment is pursued. It is true to say that, to a greater or lesser degree, all companies attempt to maximise profit . I t follows, therefore, that all com­panies have some fo rm of profit improvement programme though 11 may not be called this or even recognised as such. However, i t

• Mr Burnside is Assistant to the Deputy Chairman (Engineering) at Lindustries Ltd., 100 Brompton Road, London, S.W.3, England. He lectures regu­larly to members of the course arranged by The Tack Organisation.

must be accepted that even elementary cost control, however applied, constitutes a conscious attempt to control expense and hence increase profit . The preparation and pursuance of a com­plete Profit Improvement Programme is merely a formal recogni­tion that savings can be made, the Programme itself being a con­venient means of selecting areas to be examined, progressing analysis and measuring results achieved.

I n larger companies the responsibility for preparing the Pro­gramme usually rests with a cost reduction committee which has at its command a number of specialists skilled in O & M , Work Study, Value Engineering, Critical Path Programming, Data Processing, and other techniques. The preparation of a Profit Improvement Programme in these cases becomes a formalised group activity which results in the selection of the areas to be studied and the allocation of the personnel to carry out the work. This type of procedure can be illustrated as in figure 1.

Fig. 1

COST REDUCTION COMMITTEE

INCL: REPRESENTATIVES FROM SALES DEPT; DESIGN DEPT; PURCHASING DEPT; PRODUCTION; PERSONNEL DEPT; TRADE UNIONS.

VALUE ENGINEERING

( " BUYING ) (PRODUCTION)

M V A L U E ENGINEERING

WORK STUDY

VALUE ENGINEERING & WORK STUDY

DESIGN SAVINGS

ADMIN. SAVINGS

PURCHASES SAVINGS

METHODS PACKING * SAVINGS DISTRIBUTION

SAVINGS

FIG. 1.

PROFIT IMPROVEMENT PROCEDURE

I '«/»<- I jig ineering, September 1968 177

Of course the establishment of this type of structure depends wholly on the ability of the company to support its cost. For an organisation of this type to be viable the group as a whole must produce adequate annual savings and this in turn suggests that there must be sufficient continuing scope for profit improvement, in monetary terms. Gross annual savings of four times the cost of the specialists engaged on profit improvement is indicated as being the minimum acceptable return. A n average ratio of 10:1 should be yielded by value engineering since a ratio of this order is required to offset the more modest returns f rom the application of the other techniques.

For smaller companies the services of many full-t ime specialists cannot be justified and i t is then found expedient to l imit the breadth of enquiry and to concentrate on the application of a few techniques; typically Work Study, Cost Control, and Value Engineering. When activity is limited in this way a formal Cost Reduction Committee is not commonly elected, inspiration and direction being given by departmental heads who individually interpret a Board-directed profit improvement policy. When profit improvement is tackled in this way specialists are attached to existing operating departments.

The less formal approach, however, should not be used as an excuse fo r failing to prepare a Profit Improvement Programme. Some f o r m of programme is essential and the small company must still establish a plan against which progress and achievement can be measured. The differences lie in the scope of the pro­gramme and the method of supervising implementation. While the accent of this series is on value engineering the prepara­t ion of a Profit Improvement Programme is necessary before any specialised technique can be applied. Activities must be integrated and the Programme forms the means by which this can be achieved. Whether the Programme is decided upon by a com­mittee, by the Board of Directors or by an individual (perhaps the Managing Director) the procedure and factors considered should be the same. Only by giving due weight to each aspect of the Programme can an accurate assessment be made of the total work involved; without this no assessment of staff requirements or time-scale can be undertaken.

When drawing up a Programme the procedure described below is generally adopted.

(a) Likely or current demands for each product line are quantified. Attention can then be concentrated on products with a useful sales life.

(b) Product specifications are denned with precision and com­pared with those for competitors' products. Decisions on product policy, including product quality, then are very much simplified.

(c) Value of the product to the customer is accurately estimated and compared with known prime costs. Note: I n most cases this information would be supplied by the Sales Department and Cost Office but it is not uncommon for it to be supplied by the Value Engineer since this is the first step in value analysis.

(d) From a knowledge of the price the customer is prepared to pay and the present manufacturing costs, profit contribution of each product line is established. Decisions on profit improvement action can then be taken and those products with a low profit contribution either discontinued or treated with urgency.

(e) Analysis of costs wi l l immediately highlight areas where costs are excessive and this information is used to determine what profit improvement action is required. For example: High labour content would indicate a work study approach while with high material costs the product would probably benefit f r om value analysis, as a first step. Of course, to maximise profit improvement every avenue should be explored but the above example serves to illustrate the k ind of thinking that is applied.

( f ) Completion of the steps described above wi l l yield sufficient information for a list to be prepared showing products or processes requiring attention. Indication of priority is essential.

(g) Finally, a time-scale for completion of each project is attached to the Programme. This is based on availability of manpower and perhaps marketing strategy.

Up to now we have been considering the preparation of an overall integrated Profit Improvement Programme. We are mainly con­cerned, however, wi th the organisation of the value engineering activity within a company and we must now turn our attention to the establishment of the Value Engineering Programme. This may be viewed as an extension to the overall Programme. Information obtained as a result of working through the steps of the Profit Improvement Programme is vital and must be made available to the supervisor in charge of each of the profit improve­ment activities. I n the case of the Value Engineer, he wi l l take the analysis one stage further and provide data on each of the fol lowing:

(a) Which areas o f the selected products (or processes) offer the largest potential savings per unit.

(b) What proportion of total cost is attributable to bought-out items (i.e. materials and processes.)

(c) What proportion of total cost is»attributable to materials.

(d) What proportion of total cost is attributable to labour.

(e) What analysis time is allocated to each sub-assembly, item and part.

Wi th the complete Programme, as outlined above, the Value Engineer, or the executive responsible for value engineering, has the whole story before h im and can proceed wi th confidence to maximise product value through value analysis.

Miscellany W h a t k ind of n o i s e a n n o y s an o y s t e r ?

The reply to which is ' A noisy noise annoys an oyster most.' The provision of comfortable conditions for his workpeople stood very low on the list of priorities of the early factory owner when the main consideration was maximum output at minimum cost. I t has since come to be recognised that comfortable con­ditions must be provided, not only on humanitarian grounds but also because a pleasant environment encourages the occupants of industrial premises to produce their best efforts. There are various aspects of good environmental conditions in factories - adequate lighting, warmth in winter, and functional colour schemes. Most managements have given attention to these matters. One area where little progress has been made up t i l l the present time is the control of industrial noise.

The following diagram ranks noises:

Noise level dBA

120

Typical environmental noise conditions

110

100

r - fy i

J

90

80

70

60

mm mm

Boiler works, hammering Steel works, fettling Car horn at 3 feet

Wood planing machine Weaving shed Inside a piston englned airliner

Castings falling into bin Printing works Tube train interior

Automatic lathes Motor bus interior

Average traffic on street corner

Conversational speech

178 Value Engineering, September 1968

Reprint No. 1:3:11

Basic concepts -Value Standards - Applications

The Application of V.E. Effort for Maximum Effectiveness by G. P. Jacobs*

The author draws attention to the need for employees to appreciate their overall objective-to improve their-company's ability to make profit. He stresses that the Value Engineer of all people must make sure that he does not allow this objective to be obscured. The Value Engineer must judge the area in which his work is most likely to produce results which will be implemented.

In the aircraft industry the Value Engineer can make his greatest contribution in 'upstream work {i.e. during the project definition stage) but unfortunately this is often the least demonstrable stage. Methods of assembling and recording Cost Data, and of isolating poor value parts are described. The need for a continuing programme of value research is stressed.

A marked improvement in industrial efficiency would be felt i f all a Company's employees were clearly aware why the Com­pany was in existence and how they could best contribute to the Company's overall aims. I f you ask an engineer to define his function he wi l l invariably do so at a low level of abstraction. He wi l l say his job is 'to design an improved flexible joint ' , 'to machine this frame section to comply with this drawing', 'to fatigue test this fork-end', and so on. He has largely lost sight of the overall objective, which is to improve his company's ability to make a profit . When a man is submerged in over­coming a worrying technical problem, when he is under pressure f rom many sides to produce an article quickly, when people are awaiting the results of his investigation, he can easily lose sight of this aim. The Value Engineer can have no excuse for misinterpreting his task, or losing sight of the ultimate goal. He is employed to achieve the best possible return on the com­pany's investment i n Value Engineering. A t the highest level of abstraction his function is 'Maximise Profit ' . Whilst he shares this global task definition with all other employees, the Value Engineer must be quite sure that he does not allow the lower levels of definition to cloud this objective. He must organise his activities such that he is not sidetracked into investigating areas where the return on investment is not good. He must review his activities continually and check on his audited achievements, to ensure that he is getting the best results f r om his efforts. A Value Engineer seldom has any real difficulty in finding places where value improvements can be made. However, in deciding which represent the most rewarding areas for work, his difficulties are twofold. He must take both into account:

1. Is this a functional area which wi l l give a high net cost saving (or other value improvement) for the Value Engin­eering effort expended?

2. What likelihood exists for getting changes adopted in this area of the company's activities?

* Mr Jacobs is Manager of Value Engineering at tha Weybridge Division of British Aircraft Cor­poration {Operating) Ltd., Brook/ands Road, Waybridge, Surrey, England.

On the one hand, the Value Engineer wants to work on subjects giving large potential savings. On the other hand he may feel that i t is pointless investigating areas of high potential savings i f the resulting proposals have little chance of being adopted. He must recognise that the Designer wi l l not have the same enthusiasm to make changes as he has, and because of this i t is vitally important that the Value Engineer should adequately prepare his case. Reliable and convincing cost and weight information (and any other effects on performance or accept­ability), must be provided. The harder the anticipated resistance to change, the more research and detailed investigation wi l l be necessary. Eventually, i f the Value Engineer has done his job properly, the decision whether or not to accept a proposal wil l depend primarily on questions of design policy. However, i t is admitted, wi th some reluctance, that the intuitive judgement of the man ultimately responsible, based on his past experience, must also play its part. The experienced Value Engineer wi l l recognise in the earlier stages the signs that his proposal is likely to be rejected and he must then decide whether the potential rewards justify further effort. Unfortunately, i t is one of the many ironies o f Value Engineering that the most rewarding proposals are those most difficult to get accepted! The Value Engineer must therefore ensure some fo rm of balance between the 'long shot' proposals wi th the high savings but lower chance of acceptance, and the 'sure fire ' proposals which may not be so rewarding (or interesting to him), but which provide the bread and butter of the Value Engineer's existence. A n achieved saving of £5,000 per year is infinitely more useful to the company's financial state than a suggested saving of £50,000, resulting f rom a brilliant idea, which just failed to get past the proposal stage. Of course, it is wrong to accept this situation and do nothing. The Value Engineer's duty is to 'Maximise Profit ' ; it is his duty not only to discover the areas of his company's activities which represent the poorest value but also to provide the evidence needed to overcome any reluctance by design or production to accept the necessary changes. To do this, he must equip himself, as far as possible, wi th sufficient facts to demonstrate poor value quantitatively. A t the present level of knwolcdgc wc arc a very long way f rom achieving this ideal. However, there arc various

I alue iMfiiiwvring, September 1968 179

techniques which have been developed to assist i n this process of selection and demonstration of poor value products. I n consider­ing some of them, perhaps it would be advantageous to follow through an aircraft design cycle, see where Value Engineering can fit into the overall pattern, and the process applicable to the various stages.

