4. Value Method Job Plan

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   2. Information Phase
      
      1. General. The Value Method job plan contains all the techniques needed to assure that the needs and wants the components of that the project, process, or activity represents and serves are understood and acted on. Only when the essential needs are understood, does the study go about generating creative alternatives that will satisfy those needs. This reduces the effort required to obtain the results and avoids non-productive use of resources. By using a value-based approach, more alternatives that meet the customer's values are made available. The decision process and its documentation allow the purchaser and customer to make an informed selection and heighten the ultimate user's product satisfaction.
         
      2. Discussion. The information phase is the time period within the value study where the information that makes up the value-based frame is completely gathered, and understanding of it is generated. The information phase is one of the most important phases in the job plan. Understanding of the activity and the needs it serves is crucial to generating alternatives for subsequent decisionmaking. The Value Method uses several techniques to determine perform this work. These techniques are a large part of the strength of the Value Method and its highly successful application.
         
      3. Larry Miles' Six Questions. Larry Miles is acknowledged as the "father" of the Value Method. He developed six basic questions related to function and function costs. This was the simple beginning of the Value Method. The questions are as relevant now as they were then. Each value study answers these same questions. The information phase answers the first four of these questions The basic Larry Miles questions are:

         What is it?
         What does it do?
         What must it do?
         What does it cost?
         What else would do the job?
         What does that cost?

         The Value Method uses in its analysis techniques the following procedures to answer the first four of these questions and set the stage for the fifth question:

         Information Procedure
         Component Identification
         Component Costing
         Criteria and Limits Analysis
         Function Analysis
         Function Costing
         Function-logic Diagramming (FAST)

      4. The Concept of Common Understanding. As with all phases of the Value Method job plan, when the value study is done by a team, high-performing team techniques are used. One of these techniques that is done during the information phase is to generate a "common understanding." This is done so that the team does not waste their resources on nonproductive activities. Only when the study team has completed all the information phase steps, does the team go to the next phase. The information has met is objectives when the team has a clear understanding of the value-basis governing the project, highlighted areas for concentration of effort, and set the stage for the decisionmaking process.
         
      5. Value Study Preparation. To ensure team (or individual) resources are efficiently used, prior to the first meeting of all the value study team members, all possible information on the process and operational features within the scope of the activity being studied is collected. If needed, it is disseminated and reviewed prior to the first meeting of the team.
         
      6. Kicking Off the Value Study. Once the team meets, an optimum way to begin the information phase is to obtain a briefing by the people charged with enacting the plan to implement the product (design team, activity team, etcetera). Usually a one-hour session is sufficient with another half-hour planned for questions and responses. If the briefing last more than two hours, it is probably too detailed.For documentation needs and to obtain the contact numbers that will be required during the study, everyone attending the briefing should put their names, addresses, phone numbers, and other contact information on a sign up sheet. After introducing the study team and informing everyone of why the activity was selected for value study, the briefing should be held. The briefing style format should be informal but this is the activity team's discretion.

         In general the activity team briefing should include a general project overview, project need and purpose, how this part of the project fits into whole bigger picture, functional requirements, concept settled on, designed features, limitations required and why, alternatives examined or being examined, and activity team members to contact. An Activity Team Value Study Assistance Guide is available that has further information regarding content. ) After completion of the briefing the activity team should leave the documents shown for team use (with a note on them requesting return) or should be sent out for copying purposes. Also, the helpful documents known to exist should be sent for.

      7. Initial Ideas. Very often ideas are generated during, or right after, a briefing. They are thoughts that occurred to the value study team as they were hearing about the project. It is important to not lose those ideas. Therefore, the team should write them down during the briefing and a short period of time should be allocated to list the initial ideas down immediately. Negative responses should not to be allowed, however, it should not be turned into a brainstorming session either.

         Don't skimp here. Allow only a short break for the restroom if necessary. However, do not break for more than 10-minutes. This initial idea period is a one very good way to make sure first impressions and fresh thoughts are aired. They are returned to during the analysis phase.

      8. Component Identification. During this step, the features are that make up the activity broken into its components. In doing this we are answering one of Larry Miles questions. What is it? As a part of understanding what it is, we break it into workable chunks, by identifying components and breaking them into manageable parts. For example, by examining a simple pencil, it can be seen that it is made up of six basic components. The lead, a body of wood around the lead, a paint covering around the body, some painted lettering, an eraser, and a band around the eraser and pencil.
         
