11

Valuee engineering, or VE the term alone often chills

a dessign engineer, during any part of a construction
projeect. Value engineerings intended definition is
simplly to apply a systematic and planned analysis to
engin
neering and design applications to obtain some
desired
ed result.
result In a perfect situation
situation, this result would
be improved performance at a minimal total cost.
However, all too often the definition synonymous
with the term value engineering is cutting application
engineering and design, including the substitution of
products and services, with the intended end result of
reduced costs, by any and all means. This is not the
intended result of value engineering.

WHAT IS VALUE
V
ENGINEERING?
From a historical perspective, the concept of value
engineering began in 1947 when the General Electric Company instituted a value-analysis approach
to purchasing. The concept was nothing more than
applying a systematic analysis to what was being purchased and how to get the best for the least cost. This
systematic analysis approach evolved and began to be
employed in all aspects of businessfrom products
and services to manufacturing, software engineering,
and general business management.
In its original incarnation, value engineering was
envisioned to be an analysis approach that provided for
cost controls to be instituted at any point in a project or
products life cycle. The only standard or constant was
emphasizing the reduction or elimination of costs. However, the first law of such analysis was the requirement
that any and all cost reductions maintain the engineered
or design standards, quality, and reliability of the project
or product to which it was being applied. In fact, the Society of American Value Engineers (SAVE International)
calls value engineering a powerful problem-solving tool
that can reduce costs while maintaining or improving
performance and quality requirements. The key to this
definition is that the objective of value engineering
is to not diminish, devalue, or degrade the quality or
effectiveness of the engineering or design of the project or product. Therefore, reductions in cost are not

ue

to be made to degrade or cheapen a projects quality,

effectiveness, or reliability.
A similar definition used by the U.S. federal government as part of its procurement process describes
value engineering as an organized study of functions
to satisfy the user
userss needs,
needs with a quality product at
the lowest life cycle cost through applied creativity.
The study is conducted by a multidisciplinary team
that provides an independent look at the project.
Value engineering is directed at reducing cost, while
maintaining or improving quality, maintainability,
performance, and reliability. The governments definition also adds, emphasis is placed on preserving unique
and important ecological, aesthetic, and cultural values
of our national heritage in accord with the general environmental objectives of the Corps of Engineers.
A lot of terms have been used over the years to
describe this concept, including value analysis, value
control, value assurance, and value managementall
tend to be synonymous terms for value engineering.
All have the same basic objectives: reduce costs, increase productivity, and improve quality.
What is the purpose of value engineering? It provides
a means to systematically analyze a project and control
its total costs. It is designed to analyze the functions of
a project and determine the best value or the best relationship between its worth and its cost. For a facilities
construction project, best value is a finished project that
will consistently perform its required basic function and
has the lowest total cost. Therefore, construction of a facility can yield maximum value when value engineering
is incorporated into the project. This is accomplished by
providing and developing alternatives that produce the
desired results and maintain the quality and reliability
of the project utilizing the most efficient and effective
mix of resources at the least cost.
It would seem that implementing value engineering is fairly simple: just control and/or reduce costs.
First, however, the team must have some perspective
about where, how, and why value engineering will be
applied. For the plumbing engineer and designer, the
most typical application is the creation of a building.

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Figure 11-1 Qualitative Results From the

Implementation of Value Engineering
Reason for
Change

Percent Definition of Change

Total
Savings
Achieved

Advances in
technology

23

Incorporation of new materials,

components, techniques or
processes not available at the time of
the previous design effort.

Additional
design effort

15

Application of additional skills, ideas

and information available but not
utilized during previous design effort.

Change in
users needs

12

Users modification or redefinition of

mission, function or application of
item.

Feedback
from test/use

Design modifications based on user

tests or field experience suggesting
that specified parameters governing
previous design were unrealistic or
exaggerated.

Questioning
specifications

18

Users specifications were examined,

questioned, determined to be
inappropriate, out-of-date or over
specified.

Design
deficiencies

Prior design proved inadequate in

use (e.g., was characterized by
inadequate performance, excessive
failure rates or technical deficiency.

Excessive
cost

22

Prior design proved technically

adequate, but subsequent cost
analysis revealed excessive cost.

Other

Source: Directorate of Value Engineering, Office of the Assistant

Director of Defense as taken from Value Engineering Theory &
Practice in Industry, Thomas R. King, 2000, Lawrence D. Miles
Foundation, Washington, DC.

