Vol: 2
No: 2
(
September I96 ,
VALUE
ENGINEERING
In this issue
Page
Editorial - The Use and Abuse of Value Engineers
67
The Challenges that Lie Ahead
by Lawrence D. Miles
69
Value Assurance - A Hidden Management Development Tool
by Fred C. Schwarz
73
Reducing Direct Labor Costs through Short-Interval Scheduling
by Martin R. Smith
77
Value Engineering - The Human Aspect
by Donald E. Williams
79
The Management of Education through the Concepts of Value Engineering
by Neal V. Musmanno
87
Value Engineering Volume 1 Index
93
The Development and Management of the Value Analysis and Engineering
Program in the Commonwealth of Pennsylvania
by John S. Hollar, Jr.
99
The Value Engineer's Bookshelf
105
Selected Abstracts of Recent Literature on Value Analysis/Engineering
127
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Value
Engineering
In this issue
Editorial - T h e U s e and A b u s e
Vol:
2
No:
2
September
1969
In future issues
o
f
V
a
l
u
e
E
" g
i
n
e
e
r
s
T h e C h a l l e n g e s t h a t Lie A h e a d
by Lawrence
D.
Miles
Miles Associates
The author believes that we can define V.A. and
extend its application by identifying V.A. in
more general terms. Value Analysis has already
proved itself in the more turbulent type of
business and it is hoped during the next five
years that it will be used more and more in
mature businesses.
Value Assurance - A Hidden
Management Development Tool
by Fred C.
Schwarz
Assistant Professor,
University of W i s c o n s i n
Professor Schwarz outlines the growth of value
assurance and goes on to describe how a value
assurance program can be launched by following through a five-phase job plan. The author
then describes how value assurance may also
be applied to indirect costs.
Reducing Direct Labor Costs
through Short-Interval
Scheduling
by Martin
R.
Smith
The aid of short interval scheduling (S.I.S.) to
help solve indirect labor inefficiency is offered.
S.I.S., a management system which enables
non-routine and semi-routine operations to be
controlled, is most frequently applied to clerical
and maintenance work and a 25 per cent reduction in costs is common". The system is explained and advantages listed.
Value Engineering - The Human
Aspect
by Donald E.
Williams
Education M a n a g e r ,
Barber-Colman Company
A plantwide program, developed at the BarberColman Company, which combines Work
Simplification and V.E. is described. Problems
associated with V.E. and the Mogensen
approach to improvement are explained.
T h e M a n a g e m e n t of E d u c a t i o n
through t h e C o n c e p t s of
Value Engineering
by Neal V.
Musmanno
Deputy Superintendent,
Department o f Public I n s t r u c t i o n ,
C o m m o n w e a l t h of Pennsylvania
The State of Pennsylvania is contemplating
further expansion in the range of educational
activities helped by the continuing aid of V.A.
in the administrative problems. The P.P.B.S.
(Planning-Programming-Budgeting-System) is
explained.
The Development and
M a n a g e m e n t of t h e V a l u e
Analysis and Engineering
P r o g r a m in t h e C o m m o n w e a l t h
of Pennsylvania
by John S. Hollar,
Jr.
Program Supervisor,
Governor's Cost R e d u c t i o n Program,
C o m m o n w e a l t h of Pennsylvania
V.E. principles as applied to the conservation of
government funds in the State of Pennsylvania
are described. The author quotes the results
from the application of these principles and
mentions several interesting innovations which
have assisted in the very full acceptance of
V.E. by his colleagues in government.
The Resource Stewards - A Survey
of Value Analysts and Engineers
by Antipodean (Parts 1-6)
The Challenge of Change Engineering
Development
Value
by Frank R. Bowyer, Consultant,
Value Engineering Ltd.
The Basics of Value Engineering
.
by A. J. Dell'Isola, Director,
V.E. Division,
Louis C Kingscott & Associates Inc.
Essential Ingredients
V.E. Program
for a
Successful
by F. S. Sherwin, Value Engineering
Coordinator,
Plessey Company Ltd.
Creative Management
Change
of
Protitable
by Bert Decker, Director Project 3000,
State University of New York at
Buffalo
The Industrial
Analysis
Technique
of Value
by B. G. Matossian
Head, B. G. Matossian and Associates
Sensitivity
by L. K. McLaughlin,
Consultant to Management
Behavioral
Value
Engineering
V o l u m e 1 Index
Training
Science
in
Management
by Cameron Fincher, Associate
Director, Institute of Higher Education,
University of Georgia
How to Sell
The Value Engineer's Bookshelf
A b s t r a c t s [104] t o [116]
Ideas
by Bill Gove, Sales Consultant
Value Engineering,
September
1969
65
Regional Editors
Canada
Western United States
Mr C. Bebbington,
Value Program Coordinator,
United Aircraft of Canada Ltd.,
P.O. Box 10, Longueuil, Quebec.
