Assignment four

Explain or expand your thoughts in a long paragraph to five hundreds words the ANSWER from question one to ten

1. The distinct characteristics of Value Analysis & ValueEngineering.

Answer:

• It follows the scientific method adopted by value methodology; it improves value by studying the function rather than the structure of a product; and, it deliberately stimulatescreativity.
• VA/VE is a proven approach by which organizations can move from the current state through a transition state to the desired future state to achieve operational excellence. The change could be either incremental ortransformational.
• VA/VE is about doing work better, faster, and leanerthan the competition because customer satisfaction and business success depend on the quality, speed, and cost of the goods produced and the servicesprovided.

2. What is ValueEngineering?

Answer:

• It is an organized, systematic, and creative discipline directed at analyzing the function of a product or process with the purpose of achieving the required function at the lowest overall cost consistent with requirements for performance, including reliability, quality, maintainability, safety, and delivery."SAVE International, the Value Society

3. Explain Value Anaylysis as a way of thing.

Answer:

• A creative and organized problem-solvingmethod
• A scientific method to achieve operationalexcellence
• A system of techniques for measuring and controllingvalue
• A method for identifying and eliminating unnecessarycost
• A proven weapon to attack mediocrity andcheapening
• A creative means of spending money morewisely
• An effective tool to improve the value of a product, process, orproject
• A search for better value at lowercost
• A change enabler, driving quantifiableoutcomes

4. In the Value Equation, there are two conditions that are necessary for a product to have economic value, what is Utility andScarcity?

Answer:

• UTILITY refers to a product's usefulness, its capacity to satisfy a need or serve a purpose. Actually satisfying that need is the function of the product. As management guru Peter Drucker tells us, "Nobody pays for a'product.'
• When COSTS go down and WORTH goes up, that's how you get VALUE. Value can thereforebeenhancedbyeitherimprovingthefunctionorreducingthecost;while

abiding by the primary principle of VA/VE that the basic function must be preserved and not reduced, assuming that it is not already overengineered.

5. Explain ProductValue.

Answer:

Is the relationship between product worth and product cost. Itis the relationship between what performing the function is worth to a buyer and what it costs the buyer. Value is the lowest overall cost that must be paid to have an essential function performed reliably. Value is the ratio between a function for customer satisfaction and the cost of that function. Value is anything the customer is willing to pay for. WASTE is anything the customer is not willing to payfor.

6. Explain Principle ofExcellence.

Answer:

• If you want your employees to succeed by excelling in what they do and help them transform your organization into a center of excellence, you need to nurture a mind- set that embraces the following principles ofexcellence:
• Focus on improving customer satisfaction by reducing variation, cycle time, defects, and eliminating waste. Enhance value to thecustomer.

Listen to the voice of the customer and use VoC data/information/knowledge to drive operational excellence

7. What is SixSigma?

Answer:

• Six Sigma is a term coined by Motorola to express process capability in parts per million. The late Bill Smith of Motorola is credited with developing the Six Sigma measurement system under the leadership of CEO Bob Galvin. GE adopted Six Sigma under the leadership of CEO JackWelch.
• Six Sigma is a statistical measure of how well you are meeting customer requirements; it is a measure of the performance of a process or a product in terms of defects such as medical mistakes, lost luggage on flights, or inefficient loan processingtime.

8. What is Quality FunctionDeployment?

Answer:

• Developed by Dr. Yoji Akao in Japan in 1966, Quality Function Deployment (QFD) embeds the voice of the customer (VoC) into the design process, ensuring consistent deployment of customer requirements. The Gemba(a Japanese term meaning "real place") is a visit to a company during which these customer needs are evidenced and compiled in order to create value for thecustomer.

9. Explain ChangeEquation.

Answer:

• A simple, yet most powerful change-management or organization-development model that you will find useful is the Change Equation (also referred to as the Formula for Change) developed by Richard Beckhard and David Gleicher, and modified here to include additional factors. The original formula was created by David Gleicher and published by Beckhard and Harris as C= (ABD)>X, where C stands for change, A is status quo dissatisfaction, B is a desired clear vision, D is practical steps to the desired state, and X is the cost of the change. The same formula is also expressed as D V F > R, which stands for Dissatisfaction with the status quo, Vision of what is possible, and First steps in the direction of the vision. Resistance to change will occur if these factors are missing. It is said that "the only one who truly likes change is a wet baby." That's because the baby has a constructive discontent with the current state ofaffairs.

10. Why is Whole-System Thinking important for the re-engineeredVA/VE?

Answer:

(a) Because a systems thinking is the process of understanding how things influence one another within a whole. It enables you to see the big picture and appreciate interdependencies. (b) Because the whole-system approach is an effective method for solving problems from a holistic perspective, rather than as bundles of small isolated problems. (c) Because most of the problems we face in organizations, such as defects, mistakes, delays, and waste, represent a set of interrelated components in broader and more complex systems. (d) Because the focus on a silo approach of utilizing Six Sigma, Lean Thinking, Kaizen, and so on sub-optimizes the benefits of these value-improvement methodologies and undermines their impact on the rest of the system. (e) Because one lesson that nature teaches us is that everything in the world is connected to otherthings.