Value Engineering Mastermind: From Concept to Value Engineering Certification
Publication Year: 2009
Subject: Operations Management (general)
This jargon-free book demystifies all the concepts required for a well rounded understanding of the theory of Value Engineering (VE) and Value Engineering Certification Programs.
Value Engineering Mastermind: From Concept to Value Engineering Certification helps the readers to:
- Understand VE concepts
- Practice VE concepts and acquire the Society of American Value Engineers (SAVE) International Certifications-accorded in India by the Indian Value Engineering Society (INVEST)
A special feature of this book is a set of questions at the end of every chapter to test the knowledge acquired, with answers at the end of the book.
Since the book provides insights into the development of managerial traits through VE, it will be an important resource for companies that have begun to provide VE training to their employees, besides students of engineering and ...
- Front Matter
- Back Matter
- Subject Index
- Chapter 1: History of Value Engineering
- Chapter 2: Father of Value Analysis/Value Engineering—Lawrence Delos Miles
- Chapter 3: Professional Societies of Value Engineering
- Chapter 4: Certification Programme
- Chapter 5: Value Engineering Theory
- Chapter 6: Finance
- Chapter 7: Human Relation
- Chapter 8: Techniques
- Chapter 9: Creativity Techniques
- Chapter 10: Managerial Traits
- Chapter 11: Solution https://www.facebook.com/photo.php?v=10200219041222887&set=vb.176425722383654&type=2&theater
Copyright © Anil Kumar Mukhopadhyaya, 2009
All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval system, without permission in writing from the publisher.
First published in 2009 by
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Published by Vivek Mehra for SAGE Publications India Pvt Ltd, typeset in 11/13pt. Times New Roman by Tantla Composition Private Limited, Chandigarh and printed at Chaman Enterprises, New Delhi.
Library of Congress Cataloging-in-Publication Data
Mukhopadhyaya, Anil Kumar.
Value engineering mastermind: from concept to value engineering certification/Anil Kumar Mukhopadhyaya.
Includes bibliographical references and index.
1. Value analysis (Cost control) I. Title.
TS168.M853 658.15′52—dc22 2009 2009014390
ISBN: 978-81-321-0062-1 (PB)
The SAGE Team: Reema Singhal, Jayshree Kewalramani, Mathew P.J and Trinankur Banerjee
My parents Shrimati Bhagirathi Devi and Shri Hari Bhushan Mukherjee
My parents-in-law Shrimati Karuna Banerjee and Shri Saradindu Narayan Banerjee[Page vi]
List of Tables[Page ix]
- 4.1 Certification requirement summary 27
- 4.2 Examination reference chart 29
- 5.1 Appreciation of money 47
- 6.1 Example of ROI decision 66
- 6.2 Example of discounted cash flow 67
- 6.3 Solution of discounted cash flow example 67
- 6.4 Balance sheet—horizontal format 68
- 8.1 Function-cost-worth matrix—example 102
- 9.1 Feasibility ranking matrix 121
List of Figures[Page x]
- 6.1 Break-even point 64
- 7.1 Analyzing transactions—complementary example 1 89
- 7.2 Analyzing transactions—complementary example 2 90
- 7.3 Analyzing transactions—complementary example 3 90
- 7.4 Analyzing transactions—crossed example 1 91
- 7.5 Analyzing transactions—crossed example 2 91
- 7.6 Analyzing transactions—crossed example 3 91
- 7.7 Human interactions 92
- 7.8 Managerial grid 93
- 8.1 The basic FAST model (classic) 105
- 8.2 The technical oriented FAST diagram 107
- 8.3 Customer oriented FAST diagram 108
- 9.1 Ladder of abstraction 125
Table of Objective Questions[Page xi]
Topics Chapter Question nos History of value engineering 1 1–13 Father of value analysis/value engineering—Lawrence Delos Miles 2 14–21 Professional societies of value engineering 3 22–52 Certification programme 4 53–86 Value engineering theory 5 Concept 87–97 Value 98–110 Function 111–128 Cost/Life cycle cost 129–148 Finance (BEP, payback, ROI, DCF, balance sheet, profit and loss a/c) 6 149–219 Human relation 7 Human aspects in value engineering 220–227 Team building 228–234 Techniques 8 Function-cost-worth analysis 235–242 Function analysis system technique 243–272 Creativity techniques 9 Creativity 273–286 Brainstorming 287–294 ABC analysis 295–299 [Page xii] Gordon technique 300–302 Attribute listing 303–304 Morphological analysis 305 Laddering 306–310 Managerial traits 10 Leadership 311–317 Innovation 318–320 Teamwork 321–324 Communication 325–330 Entrepreneurship 331–334 Solution 11 1–334
After the globalization and liberalization, the Indian industries are at the same platform along with the other world-class leaders. It has become a prime requirement for the industries to come out with their products and services with enhanced value. This can be achieved if they resort to a proven initiative known as ‘value engineering’.