In this regard, at least three major aspects of costs will be

of concern to the overall development, engineering, and
construction team: development costs, engineering and
design costs, and construction costs. Within these three
areas, all related costs associated with the creation of a
building are lumped, such as property acquisition, inspections, licenses and permits, buildout, finishing, etc.
In the end, one person or entity is concerned
with the total picture in the creation of a building:
the owner or developer. Value engineering can be
introduced at any point in the construction or life
cycle of a project; however, it is best to start the
process of value engineering prior to filing the project to obtain building department approvals. For
maximum efficiency and to ensure maximum value,
value engineering must be integrated from the beginning and continue throughout a projects life cycle.
In this regard, it is important that the concept of a
team be immediately integrated into all aspects and

phases of the project, for it is this team that needs to

ultimately be responsible for the finished project and
its final total cost.
As with any project, three major components comprise the cost cycle: materials, labor, and administration
and operations (typically described as overhead). The
team must constantly monitor and evaluate all aspects
of the project, including any changes and modifications
that may affect the quality, life expectancy or life cycle,
maintenance cycles, and reliability of each aspect of the
project, from development through engineering, design,
and construction. Interestingly, although labor is a major component for each area of a buildings creation, it is
not often subject of any in-depth analysis in value engineering. Instead, the main effort of value engineering is
directed at the cost and value of thingsthe cost of the
elements of construction, the functionality of each element, and the materials and products being utilized.

THE INTENT OF VALUE

ENGINEERING
In 1965, the U.S. Department of Defense conducted
a study to evaluate cost-saving opportunities that
could accrue from the use of value engineering. The
study examined a number of projects and analyzed
415 project changes that were considered successful
value changes. The study found that only a limited
number of factors could achieve more than 95 percent
of cost savings. These factors were excessive cost,
additional design effort, advances in technology, and
the questioning of specifications.
The study (see Figure 11-1) revealed that no
single factor was ever dominant in the implementation of value engineering. It was rare for the
implementation of a change to be the result of a bad
design. Trying to second guess a design looking for
deficiencies provided little value because the majority of designs perform as expected. It was discovered
that many designs did not always provide maximum
value due to excessive costs, over specifying and the
lack of value for the project.

What Is Value?
Value means different things to different people. Thus,
there is no one perfect definition of value. For purposes
of value engineering, value does not simply equate to
cost reduction. Values also include economic, moral, social, and political ideals. In terms of value engineering,
it is the economic value that most conforms to what is
being measured or evaluated. Value, then, can be described as the lowest cost to provide the necessary and
required products, functions, or services at the chosen
time to its needed place with the requisite quality.
For engineering purposes, value can be defined
best by the following formula:
Value = Worth
Cost

Chapter 11 Basics of Value Engineering

209

Figure 11-2 Value Engineering Job Plan Examples, Job Plan Phases by Noted
In this formula, when value is
Practitioners
equal to or greater than 1 (V=1), it
is understood that there is equality Miles
Fowler
King
Parker
Mudge
International
of value. As an example, consider the Information
Preparation
Information
Information
General
Information
specification of a vacuum pump. The
Analysis
Information
Function
Function
Information
Function
pump is vital to the function of the
Analysis
Analysis
design. If the pump costs $1,000 and
Analysis
Creative
Creative
Function
Creative
is indeed worth $1,000, then there is Creativity
Judgment
Creativity
Evaluation
Judicial
Creation
Evaluation
equality of value (good value). If the
pump is only worth $800 and costs Development Synthesis
Development Evaluation
Development
$1,000, then there is imperfect value Development
Presentation Investigation Presentation
(poor value). If the pump is worth
Presentation
$1,200 and costs $1,000, then there is
Follow-up
Follow-up
increased value (outstanding value).
This brings up the concept of cost Source: Society of American Value Engineers, International
and worth. Cost seems pretty straightforward: Its what you pay for the
10. Are the products, systems, or materials the
product or service. What is worth? For value engineering
proper ones considering the quantity available
purposes, worth is the concept of the value of a function,
or manufactured or the quantity that is needed
and will be used?
product, system, etc., or, alternately stated, worth is the
least cost to provide the function, product, or service. Still
confused? Its no wonder. The concept of value and worth
ELEMENTS OF VALUE ENGINEERING
are amorphous; they are not easily measured or defined.
In the world and vernacular of value engineering, a
A number of basic questions were developed as part
value engineering analysis incorporates a VEJP (value
of the concept of value engineering. To help determine
engineering job plan). Because this analysis is in itself an
value and worth, it is important to note that these
engineering project, the job plan is divided into phases.
questions relate to the general nature of value engiThe number of phases can vary (see Figure 11-2). It all
neering and are relevant for all types of engineering,
depends on what expert you have learned from, what
from construction to manufacturing. They have been
books youve read, and what direct experience you have
modified below to be more specific to construction.
had in conducting value engineering projects.
1. Are the products, systems, and materials necesIt doesnt really matter how many phases are in a
sary for the functionality of the project, and do
VEJP. What is vital is that the engineer is comfortable
they contribute value to the project?
with all the phases of the plan and understands the vari2. Are the costs of the products, systems, or materials in proportion to their usefulness within
the project?
3. Do the designed or specified products, systems,
or materials need all the designated features?
4. Will other available products, systems, or materials accomplish the intended use or purpose
and provide better performance?
5. Are the exact products, systems, or materials
available for less?
6. Will other available products, systems, or materials accomplish the intended use or purpose at
a lower cost?
7. Will other available products, systems, or materials accomplish the intended use and purpose
with an equal performance?
8. Can another dependable supplier provide the products, systems, or materials for less?
9. Does the total cost of the products, systems,
or materials include all materials, reasonable
labor, and overhead?

