Generate VA/VE Ideas Using Visualization Tool

Challenge & Selection

I am a product design engineer, member of a manufacturing company in the automotive industry.  Our clients are some of the top OEM’s worldwide, therefore we compete against some of the  market’s world class suppliers.  The quality and functionality of our product is always assured, which  results proportional to the cost of our products. So here is the challenge, how can we lower our  costs to make a solid impact on the market and make a statement with our current customers for  their upcoming platforms? The answer we came out was VA/VE ideas (Value Analysis / Value  Engineering), this are cost reductions whether making changes on current product and/or current  process, seeking for a feasible cost saving, without affecting the product’s quality.

The tool selected for this activity is the Visualization Tool, the main reason is because, as the video  said, “visualization is really the core component of the way we communicate”. We needed to find  the right way to transmit our ideas to the operations team, and more important, receive feedback  from them, find the areas of improvement, that exist on the day-to-day process.

Application

We started the process by clarifying to ourselves the following questions: What composes a VA/VE  idea? How many types of VA/VE exists? Which ideas can apply to our product/process?

Then, we created a chart with the 10 Target Points we considered as opportunities that can exist in  our process. We named each point as following and added a brief description of what it consists.

1. Replacement: Component or material replacement by another of minor cost with the same

function and quality.

2. Size reduction: Reduce component or part size / gauge dimension. Must affect the final

condition of the product to be deliver.

3. Abolition: Eliminate a component / part without final product function affectation.  4. Integration: Modified one component design to integrate two or more functions replacing

other part or components, and eventually eliminate.

5. Communization: Implement one component or part, instead of other/s different product

with similar characteristics.

6. Relaxation: Minimize acceptance criteria and spec. definitions. Could be dimensional

tolerances, coating requirements, test requirements, etc.

7. Waste reduction: Reduce the material utilization for production process (material ratio

improvements are not considered).

8. Sourcing Change / Localization: Cost reduction related to tier I or II, replacement,

changeability. Include Parts, Assy, Raw material, Std. parts,

9. Process improvement: Operational improvements, welding, assembly & coating process

with not affectation or changes in the product delivered.

10. Logistics improvement: Improvements in material handling, internal and external logistics,

modules, etc.

After determining which where going to be out target points, and applying this methodology  internally on the design department, next step was making a workshop collectively with all the  operations team (stamping, assembly, quality, welding, logistics, commercial, etc.).  We printed big  posters with our Target Points Chart, one for each component that was intended to be reviewed on  the workshop.

Additionally, we brought the physical components and prepared visual aids with their corresponding  sub-assemblies. Then, we delivered sticky notes to each of the participants and explained them the  VA/VE principle.  We made three teams, every team was indicated to review each component as a  group and leave sticky notes with their ideas or comments on the corresponding section of the chart,  some of them even left additional sticky notes directly on the component, which was also  acceptable. Every team consisted of a specialized member of each department; therefore, we could  warranty that we can consider the perspective and experience from every department on the  activity.

Insight & Approach

The information obtained applying this tool on the workshop cannot be compared to the original  ideas we had with our regular methodology, not in quantity nor quality. For me, the biggest  difference was the way the information was clarified.  We gave the participants specific points to  look at, clarification of each one, with examples and visual aids included, and a specific place to  plasm their thinking. This helped us to manage easily the information and look at it from a point of  view different than the one usually applied on the design department.

As lesson learned for further projects, the intention will be prepare more activities based on the  same principle, but this time on a different stage of the process, rather than cost savings from  current production, look for projects that are still on the implementation stage, attack this target  points since the beginning. It’s easier to negotiate with the customer at this stage, and obviously a  bigger cost benefit is involved.


Generate VA / VE Ideas Using Visualization Tool Challenge & Selection I am a product design engineer , member of a manufacturing company in the automotive industry . Our clients are some of the top OEM ’s worldwide , therefore we compete against some of the market ’s world class suppliers . The quality and functionality of our product is always assured , which results proportional to the cost of our products . So here is the challenge , how can we lower our costs to make a solid impact on the market and make a statement with our current customers for their upcoming platforms ? The answer we came out was VA / VE ideas ( Value Analysis / Value Engineering ) , this are cost reductions whether making changes on current product and/or current process , seeking for a feasible cost saving , without affecting the product ’s quality . The tool selected for this activity is the Visualization Tool , the main reason is because , as the video said , “ visualization is really the core component of the way we communicate ” . We needed to find the right way to transmit our ideas to the operations team , and more important , receive feedback from them , find the areas of improvement , that exist on the day - to - day process . Application We started the process by clarifying to ourselves the following questions : What composes a VA / VE idea ? How many types of VA / VE exists ? Which ideas can apply to our product / process ? Then , we created a chart with the 10 Target Points we considered as opportunities that can exist in our process . We named each point as following and added a brief description of what it consists . 1 . Replacement : Component or material replacement by another of minor cost with the same function and quality . 2 . Size reduction : Reduce component or part size / gauge dimension . Must affect the final condition of the product to be deliver . 3 . Abolition : Eliminate a component / part without final product function affectation . 4 . Integration : Modified one component design to integrate two or more functions replacing other part or components , and eventually eliminate . 5 . Communization : Implement one component or part , instead of other / s different product with similar characteristics . 6 . Relaxation : Minimize acceptance criteria and spec . definitions . Could be dimensional tolerances , coating requirements , test requirements , etc . 7 . Waste reduction : Reduce the material utilization for production process ( material ratio improvements are not considered ) . 8 . Sourcing Change / Localization : Cost reduction related to tier I or II , replacement , changeability . Include Parts , Assy , Raw material , Std . parts , 9 . Process improvement : Operational improvements , welding , assembly & coating process with not affectation or changes in the product delivered . 10 . Logistics improvement : Improvements in material handling , internal and external logistics , modules , etc . After determining which where going to be out target points , and applying this methodology internally on the design department , next step was making a workshop collectively with all the operations team ( stamping , assembly , quality , welding , logistics , commercial , etc . ) . We printed big posters with our Target Points Chart , one for each component that was intended to be reviewed on the workshop . Additionally , we brought the physical components and prepared visual aids with their corresponding sub - assemblies . Then , we delivered sticky notes to each of the participants and explained them the VA / VE principle . We made three teams , every team was indicated to review each component as a group and leave sticky notes with their ideas or comments on the corresponding section of the chart , some of them even left additional sticky notes directly on the component , which was also acceptable . Every team consisted of a specialized member of each department ; therefore , we could warranty that we can consider the perspective and experience from every department on the activity . Insight & Approach The information obtained applying this tool on the workshop can not be compared to the original ideas we had with our regular methodology , not in quantity nor quality . For me , the biggest difference was the way the information was clarified . We gave the participants specific points to look at , clarification of each one , with examples and visual aids included , and a specific place to plasm their thinking . This helped us to manage easily the information and look at it from a point of view different than the one usually applied on the design department . As lesson learned for further projects , the intention will be prepare more activities based on the same principle , but this time on a different stage of the process , rather than cost savings from current production , look for projects that are still on the implementation stage , attack this target points since the beginning . It ’s easier to negotiate with the customer at this stage , and obviously a bigger cost benefit is involved .