Leading value management (value engineering and value analysis) activities
Overview
This standard covers the competences required for leading value management (value engineering and value analysis) activities. It involves leading the application of the principles and processes of value management (VM) to the chosen product or process. You will be expected to confirm what the customer requires from the product or the process, and to approve quantifiable objectives and targets to achieve this. You will need to lead the analysis of the functions of the process, agree costs of each of these functions, and confirm the added and non-value added activities within the process. You will also be expected to approve the most appropriate alternatives, lead a risk assessment of the alternatives, prioritise and rank the alternatives, and confirm the expected benefits. You will need to lead the development of these alternatives into detailed proposals that will improve the value of the product or process, and to provide costing recommendations for management approval.
Your responsibilities will require you to comply with organisational policy and procedures for the activities undertaken, and to report any problems that you cannot solve, or that are outside your responsibility, to the relevant authority. You will be expected to take full responsibility for your own actions within the activity, and for the quality and accuracy of the work that you carry out.
Your underpinning knowledge will provide a good understanding of your work, and will provide an informed approach to the techniques and procedures used. You will need to understand the principles and processes of value management, and its application, in adequate depth to provide a sound basis for carrying out the activities to the required criteria.
Applying and advising on safe working practices will be a key issue throughout.
Performance criteria
You must be able to:
- work safely at all times, complying with health and safety and other relevant regulations, directives and guidelines
- lead the application of the principles and processes of value management (VM) to the chosen product or process
- confirm what the customer requires from the product or the process, and approve quantifiable objectives and targets for the value management activity
- lead the analysis of the functions of the product or process being studied, and agree allocated costs to those functions
- confirm the non-value added activity within the product or process, and approve alternatives
- lead the production of a total cost model and supply chain map for the product or process, which shows how cost are related to function
- lead the development of these alternatives into detailed proposals that will improve the value of the product or process
- approve the new value added process, and manage the plan within agreed timescales
- monitor the progress of the plan
Knowledge and Understanding
You need to know and understand:
- how to work safely at all times, complying with health and safety and other relevant regulations, directives and guidelines
- how to plan the resources and time needed to carry out the agreed activity
- how to select a product or process on which to carry out the value management activity
- how to structure and run a value management activity
- how to set quantifiable objectives and targets for the value management activity
- how to carry out a function analysis
- the performance related tools used to qualify customer wants and needs
- the 'cost of function' equation, and how to calculate the cost of function
- FAST diagramming and value trees
- decision making and creativity techniques
- how value management relates to the overall business strategy and competitive positioning
- how to produce a total cost model and supply chain map for the product or process
- what constitutes value adding and non-value adding activities
- how to identify what a customer requires from a product or process
- how to prioritise and rank the alternatives
- how to complete a risk assessment of the alternatives
- how to prepare the findings into proposals
- how to monitor and track proposals to implementation
- the extent of your own authority, and to whom you should report in the event of problems that you cannot resolve
Scope/range
Scope Performance
- Lead the activities within your area of responsibility to include all of the following:
- set out and communicate the purpose of the improvement activities
- involve the team in planning how the improvement activity will be achieved
- ensure each team member has individual objectives and understands how these objectives contribute to the overall improvement objective
- provide advice and support the team to achieve both team and individual improvement objectives
- motivate the team to present their own improvement ideas
- encourage the team and/or individuals to take the lead where appropriate
- agree the implementation of the improvement ideas
- negotiate any physical and/or financial resources required to implement the improvement activity (where appropriate)
- monitor the progress of improvement activities
- deal with any organisational problems identified during the improvement activity
2. Lead the production of detailed proposals of the findings of the value management activities which:
- identify the non-value added activities and indicate alternatives
- prioritise and rank the alternatives
- include a risk assessment of the alternatives
- identify the most appropriate alternatives
- provide costing recommendations for management approval
- identify expected benefits