ous techniques for each phases evaluation and analysis

and that the plan provides a systematic and consistent
approach for implementation of the project.
The following introduction to value engineering integrates the six general phases listed by SAVE International
with the five phases from Lawrence E. Mills (considered
the father of value engineering) and incorporates the
various implementation techniques within each phase.

Phase One: Information

This phase addresses three questions: What is it?
What does it do? and What does it cost? In practice, this phase describes the project and collects the
necessary information, both critical components for the
remainder of the value engineering project. Actually,
gathering information is pretty straightforward. The
hard part is making sure that the information gathered
is factual, accurate, unbiased, untainted by opinion, and
contains no assumptions.
As every plumbing engineer knows, the hardest
part of the project is collecting accurate and factual
information. A project can be engineered and designed
only according to the quality of the information used.

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Figure 11-3 Information Gathering

ABC Project Plumbing Design

Project description documents
Original client directions/specifications
Architectural drawings
Engineering drawings
Detail drawings
Materials list
Details of materials examined/considered
Material line information
Product list
Details of products examined/considered
Product line information
Vendor information

Likewise, value engineering is only as good and accurate

as the quality and accuracy of the data and information
collected and used throughout the process.
For the plumbing design portion of a facility, the
value engineer must follow the engineers thinking and
collect and assemble the same information used by the
engineer (see Figure 11-3). This means detailing every
product and design element.
VE worksheets come in many variations, but
typically they include the basic information form that
describes the project and related data such as in Figure
11-4A. Additional information forms such as Figure 114B include each detail of the project or design.
The next phase of the information collection process
is to understand the background and purpose of the
complete project and each of its elements. This requires
developing the right questions or a checklist of items
that need to be collected, understood, and used for the
remainder of the engineering process. Figure 11-5 is a
sample of such a checklist.
As the value engineer collects this information, he
needs to keep a detailed record of information sources
and types of actions needed or taken. This record
provides the forensic trail that will back up the final
conclusions. It tracks each stage of the information
collection process and provides a reference and source
record for the analysis and recommendations. A sample
of a source record form is shown in Figure 11-6.
With all the information and data that has been
collected, the engineer still must make a qualitative
determination of its value. The following questions can
help make that determination:
1. Does the information support the definition,
specifications, or requirements of the project?
2. Does the information seem to be factual and
valid for the project or detail being analyzed?
3. Is all the information current and up to date?
4. Does the information form an integrated
whole? Does each item support the other items?
5. Are there any conflicts within the information
collected?

6. Does the information conform to the expectations of the investigator?

7. Is any information suspect? Does some of the
information seem to be inaccurate or nonrepresentative of the project or detail?
8. Does additional information need to be collected?
9. Do the relationships or associations between the
information sets require further exploration?
10. Is there reason to suspect that any of the information is biased?
11. If the information causes concern or creates a
restraint to the analysis, can it be verified by
more than one source?
Determine and Collect Costs Collection of the
costs related to the project, detail, or material being
analyzed is the next step in the information collection
phase. Cost determination quickly can become complex
and overwhelming. Suffice to say, the smaller the design
element of a projectsuch as a stand-alone product, like
a pump or water heaterthe easier it will be to come to
grips with a cost determination. The total value engineering of a facility involves determining costs for all aspects
of the development, engineering, design, construction,
and commissioning of the project.
For the value engineer, these costs are a measurement tool for the other information that has been
collected and a determinant of the economic impact
of the item under consideration (and thus a measure
for the level of effort that should be applied.)
There are two primary elements of establishing the
cost of a design, product, or material: the material cost
and the labor cost. At this juncture, a cost is not the same
as an acquisition price. Cost determination becomes
complicated by economic forces applied throughout the
project life cycle. There are project costs, development
costs, product, assembly, and material costs, labor costs,
overhead costs, and, of course, a markup for profit.
All the costs associated with a project need to be
determined. Furthermore, they need to be segregated
into actual and estimated, and a record must be kept
of the original source for the information.
What Is Cost? Value engineering is big on the term
cost. However, as noted earlier, cost can mean different
things to different people and for different reasons. The
first important law is that, in most instances, cost and
price are not synonymous. Consider cost to be the valuation of labor, time, and other resources used to achieve
the end result. A price is a fixed sum for a given item or
service that results in the transfer of ownership of
the product or service. The difference between cost
and price is often nothing more than perception (i.e.,
whether you are the buyer or the seller). For example,
the cost of the product for the seller is included in the
price to the buyer. On the other hand, the price to the