(1) P r o j e c t D e f i n i t i o n S t a g e I t is generally accepted that Value Engineering can make its greatest impact during 'upstream' work. I t is clearly better to stop excess cost being designed into the project than to re­design to delete i t . The 'upstream' area of cost avoidance obviates:

(a) duplicated design work. (b) duplicated tooling. (c) duplicated testing. id) repeated production learning. (e) any excess cost items being produced. ( f ) duplicated spares holdings.

I n themselves, these are substantial reasons for 'upstream' work. However, perhaps the most important aspect is that the correct functional solution can be sought at the higher levels of abstraction, with much larger potential savings. One can tackle the basic problem of (say), 'Cool Passengers', and decide what constitutes the best overall value method, rather than pick up the problem at a later stage, when the basic system has been decided and creative thinking is restricted to sorting out the best value components - i n what may well be the wrong type of system.

The difficulties at this early stage are: (a) when making its greatest impact, Value Engineering may

have litttle or no commercial evidence to demonstrate its contribution - i.e. no 'before' and 'after' facts.

(b) Value Engineering work at an early stage can be very similar i n aim to other forms of 'upstream' activity, e.g. 'Project Evaluation', 'Cost/Effectiveness Studies,' etc.

We accept that Value Engineering can be defined as satisfying the required functional performance for the lowest cost, com­mensurate wi th timescale. Considering 'cost/effectiveness,' the 'effectiveness' of a weapon system is defined by its combat capability and its availability at the right time, in the right place. The parallel wi th Value Engineering is a very close one; the difference is generally one of the level at which the problems are defined. On aircraft studies i t can be assumed that the results of cost/effectiveness work wi l l have led to decisions, for example, on the f o r m of power off-take f rom the engines, the methods of providing added l i f t for take-off and landing, and so on. The Value Engineer is usually involved with the next level of defini­tion.

Hence, once the general fo rm of the project is settled, the Value Engineer can move in and during the early scheming stage can assist in ensuring that the project is put together in the best way. As a general rule, i t could be expected that the scheme drawings would be subject to clearance by some fo rm of Review Committee, representative of design, production and commercial interests. Here the Value Engineer has a major part to play in assisting the Project Management in arriving at the best compromise between conflicting specialist viewpoints. When the key scheme drawings to define the project are produced, everyone must be covered comprehensively; there is no question of sorting out work priorities at this stage! The basic job of arriving at the best value alternatives requires that the production cost of many possible solutions must be obtained. As this may impose too great a load on the Estimating Department, it is desirable that simplified data for cost comparisons is made available. (This has to be done in advance. I t is too late, when faced wi th the problem, to commence to find the method of solving it.) Hence the Value Engineer needs to know the cost of satisfying, in various ways, 'standard' broadly defined aerospace functions. He should develop methods which wi l l enable him to know what represents the best value design solution under the particular pressures prevailing on the project and, approximately at least, what this solution should cost.

In the early phases, the type of date available tends to be that

of a work capacity type, which we can consider first. The V.E. studies require to cover the following main areas progressively:

(i) the correct choice of (say) the type of an overall system.

(ii) optimisation of sub-systems within the overall framework

o f © . (iii) correct choice of major components. (iv) cost targets to be provided for work packages, as defined

for design office work. I t is unlikely that these wi l l be exactly as any V.E. functional definitions.

We need to sort out (at all sensible levels of abstraction), the cost of satisfying the primary functions; we require to isolate the cost of secondary functions, those functions resulting f r o m the particular way we tackled the primary functional require­ment. From this work we are attempting to establish what to specify ( f rom basic system philosophy down to component detail), and what we should pay for this in production, i n order that subsequent cost monitoring can be undertaken. The Value Engineer should contribute to the establishment o f both the design solution and the target cost to satisfy i t . Further, at a later stage in the design, his responsibility would be to give specialist assistance, where necessary, to obtain the production article for these targets. Considering in further detail the sort of data required at the early stage, on systems components plots of cost against suitable control parameters wi l l be required for broad functions such as 'Refrigerate A i r ' , 'Lower Undercarriage', Supply Fuel', etc. These are at a relatively high level of abstraction and are needed in assessing 'key' scheme drawings. We can drop this level by asking 'How?' and the function can be broken down into more detailed areas progressively. We wi l l then have such plots as cost against swept volume for hydraulic jacks, cost against H.P. output for hydraulic and electric motors, cost against delivery rate and pressure for fuel pumps, etc. Whilst this work wi l l be of limited use in the early project phases i t wi l l progres­sively come into its own when the overall system is established and detail choice of components is underway. This detail data assists in 'make or buy' decisions and indicates the best supplier.

(2) De ta i l D e s i g n S t a g e A t this stage scheme drawings have been cleared and the Value Engineer is assisting the designers in defining the best value product on detail drawings. Specialist advice must be given, where requested, or where necessary f rom inability to meet targets. Cost Data Sheets are a useful tool, to enable the designer to make correct detail decisions. These Data Sheets cover functions at the lowest level of abstraction, i.e. they satisfy the need to know detail cost differ­ences between materials to various specifications, the cost of alternative ways of fabricating, the materials, etc., using simple presentations of empirical data. For example, the designer needs cost guidance as to when to call for machining-from-the-solid as opposed to using a forging or casting, when to call for an extrusion rather than a rolled section. He also needs to know the relative costs of approved attachments, both the unit price charged by the supplier, and an average time required to make the fixing in the shops. The Value Engineer must use his experi­ence to determine which areas o f the design are not getting the best value control treatment and do everything in his power to correct them.

I n this way we put together an aircraft which we consider represents good value; we reconcile differences between functional worth o f the major function wi th the cumulative functional worth of the lower functions which make i t up, and with the achieved values. The 'upstream' part of the Value Engineering process is complete; the 'downstream', or Value Analysis stage can commence. There is a place for both in all balanced attacks on poor value.

(3) P r o d u c t i o n S t a g e We hope that our upstream efforts wi l l have reduced materially the number of poor value items in our product. However, at this phase we have available a better collection of data on

180 Value Engineering, September 1968

which to judge our achievements. We have much firmer cost information, we can obtain the weight of all of the parts and assemblies, we know the areas where we are experiencing trouble in production, we are getting feed back f rom our cus­tomers on the life of components and have better data on maintainability. We have an aircraft we can examine. There is no shortage of data, and the need for 'Value Analysis' work exists. We must sort out our priorities. There are various ways we can do this:

(a) Comparison of similar products. Here one attempts to look at parts or components having some physical resemblance, sort out a parameter upon which cost wi l l primarily depend, and plot cost against this parameter.

Perhaps the most simple and readily available parameter is

the finished part weight. (i) Cost-v-Weight. On these assessments, cost is plotted against weight for a collection of items or bought-out parts of the same basic type. These plots enable the answers to be found to two questions which fundamentally influence our choice of parts for value investigation. These are:

(a) How expensive is the part specifically? lb) How much of it is there?

The answer to the first question results directly f rom the cost/ lb. value. (Lines of cost/lb. values should be drawn in on the plot. Where possible, the use of log/log paper is recommended, for clarity.) For various reasons, the cost/lb. tends to increase as size is reduced. Clearly a high cost/lb. indicates that the item may be of poor value: at the same time, i f its cost is low, expected returns f r o m value analysis work (even assuming high percentage savings can be obtained), may not be sufficient to warrant the expense of redesign, retooling, etc. Also, one cannot simply select the parts wi th high cost, as these may represent good value. I t is reasonable to assume, therefore, that the right choice lies in selecting parts where some combination of high cost/lb. (degree), and high cost (amount), is shown to be excessive. The simple process of multiplying these together has been found to give good results. The parts wi th the highest product of cost/lb. and cost per aircraft (='cost2/lb') can be awarded priority attention. Cost^/lb. lines can be drawn in on the plot and used to indicate these priorities, the components wi th the highest cost2/lb. number being dealt with first, and so on. This process has been proved to be an efficient way of:

(a) isolating poor value parts f r o m a relatively high value grouping.

(b) identifying complete groups of parts which are shown to be inefficient.

Of course, i n aircraft we are trying to achieve both low cost and low weight, and an interaction exists between these factors. Hence, the above process is not without its limitations; it tends to highlight areas of poor value due to excess cost and to condone areas which are of poor value due to excess weight. This is not a significant factor, where the weight aspects are under constant surveillance by weight control teams. (ii) Cost-v-Size. Plots of cost against other physical parameters can be effective in certain applications. For example, i n assessing fluid system components, i t is often helpful to plot cost against the diameter of valves, couplings, etc. General trends can be established and rogue points, requiring investigation disclosed. On structural items such as doors, achieved cost may be plotted against area for the various types of d o o r - i . e . pressurised or unpressurised, doors which open in flight (e.g. undercarriage doors) and those which do not, etc. This type of comparison is also useful on control surfaces and other largely area-dependent items. (iii) Comparison of Bought Out Prices. On an aircraft it is not unusual to purchase similar components or standard parts f r o m dilVcicnt sources. Whilst an energetic commercial department u nlwuys trying to rationalise the situation, a little analytical work f rom the Value Engineer can be of great help and show MBiulWunl returns.

(li) Achieved Cost-v-Theoretical Cost. For this process, the lum lion is defined by the use of a verb and a measurable noun

r tt. function 'Transmits Torque', where torque is X lbf. f t .

and has to be transmitted over Y f t . at a given stiffness. I n this simple case, i t is possible to work out a theoretical worth. Use of materials with known physical properties are assumed, and the required cross section calculated. A cost is assessed for the necessary material and manufacturing operations, using 'stand­ard' cost data. The process is mentioned as i t has been investigated in some detail i n the U.S.A. I n the aerospace field here, this method has not yet been developed to the degree where it can serve to disclose parts requiring Value Engineering treatment. The number of areas amenable to such basic analysis seems limited, and in these cases, i t is generally not difficult to judge by other means the level of value achieved. However, there is scope for developing our skills i n this area.

(c) Achieved Results-v-Target Requirements. I have previously touched on the subject o f Value Engineering's part in establishing and achieving target costs. Even at the late production stage, the over-target regions must remain high on the list for attention.