Mrs Patricia B. Livingston,
Management Systems Analyst,
North American Rockwell Inc.,
Space Division, Downey, California.
North Eastern United States
Lt.-Col. Bert J. Decker, USAFR (Ret.),
Director, Project 3000,
Millard Fillmore College,
State University of New York at Buffalo,
Hayes A, Buffalo, N.Y. 14214
Southern United States
Mr F. Delves,
Lockheed-Georgia Company,
Marietta, Georgia.
Aims and Scope
The aim of Value Engineering is to encourage the wider use of Value Analysis/
Engineering techniques
throughout
industry.
Value Engineering provides a link
between those who are practising and
studying the subject all over the world.
It is the policy of the journal to contain
information which promotes the wider
and more efficient application of Value
Analysis/Engineering
methods.
Its
abstracting service will draw attention in
a conveniently summarised form to the
main publications on the subject
throughout the world.
K e y - w o r d Index
Titles sometimes do not cover all the
aspects of the subject referred to in an
article, book review or abstract, and in
order to assist readers with their information retrieval problem key-words
have been placed at the top of each item
in the journal.
To illustrate-the article 'The Challenges
that Lie Ahead' covers both Basic Concepts and Management Appreciation yet
these subjects were not specifically
indicated in the title.
The list of key-words will be built up
issue by issue until a useful list of keywords covering Value LnginccnnK subjects can be published in a future issue
of the journal.
Reprint Service
Reprints of the articles unit chcckliMt
appearing in Value Engineering may I K
ordered in multiples of fifty eopici by
writing to the Manager, Troininu A
Technical Publications Division, Pergamon Press, Headington Hill Hall,
Oxford.
66
Mr R. Perkins,
Technical and Works Director,
Barfords of Belton Ltd.,
Belton, Grantham, Lines.
Europe
Mr P. F. Thew,
Manager - Industrial Engineering,
I.T.T. Europe Inc.,
11 Boulevard de I'Empereur,
Brussels 1, Belgium.
A Note from the Editor
(or so it seems) when the Journal was first taking shape, we toyed for
some weeks with the idea of a quarterly effort. Then in short order we acquired a publisher, greater
ambitions, and the bi-monthly concept. Bi-monthly we were bom and bi-monthly we published
throughout our inaugural year.
BACK AN ETERNITY AGO
By all accounts, it was a fair debut. The critics have been almost uniformly kind - and on occasion
even extravagantly effusive - while readers have shown unusual responsiveness to the few promotional campaigns we have mounted. Our roster of advertisers continues to increase.
Now as we turn into our second year, we seek to attract the writings of value engineers, academics
and businessmen who are dedicated to the job of translating vital, significant V.E. ideas and
research findings into highly readable and even quotable language.
We think we made some progress in this direction during our first year, but, alas, the image still
trails reality. Finally, some of our readers have indicated that there is a superabundance of material
in each issue - too many articles and too many pages. The whole thing, in fact, has seemed a bit
formidable.
Editor
B r u c e D. W h i t w e l l
Editorial Offices
20 Pelham Court,
Hemel Hempstead, Herts.
Telephone: Hemel Hempstead 3554.
Publishing Director
By referencing the article to two cards
measuring 5" x 3", arranged alphabetically the value engineer can build up a
system of reference to articles on
Applications and Basic Concepts.
United Kingdom
R. D. Miller
Publishing Offices
Pergamon Press Ltd.,
Training & Technical Publications Division,
Headington Hill Hall,
Oxford, England.
Telephone: Oxford 64881
Advertisement Manager
R. Borbor
Advertisement Offices
Pergamon Press Ltd..
Maxwell Mouto,
348/360 Gray * Inn Horn).
London W.C.1. England.