Chapter 11 Basics of Value Engineering

Figure 11-4 Sample Value Engineering Worksheet

211

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Figure 11-4 Sample Value Engineering Worksheet (Continued)

Chapter 11 Basics of Value Engineering

Figure 11-4 Sample Value Engineering Worksheet (Continued)

213

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Figure 11-5 Sample Value Engineering Checklist

Chapter 11 Basics of Value Engineering

Figure 11-5 Sample Value Engineering Checklist (Continued)

215

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Figure 11-6 Sample Source Record Form

Chapter 11 Basics of Value Engineering

217

&RVW6WUXFWXUHRI3
URGXFW6HUYLFH*RRG
&RVW6WUXFWXUHRI3URGXFW6HUYLFH*RRG

^
Profit

Selling Costs
General and Administrative Costs

Final Purchase/
Selling Price

Field Service and Miscellaneous Costs

Indirect Labor
Indirect Material Cost

Direct Labor
Direct Material Cost

Overhead Costs

Acquisition
Costs

Major/Prime Costs

Cost of Goods
Purchased/
Installed

Figure 11-7 Cost Structure of Product, Service, or Goods

Total
Cost

Figure 11-9 Cost Breakdown Checklist

Maintenance Costs

Operating Costs
Installation Costs
Cost of Shipping/Receiving/Storage
Base Acquisition Costs

Price/First Cost

Figure 11-8 Cost Makeup for Users

buyer may be the cost, and additional value will be
added to determine a new and different price.
In value engineering, the primary element is cost.
Of course, to complicate matters, there are product
and producer costs and total cost to a user. For most
facility projects, both of these cost structures are going to be part of the analysis.
Three costs are involved with any project, design,
or material: major or prime costs, overhead costs, and
the cost of goods. The best way to describe this is with
a simple diagram (see Figure 11-7).
In the facility business there may be myriad levels
of purchasersfrom the owner to the developer to the
architect to the engineer to the contractor. Therefore,
the cost structure actually becomes a pyramid of costs
and prices with different users along each link in the
project chain. Figure 11-8 gives a generalization of
the cost makeup for each user at the different stages
of the facility project process.
A wide variety of costs go into each element and aspect of a facility. These costs are divided into ongoing costs
and one-time costs. Ongoing costs are those that occur
throughout the life of the project. The owner has one set
of ongoing costs, while each product, service, or material
provider has its own ongoing cost structure. Likewise,
there are one-time costs for all of these providers. Figure
11-9 offers an example of the differing cost elements that

Ongoing Costs

One-time Costs

Labor
Administration,
management, and
operations
Ongoing staffing
Technical support
Field services
Quality control
Administrative support
Documentation (in-house)
Inspections
Purchase orders and
paperwork
Reports: producing,
receiving, and sending
Documentations
Certifications
Training
Product/Services/
Materials
Basic materials
Subcontracts
Intercompany effort
Administration and
operations (i.e.,
reproduction)
Indirect supplies,
services, and materials
Other and General
Travel
Equipment rental
Contracted services
Shipping and freight

Labor
Engineering
Design
Drafting and review
Production planning and engineering
Procurement
Development
Testing and review
Field engineering
Training
Administrative support services
Documentation
Licensing, permits, and inspections
Purchase orders and paperwork
Reports: producing, receiving, and
sending
Documentation
Handbooks and user manuals
Certifications and inspections
Product/Services/Materials
Products, supplies, and materials
Special tools
Special equipment (i.e., test
equipment)
Administration and operations (i.e.,
reproduction)
Change orders, modifications, and
corrections
Other and General
Travel
Equipment rental
Contracted services
Shipping and freight
Disposition of equipment and materials

not only comprise the cost of a total project, but also are
considered at each stage of the project process.
With all the costs collected and detailed, the analysis
can proceed. The next step is to relate all of the costs
to each other, define relationships, and establish which
of the costs are related to specifications for the project
or design and which are imposed requirements. Costs
associated with specifications are those imposed by the

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Figure 11-10 Function Definition Verbs and Nouns

Active Verbs

Measurable Nouns

Desirable
Apply, amplify, attract, change,
collect, conduct, control, create,
emit, enclose, establish, filter,
hold, induce, impede, insulate,
interrupt, modulate, prevent,
protect, rectify, reduce, repel,
shield, support, transmit