(d) Utilisation of Material. A check should be made on the ! finished part weight compared to the weight of raw material. Where the material utilisation is shown to be low, the value of the product may be in doubt. I n the first place, a large proportion of the purchased material is wasted, and this is an important consideration when an expensive material, such as titanium, is used. Secondly, a large amount o f money is spent in reducing this wasted material to oftcuts and swarf. (The finding of an area of low material utilisation, or a high cost2/lb., does not necessarily mean a poor value part has been uncovered. I t nevertheless gives a most valuable guide.)

(e) Feed-back from Airline Operators. The airline operators advise the contractor o f servicing problems, tell h im where high utilisation of spares is being experienced and give other clues to product value. Value Engineering should pay particular attention to items which are identified f r o m these sources, as these involve not only poor value because of high cost but poor value resulting f r o m low life or fail ing to meet required performance. This leads on to the process of 'Total Cost Evaluation', which

I wi l l touch on. (f) Total Cost Evaluation. The foregoing has largely dealt with

methods of identifying high cost regions. We all accept that Value Engineering is the achievement of the necessary function for minimum cost; however we cannot always define the function absolutely. Many interactions between the basic value attributes of performance, cost, and timescale can influence our work priorities. There are many poorly denned 'performance' requirements which must be considered, and the only 'right' way of covering this is to consider the total cost of the item to the customer; that is, development costs, the price of the production article, etc., plus all the incremental spending necessary during the life of the item due to its performance attributes. To give a few examples:

(i) A simple, cheap air conditioning system can involve running costs many times the initial cost of the equipment. For minimum total cost a considerable amount could be added to the first cost of the equipment i f this would make a major contribution to improving subsequent operating efficiency.

(ii) A unit wi th a high level of reliability may cost much more to purchase than its low-reliability counterpart. This extra cost must be weighed against the direct and indirect cost savings resulting f r o m unserviceability and high maintenance costs of the cheaper unit.

(iii) As noted previously, especially on aircraft, weight is at a premium. The two questions for which answers are often sought are:

'How much money is the aircraft manufacturer prepared to pay to reduce the weight of a component?'

'How much is the saving worth in revenue to the aircraft operator?'

This subject is too involved for much discussion in this article. I t has been reasonably covered elsewhere. Briefly, the civil aircraft has developed to the point where it has become a sophisti­cated device wi th a very high work capacity, which can be

» .»/«<• Ilnglm-cring, September 1968 181

measured in various ways, perhaps the most simple being passenger miles per annum. (It is o f interest to note that a 150 ton Super VC 10 intercontinental jet airliner achieves about the same passenger miles/annum as the 85,000 ton liner Queen Elizabeth.) This high work capability means that relatively small variations in efficiency, as can be represented by small changes in the aircraft's weight, have become progressively more signifi­cant as performance achievements have advanced. Hence, in selecting parts for Value Analysis work on aircraft, it is of great advantage i f a weight saving potential can be judged to exist. I n some cases, best value may be achieved by arriving at an alternative approach which increases first cost, a situation

most unusual for Value Engineering in other industries. I n conclusion, i t is vital that the Value Engineer, i n his effort to improve the efficiency of his Company, should equip himself with the tools necessary to ensure that his own contribution is as great as possible. This requires a continuing programme of value research, analysing the performance and cost achievements of elements of past and current projects on a functional basis, and keeping pace wi th advances i n technology. The foregoing is generally concerned with the aerospace industry with which the writer is familiar. I t is believed however that most of the techniques discussed can be used directly, or adapted simply, to meet the needs of any industry.

Miscellany L a b o u r a n d A u t o m a t i o n Literature reviewed and analysed in Technological Change and Manpower in a Centrally Planned Economy (International Labour Office Bulletin No . 3) shows how the nature of work, the skills required of workers and the occupational structure of industry is changing with automation and advanced technology. Soviet writers suggest that a new type of man w i l l develop, of whom academician Strumilin writes:

' I f today we see nothing amazing in the fact that a piano tuner, after carrying out his task, shows himself to be a true musician by playing Beethoven's Moonlight Sonata, such a combination of various functions wi l l be even more natural with the advent of a shorter working day . . . the "tuners" of automated lines wi l l use their leisure for the purpose of design or w i l l swell the ranks of public figures, scientists, writers, musicians or inspired artists.'

No P r o d u c t is C o m p l e t e unt i l it is P r o p e r l y P a c k e d The Code of Procedure for Packaging (published by the National Council for Q & R wi th the assistance of Marks & Spencer Ltd.) draws attention to the fact that packaging is a Management responsibility. Many production engineers and product designers regard packag­ing as something someone else does to the product after it has been manufactured. I n reality, a product is only made after it has been packed. Packaging for Quality, Reliability and Profit, which sets out the Code of Procedure for Packaging, is obtainable f r o m the National Council for Quality and Reliability, Vintry House, Queen Street Place, London, E.C.4, England.

' T h e H u m a n U s e of H u m a n B e i n g s ' * Urged by some of his friends, Norbert Weiner wrote a popular exposition of Cybernetics under this title. 'To those of us', he says 'who are engaged in research and invention there is a serious moral risk of aggrandising what we have accomplished. To the public, there is an equally serious moral risk of supposing that in stating new potentials o f fact, we are thereby justifying and even urging their exploitation at any cost.''

Professor Weiner then went on to warn us 'that we shall have to change many details of our mode of life in the face o f the new machines is certain; but these machines are secondary in all matters of value that concern us to the proper evaluation of human beings for their own sake, and not as second-rate surro­gates for possible machines of the future. ' 'Cybernetics' was the term which the Professor gave to the study of messages, and in particular of the effective messages of con­t ro l ; 'cybernetics' signifying the art of the pilot or steersman. The word 'governor' in a machine, i t is interesting to note, is the latinised Greek for steersman.

* Eyre and Spottiswoode, London, 1950. pp. 242.

182

'Those who suffer f r om a power fixation find the mechanisation of man a simple way to realise their ambitions. I n organisations where all orders come f r o m the top and none return human beings are reduced to the level of effectors for a supposedly higher nervous organism,' wrote Professor Weiner in this book which is a protest against the inhuman use of human beings.

R e l a t i v e C o s t s of D i f f e r e n t S u r f a c e F i n i s h e s A t page 39 of the first issue of Value Engineering (Apr i l 1968) the Cost comparison of various surface finishes was referred to by M r Anthony Tocco in his checklist for product design. The table therein provided has now been extracted and visually presented in this graph:

FINISH IN MICRO-INCHES

T y p e s of Sur face Finish

Sur face R o u g h n e s s

in Micro inches

Approximate Relat ive

C o s t

Cast and Unmachined 500 100% Rough Machining 250 250% Ordinary Machining 125 500% Fine Machining or Rough Ground 63 1100% Ordinary Grinding 32 1800% Fine Grinding or Honing 16 3500% Honing or Lapping 8 6000%

Value Engineering, September 1968

Reprint No. 1:3:12

The Value Engineer 's Bookshelf 'A book is a machine to think with'—/. A. Richards

No one in industry today can ever hope to read the mass of printed matter which passes across his desk. A Three-Star Guide system has been adopted by Value Engineering as an indication of the relative importance, of its book reviews and abstracts for the value engineer. Three stars (***) indicates that the material is particularly significant; two stars (**) that it is very useful; and one star (*) that - although important - the information deals

with a subject on the fringe of the value engineer's interests. For an explanation of the use of the keywords which appear in italics above each review see the system of

' information retrieval which has been explained on the inside front cover. The number in parentheses ( ) refers to the publisher's name and address given on the inside of the back cover.

Ergonomics - Design - Checklist

*Ergonomics — Man in His Working Environment Murrell, K. F. H. Chapman a Hall, 1965 496 pages 63/- (115) M r Murrel l , the leading English researcher into Ergonomics (the scientific study of the relationship between man and his working environment) has produced a number of tables to which value engineers can turn to check the practicability of design change proposals. The Anthropometric Measurements (see Table 2, page 43) provide a convenient reference to body size, body weight and body measurements. Such matters as the effect of elbow angle on maximum torque; the effect of control height on pulling force; and the time and nature of nervous system responses are ful ly covered.

Man as a System Component is considered and functions are classified according to those which can usually be done better by a man than a machine, and vice versa. A man in a system - it is noted - introduces Delays, 'Noise' and Limits. In Part I I of the book Design matters are considered as they relate to the layout of equipment, the design of seating and the arrangement of instrument displays. Environmental factors such as temperature, humidity, noise, lighting and vibration are also covered. Finally, M r Murrel l gives the designer and value engineer a useful outline of the methods of investigating user-opinion, safety features, operator-usage and inspection. The effects of shift work and age are also discussed. I n connection wi th his study of the factors which influence work output the author is reinforcing the findings of the famous Hawthorne experiment at General Electric Company earlier this century. An Ergonomic Checklist for use by designers is provided by

the author. H.G.C.

Materials - Design - Checklists

**Materials for Engineering Production Houghton, P. S. Tha Machinery Publishing Co. Ltd., 1962 800 pages (4 parts) 251-each part (122) In Machinery's Standard Reference series this four-part book <»hich needs to be bought as a complete set) provides a concise

reference to non-ferrous (including timber, rubber, asbestos, fibres and plastics) as well as to ferrous materials. I t wi l l save the time that is often wasted in searching through a mass of leaflets to f ind a standard material number; i t wi l l save the present great annual loss there is i n over-specifying due to a lack of knowledge of the most economic material which can perform the required function.

To select the most economic materials requires a close know­ledge of the range of available materials - of their properties and of the standard forms in which each material is manufactured. Cutting to best advantage, minimising machining and reducing scrap requires value engineers to have a knowledge of such matters as standard sheet sizes and of manufactured dimensional accuracies. Available finishes and 'condition in which normally supplied' f r o m which the most suitable material for a particular purpose can be selected is also very useful information to have. There are two very useful sections giving the appropriate uses of the various standard B.S.970 En and the S.A.E. steels as well as indicating their interchangeability. A list of 200 uses for the standard tool steels indicates that i t may often be more economical to use standard material than to purchase steel sold under a trade name.

A chapter on the choice of steels draws attention to the need i n selection for the 'all-in' cost to be considered. Strength, resistance to abrasion, possible reaction wi th other metals or liquids, response to heat treatment, surface finish and machin-ability as well as other design problems have to be considered in arriving at this 'all-in' cost comparison. The application of powder-metal technique to the production of bearings, gears and a wide range of small components is outlined as well as the properties of the types of wood in general use and the means available for protecting them. The chapter on plastics - which gives brief information on the forms i n which they are obtainable, their general properties, and synthetic adhesives - could in view of their wide use today be extended in future editions.