The best way to adopt this initiative is to train employees from the grass-root levels to the highest executives. The knowledge of the executives can also be enriched and focused through certification programmes acquired from the highest authority of the initiative—SAVE International, USA.
Mr Anil Kumar Mukhopadhyaya, CVS-Life, in this book Value Engineering Mastermind: From Concept to Value Engineering Certification, has not only refreshed the value engineering concepts, but has dealt in detail about various inputs required to become a successful value engineer.
He has deliberated upon the various creativity techniques, financial aspects, management traits, details of various value engineering societies and finally, about the certification programme.
The unique thing about this book is that after every chapter, objective questions are provided. The readers will be able to test their knowledge as they progress from one chapter to the next. The answers are also provided at the end.
I have known Mr Anil Kumar Mukhopadhyaya, CVS-Life, for quite some time when he was with the leading Indian Auto Manufacturer, Messrs (M/s) Tata Motors Ltd. He is one of the oldest certified value specialists in India. He has also authored a book titled Value Engineering: Concepts, Techniques and Applications. This book will serve as complimentary reading material to the above mentioned book.
[Page xiv]I congratulate the author for the fine work in this opportune moment when there has been a long-felt need for a document of this nature..
In my first book on value engineering, titled Value Engineering: Concepts, Techniques and Applications, published by Response Books, a division of SAGE India, I laid stress on creating a comprehensive reference book for preparing for the value engineering certification programmes. The book was meant to be jargon-free and to help demystify all the concepts required for a well-rounded understanding of value engineering (VE).
But while practicing as a consultant and interacting with a wide range of VE professionals, industry specialists and first time enthusiasts, I realized that there was a need to make VE books more compact and user-friendly.
Since time is a premium for all sections of society, I adopted a question and answer mode of information dissemination through this book. Each chapter has a brief write-up preceding the array of questions and answers.
It is not important just to know the right answers, but also to know what the wrong options stand for. Just like all modern day management examinations have taught us, we also need to figure out what the wrong options mean and therein lies scope for comprehensive knowledge gathering.
My suggestion to all the readers of this book is to pick up whichever chapter seems interesting and start from there; read the text and then work out the right answers for the questions. Obviously there is a fallback to see the correct answers at the end of the book. But my sincere request to all my readers is to explore what the wrong options also mean.
I feel that in the modern day digitized world, compact reading materials will help ignite passion for a subject. And hence, I consider this book as a supplement for my first book mentioned [Page xvi]earlier. Together these two books will serve for an on-the-move reading material as well as an in-depth understanding of each subject matter.
It will be my pleasure if the readers find more ways to learn from this book, namely, through quiz sessions or other innovative means of learning. It will also be a pleasure if it enriches my readers' personal and professional pursuits.[Page xvii]
The people who get on in this world are the people who get up and look for the circumstances they want, and, if they can't find them, they make them.—George Bernard Shaw
When I read this, I realized that progression in life is very much a by-product of one's attitude, over and above one's aptitude. But nonetheless, the foundation of this progression lies on the shoulders of a multitude of people who have shaped our lives and helped us form the ideas and opinions that embody our present existence.
I have always wanted to thank the people who have helped me evolve into what I am today. On the professional front, I wish to thank P.N. Pandey for guiding me to the path of value enhancement. The unstinting support provided by my boss, R.N. Mishra also helped me develop my skills in value engineering. The support and affection of my VE core team consisting of M.G.K. Nambiar, Bipul Shaw, Shamsheer Singh and Yashpal Singh helped me get a handle of team spirit and the joy of making breakthroughs together as a team. They helped me build confidence in the fact that consistent pursuit of implementation of VE ideas helps sharpen ones knowledge of the VE techniques.
My sincere thanks to all my colleagues at Tata Motors who shaped my fruitful career. My special thanks to all my clients who continue to place such high regard for my consulting and training services. Thanks to all my students who have repaid the toil we went through the years by successfully achieving certifications, undertaking VE projects, delivering greater financial value to their firms, and writing papers for various conferences and journals. [Page xviii]My sincere thanks to my entire publishing team at SAGE Publications, which found value in my writings and helped me propagate the knowledge effectively.