Desirable
Contamination, current,
density, energy, flow, fluid,
force, friction, heat, insulation,
light, liquid, load, oxidation,
protection, radiation, torque,
voltage, weight

Less Desirable
Provide

Less Desirable
Article, circuit, component,
damage, device, part, repair,
table, wire

Passive Verbs

Non-measurable Nouns

Desirable
Create, decrease, establish,
improve, increase

Desirable
Appearance, beauty,
convenience, costs, exchange,
features, style
Less Desirable
Effect, form, loops, symmetry

owner, developer, or user of the facility. These costs can

be connected to the land, construction limitations, or
user-defined needs.
Required costs are those that different vendors, project managers, and contractors impose on the project due
to their experience and knowledge. They are the expert
costs that form the basis for the creation of the facility.
The value engineers job is to discover and understand all these different potential costs. Then, as
part of the analysis, the engineer must differentiate
between costs that are real based on specifications,
available information, and conditionsand those that
are imaginary (skewed by bias, attitudes, habits, lack of
information, old technology, lack of ideas and creativity,
and temporary conditions).
Value engineering has come about because users
inevitably overestimate their needs and have unrealistic
expectations. This is compounded by those involved in a
facility project who often over-engineer and over-design
at the beginning of a project due to the unrealistic expectations and overestimates of the owner or user. The
value engineer must bring expectations, estimates, and
reality into focus.
The Pareto Principle Vilfredo Pareto developed
an economic theory regarding the distribution of wealth.
This principle has found its way into many disciplines of
engineering, and especially value engineering, where the
principle is better known as the 80/20 rule. In its original
form, Pareto stated that 80 percent of all wealth is held
by just 20 percent of all people. This 80/20 principle
has been applied to everything from manufacturing to
construction to engineering principles. In this chapters
context, it states that 80 percent of a facilitys costs are
associated with just 20 percent of its components.
Is it true? The principle is stated as the theory of the
Law of Inverse Proportions and is actually a concept. It

is very useful when examining the resources available

for a project and focusing on those that will provide the
largest economic benefit and result in the highest level
of return for the expended effort.

Phase Two: Analysis and

Function Analysis
The questions What does it do? and What is it
supposed to do? continue to be addressed in this
phase and concisely sum up this concept. In this
phase, the engineer needs to identify the functions of
the project. The analysis and function phase often is
considered the heart of value engineering because it
is in this phase that the engineer has a methodology
to reestablish the original project or element needs
into simply workable expressions.
For example, in value engineering the accepted
definitions for function are that which makes a product work or sell and that which satisfies the needs or
requirements of the user.
If it were only that simple. The difficulty in this
phase is the translation and giving of substance to the
words used for project or element specifications and
requirements. An engineering discipline has taken
these words, brought them to life, and provided a
visual interpretation. The value engineer now must
examine those same words and provide a structured
evaluation and analysis to them, which results in a
functional analysis and/or definitions.
Rules of Function Analysis Three rules are
generally accepted for conducting functional analysis
or creating functional definitions:
1. The expression of all functions must be accomplished using two words; one must be an active
verb, and the other a descriptive or measurable
noun. Figure 11-10 offers a sample listing of verbs
and nouns typically used in value engineering
functional definitions. Rule 1 is based on the adage
that less is more. If you cannot provide a definition
of a function in two words, either you do not have
enough information about the project or element
or the item has not yet been defined in its simplest
form. By being limited to two words, you will be
able to describe the simplest element of the project
in a manner that reduces the potential for miscommunication or misunderstanding.
2. All functional definitions can be divided into one
of two levels of importance: work or appearance
(or selling). Work functions are expressed in action verbs and descriptive or measurable nouns
that establish a quantitative statement for the
item. Appearance or sell functions are expressed
in passive verbs and in general or non-measurable nouns that describe a qualitative statement
for the item. Rule 2 provides meaning to the descriptive terms of rule 1. The definitions here are
designed to amplify the meanings of the function