Lists covering the points to watch for good casting design, the points in favour and against the various types of non-ferrous castings, the effects of alloying elements upon Cast I ron and steel, the composition of B.S.970 En and S.A.E. series of standard steels, the mechanical properties of B.S.970 En steels, the coding system for S.A.E. steels, the classification and uses of bearing metals and alloys, and the properties of woods and plastic materials are spread throughout the four parts. Each part also gives reference to sources of further information.

A . H .

I alue llnitineering, September 1968 183

Management techniques — Checklist

*The Enterprise and Factors Affecting its Operation Roberts, C. R. W. et al. International Labour Office, 1965 193 pages 17/-(120) The first i n an 'Introduction to Management' series, this book the components and activities of a business enterprise. Wi th other books i n the series it aims at providing a 'small-scale map' with which one can become oriented in relation to the whole 'country of management'. After examining the anat­omy of the enterprise the book then elaborates on each manage­ment function - supply, production, marketing, finance and personnel.

A n Appendix contains a very comprehensive checklist covering the attributes of an enterprise and the effects produced by them. The intelligent application of this attribute list i t is claimed 'may not lead to the most efficient methods but i t wi l l avoid making serious mistakes.' Each attribute produces certain effects which management should know about and should take into account when formulating its policies or setting priorities for executive action.

Eighteen excellent illustrations at the end of the book include a diagram of the interaction of activities relating to three products and the variations in the levels of intensity of these activities over a period of time.

A.C.

Materials - Design

**The New Materials Fishlock, D. John Murray, 1967 240 pages 45/- (123) Not a textbook but a book to read. N o value engineer could read i t without learning something new for which he might well f ind use. As designers know ideas tend to run ahead of the materials they have to execute them, and there are still gaps in required materials. Fibre-reinforced plastics are now becoming better known; we have H Y F I L and shall soon have more fibre-reinforced metals.

This - as perusal of the index wil l reveal - is a forward-looking book. The author points to the rapidly developing science of 'molecular engineering' - the practice of creating materials having exactly the properties which the designer requires. No longer according to M r Fishlock wi l l materials be classified as metals, fibres, ceramics, polymers and so on, but rather according to their applications. They wi l l be known as nuclear, magnetic, refractory, or cryogenic materials. The emphasis wi l l be on similarities. The designer (or the value engineer) is not bothered about whether the material is made of glass or metal provided it perfoms the function which he requires of i t . Descriptions of electrochemical machining and high-energy rate forming for fashioning materials are followed with chapters on materials which can 'handle' heat, 'strong metals', 'mute metals' and those with other special properties. 'Materials with Holes', 'Skins that Separate', 'Chemical Sponges' and 'Materials with Memories' indicate the author's ability to arouse the reader's interest.

Cercor (a cellular ceramic), the cermets (metals blended with non-metals) and calthrates capable of absorbing large amounts of gases are all described and there is a glossary for those who have trouble in recalling such terms as 'dopant' and 'gall ' . Altogether a fascinating book.

H.J.

Ergonomics

*Fitting the Job to the Worker O.E.C.D., 1961. 108pages. 7/6 (124) This is the report of a seminar held at Liege on 'Ergonomics for Engineers'. I t is the four th and final phase of a project initiated by the

European Productivity Agency in 1955 which was aimed at giving a wider currency to the discipline of Ergonomics or fitting the job to the worker. Inquiry revealed that marked variations exist between countries as to the emphasis which is placed on Ergonomics in the training of their engineers. The hundred seminar members (who had been provided with this information before they met) first discussed the general nature and aims of ergonomics and then went on to talk about its more specific applications. This discussion led to the participants in the seminar recommend­ing that attention of National Productivity Centres and other bodies be drawn to the desirability of setting up a fo rm of training in ergonomics and of encouraging research into the subject. This is a subject which w i l l repay the attention of value engineers.

A . T .

Operations Research

^Fundamentals of Operations Research Ackoff, R. L. and Sasieni, M. W. John Wiley, 1968. 455 pages. 92/- (125) A transatlantic author-partnership between an academic and a marketing executive has resulted in an exceptionally good book on O.R. Beginning with general aspects of formulating problems the authors describe the nature of a decision problem, and then cover mathematical models. Inventory, queueing, resources allocation, networks, dynamic programming and search theory are some of the practical applications discussed. The co-authors examine some of the problems related to the extension of O.R. into new areas, and i t is here that value engineers wi l l be particularly interested. By using some of the techniques of O.R. value engineers wi l l have refined scientific methods at their disposal in seeking the optimum solution to a number of their problems. Describing the Modes of Management Control the authors outline what managers can do about them and what science can do in helping management do i t better. As regards materials, their use the authors point out may be improved through value analysis. Summaries, discussion topics and problems, and suggested readings appended to each chapter provide just the type of reinforcement which is wanted to ensure that the reader gains the most out of the book.

K . N . W .

Basic concepts - Management Appreciation

***Design Engineering Guide— Value Engineering Roberts, J. C. H. Product Journals Ltd., 1968. 23 pages. 7/6 (126) Many British firms, as the author says, regard V . A . wi th sus­picion. I t may work in the USA but not here, and we've always made it this way being frequently advanced as reasons for their resistance. Frequently, more progressively minded competitors steal a march by deciding to 'give it a go'. Rubery Owen L td . actually saved £150,000 in a year by applying V . A . ! Conventional cost reduction achieves 5-25 per cent savings, but using V.A. methods can produce savings of the order of 40-50 per cent. Wi th results like this Management can only afford to ignore V . A . at its peril and this book provides a handy intro­ductory work for those who would seek a knowledge of the basics o f V . A .

V . A . cannot be successful unless i t receives the f u l l and enthusias­tic support of management at all levels and can gain the highest standard of cooperation between purchasing, design and pro­duction. Although this depends on management i t also is vitally affected by the right choice of value engineers.

G.K.J.

184 Value Engineering, September 1968

Statistics

*Teach Yourself Statistics Goodman, R. The English Universities Press Ltd., 1966. 240 pages. 7/6 (127) The reviewer in the Journal of the Royal Statistical Society records that this book 'presents the general basic principles in a terse and understandable fo rm ' . There is no hesitation in commending it to newcomers to the subject. Its author, who is head of the Department of Computing, Cybernetics and Management, has recognised the need of many businessmen to teach themselves some statistics. He has succeeded in clearly explaining basic statistics to the non-mathematician. The book provides a practical introduction to 'working' statistics; then shows step by step procedures for applying them to problems. A n understanding of the book wi l l enable the reader to determine' validity or otherwise of statistical data, classify data into meaningful categories, and state problems statistically and clearly.

C.B.L.

Quality Control

*Quality Control Handbook Juran, J. M. (ed.) McGraw-Hill, 1962. 180/- (101) Messrs. Seder and Gryna collaborated wi th M r Juran in the production of this most comprehensive coverage of the subject of Quality Control. This second edition is the international standard reference book and has added information on the management of the quality function, statistical methodology, and Q.C. for specific products and processes. A study of the book wi l l enable the value engineer to evaluate the effectiveness of a quality control system. Treating such subjects as functional requirements, tolerance systems, costs of tolerancing, organisation fo r quality, suggested outline for training in statistics, approaches to cost reduction, acceptance sampling, paperwork in the quality function, and vendor material control the book wi l l be helpful to value engineers desiring to extend their knowledge of modern developments in the subject.

The authors' explanation of 'value analysis' the reviewer found interesting. 'Value Analysis', according to them, 'has been a term coined to describe an organised approach to reduction of costs of purchased materials and components. The essence of the approach is to consider the functional purpose to be served and then to discover an easier, cheaper way of serving that purpose.'

K . L .

Basic concepts - Applications - DoD -R&D- Construc­tion Industry

***A Search for V.E. Improvement Proceedings of the Fifth National Meeting of the Society of American Value Engineers at Boston in 1965 SAVE, 1965. 2 vols. 46 sections. $10.00 (134) The Paul Revere Chapter of the Society of American Value Engineers was host to the F i f t h National Meeting of the Society ami produced a cyclostyled edition of the forty-six papers delivered at the meeting which was held in Boston, Massachusetts, in Apri l 1965. Ihc authors, addressing themselves to the wide topic ' A Search for V . K . Improvement', dealt with such subjects as:

Specification Value Analysis A Corporation-wide Value Program V . I ' , in Research and Development Shaping the Value 'Climate' Kimisticnl Evaluation of Design I united Budget Value Engineering V H U I C Analysis and Managerial Decision

Do-it-Yourself Value Engineering Value Engineering in the Home Blueprint for Value in the Construction Industry Value Engineering in Mil i tary Construction.

I n spite of the fact that the publication is typewritten and duplicated and not serially paged i t is very useful reading for those who would trace the development of V.E. year by year since its inception and since the beginning of the Society of American Value Engineers. To a reviewer of the later SAVE Conference Proceedings i t is interesting to note the degree of ingenuity which the speakers in 1966, 1967 and 1968 have brought to bear on topics covered in these two earlier volumes.

B.D.W.

Basic concepts - Training - Management Appreciation -Cost Data - Local Government - DoD - Advanced Techniques - Construction industry

***SAVE Volume 3 — Society of American Value Engineers, Proceedings of the 1968 National Conference Delves, F. (ed.) Robert J. Mayer & Co., 1968. 350 pages. $12.50 (128) 'For Profit Headaches Take V.E. ' was the imaginative theme of this conference which was attended by the reviewer who was amazed at the smooth-running organisation of the conference including the issue of these printed proceedings before its con­clusion. V.E.—now in its 21st year—has drawn together a group of particular people, 'particular' in the sense that they are willing sharers and active doers. The SAVE members (who range f r o m top managers, civil servants, teachers, practitioners in industry and consultants) have in common a willingness to share their personal experiences and an ability to motivate their fellowmen. The papers deal with the more mundane but nevertheless impor­tant aspects of V.E. as well as the problems of the new areas of V.E. such as local government and the construction industry. 'Why not women value engineers?' is the query which receives an adequate answer f r o m Mrs Patricia Livingstone, herself a Management Systems Analyst with Nor th American Rockwell. The work of a few whose efforts saved the 'town hall ' millions is also described.

Frederick Delves, an experienced journalist, performed not only a most useful function for the Atlanta Host Chapter in getting out this Volume so promptly but also in carrying out so efficiently what must have been a difficult editorial task.

B.D.W.

Basic concepts - Management Appreciation -Methodology - Producibility

***SAVE Volume 2 — Society of American Value Engineers, Proceedings of the 1967 National Conference Snodgrass, T. (ed.) Robert J. Mayer St Co., 1967. 296 pages. 80/-(128) The papers delivered at the Chicago National Conference and very ably edited by Thomas Snodgrass show how the value engineering profession is maturing. Value engineers thinking and writing about professional status; Larry Miles reflecting on the future direction of V.E. ; and George Fouch dwelling on the expanding concept of V.E. indicate this reaching towards maturity. The ability to take a critical look at V.E. as revealed in some of the papers is also significant. The reasons for failure and signs to beware of are detailed in 'The Decline and Fall of V.E. ' Papers describing the use of Producibility Workshops in value

I ttlw iMitinecrini!, September 1968 185

training and the role of V.E. i n the 'cost reduction family' open up new concepts. Program Management aims at using the appropriate elements f r o m the following techniques—Configura­t ion management, Data management, Maintainability manage­ment, Product management, Quality management and Value Engineering management. The vital need to integrate V.E. into management is stressed by several writers who have obviously experienced the frustrations and disappointments of not having been able to do so.