      9. Component Costs. Once you have defined the components and the major parts within the components, the team determined how much the components cost. This would usually include the cost to install the components together. The installed cost may play an important role in the cost of the component. In doing this we are answering one of Larry Miles questions. What does it cost? Often the major cost of the components are not the first item that comes to mind. For, example, the lead in a simple pencil is not the most costly item. The body is about 50-percent more expensive than the lead, and the eraser is about 20-percent more expensive. Yet when you think of a pencil, isn't it the lead the key thought that comes to mind?

         To help in later steps, the team should try to do the component breakup based loosely on what parts belong together logically. A component is built for a purpose. Items with the same purpose, or supporting it, are usually functionally related. Thus, they should be included with that component because they assist in the same purpose.

      10. Cost Model. The percentage of each component in relation to the total activity project should be determined. Using this information, a cost model derived. The Value Method uses this model to identify things that are high cost in relation to the whole. This allows the team to employ Pareto's rule, 80-percent of the costs are in 20-percent of the activity. Using this concept allows the value study team members to direct efforts to the items that have the highest return potential.
          
      11. Criteria and Limits. The criteria and limits affecting the activity needs to be identified. They usually tie back into the ultimate purpose behind the activity. Sometimes the purpose gets lost in the rules. Every criteria and limit put on an activity has a source behind it. The criteria my have been put on the activity by the Congress, the manager, or some other organization. Sometimes, the reason for the criteria has been so obscured, by time or other factors, that everyone knows the rule, but not the reason for the rule. The Value Method is considered a very fair process. It does not make a judgment on any criteria. However, it only looks at how a criteria meets its purpose and affects the basic reason for the activity.

          Criteria and limits are specified as hard or soft. Hard criteria are unchangeable for any reason. No amount of money, time, or other benefit can reasonably be expected to change the criteria. If it is violated, the project is doomed. Often, people specify a criteria as being hard. However, in actuality they are rare. Soft criteria are open to discussion and change. The complexity of this analysis is dependent on the complexity of the work being examined.

          1.) Simple Approach. The criteria and/or limit involved is written on some form of a chart. Then the source for involved are listed and the reason they have specified it. and posted for later reference. A determination of wither it is "hard" or "soft" is made. If it is soft, then some understanding of what it would take to not adhere to the criteria or limit is ascertained.

          2.) Users, Owners, and Stakeholders. For more complex activities, their may be many differing demands. Some may conflict with each other. One of the things the team needs to understand is who are all the players in the activity. The owners, users, clients, financiers, and reviewers may not be the same. Further, they may all have differing needs.

          A good design, project, or activity is a result of the balance between what may be conflicting requirements. There is a source for every restriction, and that source has a reason for them. In this analysis technique, all the "players" in the activity are identified. We place the players into three categories: owners, users and stakeholders. Some groups may be all three.

          Once this is done, their specified criteria, limit, and concern is listed. Then the "hard" versus "soft" limitation is defined for each listed group. Again, if the restriction is "soft," the degree of flexibility is needed. This is essential to our understanding for the mission for the activity and its ultimate product. We will also find it especially helpful during function-logic discussions.Questions asked during this analysis include:

          a.) Who are the owners, immediate (e. g., a local governing board) and ultimate (e. g., taxpayers)?"

          b.) Who are the users of the project?

          c.) Finally, who are the stakeholders (e. g., bond financiers)?

          d.) What are the details involving these groups? What do each of these people desire and need? Have they specified a specific desires and criteria? Were some limits and criteria specified that has not been tied to one of these groups?

      12. Functions. The Value Method defines all studied components of the activities in terms of functions. Here the team examine Larry Miles' question, "What does it do?" This was kept in mind in the general grouping of the components described previously.