Chapter 11 Basics of Value Engineering

under consideration. If the function cannot be
described with action or active verbs, the functionality of the element is questionable. If there
is no action, then nothing is being accomplished;
thus, the function has no end result or usefulness. By using measurable nouns, the evaluating
engineer can establish a cost-to-function relationship. These nouns provide a quantitative
measure to the function, and, therefore, provide
a measurable level of usefulness for the function.
Why, then, have appearance or sell factors if
they do not provide any quantifiable or measurable attribute? First, having appearance or
sell factors involved in the function that can be
separated out helps in the assignment of some
proportionate amount of the elements cost. Second, by identifying these function descriptors,
the engineer is providing a further description of
the specifications and requirements of the function. This helps the owner in the final decision
process regarding the function. While the value
engineer may find an equal element at a lower
cost, the nonquantifiable part of the requirements may be an overriding consideration. (For
instance, color: While a basic white porcelain
bowl may be less expensive, the use of a special
color porcelain bowl may be an important and
overriding appearance or selling requirement.)
3. All functional definitions also can be divided into
one of two descriptive uses: basic or secondary. A
basic function is one that describes the primary
purpose for a product, system, or material. Secondary functions are all other functions of the
product, system, or material that do not directly
accomplish the primary purpose, but support the
primary purpose or are the result of a specific
engineering or design approach. In functional
analysis, the secondary functions are the ones
that can be combined, modified, or eliminated.
This rule further enhances the ability to assign a
relative importance to the function. For a majority of projects, products, or materials, only one
basic function can be derived. In those rare cases
when more than one basic function is stated,
usually it is just a restatement of the original
basic function. Secondary functions tend to fall
into two categories: specific and dependent. Specific functionality requires a specific action to be
accomplished. Dependent functionality are those
functions that require some prior action before
it can be performed. Secondary functions can
exist because they are part of the specifications
or requirements or because they are inherent to
the engineering or design approach used.
Function Definitions With all the rules in
place and understood, the value engineer begins the
function analysis. Figure 11-11 shows a sample of

219
the type of form that helps in this phase. The form
is straightforward and, given all the definitions and
explanations supplied, should be self-evident. The
most important part of this phase is to define the
function or the element under analysis and create its
functional definitions.
Example 3 in Figure 11-11 is considered one of the
quintessential examples in value engineering analysis
for explaining the use of two-word definitions. The
pencil is an everyday object that requires a successive and seemingly unnecessary number of items to
define it and all of its elements. However, this remains
the crux of the value engineering definition phase.
Example 4 in Figure 11-11 provides an example that
could be used to evaluate a product used in plumbing
engineering. However, as should be obvious, in both
examples the emphasis of the value engineering is in
the manufacture of the item and is not related to its
role in a construction project.
Only a portion of the form in Figure 11-11 is filled
out at this early stage of the analysis process. At a
minimum, the function is defined, and, if necessary,
its elements. At this stage, only basic and secondary
indicators are marked. The remaining portion of the
form will become part of the evaluation phase.
FAST A second approach is an adjunct to, and
works in tandem with, function definitional analysis.
This approach is known as FAST, which stands for
Functional Analysis System Technique. The FAST
process is essentially a diagramming process. With
diagramming, a visual representation is created that
highlights the functions of a product, system, or material and the interrelations between them.
A basic FAST model diagram is shown in Figure 1112. The FAST model is a building process that will:
Ui>`>>`}vvVV>
analysis requires the use of verbnoun definitions.
The FAST diagram helps sort out the functions and
show interrelationships.
Uiw`>}vV
U
``iv}iL>VvV>``istanding the secondary functions.
U*`i>>>>`Lii`i>`}
of the product, system, or material under study.
U,i>i>Vi`iw}i`uct, system, or material under study.
U*`i>ivivV}i
analysis and determinate logic.
Ui>i>ii>>>V>v
analyzed the elements.
The parts of FAST shown in Figure 11-12 are:
1. Scope lines: The two vertical dotted lines provide a boundary to the function under study.
That part of the function is of concern.

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Figure 11-11 Sample Functional Analysis Form

Chapter 11 Basics of Value Engineering

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Figure 11-11 Sample Functional Analysis Form (Continued)

2. Highest order function: The object or output side of the basic function under study is
referred to as the highest order function. Additional functions to the left of another on the
critical path are higher order functions.
3. Lower order function: Functions to the right of
another function on the critical path are a lower
order function. This doesnt imply a relative importance or ranking to these functions. Rather, the
lower functions are those necessary to successfully
perform the basic or higher order function.
4. Basic function: This is the function under
study, which cannot change.
5. Objectives and specifications: These are the
parameters and requirements that must
be achieved for the function to perform as
needed in its operational place in the project.

Objectives and specifications are not themselves functions; they influence the selection
of lower order functions.
6. Critical path functions: Any function that is
on the how or why logic path is a critical path
function. If the function is on the why path, it
is considered a major critical path. Otherwise,
like the independent supporting functions or
the dependent functions, it becomes a minor
critical path item. Supporting functions tend
to be of secondary value and exist to meet the
performance requirements specified in the
objectives and specifications.
7. Dependent or sequential functions: To exist,
functions to the right of the basic function are
dependent on the functions to their left and

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Figure 11-11 Sample Functional Analysis Form (Continued)