This Conference's papers go a long way to showing that V.E .— to paraphrase Victor Hugo—is an idea whose time has really come!

B.D.W.

Basic concepts - Training

***Application of Value Analysis/ Engineering Skills Blyth, J. W. and Woodward, R. G. Argyle Publishing Corp., 1967. 216 pages. $10.00 (129) The reviewer tried out this self-instructional programmed training course in V.A. /V .E . on one of his friends. The claim that the programme would provide skill i n V.E. in the minimum of time was satisfactorily demonstrated. Af ter working through the course the 'Learner Value Engineer' was able to select suitable products fo r V.E. effort; identify the functions of products; and carry through all the other steps in the V.E. Job Plan. The ' L ' value engineer at first through failing to realise the purpose of the course failed to appreciate the progress which he was making. The course—it should be stressed to those under­taking it—is not designed to improve people's specialised techni­cal skills but to enable them to carry out the systematic procedure followed in value analysis. Whilst the course did not make my friend an expert value engineer i t did fit h im to make a worthwhile contribution to a V.E. exercise in his company, and after completing the programme he became cost/functionally oriented towards all the costs incurred in his section of the factory.

K . L .

Indirect costs - Overheads

**How to cut Office Costs Longman, H. H. Anbar Publications Ltd., 1967. 300 pages. 50/-(130) As the dust-cover points out this book is 'compulsory reading' for all who are interested in reducing office costs. Its author, who was Chief of O & M with Unilever L td . , wrote the now famous Bulletin No . 21 claimed by many to be the best thing published on simplifying the paper-war in which most of us are engaged. I t seems that M r Longman has produced a very complete answer to the plea used recently by a well-known credit card firm to indicate that the readers of their advertisements wanted their lives simplified. Office managers and value analysts by buying this book can have their lives simplified. I n a two page section marked '30' i n the book 'Value Analysis in the Office' is touched upon, and the author rounds off the brief discussion wi th this statement—'Value analysis can provide yet another way of getting useful ideas—and i t should always be remembered that all progress begins with an idea'.

Sections on 'Selling the Idea', 'Aids to Creative Thinking' , 'Give a strong lead f rom the top', 'Brainstorming', and 'Try i t Upside-down' treat subjects which value engineers wi l l recognise at once as concerning them; and the scattered quotations provide handy recall of a number of cost-saving actions. Wi th Value Analysis entering upon a phase of emphasis on in­direct costs this book would be most useful to the readers of this journal.

G.F.C.

Basic concepts - Management Appreciation -Applications

*Modern Management Methods Dale, E. & Michelon, L. C. W. Foulsham & Co. Ltd., 1967. 156 pages. 35/-(131) I n a chapter entitled 'Reducing Costs by Value Analysis' the authors present a useful introductory explanation of the subject. They contend that a number of methods of cost-cutting entail penalties. A reduction in advertising, for instance, may lose customers. However, with value analysis there are no penalties for the cost of V . A . is offset by gains.

Value analysis they say offers unlimited possibilities. I t is the application of known concepts plus a few new ones. Their suggestion that managers read a few of the latest issues of the magazines of their trade (including the advertisements) with the basic questions of Value Analysis in the forefront of their minds seems an easy way to test out the efficacy of the technique. }

With the book's well-rounded coverage of other new management techniques i t should be a handy volume to add to the V.E. Department's library.

G .H.

Electric controls - Checklists - Ergonomics

^Design Engineering Guide— Electric Controls Weaver, G. G. (ed.) Product Journals Ltd., 1968. 150 pages. 40/-(126) This is one of a series of handbooks published by Product Journals L td . , all of which would be valuable in a technical library. I t has two sections - Design Data and Product Directory. The first eleven chapters provide information for the selection of switches, and the next four chapters cover relays. Timers, solen­oids, circuit breakers, starters, fuses and solid state switching are described in the five final chapters.

Each of the 21 chapters have been contributed by a specialist and they include such matters as checklists for selection, ergonomic considerations, ordering specifications, installation points, terminology and standards. The 'guide' is well illustrated throughout. As well as listing the many manufacturers who have supplied product data the editor has performed a useful service in giving the names and addresses of 'other companies who also manu­facture this type of product'. This gives the specifier an extended range of contacts which is often of great use where production 'lead time' is extremely short.

J.S.

Adhesives - Fastening

*Design Engineering Guide— Adhesives Phi/pott, B. A. (ed.) Product Journals Ltd., 1968. 28 pages. 7/6 (126) To the value engineer seeking to determine which type of adhesive is the best for a particular purpose, and which is the best way of designing bonded joints this booklet supplies useful information. I t goes further by indicating over fifty suppliers of adhesive materials. Design Engineering by providing this 'Guide' is performing a most useful service to industry where the strength of adhesive joints is becoming of more and more practical importance. Wi th this information it should be possible to choose adhesives suitable for the required end-use or any particular adherent under any particular stress conditions.

P.B.

186 Value Engineering, September 1968

Operations Research

^Operational Research Makower, M. S. and Williamson, E. English Universities Press, 1967. 264 pages. 10/6 (127) This 'Teach Yourself Book' presents the value engineer with a means of acquiring a basic knowledge of Operations Research. The theories of probability, queueing, linear programming and so on are explained in such a way that the reader does not require a knowledge of advanced mathematics. Each theory is illustrated with a problem and each chapter contains exercises for further practice. These worked problems and exercises are based on the type of decisions which face management everyday. Value engineers, as with other researchers, have a need to understand the environment of the system which they are analysing, of the factors which affect the way the system operates and how they are related. O.R. shows how an abstract model can in certain cases be built up to describe such a system. Wi th their interest in product standardisation, value engineers wi l l f ind the chapter on 'Dynamic Programming' presenting them with a number of useful ideas.

K . H .

Decision making — Checklists

*The art of Decision Making Cooper, J. D. The World's Work (1913) Ltd., 1964. 395 pages. 30/- (132) This book, which is aimed at providing 'a point of view' and 'a compendium of techniques' with which to approach problems, wil l assist the value engineer to improve his chances of getting decisions. In the chapter of 'The Techniques of Fact-Finding' the author mentions the checklist which purchasing officers in the Rockwell Manufacturing Company were given as a guide to cutting costs. A l l materials, parts and operations were put to the 10-point 'Value Analysis' test before a requisition was approved. The roadblocks to agreement cannot be removed solely by procedural means, and i t is necessary to understand what motivates men. M r Cooper mentions 'functional provincialism' as the main barrier and suggests methods for overcoming (or minimis­ing) i t . He gives some advice on the tactics of agreement which value engineers in their job of 'selling ideas' wi l l f ind most useful. By placing yourself i n the position of others and trying to under­stand the effect your decisions may have on them, by remember­ing that nothing is as simple as it seems, and by appreciating that problems are only solutions in disguise the author contends that managers and others wi l l improve their decision-making ability.

L.B.

Materials

*Design Engineering Handbook— Metals Product Journals Ltd., 1968. 254 pages. 40/-(126) As well as supplying design data on non-ferrous, and cast and wrought ferrous metals, and on joining and coating, the Hand-hook also has a product suppliers directory. Twenty-one specialists have written for designers and others providing them with up-to-date information on the metal they have studied and its alloys, its heat treatment, the shapes and forms in which it is available, design considerations connected with its use, applications and sources of further facts, thirteen writers give information on casting, forging, extrusion, tiamping, forming and spinning; and on the joining processes-»«Uling, brazing and soldering.

Value engineers and purchasing officers wi l l f ind the information on ihc forms and shapes in which the metals are available particu-U»l> helpful, and the applications in which they have been «»tve**fully used. J .McL.

Design

^Propulsion without Wheels Laithwaite, E. R. The English Universities Press, 1966. 273 pages. 63/- (127) Professor Laithwaite writes enthusiastically and interestingly about the linear induction motor. As Professor of Heavy Electri­cal Engineering at Imperial College, London, and one who main­tains a close contact with industry his views on the practical application of these motors deserves attention. The book admirably serves its aims - to inform on the applica­tions of linear motors, and to provide directions for the construc­tion of working models of these motors.

Suggested over seventy years ago, linear induction motors took their place alongside boats and gliders as a method of propulsion. Where linear motion is required the electric motor has strong competitors in the hydraulic ram and the pneumatic cylinder. Presenting the case for the linear motor the author points out that the conventional electric motor requires a rotary-to-linear convertor as well as a gearbox and the whole equipment is likely to cost more than the pressure devices (hydraulic and pneumatic). Practical applications of the linear motor already include tubular actuators and levitation apparatus, and experiments are being conducted into the use of the linear motor for crane drives, shuttle propelling and high speed travel. F.T.

Purchasing - Materials

^Machinery Buyers' Guide 1968 The Machinery Publishing Co. Ltd., 1968. 1,454 pages. 16/- (122) Purchasers of materials, machinery and small tools wi l l f ind this book a useful source f rom which to locate suppliers. The 39th edition of the Guide also contains a short-list of trade fairs and exhibitions to be held during the coming twelve months in Britain and overseas. There is a section containing trade names and four foreign language glossaries of engineering terms. Products are classified alphabetically f rom Abrasion-resistant alloys to Zirconium ingots and f rom the reviewer's examination appear to leave very little out that is of general usefulness.

J . K . M .

Design - Creativity

^Creative Synthesis in Design Alger, J. R. M. and Hays, C. V. Prentice-Half, 1964. 92 pages. 35/- (117) Value analysis, as a means of assuring that designs meet needs without providing additional but unneeded (and costly) functions is referred to by these writers. The book attempts to explain the semantic confusion which surrounds the engineering design process. Creative behaviour, the authors contend, requires self-confidence, constructive discontent, a positive outlook, an open mind and the courage of one's convictions. The books also describes various creative techniques including that of brainstorming which is becoming widely used in problem-solving. J.C.W.