          1.) Two-word Abridgment. Functions are specifically expressed as two-word abridgments: a verb and a noun. Ideally, they are an active verb and measurable noun. These are highly preferred as they are more descriptive. The two-word abridgment restriction has many purposes. Analysis of the functions of the components aids the teams understanding of the project and the values that are involved. Two word abridgment forces conciseness. This helps the team avoid the trap of encompassing many ideas, thoughts, and ideas into too complex a description. Later, the function analysis product will be placed into a function-logic diagram which will further assists in these goals and will help the group during the creativity phase. (The two-word abridgment generates creative thought by generating discussion and a level of abstraction that gets people off the idea of parts and onto the idea of purposes.) Further, the resulting discussions create a level of common understanding between the people that partake of the effort.

          2.) Primary and Secondary Function. We want to determine all the major functions a component does. That includes what may be considered its less desirable functions. (Without getting too carried away that is.) In general, two types of functions exist, the primary function and the secondary function.

          The primary function is the one you chose the product to produce. The secondary function is the function that occurs as a part of that choice. For example, both fire and a light bulb, illuminate an area and generate heat. If a fire was chosen as the method for illuminating the area within a building, the primary function is "illuminate area." It was the reason it was selected. One of the secondary functions the fire produces when it is illuminating the area is "generate heat." It also "generates gases," "consumes flammables," and produces many other secondary functions. Since it is in a building, these secondary functions in turn generate secondary functions. An example is that we will need to "isolate heat" to keep from burning the building down, the gases are toxic and will create the need to "exhaust gases" to "protect occupants," and so on. The cost of illuminating the building is governed by both the basic and secondary functions of the method chosen to do the job. In a building, dealing with the secondary functions of a fire to illuminate all the areas would be very costly. Obviously, if the basic function needed was to illuminate the area, a light bulb would be a better choice than a fire because a fire produces a large amount of heat and gases for the amount of light it gives out. Most choices are not as clear as this example. The more common and complex the case, the less clear this choice.

          3.) Performing the Functional Analysis. The team’s next step is to make a function analysis for the project under study. To illustrate how this is done, look at the previous pencil example. A team analyzing a pencil may determine that the functions of the pencil component lead is to "make marks" (writings, drawings, whatever). The body, which costs so much more than the lead in the pencil situation, is used to "support lead" (lead breaks easily), "transmit force" (from the hand to the lead), "accommodate grip" (fits within the fingers so it can be used), and "display information" (so the user knows what they are using).

          A function analysis is always for the preferred concept for project under study. If in a normal case the function of a component is to perform a task that is not included in the project under study, the general situation is irrelevant for the discussion at this particular point. Only the function for which the component serves on THIS project applies at this stage.

          After completion of this step the team should review the previous component grouping again. The team may determine that they should go back and regroup the previous work a little.

      13. Function Worth and Cost. Here the team is still answering Larry Mills question, "What does it cost?" Functions should be evaluated regarding their worth and cost (value). To avoid getting caught up in dollar details which may inhibit the understanding of the value determination effort, percentages of the total cost are used. The component costs are assigned to the functions involved. Providing time permits, the perceived worth is also listed. If time does not allow list the worth, the worth for the items selected to be modified will be revisited during the development phase.
          
      14. Function-logic Diagram or FAST Diagram. The Value Method places the results of the functional analysis into a logic-diagram. Several forms of logic-diagram are present. All use a how?-why? format and generate a "critical-path" that demonstrates the purposes for each function necessary to implement the activity as performed by the alternative selected.

          Those who are familiar with project management and flow diagrams should note that the critical path for a function-logic diagram is very different from a critical path in project management or flow diagramming. The FAST diagram user answers the question "how?" when moving to the right and "why?" when moving to the left on the diagram. A scope line resides on the left axis. The function(s) to the left of this line are the reason for doing the activity. It is called the Higher-Order Function (HOF). The functions just to the right of the HOF are basic functions. They are the functional elements that cannot be changed due to criteria that the customer has already made. A FAST diagram for the purpose of this course test were generated, the incomplete FAST diagram might look like the one shown below.

          

          In this example, how "describe job plan" was done was by "show comparisons". Why were "show comparisons" used was to "describe job plan" and why it was used was to "explain method." However, I could have chosen to describe the job plan by using a historical example or one of many other techniques.