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Figure 11-12 Basic FAST Model Diagram

require one to be completed before they enter
as a performance requirement.
8. Independent functions: These functions are
above or below the critical path line and are
necessary to satisfy the when question in relationship to the main or basic function.
9. Independent (supporting) functions: These functions do not depend on another function as does
a dependent or sequential function. However,
they still are considered secondary functions to
the basic function and the major critical path.
10. Function: The end event or purpose of the
product, system, or material under analysis. It
first must be expressed in a verbnoun form.
11. Activity: The method selected to perform a
function.
For engineers familiar with systems-type diagramming, it would appear that the FAST diagram
is backwards. As an example, consider the position
of the why part of the function. For systems analysis,
it is on the left, but for FAST, the how function is in
the left position and dominates the analysis. In this
position, all the functions and activities to the right

are dependent on the basic function or moving toward

the why of the function.
Figure 11-13 diagrams the how, why, and when
relationship, relates it to the FAST diagram, and
shows a simple how functional relationship.
As it turns out, in the team environment the
FAST model, while a means to an end, is not the vital
part of this process. The vital part is the dialogue and
discussions between the team members as the model
is formulated and built. The process of identification
functions, questions, justifications, relationshipsis
the key to the structure of the function analysis and
provides the team with a methodology to produce a
desired result. In fact, once the model is created its
only purpose remains as an explanatory, rationale,
and communication to the decision makers and other
engineering disciplines.
It would seem to be intuitive that the next step
should be evaluation and cost determination, but in value
engineering the next phase is creativity.

Phase Three: Creativity

The creative process evaluates the project with an
emphasis on What else will do the job? The creative
part of the value engineering process is best summed
by the trite expression, Start with a clean sheet of

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Figure 11-13 Simple How Functional Relationship

Chapter 11 Basics of Value Engineering

paper. Again, this phase requires a team approach to
engineering disciplines. In the creativity phase, the team
needs to unstructure and separate itself from all of the
previous phases. The team needs to leave the drawings,
information, forms, and models behind and find a fresh
environment in which to reassemble. In this creativity
environment, the only information permitted are the
two-word, verb-noun functions that describe a single
product, system, or material being analyzed.
Creative Thinking Personified Positive
creative thinking can be described by the invention
of the cotton gin. Eli Whitney was trying to find a
way to remove seed from raw cotton. One afternoon,
on a walk, he noticed a cat trying to catch a chicken
through a wire fence. The cats claw would stick
through the fence whenever a chicken came close,
but all that came through the fence on the cats claw
was feathers. This observation provided the creative
incentive. Whitney conceived the concept of pulling
the cotton (feathers) though a comb (fence). It was a
subtle difference to all the thinking that went before.
Instead of trying to remove seeds from the cotton by
pulling on the seeds, Whitneys solution was to pull
the cotton away from the seeds.
Inflexibility An illustration of just the opposite inflexible thinking is of an innovation made to an invention
that to this day remains a worldwide standard despite its
outmoded purpose: the computer keyboard configured
in the QWERTY style. This style was an innovation of
Christopher Sholes, who invented the typewriter. Due to
the mechanics of the typewriter and the fact that gravity
was the engine to move the keys back into position, Sholes
found that fast typists quickly created key jambs as they
stroked faster than the keys could clear each other and
return to rest. Through persistence and experimentation, he developed a keyboard layout that separated the
most often used letter keys and thereby slowed down the
typing process. Today, that same slow-down mentality
continues with the modern computer keyboard, despite
the Dvorak and American Standard system of keyboard
layout that produces a faster result. Ingrained habit is
hard to overcome.
Roadblocks to Creativity Creativity takes work,
hard work. Of course, as an alternative to providing
the creativity phase in value engineering, the engineer
can fall back on one of the top 10 reasons why value
engineering should not be used at this time:
1. It isnt in the budget.

225
7. The developers will never buy into it.
8. Youre years ahead of your time.
9. Lets shelve it for the time being.
10. Its against company policy.
(Adapted from Value Management, General Services Administration, Washington, D.C.)
Divergent Thinking Creativity in value
engineering is best described as speculation and
brainstorming. An all-too-often overused and trite
phrase thinking outside the box is an attempt to
describe divergent thinking.
What is outside-the-box thinking? One example
is the Nine Dots. First, draw nine dots in the form of
a square on a piece of paper as shown.

Next, without lifting your pencil from the paper,

draw four straight, connected lines that go through
all nine dots. You may not backtrack on a line, and
each line must go through each dot only once. (See
the end of this chapter for the solution.)
Another example is the six sticks. Use six sticks
(toothpicks, straightened paperclips, matchsticks, etc.)
of equal length as shown below.

2. We dont have the time.

3. Lets form a committee.
4. Has anyone else tried it on this type of project?
5. Why change it? Its always worked perfectly
before.
6. We tried that before.

Arrange the sticks to make four equilateral triangles. The ends of each stick must touch each other.
(As engineers, we all know that an equilateral triangle

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Figure 11-14 Creativity Worksheet

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Figure 11-15a Creativity Checklist

Figure 11-15b Creativity Checklist

How much of this is the result of custom, tradition, or opinions?