Purchasing

**Purchasing Handbook Aljian, G. W. (ed.) McGraw-Hill, 1966. 1,440 pages. 196/- (101) This second edition brings the handbook up to date with an explanation of those techniques developed since 1958 including the application of the learning curve to purchasing, recent improvements in V . A . techniques, and the practical use of PERT in buying activities. Its editor has marshalled 131 specialists to explain the practices and procedures of purchasing. The book (as its jacket cluims) shows how to buy the right commodity at the right price and have it at the right place at the right time. It gives 'the ground rules'

I •#/>*<• I ngineering, September 1968 187

concerning responsibilities, legal and ethical practices, and the selection and training of staff. For value engineers, the sections on - How to select sources of supply, Soliciting and evaluating quotations, Pricing considera­tions, Incidental purchasing costs, Quantity determination and Order point have particular interest. The special buying con­siderations for a representative set of commodities provide practical guidelines for those new to the purchasing function. M r Larry Miles (the founder of V .A. ) wi th M r C. W. Doyle are responsible for a section of the book on Value Analysis. These authors present what they call ' A n over-all understanding of V . A . ' According to them 'Purchasing Value Analysis is the process of applying value analysis techniques in the sphere of materials procurement'.

Readers wi l l be interested in the seven Relative Cost Tables which, of course, need up-dating in the light of current prices. The section 'What Businesses can Benefit f r o m V . A . ?' and the references to books, films and teaching aids is useful to those who wish to pursue the subject of V . A . more deeply. There is a useful collection of reference tables at the end of the book, and the comprehensive index makes reference to particular subjects an easy matter. E.G.P.

Design - Fastening

^Handbook of Fastening and Joining of Metal Parts Laughner, V. H. and Hargan, A. D. McGraw-Hill. 1956. 622 pages. £8 (101) 'One of the basic keys to mass production is an intimate know­ledge of how to fasten parts together.' W i t h this statement the joint authors set out to provide an idea-source of methods of joining metal parts. After covering the more usual fastening methods then adhesive and other assembling methods are dealt wi th - e.g. stitching, stapling, cast-in attach­ments, moulded-in inserts, and snap slides. A supplement illustrates 1500 ideas for fastening and joining and the age of the book does not militate against its usefulness to the designer and value engineer. F.A.

Materials - Purchasing

^Materials Handbook Brady. G. S. McGraw-Hill, 1959 (9th ed.) 968 pages. 163/6 (101) This book has grown over 35 years to a work upon which those concerned in any way wi th materials can depend, and purchasing analysts and value engineers wi l l find it a most useful ' tool ' describing over 1,200 different materials including those now used in space-age industries. The book wi l l enable them to save time in seeking materials for new products or processes. However, i t is not - as the author is careful to point out - an exhaustive treatise on materials and takes for granted that suppliers wi l l furnish detailed specifications.

Proceeding as the book does f r o m Abrasives to Zirconium it very completely covers the gamut of materials made out of the ninety odd elemental 'building blocks'. The materials alphabet is then followed by a section devoted to materials economics or 'the procurement and utilisation of the raw materials of the world ' . To be able to judge effectively the relative values of new materials the buyer - so the author points o u t - m u s t have in his mind basic standards for almost instinctive comparisons for a new figure is of no value unless it is compared to a known value. There is interesting information on colour and flavour, and sets of industry terms and reference tables provide a useful source of facts. The author, M r George Brady, who has spent his life in the field of materials as a toolmaker, designer, consultant and writer is exceptionally well-fitted by practical experience to select those parts of the subject which are of most importance to the purchas­ing officer and engineer in their daily work. A.G.B.

Indirect Costs - Office Costs

^Measurement and Control of Office Costs Birn, S. A., Crossan, R. M., and Eastwood, R. W. McGraw-Hill. 1961. 318 pages. 79/6 (101) Value engineers who are interested in applying the techniques of value analysis to the reduction of office costs wi l l find in this book a set of time-studied standards which are applicable to the operation of accounting, calculating, duplicating, recording and mailing machines, and to typing. The book covers manual and mechanical as well as diversified and repetitive clerical work. M . C . D . (or Master Clerical Data) lists the standard elements which clerical workers use in performing office activities under thirteen categories giving work values in the f o r m of T.M.U.s (time measurement units) for each. Those value engineers who are familiar with work study techniques wi l l recognise the type of forms used in M . C . D . studies - the Clerical Methods Analysis Sheet, the Operation Summary Sheet, etc. Allowances (for per­sonal needs and fatigue and those due to unavoidable delays) are dealt wi th in a fresh way for the authors disagree wi th the classic method for fixing allowances by finding out what they are and they advocate that what they should be is the right approach. The writers contend that work measurement should be prefaced with motion study and supported by job evaluation, merit rating and work sampling which they outline. The use of M . C . D . also has the effect of challenging both established and new methods f rom an overall effectiveness point of view. M . T . M . , P.S.D., M . C . D . etc. are not ends in themselves - they are means to an end. F.G.

Fluidics

*Design Engineering Guide— Fluidics Product Journals Ltd., 1968. 27pages. 7/6 (126) The technique called 'Fluidics' uses fluids in devices to perform the functions of sensing, logic and control. I t eliminates moving parts. This leads - so the protagonists claim - to higher reliabi­lity and almost unlimited life. However, design problems in fluidics (because of the paucity of established theory) still have to be solved empirically. The book covers the various types of fluidic devices on the market today, the ground rules of their application, and definitions of terminology used in the subject. Such phenomenon as the Coanda effect (the ability of a jet of f lu id flowing near a surface to attach itself to that surface even though the surface may be at a considerable angle f r o m the original jet direction) is described and clearly illustrated. The reference to suppliers of fluidic devices is very complete and provides a useful start for those who, having read this booklet, wish to try their arm. G.B.

Basic concepts - Checklists

***Value Analysis— The Rewarding Infection Gibson, J. F. Pergamon, 1968. 46 pages. 21/- (102) The author, who is V.E. Manager at O S R A M (GEC) Ltd . , is well-qualified by basic training and successful practical experience to write on his subject, and the intensely interesting and readable way in which he has done so should give the book a wide reader­ship. The questionnaire/comment sections of the book ensure that the reader is thinking along the right lines when he attempts to produce answers, and is set out in such a way as to provide checklists on the points which need to be taken into account. The reviewer agrees with the author that V . A . is better caught than taught, and considers that the author has achieved this for the book when placed in the hands of tiros had exactly that

188 Value Engineering, September 1968

effect. I n fact, what i t started would, indeed, be hard to stop! lt is rather a pity that following the six case histories there is not a list of references for further reading so that those who have caught the infection can easily proceed to extend their knowledge of the subject. The Industrial Training Division of the Pergamon Press are to be commended for the convenient size of this booklet and the easily readable way in which they have had i t set up by the printer.

B.D.W.

Metrication

^Design Engineering Guide— Metrigrams Product Journals Ltd., 1968. 70 pages. 10/-(126) Metrication is increasingly in the news with the dates of change­over in the various industries being fixed, and the controversy over the decimal point or decimal comma and so on. This reference booklet adds to the series of handy publications being frequently issued by the Design Engineering people. As well as twenty-eight metrigrams or conversion graphs the book con­tains a number of references to sources of conversion calculators, metric fasteners, metric gears and taper-lock bushes. A.C.

Statistics

*Main Economic Indicators O.E.C.D., March 1968. 136pages. 10/- (124) Intended to serve as a desk ready reference to the basic national economic statistics of the twenty-one Organisation for Economic Cooperation and Development member countries and Yugo­slavia, this bilingual book performs its purpose well. Comparative tables for the countries provide a means of con­trasting productivities of these countries and of ascertaining the terms and direction of their trade. Shortly the O.E.C.D. is to publish a revised issue of Historical Statistics which wi l l include the economic indicators f r o m 1957 to 1966. This publication wi l l supplement Main Economic Indicators and provide a guide to business cycles showing runs of monthly and annual data. V.S.

Design - Ergonomics

^Mechanical Details for Product Design Greenwood, D. C. (ed.) McGraw-Hill, 1964. 341 pages 88/6 (101) These mechanical design aids which have been culled f r o m Product Engineering Magazine offer a wealth of alternatives for solving the problems of designers in their everyday work. The reviewer in his value engineering work has found the book must useful in furnishing quick, workable ideas and leads to answers to problems in reducing product cost. Covering such subjects as Accessories, Materials handling, I listening and joining methods, and mechanical movements and linkages the book provides very practical on the job help. Ihc methods engineer also wi l l f ind many ingenious devices cxpluined in the book. For instance, there is a description of how small parts can be oriented and fed by use of a roller chain,

to assemble economically with the use of adhesives are given, and there is useful information on quick-disconnect lonlcncrs and permanent magnet mechanisms. I lie ncctions on designing for easier machining, for heat tieaimcnt, and for reducing waste wi l l well repay reading, and •ignntimie considerations are featured giving useful 'normal' ii»m»n dimensions.

M r Greenwood has obviously had a wide experience in design engineering. He is Associate Editor of the widely read journal Product Engineering and the writer of several other equally interesting books in the same subject area.

A .V .T .

Design - Checklist

^Engineering Data for Product Design Greenwood, D. C. McGraw-Hill, 1961. 430 pages. 107/6 (101) This desk reference book is a valuable time-saver placing a wealth of engineering charts, formulas and tables within arm's reach of the engineer and designer. As well as providing answers to problems involving beams, torque, moments of inertia and so on the author also points the way to better fastening methods, describes the use of radioactive tracers, and shows how to calculate critical speeds. Given the principles of good producibility as simple design, maximum use of standards, practical assembly and installation, minimum design changes, best use of suitable facilities and man­power, simple tooling requirements, and careful consideration of tolerances and allowances, the author provides a Producibility Checklist which wi l l be of interest to value engineers.

T.C.P.

Materials

^Engineering Materials Handbook Mantell, C. L. (ed.) McGraw-Hill, 1958. 900 pages. £12 (101) The work of more than one hundred-and-fifty contributors, the book is intended to provide the buyer and designer with an authoritative reference source to engineering materials. The subject matter has been arranged into four sections - ferrous and non-ferrous metals, inorganic materials, organic materials, and what the engineer needs to know regarding corrosion, deterioration, brittle fracture, etc. Information upon short-time high temperature materials use problems is also included. The section on properties of materials at the beginning of the book is arranged alphabetically for convenience of reference, and at the end of the book useful sources of information of engineering materials are given. A n 83-page index provides an unusual section called 'Numbers' in which the various metals and alloys are arranged in ascending order of their distinguishing numerals. Inspection of the alphabetical section of the Index (which follows) wi l l indicate the comprehensiveness of the book.

K . L .

Producibility - Numerical Control

^Fundamentals of Numerical Control Lockwood, F. B. The Machinery Publishing Co., 1968. 82 pages. 18/6 (122) As numerical control can be applied to machine tools, marking out, welding, flame cutting, pipe bending and circuit wiring it is of importance to value engineers vitally concerned as they are with the problem of producibility. Value engineers cannot com­municate, nor can they be correctly informed by others, i f they lack a basic knowledge of the systems and terminology used in N.C. The book provides a background knowledge for those who arc recommending, buying, using or maintaining numerically controlled equipment. The author stresses that a company should see that i t does not pay for an accuracy greater than is required. Numerically controlled machines used in small batch production confer the following advantages:

tWiw Engineering, September 1968 189

1. Consistent accuracy independent of the varying skills of operators thus reducing inspection time, scrap and rectifica­tion costs.