Telephone 01 837 0484
Subscription Enquiries
Subscription Orders, preferably accompanied
by a cheque, should be sent to the following
addresses:
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The Americas:
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Attention Mr R. Miranda, Maxwell House,
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Annual Subscription Rates
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t publisher reserves the right to dispose of advertlsement colour block* nttoi twelve month* mcmotone blocks aftor six months with or without
prior notification
Value Engineering,
September
1969
Reprint No. 2:2:1
Editorial:
The Use and Abuse of Value Engineers
The pressures of the market place are giving steady impetus to the
growth of the profession o f Value Engineering. A t present there
are probably some 8,000 full-time value engineers employed in
private industry throughout the world and indications are that the
next few years w i l l see 2,000 more.
Value engineers themselves attribute part of the increase i n their
numbers to the increase i n price-competitiveness all through
business and to the inexorable steady rise i n the costs of materials
and of wages. They particularly emphasise the change i n the.
attitude o f top management i n its search f o r efficiency as a prime
factor behind the upsurge.
The number o f value engineers employed by a typical business
organisation is not large. I n Britain over half the employing
organisations have four or less, and three quarters have two or
less.
I n well over half the employing firms there is no separate Value
Engineering Department, and the majority o f value engineers
not i n separate departments are f o u n d i n engineering. This link
is further emphasised by the fact that, i n their working relationships, Value Engineering departments have closer contacts with
engineering than any other department.
What is the actual function of these value engineers ? Most divide
their time more or less equally between cost-preventive and costreduction work.
Looking at the work content of their jobs f r o m another angle
most value engineers provide some other sections of the business
with an advisory and information service.
They are called upon to undertake a great variety of jobs ranging
f r o m the Value Engineering of high-priced-low-volume capital
equipment to low-value-high-volume consumer goods.
They have to be personally equipped so as to be able to intelligently apply Value Engineering principles on the most highly
sophisticated electronic equipments as well as very simple
mechanisms.
British and European value engineers spend a considerable
amount of their time to the actual practice o f Value Engineering
themselves. Twenty per cent devote their f u l l time to carrying out
on their own the steps of the V.E. Job Plan. Fifty-seven per cent
provide no instruction to others. Very few spend any time directly
on promoting the Value Engineering philosophy i n their organisations. Almost nothing is being done at the supervisory, shop
steward and shop floor levels to explain the V . E . technique. I n
America, value engineers devote 43 per cent of their time to
extending the use and knowledge of V.E. principles. Eighty-two
per cent work through V.E. teams and follow the V.E. Job Plan
implicitly. Twenty-two per cent of their time is devoted to training others. They receive considerably more support f o r participation i n extra-company activities such as conferences.
Although there is now fairly widespread instruction facilities
available i n Value Engineering principles, i t is doubtful whether
there are enough adequate courses available i n Britain and on the
continent of Europe.
Are trained and experienced value engineers, who are i n such
short supply, being effectively employed ? Value engineers themselves are rather dissatisfied on this score. Over half reckon their
expertise is not being fully utilised. I t appears that this feeling is
most pronounced i n regard to the selection of the actual products
for them to value analyse, and i n the delays and frustrations which
they experience i n getting their recommendations accepted. The
most important reason given f o r ineffective use o f value
Value Engineering,
September
1969
engineers is misdirection of effort, probably mainly due to the
fact that management on the whole has had little experience i n
handling them. This will become less important over the next
few years particularly i f the growing tendency f o r Value
Engineering to be part of a management development programme
continues.
The next most significant weakness is ineffective cooperation with
other departments. This is again mainly a responsibility of
management, but it may also be due to the inability o f value
engineers to convince their colleagues i n other areas and with
different specialist backgrounds how they can usefully collaborate
in the solution of cost reduction problems.
Where value engineers have not been employed i n a f i r m f o r any
length of time, colleagues may not appreciate their potential.
Value engineers i n particular want closer cooperation with
departments responsible f o r specifying (design and procurement)
and with manufacturing and distribution.
I n the light of all this what impact do value engineers make on
company profits? Only about 20 per cent consider that they
actually make very substantial contributions, most describing
their influence as being 'considerable', ' f a i r ' or 'moderate'.
I t should be noted that impact on profits and utilisation o f
expertise correlate. I t is hard to see how a value engineer could
be very efficiently utilised by his company but yet have little
influence on its profits! I n fact, the profit impact which any value
engineer can make w i l l rest on several factors, including those
depending on himself and those depending on factors outside
himself. I t appears that there is greater opportunity f o r a value
engineer to make a really major contribution i n the engineering
sector of business than there is at present i n the other sectors.
Value engineers themselves believe that they are playing a much
more important role now compared to ten years ago, and a
considerably greater role than two years ago.
