PROBLEM SOLVING THROUGH

VALUE ENGINEERING AND FUNCTION ANALYSIS

VALUE METHODOLGY IS A SYSTEMATIC PROCESS USED BY A MULTIDISCIPLINARY TEAM TO IMPROVE THE VALUE OF A PROJECT,

PRODUCT, OR PROCESS THROUGH THE ANALYSIS OF ITS FUNCTIONS. *

PRESENTED BY: KEITH BLOOM FOR DISCUSSION JANUARY 8, 2021

CMAA CERTIFIED CONSTRUCTION MANAGER

LEED ACCREDITED PROFESSIONAL VALUE METHODOLOGIST ASSOCIATE

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INFORMATION PHASE What is the Information Phase? The Information Phase is the first phase of the Value Analysis Workshop. The purpose of the Information Phase is to gain an understanding of the problem and any solutions that have been proposed. Project related information and data is reviewed to help the team establish a thorough understanding of the objectives and the context. The complexity of the project, the amount of information and time available will influence the level of effort, and time devoted to the Information Phase. Prior to the workshop, the information and data is gathered and compiled into a briefing document that may include:

• Initial and life-cycle cost estimates

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• Drawings and/or photographs • Business Processes • Staffing • Stakeholder input • Design reports • Existing and proposed solutions • Constraints and commitments • Risk Registers • Any other information that may help the team to understand the project, process, or product.

Why is the Information Phase important? The success of a Value Analysis Study is dependent upon on having relevant, accurate information that is significant to the project, product or service under examination. The Information Phase provides the Value Analysis team an understanding of:

• User and stakeholder needs and values • Project scope and schedule • Budget costs and restraints • Project risks

To facilitate this understanding, the information and data is organized to make it easy for the VA team to review and understand.

Who is involved in the Information Phase? Prior to the workshop, project and VA team members may work together or individually to gather relevant data from a variety of sources.

During the Information Phase of the workshop, VA team members are present to review information, discuss the project and ask questions of the owner, design team or business area. A project team member typically presents the currently proposed design or solution to the team. It can also be useful to have key stakeholders provide a presentation on their issues, concerns and objectives.

By the end of this phase, all VA team members have a thorough understanding of the project or process, requirements, constraints and any solutions proposed to address it.

FUNCTION ANALYSIS PHASE What is Function Analysis? Function Analysis is a technique used to identify and understand the needs of the project, product or service, (what does it do, what must it do). Function Analysis is an essential component of the Value Engineering/Value Analysis process.

In Function Analysis, functions are described in two- word Verb - Noun definitions that describe the needs of the project, product or service being examined. The two words used to describe a function include an active verb and a measurable noun. The measurable noun identifies

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something that can be described and quantified. Although the function of a project, product or service could be provided in a descriptive paragraph, a verb-noun definition ensures concise descriptions that focus on one function at a time.

For example, in the case of highway ditch, one of the functions of the ditch is to, "channel water". The word 'channel' is an active verb. The word 'water' is a measurable noun as the amount and type of "water" can be described and measured. If the highway ditch is also needed to "support habitat" the area of focus might change.

Why use Function Analysis?

Function Analysis supports creative problem solving by moving the focus away from the expected solution and placing the focus on the required performance or need.

Verb noun definitions enable the individual or team to clearly understand and agree on the actual wants and needs required of the project, product or service without reference to a specific solution. The use of two word, an active verb and a descriptive noun, descriptions of functions allows the team to communicate in a common language.

What is the Noun-Verb definition of a pencil? A pencil may be used to make a list, sketch a diagram, or mark a board for cutting but what must the pencil do in each of these applications? What is the basic function of the pencil?

The verb-noun definition for the function of a pencil could be to “make mark”. But without “mark surface” it cannot make a mark. If the pencil does not “mark surface” it cannot achieve its basic purpose or function. The verb “make”, and the noun “mark can describe a basic function, but not

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as well as the most basic the verb “mark” and the noun “surface” is measurable and together can describe the most elemental function of a pencil.

How are Functions identified? There are several techniques used to identify functions:

• Intuitive Research (Brainstorming) • Environmental Analysis • Sequential Analysis (Process mapping) • Movements and Effort Analysis

Where can Function Analysis be used? • Defining Project requirements. • Identifying needs and purpose. • Problem Solving. • Defining and specifying requirements for services • Project Planning with stakeholders (to reach common understanding of Project goals). • Defining requirements for Information Technology Projects. • Developing Performance Based Specifications • Understanding how an existing activity, process, or solution addresses the needs of a project,

service or product

What about “Make Mark?”