2. Increased machine utilisation wi th low set-up time (often only the time required to clamp the component and insert the tape).

3. Reduced tooling costs with no jigs and fixtures being required, and the elimination of lead time that is needed for manufacturing these. No storage space required for jigs and fixtures.

These reasons should ensure that the potential benefits obtain­able f r o m N.C. should not be overlooked by value engineers.

G .H.

Work Study - Local Government

^Municipal Work Study Mil I ward, J. G. B.I.M., 1968. 138 pages. 451- (113) W i t h V.E. techniques now being applied to local government services in the United States, this book (the first o f its kind) is extremely pertinent for value engineers. The book describes how the 3 M's (men, money and materials) may be conserved by local and national authorities. The author gives seven 'M's'as basic! Although local authorities have been applying work study methods to their manual operations for ten years M r Millward's endeavour to share his experience with others wi l l be welcomed. He has signposted the route which a successful assignment carried out by himself followed, and the very real need to explain work study to people is shown. A chapter on the introduction of work study lists the problems with which value engineers wi l l be only too familiar—the position of W.S. in the organisational structure, and the composition of the W.S. team. The Summary of Essential Steps could well have been written for V.E. Part I I of the book deals with specific applications of work study, outlining the way in which a few of the problems have been tackled.

A . L .

Design

*Product Engineering Design Manual Greenwood, D. C. McGraw-Hill, 1959. 342 pages. 121/6 (101) Over a hundred product design topics are covered by the Associate Editor oi Product Engineering in this treasure house of design ideas. The book triggers off new design ideas, quickly provides alterna­tive ways of solving design problems, and provides a long-term reference source. The reviewer has found the sections on Bead chains, Hopper feeds, Which Adhesives for What, Quick-release fasteners and Air-actuated mechanisms particularly useful as idea sources in helping h im to devise assembly jigs and fixtures. 'Why didn't I think of that myself?' is the feeling which came f r o m reviewing the book which might well have been titled Tmagineering'.

J.W.

Quality - Inspection - Design - Purchasing

*Quality Control for the Manager Cowan, A. F. Pergamon, 1966 95 pages 12/6 (102) This book - now i n a second edition - is suitable for the value engineer as well as for the manager.

Quality control, as the author notes, 'is hedged about with misunderstanding' and he sets out (and succeeds) in clarifying its meaning. Quality depends on the design of the product and since value engineers are vitally concerned at the design stage they require a knowledge of those matters which facilitate the maintenance of quality i n production. M r Cowan's chapter which deals with the problem of tolerances and the buying of quality would repay study by purchasing officers. I n describing Statistical Acceptance Sampling he draws attention to the obvious - quality is not an end in itself. The design of the product and the design of the processes by which it is to be manufactured must be considered together and not separately. This consideration of both these aspects is what is implied by the term 'Total Quality Control ' . A n Appendix is given over to an explanation of the statistical t o o l - t h e Shewhart Control Chart.

He does not mention the P R I D E (Programmed Reliability in Design) system nor the latest ZERO DEFECT techniques. The short list of further reading given in this book may be supplemented by the 80-page bibliography of the most important periodical articles in the last five years. The articles have been classified under 'Control Charts', 'Acceptance Sampling', etc. and according to the industries in which they are used. The bibliography, entitled Quality Control by G. Mor t , is available f r o m the Library Association, 7 Ridgmount Street, London, W.C.1 , price 24s.

C M .

Creativity - Training

**Essays on Creativity in the Sciences Coler.M. A. (ed.) New York University Press, 1963. 235 pages. $6.00 (133)

This ' f ru i t ' of over fifty full-day meetings - held over a period of five years - to discuss how the creative process can be fostered should be of interest to designers and value engineers, and also to those responsible for training these people. Those who believe that creativity is simply the process of bringing something new into being might not f ind i t easy to accept statements that creative action is that which 'achieves increased unity or order in some situation' or that creative production 'begins in a state of imaginative muddled suspense'. The editor of these Essays, who is Director of the Creative Science Programme at New York University, i n bringing together the wide variety of views of scientists, engineers, sociologists, anthropologists, industrialists and educationists on the nature of creativity has performed a very useful service. The eleven contributors provide readers with an historical background to the subject and an explanation of the nature of creativity in the sciences, the universities, and in industry. They cover the different aspects of creative endeavour which we all experience - groping, remembering, fmding, testing, discarding. The contributions on 'Individual and Group Creativity' (by H . K . Hughes) and on 'Creativity in Engineering' ( M . F. Blade) offer several ideas for the value engineer. Listing the stages of creativity and the advantages and drawbacks of Group Creativity leaves the reader desirous of following up M r Hughes' promised later studies of this subject.

For teachers of engineering subjects, who have the problem of pouring a quart into a pint pot, Miss Blade's comments on how they might foster the creative talents of their students wi l l be interesting. Those who are interested in further study of creativity wi l l f ind the references given at the end of ten out of the eleven chapters to be most useful.

A.J.

190 Value Engineering, September 1968

Reprint No. 1:3:13

Selected Abstracts of Recent Literature on Value Analysis/ Engineering Miss C. Ma by —Abstracter

'Education: the expansion of experience by experts'—C. K. Ogden

These Abstracts are based on a survey of periodicals and books, supplemented by a selection of abstracts which have already appeared in other Abstract Journals. Permission to reproduce the latter is gratefully acknow­ledged.

The addresses of the publishers of the periodicals contain­ing the abstracted articles may be obtained by noting the number appearing in the round brackets and referring to the addresses on the inside of the back cover.

Abstracts [36] to [45] [36]

Applications - Overspecification

Stead, E. V.E. Case Histories- No. 2-Is the Design Too Good for the Job ? Design and Components in Engineering, 26 Jan 67 pp. 12-13 (18) Reporting the results of value analysing a front axle stub end by the Standards and Value Engineer of Kirkstall Forge Engin­eering L td . of Horsforth, Leeds, the article shows how a cost-Miving of 80 per cent was made on a section o f the axle design. The designer approached the problem f r o m a standardisation angle-was there a part already used which would serve the purpose? When this did not work he decided a new longer pressing would be required which could be made f rom a slightly modified existing tool that could still be used in its original application. The cost-saving, however, was negligible and the Value Engineer after finding out what had been tried applied the techniques of his trade asking the standard Value Analysis questions. He asked: (1) Is the pressing being used too good for the job? (2) Is the method of holding the pressing on to the stop too good for the job ? The answers to these questions alone being 'yes' was sufficient to warrant further investigation. This was made und a section costing 7s. 5d. was found could be produced for Is. fid.

[37] Applications - Mouldings

Anon V.E. Case Histories - No. 1 - Mouldings Replace Hot Stampings Da$ign and Components in Engineering, 12 Jan 67 pp 16-18 (18) IteH'Mbcft the redesign of a range of submersible pumps Manufactured by S U M O PUMPS L T D . of Crawley in which . •nam components made f rom manganese bronze hot stampings <.«umg J0». 6d. were replaced by new components made f rom ih# polycarbonate M A K R O L O N G.V. costing 19s. 3 d . - a M«tng of M) per cent.

A functional improvement of this substitution was a superior dimensional stability eliminating leakage between stage castings, and that polycarbonate is corrosion free and offers excellent abrasion resistance. From the £4,200 savings (based on a yearly production of 7,500) wi l l have to be deducted the moulding tool costs spread over three years.

[38] Applications - Design - Plastics

Oakley, E. H. V.E. Case Histories - No. 9 - Redesigning from Scratch Design and Components in Engineering, 11 May 67 P. 8 (18) The Chief Value Engineer of International Harvester Co. of Great Britain L td . mentions the stack cap assembly which is a sub-assembly of an air cleaner. The basic function is to prevent water, straw, etc. to be drawn or falling into the air cleaning filters. Other properties required are that i t withstand impact loads f r o m falling debris when the machines are used on loaders. I n view of its position on top of the hood the assembly needs to have a good appearance. As a result of study polypropylene was considered the most suitable material and now the cap (which was previously of four pieces) is made of two parts - the domed cap and the webbed core - separately injection moulded and later riveted together. The moulding can be of any colour and does not show scratches. Whilst the impact load is fairly high no permanent set results f r om falling objects. Overall savings were 90 per cent after allowing for the cost of new mould tools.

[39] Basic concepts - Applications - DoD

Kramer, G. M. The Internal Auditor Winter 66 pp. 25-35 (27) A n introduction to Value Analysis and some practical examples of its cost-saving achievements. Details are given of how the U.S. Department of Defense encourages its use by sharing the cost-savings with their contractors.

• *JW Engineering, September 1968 191

[40 ]

Applications - Fastening

Anon V.E. Case Histories - No. 7 -Adhesives can save Assembly Time Design and Components in Engineering 13 Apl 67 p. 14 (18) Avery Hardoll L td . , manufacturers of petrol pumps, achieved a saving of £700 per year by changing over f r o m drilling and pinning a roller to a shaft (time 25.29 minutes) to joining these two pieces with Loctite Retaining Compound (time 12.76 minutes). To this saving may be added 6d. due to eliminating copper plating to keep the area soft for drilling and the value of 1.29 minutes saved on the actual assembly. This does not include time wasted through broken drills and the cost of these drills.

[41]

Applications - Value standards - Single Product Cost Leadership

McKay, J . (reporter) Value for Money Where It Counts British Industry Week 19 Jan 68 pp. 26-29 (16) M r T. P. Callaghan, S.T.C. Director-Operations Staffs, is directing the concentration of his company's efforts on Value analysing high profit products to make them even more profitable. Called 'Single Product Cost Leadership' (SPCL), S.T.C. has already successfully carried out this new approach to Value Analysis in its operations in the United States. The company is aiming at a standard format for V . A . teams to work with which covers the implementation of the Value Analysis Change Proposals.

Suppliers' V . A . proposals are rewarded with all the savings for the first six months after implementation. This is called 'Pocket the Savings' plan. A manual of Value Standards (which took two years to com­pile) helps to streamline value engineering work and in the company's selection of products for analysis i t has adopted the concept of S.P.C.L. This means that a product is produced at a cost that is as low, or lower than, the cost of competing products by others and that the value analysis concentrates on items which show the greatest return for time and effort invested. Priority is given to the 20 per cent of the company's products which account for 85 per cent of the sales. The company uses a carefully devised nine-step approach.