The question of training is important considering the coming-ofage last year o f the profession. Many value engineers hold
that the teaching of the principles of the subject should begin
i n the engineering schools where i t still seems to be fighting
a fierce battle with the many rival claimants f o r syllabus time.
As a result of this lack o f early training engineers are left to
acquire the technique of Value Engineering when they begin
work. The subject of Value Engineering is perfectly respectable
f r o m an academic point of view, and could be incorporated i n an
engineering (or business) diploma or degree course.
Further evidence of this lack of educational inclination i n Value
Engineering is given by the fact that only 15 per cent of value
engineers contacted consult the journal Value
Engineering
regularly, and only 34 per cent consult i t at all.
For value engineers the career prospects are bright. Over the past
decade i t appears that there has been an increase i n demand f o r
value engineers at an annual average rate of around 14 per cent,
and, o f course, i n the last three years or so, the rate has been
much higher. I t is reasonable to think that the expected annual
growth i n the next decade w i l l be at least 18 per cent both f r o m
expansion requirements o f companies already employing value
engineers and f r o m an increasing awareness among managements of other companies that value engineers can make an
important contribution to the increase of business profits.
Most value engineers believe they have prospects of entering
general managements, and about three-quarters reckon that their
chances of so doing are either as good as or better than those of
other specialists.
67
MISCELLANY
One Picture is worth a Thousand Words
'The technique is simple. A value engineer, through normal
processes, recognises a potential saving. Using a Polaroid
camera, he takes an on the spot picture and describes the
" n o w " situation. He then records his first "proposed" idea
and any remarks he may have. The f o r m has been kept
deliberately simple so that i t is easily understood and allows
succeeding people to add their pet ideas. I n some instances,
merely showing the simple package to a manager is sufficient
to motivate h i m to action. I n other cases, an idea may take the
f u l l value engineering approach to develop the final results and/
or implement.
M r Ralph P. Halloran, Manager f o r Reliability and Value
Control at the Columbus Division of N o r t h American Rockwell
Corporation, 4300 E. F i f t h Avenue, Columbus, Ohio 43216,
U.S.A. employs a most useful idea to trigger off value studies. He
writes:
'As you can see f r o m the enclosed "live" example, I developed a
simple method to present a potential change to those people
who have to make a decision. Since many people i n authority
are not closely associated w i t h the details of the product, I
found that many decisions were being made without a f u l l
understanding of the potential. The pictures provide a quasi
first hand "look-see", hence a better appreciation o f the verbal
presentation. The pictures and description of " n o w " and
"proposed" are used i n all phases o f discussion, through a
change control board, and are maintained i n a permanent
record file.
' I have f o u n d the method very helpful, particularly f o r speed.
One week has produced as many as 150 ideas. The cost of the
f i l m is cheap compared to the documentation y o u would have
to do without the picture. W i t h the picture, drawings and
prints are seldom, i f ever, used.'
Description: Substitution of material. P / N : X X X - X X X Y Dept.: 73 Model: T 2 X X Date: 5/23/69
Description of project as i t is now: Lead weights are used i n the elevator and ailerons for counterbalance. Lead weights are supported
by aluminium straps to prevent failure through drilled holes. Replacement of pull rivets necessitates using a new lead weight due to
damage. 48 weights i n various sizes are used to balance aero-surfaces, and are retained by various attach methods.
ALUM
_£AD"
Description of proposed change: Substitute cast depleted uranium f o r counterbalances. Reduces volume or quantity by 42 per cent
and eliminates need f o r aluminium straps. Permits re-use of weights after rivet removal. Permits greater standardisation i n fasteners.
Remarks: Depleted uranium furnished at no cost to D o D customers. Casting cost should be less than handling lead.
Weight of lead 0-40 l b / i n
3
Sfi
Weight of uranium 0-69 l b / i n
3
A
Russell and Whitehead
'Principia Mathematica'
Bertrand Russell observed i n 1937 that 'Principia Mathematica',
which he wrote w i t h his tutor, A . N . Whitehead, 'was of great
importance i n its day'. I n fact i t is his supreme achievement and
remains of great importance still.
Its chief purpose was to produce a unitary and strictly deductive
system of rational knowledge, embracing a logic vastly more
comprehensive than Aristotle's, as well as the whole o f mathematics. I t has been shown that this aim cannot be achieved, but the
value of the work is unquestionable.
It presents in an authoritative and fully articulate f o r m the two
main branches of fundamental logic, the calculi of propositions
and predicates, which remain the essential primary ingredients of
all logical study. On the philosophical side it contains two vitally
important theories, the theory of types and the theory of descriptions, still in the forefront of discussion.