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FUNCTIONAL PERFORMANCE SPECIFICATION TECHNIQUE

What is the Functional Performance Specification Technique? Functional Performance Specification (FPS) is a technique to define the requirements of a project, product or service, based on the required Functions and the specific needs related to those Functions.

The Functional Performance Specification (FPS) technique enables the owner to document their performance requirements in terms of functions and needs without reference to a specific solution. For each function, needs are expressed in terms of assessment criteria, levels of performance and a flexibility for each level

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Why is the Functional Performance Specification Technique useful? Using the FPS technique, Needs and expected performance are expressed without reference to a specific solution. The client defines the needs in terms of what the solution must do, rather than what it must be. The Functional Performance Specification document provides a common understanding of project needs between the client and the supplier and it allows for a broader range of innovative solutions that meet the client needs.

Documenting needs through the FPS technique allows the owner to obtain innovative solutions that best meet the actual requirements. The development of an FPS encourages constructive dialogue with the client and enables the provider to express greater creativity in the delivery of solutions.

Using this technique to document needs changes the owner/supplier relationship from an obligation to respond to a predetermined technical specification to an obligation to achieve a result.

Where can the FPS Technique be used? • Defining project goals and requirements. • Identifying business needs to develop or improve business processes • Restructuring organizations. • Defining requirements for Design Build projects. • Establishing requirements for Information Technology Projects. • Developing Job Descriptions.

Steps in applying the Functional Performance Specification Technique:

Develop a FAST diagram for the project process or service under study. Characterize each function by identifying and defining the applicable needs and constraints as follows:

o Needs: Consider each function and identify the specific needs and requirements that must be met for this function to be satisfied.

o Criteria: define all criteria that will be used to evaluate and/or measure if the function is satisfied. (There can be many for each function)

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o Level: define for each function/criteria what levels or expected performance or benchmark is acceptable to satisfy the need. This can come from an existing performance level, or from an objective to be reached.

o Flexibility: Establish the negotiability of the Level.

Who is involved in a Functional Performance Specification Technique workshop?

• A facilitator with expertise in Functional Performance Specification technique leads the workshop. • Clients including the business area directly affected by the business process, product, or

organization • Stakeholders who interact with the business process, • Individuals from outside the organization who might share similar business needs.

Is there a difference between the FAST Technique and the FPS Technique? The FAST Technique aids the team in reaching consensus on their understanding of the project. The abstraction gained by looking at the project in terms of functions is used in the next phase, the creative phase, of the value analysis study.

The FPS Technique is used to define the project objectives by characterizing the performance requirements for certain functions. There is usually a systematic effort put into identifying researching the needs or functions using the FPS technique. The FPS Technique may be used only to define and document the product, service or project needs. Owners often use the document created during the FPS technique as input into a request for proposal or specification.

FUNCTION ANALYSIS SYSTEM TECHNIQUE (B) What is Function Analysis System Technique (FAST)? A technique to develop a graphical representation showing the logical relationships between the functions of a project, product, process or service based on the questions “How” and “Why”.

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Why is the Function Analysis System Technique important? The Function Analysis System Technique aids in thinking about the problem objectively and in identifying the scope of the project by showing the logical relationships between functions. The organization of the functions into a function-logic, FAST diagram enables participants to identify of all the required functions. The FAST diagram can be used to verify if, and illustrate how, a proposed solution achieves the needs of the project, and to identify unnecessary, duplicated or missing functions.

Benefits of the Function Analysis System Technique: The development of a FAST diagram is a creative thought process which supports communication between team members.

The development of a FAST diagram helps teams to:

• Develop a shared understanding of the project • Identify missing functions. • Define, simplify and clarify the problem. • Organize and understand the relationships between functions. • Identify the basic function of the project, process or product. • Improve communication and consensus. • Stimulate creativity.

How To Create a FAST Diagram Three key questions are addressed in a FAST Diagram:

• How do you achieve this function? • Why do you do this function? • When you do this function, what other functions must you do?

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The following diagram illustrates how a function is expanded in "How" and "Why" directions in a FAST diagram.

Steps in constructing the FAST Diagram Start with the Functions as identified using Function Analysis:

• Expand the functions in the "How" and "Why" directions: • Build along the "How" path by asking 'how is the function achieved'? Place the

answer to the right in terms of an active verb and measurable noun. • Test the logic in the direction of the "Why" path (right to left) by asking 'why is this

function undertaken?' • When the logic does not work, identify any missing or redundant functions or

adjust the order. • To identify functions that happen at the same time, ask "when this function is

done, what else is done or caused by the function?" • The higher order functions (functions towards the left on the FAST Diagram)

describe what is being accomplished and lower order functions (functions towards the right on the FAST Diagram) describe how they are being accomplished.