[42 ]

Functional worth - Cost-estimating

Dillard, A. E. The 'Function' in Value Engineering Society of Automotive Engineers, Inc. SP-277 pp. 5-8 (24) This article discusses an approach to better value through the recognition of the interfaces that exist between design parameters, item capabilities, item design and the item's unit cost, based upon an objective definition of the primary function of an item. Redundant Function (a function that duplicates a primary or secondary function which - unless absolutely necessary - can be eliminated) is discussed, and seven steps are set out for creating better value: Identify the function; Identify all the parameters and environment surrounding the function; Convert the para­meters and environment into design criteria; Convert the design criteria into item capabilities; Convert the item capabilities into cost; and Develop a family of curves of cost versus each capa­

bility. This wi l l provide guidance on the optimum cost/capability relationship. The unit cost of a product then becomes the sum of the capability costs.

[43 ]

Basic concepts

Taylor, D. R. An Introduction to Value Engineering Society of Automotive Engineers, Inc. SP-277 pp. 1-4 (24) Value engineering is a proven tool for reducing costs and increasing the value o f products. This has a direct bearing on improved competitive position in the market place and increased profit margins. The tool is an organised effort, is oriented to function, involves overall costs, and is inter-disciplinary in nature. This article takes the reader f r o m selection of items for study, through functional analysis, to implementation of proposals. Reasons for high costs and suggestions for avoiding roadblocks to change are discussed because o f the importance in under­standing the human aspects of reducing costs and improving value.

[44 ] Basic concepts - Management Appreciation

Harris, A. Calculate - or motivate ? The Financial Times 28 June 67 (14) The author described the experience of M r Wayne Ruggles in seeking to establish Value Engineering in Britain. Value Engineering, according to M r Ruggles, is an attitude of mind, a systematic approach to problems with COST high on the agenda and V A L U E as the objective. 'Companies', he contends, 'all think they are cost conscious, but few of them are.' How often is pricing the new model left unt i l it is finalised for production ? Where does COST come on the agenda of companies who do this? Value Engineering is a 70 per cent motivational problem and 30 per cent system.

[45 ]

Applications - Basic concepts - Management Appreciation - Value standards

White, M. Dunlop get a Grip on Rising Costs The Times 22 Jan 68 (22) Dunlop, through Value Analysis, saved £ i mi l l ion in 1967. The Value Analysis work is carried out through the Group Management Services unit which is also responsible for O.R., Computer applications, O & M , etc. The Management Services Division usually provides a larger reservoir of capabilities than can reside in any single unit in a group of companies. The Management Services Division also acts as a useful bridge between consultants and the company and as a useful training and testing ground fo r promising executives. Initially, the Management Services Division trained ten Value Engineers and t h e n - w i t h the help of an outside consultant -embarked on an educational and 'selling' programme to get the companies in the group interested. As the idea took hold the value engineers were moved into the companies. The Manage­ment Services Division retains three value engineers whose function i t is to cross-fertilise the work being done in the divisions of the company.

The importance of having a yardstick by which to judge the value of effort i n relation to the results which i t produces is emphasised. I n Dunlop they aim at a minimum saving of three times the cost involved.

192 Value Engineering, September 1968

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Reprint No. 1:3:14

PITFALLS AND WEAKNESSES TO AVOID IN ESTABLISHING VALUE

ANALYSIS OR ENGINEERING IN A COMPANY

It is i m p o r t a n t t h a t if V a l u e A n a l y s i s or E n g i n e e r i n g is e s t a b l i s h e d in a c o m p a n y it m u s t be m o r e t h a n a d i f f e r e n t n a m e f o r c o s t r e d u c t i o n a n d c o n t r o l t e c h n i q u e s w h i c h e x i s t e d p r e v i o u s l y . It m u s t really r e p r e s e n t g o o d v a l u e i tse l f , a n d m u s t on no a c c o u n t be a l l o w e d to b e c o m e a po l i t i ca l d e v i c e u s e d by c e r t a i n ind iv idua ls to s e r v e t h e i r o w n ra ther t h a n t h e c o m p a n y ' s e n d s . It m u s t f o s t e r m a x i m u m c o - o p e r a t i o n b e t w e e n peop le a n d m a x i m u m ind iv idua l e f fo r t . O n n o a c c o u n t m u s t V a l u e A n a l y s i s or E n g i n e e r i n g b e c o m e r ival f u n c t i o n s to o t h e r c o s t r e d u c t i o n a n d c o n t r o l t e c h n i q u e s .

It is a l s o i m p o r t a n t t h a t V a l u e A n a l y s i s a n d E n g i n e e r i n g do a c t u a l l y m a k e t h e f u l l e s t u s e of v e r y s t r i c t d i s c i p l i n e s s u i t e d to t h e n a t u r e o f t h e c o m p a n y ' s w o r k , a n d a r e no t s i m p l y o r g a n i s a t i o n a l d e v i c e s w h i c h a c h i e v e the i r r e s u l t s s i m p l y by put t ing s e n i o r peop le in a p o s i t i o n w h e r e t h e y a r e ob l iged to c o n s i d e r p r o b l e m s w h o s e s o l u t i o n m a y be n o w h e r e near a s i m p o r t a n t to t h e c o m p a n y a s t h e fa r m o r e d i f f i c u l t o n e s t h a t t h e y w e r e e n g a g e d t o w o r k o n .

V a l u e E n g i n e e r i n g s h o u l d no t , e x c e p t in s p e c i a l c i r c u m s t a n c e s of a s h o r t t e r m n a t u r e , b e c o m e a s e c o n d d e s i g n or r e - d e s i g n e s t a b l i s h m e n t , a n d s h o u l d not c o l l e c t a n d hold i n f o r m a t i o n w h i c h is not f ree ly ava i l ab le a n d a c c e s s i b l e t o t h e d e s i g n d e p a r t m e n t , or w h e r e v e r it c a n be u s e d in m a k i n g i m p o r t a n t d e c i s i o n s .

A m o n g s p e c i f i c p i t fa l ls a n d w e a k n e s s e s t h a t c a n on ly t o o eas i l y a r i s e in e m p l o y i n g V a l u e A n a l y s i s or E n g i n e e r i n g a re t h e f o l l o w i n g :

1. D i s r e g a r d i n g t h e h idden c o s t s o f c a r r y i n g ou t t h e t e c h n i q u e s , s u c h a s d i s r u p t i o n s to o t h e r w o r k , t h e c o s t of t h e t i m e a n d e f f o r t o f t h o s e o n t o w h o m t e a m m e m b e r s o f f - l o a d w o r k .

2. R e l y i n g t o o m u c h o n ' b r a i n s t o r m e d ' i d e a s w i t h o u t g iv ing t h e o p p o r t u n i t y f o r , o r e v e n c a u s i n g d e f i n i t e o b s t r u c t i o n s t o , d e e p t h o u g h t w h i c h a l w a y s i n v o l v e s c o n c e n t r a t e d , f o c u s s i n g of m e n t a l a c t i v i t i e s a n d a t i m e de lay .

3. R e l y i n g t o o m u c h o n ' c h e c k l i s t ' q u e s t i o n t e c h n i q u e s ra ther t h a n t h i n k i n g d e e p l y a b o u t w h a t q u e s t i o n s a r e m o s t l ikely to be r e w a r d i n g if a n s w e r e d .

4. W h e r e c h e c k l i s t t e c h n i q u e s a r e u s e d , be ing in t o o g r e a t a h u r r y to d i s p o s e of q u e s t i o n s w h i c h ' o b v i o u s l y ' w i l l not revea l a n y t h i n g .

5. W o r k i n g in t e a m s in s u c h a w a y , or f o r s o long a t a t i m e , t h a t i n t e r e s t a n d a t t e n t i o n of c e r t a i n m e m b e r s is los t .

6. I n a d e q u a t e p r e p a r a t i o n pr ior to m e e t i n g s , pa r t i cu la r l y p e r f o r m i n g w o r k s u c h a s t h e d e f i n i n g of f u n c t i o n s a n d o p e r a t i o n s in a t e a m by s t u d y i n g t h e d r a w i n g s or p a r t s w h e n it c o u l d be a c c o m p l i s h e d fa r m o r e e f f i c i e n t l y b e f o r e t h e t e a m m e t .

7. P e r m i t t i n g t h e a c c e p t a n c e of s h a r e d r e s p o n s i b i l i t y fo r t h e r e s u l t t o d e v e l o p in to a fee l ing o f no real p e r s o n a l r e s p o n s i b i l i t y a n d t h u s i n s u f f i c i e n t m o t i v a t i o n fo r m a x i m u m indiv idua l e f fo r t .

8. W a s t e of f o l l o w - u p a n d d e v e l o p m e n t t i m e a n d m o n e y o n s u g g e s t i o n s w h i c h be t te r t r a i n e d p e r s o n n e l c o u l d d i s m i s s a s be ing w o r t h l e s s a f t e r br ie f e x a m i n a t i o n .

9. R e l y i n g t o o m u c h o n t h e s p e c i a l i s e d k n o w l e d g e of p a r t i c u l a r m e m b e r s of t h e t e a m .

10. B e i n g o v e r e l a b o r a t e in e s t a b l i s h i n g v a l u e m e a s u r e m e n t s t o t h e d e t r i m e n t o f c o n c e n t r a t i n g o n t h e m o r e i m p o r t a n t t a s k of d e s t r o y i n g u n n e c e s s a r y c o s t s .

11. L a c k o f s u f f i c i e n t l y a d e q u a t e a n d c o n c i s e p r o c e d u r e fo r p r o p o s a l s a n d s u f f i c i e n t l y rapid m e a n s of e n s u r i n g p r a c t i c a l t e s t i n g a n d i m p l e m e n t a t i o n .

12 . C l a i m i n g s a v i n g s or g a i n s w h i c h c a n on ly be rea l i sed on paper a n d c a n n o t be i m p l e m e n t e d in c a s h t e r m s .

13 . Inabi l i ty of t e a m m e m b e r s to put the i r j o i n t e n d e a v o u r b e f o r e d e p a r t m e n t a l i n t e r e s t s .

14. A p p o i n t m e n t o f V a l u e E n g i n e e r l a c k i n g in b r e a d t h of e x p e r i e n c e a n d t r a i n i n g , e n t h u s i a s m f o r h is t a s k , a n d ab i l i ty to e l i c i t t h e r ight r e s p o n s e f r o m his t e a m a n d t h o s e w h o w i l l c h a l ­l enge t h e i r p r o p o s a l s .

15 . I n s u f f i c i e n t b a c k i n g f r o m t o p m a n a g e m e n t and i n s u f f i c i e n t a t t e n t i o n to t h e de ta i l ed w o r k r e q u i r e d to c r e a t e t h e c l i m a t e in w h i c h V a l u e A n a l y s i s a n d E n g i n e e r i n g c a n f l o u r i s h .

16. A p p a r e n t s u p p o r t f r o m peop le w h o h a v e not c h a n g e d b a s i c a l l y in the i r a t t i t u d e s a n d b e l i e f s a n d do not g e n u i n e l y a c c e p t t h e n e c e s s i t y fo r i m p r o v e d m e t h o d s of w o r k i n g .