          The HOF for the course is to explain the Value Method and the selected techniques on how to do it are: to define the meaning of value, describe the job plan, and explain the Functional Analysis activity. The reason why I am "Explaining Functions," "Describing the Job Plan," and "Defining Value" are to "Explain the Value Method." Each function shown is on the critical path. That is, they are required for my chosen technique to successfully implement "explain the Value Method." All functions to the right of the basic function are secondary functions. They are the critical path function choices that were available to be changed, depending on the alternative selected to implement the product. The function "show comparisons" is such a secondary function. I chose to use the fact that decisionmaking is a key part of the Value Method and compare its steps to the typical decisionmaking process.

          The critical path can be also be conditional in nature. For example, the text could have been written so that I could use decisionmaking or a historical example to describe the job plan. In that case, the shorthand notation used on the FAST diagram would have lines coming out of the box to "describe job plan" that would split into two lines with each line connecting to the two functional methods that would be conditionally selected as shown below.

          

          Note that single "Job Plan" is identified as a single noun term. It was used as a single word proper noun descriptor to allow brevity and maintain understanding for the reader at this point of the text. In general, provided such proper names do not impede clarity, they are acceptable two-word abridgment functions. However, there is danger in this. In this book eight chapters are used to describe the noun: "job plan." Thus, it can mix concepts and negate the intended purpose of the FAST diagram. Accordingly, if feasible, use of proper noun descriptors should be avoided.

          There are two major types of FAST diagrams that are typically used. The "Technical FAST" and "Customer FAST." Due the type of work done in the government sector, several agencies have a preference toward the use of the Technical FAST. However, for some types of problems and issues examined by a value study, The Customer FAST should be the preferred FAST for use.

          1.) Technical FAST. In the Technical FAST each function that occurs "as result of," "because of," "at the same time as," and "due to" a function are called supporting functions. They are required as a result of my selection of the function that is on the critical path. They may be critical to the successful performance of the function that is on the critical path, but they are not considered critical to the performance of the HOF. If I chose another functional method for the function on the critical path, I would not need that supporting function. Further, I doing the activity to achieve the items on the critical path. I am not doing the activity to do the supporting functions. Therefore, any function not on the critical path is considered to have little worth. As a result, little cost should be associated with their performance.

          For example, in a Technical FAST for the course, I need to "describe decisionmaking." This function requirement is "as a result of" the choice to show comparisons. If the cost for describing decisionmaking was high, then I should rethink my use of that comparison, or the technique of showing comparisons, to achieve the why of "describing the job plan." Technical FAST diagram example showing construction of a "as the result of," "because of," etcetera notation is shown below.

          

          In constructing the FAST, if I continue to generate answers to "how?" questions, eventually I will come to functions that are activities such as "write description" and "draw diagram." These are activity functions. Activity functions can be easily correlated to the component features used to generate cost estimates. In the Technical FAST nomenclature, another scope line is placed just before activity functions (to their left) so that their special activity function status is more readily recognized.

          There are two special areas on a Technical FAST. The area on the top left of the diagram is an "object function" (OF) area. Functions that are an objective of the project and relate to all functional elements placed in this location. In general, the objective functions stand on their own and are not connected to any other functions by a path line. The second special area on a Technical Fast is the "all-the-time function" (ATT) area. These are function that relate to all functional elements but are not an objective of the project. They may have both secondary and supporting function connected to them. If an ATT path is very complex and has a lot of functions related to it, one of two problems are probably present. The ATT is misplaced and should be located within the body of the FAST diagram, or the supporting functions are so important that a Customer FAST should have been used.

          While they assist in the exercise of determining the functional worth and costs, users of the Value Method should avoid getting caught up in generating a complete FAST that includes all the activity functions. They are the details, necessary, but not where the big effort and expertise should be directed. Accordingly, the only concentrated effort for the activity functions in the FAST should be to examine functions with larger costs and the supporting functions that exceed 5-percent of the total project cost. They may contain a special kind of problem that is easily highlighted by the FAST. This special problem is called a potential "value mismatch."

          In a Technical FAST, a potential value mismatch is a supporting function that nears or exceeds 5-percent of the total activity cost. Since it is not the primary reason for the activity, it has relatively low worth, its relative cost should be small. Therefore, if the relative cost nears the 5-percent level, it is flagged for special attention by the FAST. This is done because if you find a way to rid yourself of that particular function's cost, it would have no real corresponding affect on the worth. Therefore, the value of removing its cost, is near infinity. Most Value Method practitioners do not use the term "potential." However, due to the implication in the terminology that someone did something wrong, I like to insert the potential term. At times, despite our fervent and best efforts, we cannot avoid such situations. A way may exist, but we cannot seem to find it. At other times, the supporting function may be generating non-monetary benefits that are not properly reflected in the cost-worth comparison that we have used.