• "When" does not refer to time as measured by a clock, but functions that occur together with or as a result of each other.

Where function is broken down into two simple words, an active verb and a measurable noun.

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Example Fast Diagram: Mouse Trap Consider the following FAST diagram for a mouse trap using the how and why logic as described above.

Can you think of other ways to achieve the basic function of kill mouse or the higher order function to eliminate mice.

Who is involved? The Function Analysis System Technique (FAST) diagram is usually prepared in a workshop setting and led by someone with experience in preparing FAST diagrams. Input for the diagram is received from workshop participants.

Is there a "correct" FAST Diagram? There is a preferred FAST diagram as in mouse trap example, but there are other useful FAST diagramming methods. Most important is a validated method of representing the logic in a diagram. The validity of a FAST model for a given situation is dependent on knowledge and scope of the workshop participants. The FAST diagram aids the team in reaching consensus on their understanding of the project.

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CREATIVE PHASE What is the Creative Phase? The Creative Phase is an opportunity for the team to use their creativity and produce alternate means of performing the functions associated with the product, service or project. The goal is to generate as many ideas as possible in a short period of time. This can be accomplished through Function-based Brainstorming. The Creative Phase is also sometimes referred to as the Speculation phase of the Value Analysis plan.

Why is the Creative Phase important? The Creative Phase, using Function-based Brainstorming, ensures that many ideas are generated based on the project needs or functions.

Who is involved? All team members, including the stakeholders and designers, participate in the creative brainstorming session. The key is to create a positive attitude, a climate that welcomes ideas, and to focus on functions which have the gr alternate ideas as possible for accomplishing the functions.

Creative Phase objectives: Generate as many alternate ideas as possible for accomplishing the functions. The greater the number of alternatives produced, the more likely that value can be improved.

. EVALUATION PHASE What is the Evaluation Phase? The Evaluation Phase is the fourth phase in the Value Analysis process. This is where the ideas generated from the Creative Phase are systematically evaluated, screened prioritized and short-listed for their potential to save cost and/or value.

Why is the Evaluation Phase important? There is not enough time during a VA workshop to develop all the good ideas from the Creative Phase. This means that the team must focus on the best ideas for development in order to achieve the best value.

Who is involved?

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All study team members contribute to the evaluation of the ideas generated in the Creative Phase

DEVELOPMENT PHASE What is the Development Phase? The Development Phase involves exploring in detail the ideas selected in the Evaluation Phase.

The process involves obtaining costs, creating drawings, schedules and any other data that will allow the idea to be compared to the original solution. The objective of the Development Phase is to develop the idea/alternative in sufficient detail for the idea to be compared the originally proposed solution. This will enable the owner or decision maker to make a knowledgeable decision on whether to accept and implement the proposal.

Why is the Development Phase important? The Development Phase enables the proposals to be developed systematically and evaluated against the proposed solution.

Who is involved? All team members will be involved in developing the ideas. The team may be divided into sub teams, with each team tackling a different idea or alternative to explore in detail.

Development phase objectives:

• Develop ideas to enough detail that they can be compared against the original solution • Demonstrate depth, knowledge, and thoroughness in order to support the decision maker’s

acceptance of ideas. • Provide opportunity for decision makers to question team and assess recommendations. • Develop the chosen ideas into written recommendations that may include:

Sketches Costs Performance Measures Risks Advantages and disadvantages

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PRESENTATION PHASE

What is the Presentation Phase? The Presentation Phase is the team's opportunity to present the proposals they have generated, and that they believe represent better value than the originally proposed solution. The Presentation Phase is also an opportunity for decision makers to question the team and assess the depth of analysis that has taken place.

Why is the Presentation Phase important? The presentation of credible recommendations that improve value substantially increases the likelihood of a proposal being implemented. Confidence in the value team and their recommendations flows from a carefully structured presentation.

Preferably, the entire study team attends the presentation to demonstrate confidence in their recommendations. Questions raised by decision makers and stakeholders highlight the depth of analysis. This increases confidence in the team and the likelihood that proposals will be approved.

Who is involved? Depending on the size of the team, all team members or designated team members could be involved in the presentation of the recommendations.

Presentation phase objectives: • Effectively present workshop team recommendations.

• Demonstrate depth, knowledge, and thoroughness in order to sell ideas.

• Provide opportunity for decision makers to question team and assess recommendations.

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CONCLUSION

Q&A / Discuss *SAVE International ! Value Analysis Canada