4. Value Method Job Plan

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   5. Development Phase

      The development phase is usually considered the most exciting phase of the study. Since it is the phase where the value study comes to various conclusions, it is attractive to begin to "get to work." The most common error made in decision-making whether using the Value Method or another approach, is to jump to this phase before the previous phases are sufficiently completed. If the team or individual doing the study ask questions such as, "What is it?" and "What does it do?" (see Larry Miles discussion), insufficient effort has been spent on the previous Value Method phases and the value-base is probably not complete. In that case, those doing the study should return to the information phase, briefly revisiting the creativity and analysis phase, until the value-base and its supporting information is understood.

      During the development phase the team answers the final questions Larry Miles asked, "What else will do the job?" and "What does that cost?" Team members consult with the activity team, experts outside the immediate study team, and consultants in industry (who are usually just dying to sell you their products). To maximize production, one or two individual team members take upon the responsibility for specific idea development. They gather supporting data and make the analysis to examine the concept. During status meetings they report their findings and make a recommendation to the team as to their opinion about whether the data indicates the concept should be proposed as a alternative recommendation. The team determines if the concepts are a viable alternative and if any changes should be made. As the team goes through this phase, it may become apparent that an item being developed should be transferred to another for responsibility. As long as the team members agree, there is no problem with doing this.

      1. Staging of Activities. Potential high value concepts are evaluated and developed into viable, efficient, and cost-effective alternative proposals in stages. Value study effort on concepts appearing to not add good value should not continue. Each developed alternative proposal which is carried to completion is, by definition, expected to increase the product or process value (its worth versus its cost) for the customer. The maximum number and quality of alternatives are desired. Thus, expending valuable resources on a low yield activity is avoided by monitoring the stages and holding status meetings to obtain consensus on the directions selected.

         The steps of the development phase are several. They include a value-based decision process as follows:

         1.) Step one is to assure that the idea is technically viable. Due to time constraints, fully designing the activity or project during the value study team endeavors is, usually, not practical. The Value Method purpose is to obtain the basis for a good decision. During the value study, conducting activities to obtain a fully designed level of development would not allow the examination and development of other alternatives. However, good experience and technical consultants should examine the concept to ensure that the concept is "technically" practical. No one should want to give the activity team and management a concept that won't work. For one thing, it embarrassing, for another it hurts other alternatives when they are presented.

         2.) If the idea appears to be technically viable, estimate the benefits, disadvantages, and any risks associated with the idea. This is usually done in comparison to the base concept (preferred concept). List these on a working sheet such as that shown below.

         Project: Descriptive name of the activity or project. Component: Description of the component involved. Function: Two word (verb and noun) function that is being affected, replaced, or otherwise acted upon.
         Proposal Description: Discussion of what the concept is in sufficient detail that the reader could understand what is be proposed.
         Benefits	Disadvantages
         1. First comparative benefit. 2. Second... 3. Third.. (etcetera.)	1. First comparative disadvantage. 2. Second... 3. Third.. (etcetera.)
         Risks (if none were identified, state "none noted": 1. First potential risk 2. Second... (etcetera.)

         3.) If the benefits outweigh the disadvantages and the risk is acceptable, roughly determine the cost numbers for the items that would be replaced by the value study alternative and a very rough cost of the alternative. List these on a working sheet such as that shown below.

         Project: Descriptive name of the activity or project. Component: Description of the component involved. Function: Two word (verb and noun) function that is being affected, replaced, or otherwise acted upon.
         Original	Proposal
         1. First item proposed to be removed, changed, or otherwise affected. 2. Second... 3.Third... (etcetera.)	1. First item proposed added or modified. 2. Second... 3.Third... (etcetera.)
         	Initial Cost	Life-cycle Cost*
         A. Original Base Concept
         B. Value Study Proposal
         C. Estimated Savings (Increase), A-B
         D. Value Study Actions
         E. Implementation Actions, Actions to Generate B That Require More Than A
         F. Net Savings (Increase), C-D-E
         *Life-cycle costs include the initial costs. They are the total cost of obtaining the product or performing the activity.