Why does it have this shape?
How would I design it if I had to build it in my home workshop?
What if this were turned inside out? Reversed? Upside down?
What if this were larger? Higher? Wider? Thicker? Lower? Longer?
What else can it be made to do? Suppose this were left out?
How can it be done piecemeal?
How can it appeal to the senses?
How about extra value?
Can this be multiplied?
What if this were blown up?
What if this were carried to extremes?
How can this be made more compact?
Would this be better symmetrical or asymmetrical?
In what form could this be-liquid, powder, paste, or solid? Rod, tube,
triangle, cube, or sphere?
Can motion be added to it?
Will it be better standing still?
What other layout might be better?
Can cause and effect be reversed?
Is one possibly the other?
Should it be put on the other end or in the middle?
Should it slide instead of rotate?
Demonstrate or describe it by what it isnt.
Has a search been made of the patent literature? Trade journals?
Could a vendor supply this for less?
How could this be made easier to use?
Can it be made safer?
How could this be changed for quicker assembly?
What other materials would do this job?
What is similar to this but costs less? Why?
What if it were made lighter or faster?
What motion or power is wasted?
Could the package be used for something afterwards?
If all specifications could be forgotten, how else could the basic
function be accomplished?
Could these be made to meet specifications?
How do competitors solve problems similar to this?

1. Can the dimensions be changed?

Border, converge, deeper, delineate, encircle, intervene, invert
(reverse), larger, longer, make slanted or parallel, more shallow,
place horizontally, shorter, smaller, stand vertically, stratify, thicker,
thinner, use crosswise
2. Can the quantity be changed?
Add something, combine with something, complete, fractionate,
join something, less, more
3. Can the order be changed?
Arrangement, assembly or disassembly, beginning, focus,
precedence
4. Can the time element be changed?
Alternated, anticipated, chronologized, faster, longer, perpetuated,
recurrence, renewed, shorter, slower, synchronized
5. Can the cause or effect be changed?
Altered, counteracted, destroyed, energized, influenced, louder,
softer, strengthened, stimulated
6. Can there be a change in character?
Add color, altered, change color, cheaper, interchanged, more
expensive, resilient, reversed, stabilized, stronger, substituted,
weaker, uniformity
7. Can the form be changed?
Accidents avoided, conformation, curved, damage avoided, delays
avoided, harder, irregular, notched, regular, rougher, smoother,
something added, softer, straight, symmetrical, theft avoided
8. Can the motion be changed?
Admitted, animated, agitated, attracted, barred, deviated,
directed, lifted, lowered, oscillated, repelled, rotated, slowed,
speeded, stilled
9. Can the state or condition be changed?
Abraded, coagulated, colder, disposable, drier, effervesced,
elasticized, harden, heavier, hotter, incorporated, insulated,
lighter automatic electric blanket, liquefied, lubricated, open or
closed, parted, preformed, pulverized, resistant, soften, solidified,
vaporized, wetter
10. Can the use be adapted to a new market?
Children, elderly, foreigners, men, physically challenged

has three sides of the same length. See the end of this
chapter for the solution.)
Finding Solutions In this phase, the team is
not trying to find solutions, only ideas. To help this
process, the leader has some help; a simple paper and
pencil. Of course, a form can be created from this idea
(see Figure 11-14). The brainstorming or speculative
process consists of two techniques: unassisted creativity and assisted creativity.
With unassisted creativity, one team member
takes the creativity worksheet and is assigned one
two-word definition for one of the functions. The individual lists every possible idea she has regarding that
function, such as create seal. Once the individual
has put down her ideas, the worksheet is moved to
another team member who then adds his own ideas.
The sheet is passed to each team member in turn.
The second step, assisted creativity, is nothing
more than a group exercise in which each participant hitchhikes on each others ideas to create yet
another new idea. To get started, the team splits

into three parts: one group has the worksheet for

one of the two-word function definitions, one group
has a set of idea generators, or checklists to help the
thinking, and the third group has reference sources
such as a dictionary and thesaurus. As one sub-team
reads the list, the second finds new words and ideas
using the alphabet concept (take a word and think of
another word with a different starting letter of the
alphabet) and the dictionary, while the third works
the checklists, continually questioning all the thought
processes. Two sample checklists are shown in Figure
11-15A and Figure 11-15B.
During this process, a strong individuals habit
of being judgmental must be abated. To do this,
the group should decide beforehand how to indicate that someone is being judgmental and thus
can modify the behavior (e.g., slapping the table
with a palm).
The three sub-teams switch roles from time to
time until they reach the point of stagnation and
agree that they are finished. The team by now has

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Figure 11-16 Sample Creativity Worksheet