          2.) Customer FAST. In the Customer FAST the technical activity functions are placed in a technical section related to the producing aspects. All the supporting functions are grouped into four special categories: "Assure Convenience," "Assure Dependability," "Satisfy User," and "Attract User." In consumer issues, the producer of the product is a customer and the purchaser of the product, the consumer, is also a customer. Some special supporting function can have a high worth to the consumer and be a basis for the purchase by the consumer. While they have little value to the producer, they may have high value to the consumer. The Customer FAST allows for these features in a way that is more difficult to produce in the Technical FAST. (To do this, two Technical FAST may need to be produced. One is for the producer and the other is for the consumer. Then matching of the two FAST diagrams is done. This is used to assure the producer FAST functions have a sufficient match to the FAST for the consumer. While the Customer FAST generates less clarity about some of these issues and the related value mismatch, it removes much of the rigorous aspects of the two Technical FAST technique.)

          On the Customer FAST, you have two general areas. The technical activity functions are placed in a technical section. These functions are related to the producing aspects. The lower area consists of the functions that support the technical functions. Actual activities, or activity functions, are avoided. This is because technical activities are often not the crucial issue to the customer. The detailed cost estimate should have an item that reflects an activity function. However, it is related back to the non-activity functions. If a function that relates to an activity such as "move pencil" is present, it is usually discarded as being too detailed. Costs may be money, or time, which is usually, but not necessarily, related back to money.

          The functions shown to be on the direct how-why path at the top of the FAST are the critical path functions discussed in the Technical FAST. The very first function, on the far left, is the higher-order function. Again, it is the ultimate reason for performing the activity. The next function, to the right, is the basic function. It is the functional approach that was selected to perform the higher-order function. The next set of functions on the critical path, that are to the right of the basic function, are also the required secondary functions. As the life-cycle of a project progresses, the scope line that defines the basic function will move to the right. This is because of agreements, purchases, and other features that occur during the project life-cycle.

          In this type of FAST, the items at the bottom of the FAST are grouped into special supporting functions. All supporting functions are grouped into four categories:

          Assure Convenience

          Assure Dependability

          Satisfy User

          Attract User

          
          

          In consumer issues, the producer of the product is a customer. The purchaser of the product, the consumer, is also a customer. Some of the supporting functions can have a high worth to the consumer and be a basis for the purchase by them. While they have little value to the producer, they may have high value to the consumer. The supporting functions are not on the critical path. However, in the Customer FAST, the paths related to them are often shown.

          Part of the value study process is to use resources placed in a value study wisely. Therefore, in general, unless it has a substantive benefit to the study or other issues involved, expending study team efforts on any paths, critical or non-critical, beyond four function levels on a Customer FAST is considered to be inappropriate.

          3.) Performing the FAST Diagramming. Once the function analysis process is complete, the team is ready to generate a FAST diagram. Place about three flip chart sheets on a wall in the room. A fairly prominent display location should be chosen. The general format of the FAST diagram should be marked on the left side of the blank area on about two of the flip charts. The how and why indicators and their directional arrows, the scope line, a higher order function (HOF) indication and basic function should always be listed in their standard locations. If a technical FAST is to be used, the objective function (OF) area, the all-the-time (ATT) function area, and the when with its directional arrow should be indicated. If a customer FAST is to be used, the technical area and standard supporting functions "assure convenience," "assure dependability," "satisfy user," and "attract user" should be indicated. Write each function on a postit and place each postit with its function on the third space created by the flip chart sheets. To save search time, place them in alphabetical order. If a function-logic structure was generated during the creation of the functions, leave those structures in place. This can be accomplished either by leaving them on the component sheets until they are used in the FAST, or by placement of them in an unused area on the FAST flip charts.

          At times in the execution of this step the team may want to go back and reassess their analysis of the components with regard to function. The FAST diagram will point out the missing parts which must be done to assure a working project. Even in simple projects, it is common to miss something in the earlier appraisals.