         4.) If the numbers are encouraging, or at least equivalent, develop some proposal details with some general design concepts. If the benefits as compared to the disadvantageous are very large as compared to the base concept, even a cost increase may be an appropriate proposal for the value study. (After all, we buy things for the perceived benefit we obtain. If it has a much greater benefit and/or reduces disadvantages, we may be willing to pay an added cost.)

         5.) If the idea still looks good, both economically and technically, determine what it would take to implement the idea. During this step the team should take a closer look at the technical aspects.

         6.) Is the idea still viable? If so, it is time to get some good quantity type of numbers and obtain a cost estimate that us relatively equivalent to the base concept.

         7.) Review and refine the benefits, disadvantages, and risks. If necessary go back to the previous steps. For large complex concepts, five iterations may be appropriate. For simple concepts, one iteration is usually more than sufficient.

         8.) If the idea is still appropriate, write some descriptions for the proposal, its benefits and risks, and make a final determination of the proposal costs. Once this is completed only the printing and presentation of these documents remain.

      2. Documentation. With all the consulting and examination of documents going on, it is necessary to keep some records so the activity team and others reading the report of the results can follow the value study's footsteps. One such record is a consultation record. This needs to have enough information that an outsider to the organization and value study could determine whom to call or write. Everyone in the area may know "old Joe" is the best constructor in town, but "old Joe" may not be known to people outside of the location. This is especially true five years from now or after the project is completed. Likewise documents consulted need to have the title, author, date of publication, and page numbers so that everyone can find the book, article, or newspaper without difficulty and know which part was consulted. Any special support data should be clearly noted. It is usually included in the appendices for support documentation (at the end of the study report). Finally, cost estimates should be clear and detailed enough to support the comparative figures.
         
      3. Avoiding Undue Influence. As the team goes out to meet with consultants, every once in a while they meet a "Dr. No." Dr. No is a person that always says "no" to  ideas that are presented. They are not a bad person. They may dislike change of any type and ot be very open minded. At other times they may be a very open minded person. However, the idea suggested, may be unpopular with the person because of personal experience. This is often referred to as bias. Bias can occur for legitimate or illegitimate reasons.

         1.) Legitimate reasons have arguments that have their basis in prior facts. However, sometimes these facts no longer apply.

         2.) Illegitimate reasons are usually not based in fact. They are an opinion based upon the personal belief system of the individual.

         When someone gives a negative response, find out why the person believes the idea is not a good idea. If previous failure is cited, try to find out why it was determined to have failed. If the team thought it was a good idea, it is wise to get another opinion before removing the idea from consideration. Likewise, a single positive response from a consultant should be supported by other consultants and documents too.

         The reason for mentioning bias is that it often stifles progress. Legitimate bias should be considered and if the concerns cannot be addressed, the idea is unlikely to be feasible. After all, if the idea failed before and no one knows why as yet, then it's not a likely candidate for future projects. Illegitimate bias is often invalid and can be addressed by an implementation feature, or occasionally ignored.

      4. Status Meetings. To bring all members of the team up to date on the progress of the assignments and make team decisions, status meetings are usually held about twice a day. Even if a value study is being done by an individual, it is wise to set a time to "step back" and review the full picture. Use of functions and a small FAST diagram helps clarify issues under development.
         
      5. Prebriefing. A meeting with the activity (design, implementation, etcetera.) team should be scheduled to be held the afternoon of the next to last day of the value study. The activity team should have been consulted throughout the value study. However, the prebriefing allows the activity team one last moment to improve the product everyone is trying to attain.

         After a short discussion of the concepts being developed, the activity team leader should determine who should attend. The proposals are not fully developed by the time the prebriefing occurs. Added input is to improve the final developed proposal is the purpose. However, the value study team should have an idea what the proposals are going to be. This would include the benefits, disadvantages, and risk, and about how much savings (or added cost) are involved for each idea. The prebriefing should be informal. Again, the purpose is to inform all the activity team of the ideas, their projected worth, give very rough estimates of the cost savings, and obtain the activity team's thoughts and expertise on the ideas before the Presentation Report is completed and published.

      6. Next Step. Once the proposals that are to be recommended have been established, results of the value study working sheets, documentation, and the activity team's discussions on the proposals are then included in the Presentation Report discussed in the presentation phase.

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