On the personal front, my heartfelt thanks to my late parents and in-laws who nurtured and always stood by me. Thanks to my sister and brothers for inculcating deep-rooted family values in me. In particular, special thanks to my elder brother, Dr Ajoy Mukhopadhyaya, who was the chief architect of my formative years. Thanks to my daughter-in-law, Indrani, and elder son, Dr Ashis, who have embodied my desire to serve mankind. Special thanks to my daughter-in-law, Mitali, and younger son, Atish, who have been my sounding board and constant companions in the pursuit of dissemination of VE knowledge. And most importantly, my sincere gratitude for my life partner, my wife and constant motivator, Santa, without whom this delicate balance of life could have well been unsettled.
Bibliography[Page 148][Page 150]1964. The Managerial Grid. Houston, TX: Gulf.and .1978. ‘Should You Teach There's Only One Best Way to Manage?’Training, (April): 24–29.and .1981. ‘Management by Grid Principles or Situationalism: Which?’Group and Organizational Studies, (December): 439–455. http://dx.doi.org/10.1177/105960118100600404and .1992. ‘FAST—An Intuitive Thinking Technique’, SAVE Conference Proceedings, Phoenix, Arizona, June, pp. 229–232.1990. The 7 Habits of Highly Effective People. New York: Simon & Schuster.2003. The Essential Drucker. New York: Harper Business, Harper Collins Publishers.1980. Value Analysis. Washington, DC: Lawrence D. Miles Value Foundation..1972. Practical Value Analysis Methods. New York: Hayden Book Company.1993. [CVS, FSAVE] ‘Function Analysis from Lawrence D. Miles by Way of Charles W. Bytheway—A Chronology’, INVAVE, (January-March): 17–23.1994. ‘Comparison of VE and TQM’, Value World, XVII (October): 15–18.1973. I'm ok-You're ok. London: Pan Books.Indian Value Engineering Society. 1980. ‘Value Engineering Guide’, Eastern Zonal Council, Jamshedpur.INVEST website. Available online at http://www.invest-in.org.1992. [CVS (Life) EKS] ‘Usage of Fast Diagrams Sharing Experience’, INVEST Conference Proceedings, 10–11 November, Calcutta, pp. 16–28.1979. ‘Function Analysis System Technique (FAST) for Management Applications’, SAVE Conference Proceedings, 23–26 May, Washington, DC, pp. 147–171.1961. Techniques of Value Analysis and Engineering. New York: McGraw-Hill Book Company.[Page 149]1971. Value Engineering a Systematic Approach. New York: McGraw-Hill Book Company.1996. ‘Team Building—The Secret of Successful VA/VE Programme’, Value World, 19(3): 12–13..2003. Value Engineering—Concepts, Techniques and Applications. New Delhi: Response Books, Sage Publications..1977. Value Engineering Theory. Washington, DC: Lawrence D. Miles Value Foundation.INVAVE. 1998. ‘Value Societies at a Glance’, INVAVE, 9(1): 13–22.SAVE International website. Available online at http://www.value-eng.org.1986. Functional Analysis—The Stepping Stone to Good Value. Madison, WI: University of Wisconsin Press.and .1983. Compendium on Value Engineering. Bombay: The Indo-American Society..1982. Value Engineering a Practical Approach for Owners, Designers and Contractors. New York: Nostrand Reinhold Company.and
About the Author[Page 154]
Anil Kumar Mukhopadhyaya, CVS-Life, FINVEST, AICWA, is one of the pioneering Certified Value Specialists in India and has previously worked with Tata Motors Limited and Coal India Limited. He is also the author of the highly successful book titled Value engineering: Concepts, techniques and applications published by Response Books, a division of SAGE India. He has written several articles on the subject of value engineering and industrial engineering for national and international journals. He was awarded a Fellowship by the Indian Value Engineering Society in 2005 and was also awarded the Best Case Study Award by the Indian Institution of Industrial Engineering for an article on value engineering, titled ‘A pragmatic approach to cost reduction through value engineering—A case study’ in 1986. He had also received Productivity Award 1984 (for Individual/Groups) instituted by the Association of Indian Engineering Industry (Eastern Region). He is authorised to conduct Module I workshop and Module II seminar by SAVE International, USA.