          The critical path area, and the area that is not on the critical path should be noted. Areas not on the critical path have paths related to them too. However, in general, unless they have substantive cost or other issues involved, we avoid expending study team efforts on these paths.

          It is possible to examine each function in terms of its worth versus its cost. However, this would be very time consuming. In industrial situations, it is considered to be warranted and it is often done. For most nonindustrial applications, to reduce the time needed, another approach is used. This techniques involves flagging functions as potential value mismatches.

          Again, potential value mismatches are flagged by one of two issues. First, the percentage of the total project that the function represents is examined. If the total cost is 5-percent or more, it is presumed to be a potential value mismatch. The value study would subjected this function to a more rigorous examination. The second issue is the amount of money involved in the function as compared to the amount of resources required to examine the involved features. If the amount is very large, relative to team costs, it is also flagged for a more rigorous examination by the people doing value study.

          To start the process, place what appears to be a basic function, as a starting point for the value study team's trial basic function. They then ask the question, "How do we...?" Through such prompting, the process should take on a life of its own and one path limb, about two to three functions long, should be developed. Always return to the left with the "WHY" question after two to three functions have been placed on a path. After the initial prompting, relatively little additional prompting should be expected. When a lull does strike, go back to the basic function are and see if more basic functions may be developed (if needed). Alternatively, if enough has been done on the critical path, begin to fill out the supporting functions.

          When the number of functions remaining to be placed on a path becomes few, ask the question "WHY" for the basic function, or functions, to see if the higher order functions can be derived. If the FAST is a Technical FAST, then address the OF and ATT areas. Hopefully, after this, deleting the functions, which appear to be the same thing as another function that has already been placed on the FAST, should exhaust the supply of functions developed for the project components.

          The FAST shows the "why" and "how" and "supporting" functions being performed. These results are categorized and the worth and costs are assigned to functions of note. Items that have high potential for added value are marked for concentration of the value study effort. When the FAST appears to be complete, if any functions were added in the process to make the diagram flow better, make sure that a component is identified to serve this function. Unless it would confuse the team, it is often best to do this as they generate the FAST.

          Upon completion of the function analysis and even the FAST diagramming, the team may return to the component list and revise it somewhat to match the logical grouping needed to assist the team’s study efforts.

      15. Needs. The criteria and limits, ties back into needs and wants. The Value Method focuses on the needs of the customer more than their wants. It does this though both the use of the criteria analyses and its functional approach. The major needs of the client are produced, through the functional analysis and function-logic diagram, as "essential function(s)." They are the items that, if not served by the product, the customer has absolutely no need for the product. They may use it for other reasons, but they will end up returning to the issue to look for a product that serves the need they came in for in the first place.

          1.) Procedures are tuned to ferment and maintain objectivity. This avoids the problem of preconceived notions of acceptability restricting the free application of creativity. This means that people who have had a substantive role in the activity, to get it to the point that it is being studied, should have their expertise used in a consultant role and not a value study team member or individual role.

          2.) The world has been around a while. Usually, the activity has too. Therefore, so they can be improved, existing concepts are examined to use and expand on these existing concepts and knowledge.

          3.) People and their expertise, coupled with unconstrained, positive, and focused attention are very creative. As a result, totally new ways of accomplishing things are discovered every day. Techniques to utilize the talents of the people in the value study and take advantage of the creative nature of people are utilized within the Value Method. These techniques were "borrowed" from psychological, behavioral, and other studies performed by experts in these fields. Further, they are regularly reviewed by the Value Method profession through seminars and other activities to enhance their productive application for the customer.

      16. Documentation. The documentation of the results of these setps should be done as the study progresses. This helps people gel their ideas and avoids the problem that people have forgotten what was done by the time the documentation of what was done is prepared. Also, this way the report documents will have been reviewed by the team long before the deadline for the Presentation Report. This ensures that the Presentation Report will not need major modifications or added review after the oral presentation to turn it into a Final Report.
          
      17. The Next Step. Examine and select the basic functions and selected key functions for the idea focus to be used during the creativity phase. Key functions usually consist of the potential value mismatches that were identified. Discuss these selections with the team and obtain a consensus on the focus concepts. Each team member should carry a pen and piece of paper with them throughout the study, including the evening. to write down any ideas that come to them.

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