68
The theory of types
The theory o f types was designed to protect the system against
the fact that grammatically acceptable assertions can be logically
meaningless. I t has exerted influence i n two directions. It provoked philosophers to undertake the investigations into the
conditions under which words have meaning that have occupied
so much of their attention i n the ensuing years. It led logicians to
that inquiry into the properties of logical system-, which, rather
than the development of fresh systems, has been ihc most active
region of logical study in recent times
T h e theory of descriptions
The theory of descriptions has nui nnl> ii» iniimsic interest, which
is still very much alive. I H I I »IM» *n eteinplary value. One o f
Russell's ablest diwtple* M I W » ' « | M M * l i « m of philosophy'.
I <t£»r f n/inerrliifi, September
1969
Reprint No. 2:2:2
Basic Concepts - Management
Appreciation
The Challenges that Lie Ahead
by Lawrence D. Miles*
The author, one of the pathfinders in V.A., believes that
we can explain more effectively what value analysis is,
and help extend its application, if we identify it in more
general terms for what it is - a tremendous problemsolving method.
In the next five years he sees changes being made in V.A.
which will allow it to fit more closely into the different
types of business management. Because value analysis is
a tremendous problem-solving method, the place for it to
be used is in mature businesses. Value Analysis already
has staked its claim in the more turbulent type of business.
Appended to this article is an interesting footnote on the
origin of the term 'Value Analysis'.
Each year I learn more and more of the importance of having"
objects i n a suitable framework i n order to make them useful.
Most of you know that between 1947 and 1953 General Electric
spent about a third of a million dollars a year f o r about five
years i n developing the basic techniques o f Value Analysis. I t
spent about S2 million to get this disciplined thinking system
put together to accomplish its j o b .
ceived so much direct or indirect criticism f r o m responsible
management people, we may feel we are second class citizens and
that the system is not fugged and virile and something f o r the
top o f the deck. For the moment we're going to remove such
thoughts f r o m our m i n d ; we're going to look at this positive,
strong idea and see where we go f r o m here, and what we do with
it.
In R e t r o s p e c t
I want to look back just f o r a minute. I want to pick out a few of
the things that we know are good - and bad.
The basic question is: what do we really have i n Value Analysis?
What we have is a tremendous problem-solving system.
We know that Value Analysis has made unprofitable products
profitable. We know it has turned around businesses. We know
it has simplified designs. We know i t has improved manufacturing. We know it has gotten new sales. We know i t has safeguarded old businesses f r o m competition. We know i t has given
men new abilities and allowed certain men to 'take off'. We know
it has simplified maintenance. We know i t has provided better
weapons. We know i t has improved management practices. We
know i t has improved services.
We know also that there have been negative results. We know
that i t has hurt technical professionals and management professionals who have built their reputation on doing things one way.
We know it has hurt the administrator or professional who built
his personal reciprocal favor w i t h particular people by using
certain systems, methods, or processes. We know it has hurt the
seller who continues to sell his merchandise only because of his
customers' ignorance. We know i t has hurt the administrator who
is measured by his superior principally by the number of heads he
takes o f f the payroll during a crisis. We know i t has hurt the
people who report directly to the company president, who
mistakenly believes that his top men were already doing about
all that can be done to reduce cost without taking out quality;
and we know i t has hurt value analysts themselves who have
shown themselves to be so effective i n making improvements that
it embarrasses their co-workers and their superiors.
F r o m here, let's move into the future. We won't discuss the
large amount of poor Value Analysis work which is done when
people are only partially trained, or use the name only.
In P r o s p e c t
Now let's look down the pike. But first, let's get over our i n feriority complex about Value Analysis. Because we have re-
* Mr Larry Miles,
of Miles Associates,
Box 4740,
Washington,
D.C,
U.S.A.,
needs no
introduction.
Recipient
of the Distinguished
Public
Service
Award
for 'benefits
to the United States',
he was
one
of the pathfinders
in Value Analysis.
This
article is printed
with the kind permission
of Value
Analysis
Incorporated.
It is based on a paper
and
discussion
at the Tenth Anniversary
Conference
held at Miami Beach, Florida, in November
1968.
Value Engineering,
September
1969
Another question: Is i t useful i n solving cost problems? The
answer to that is, n o ; perhaps, yes. I ' l l tell you what I mean. I
say 'no' because the orderly, step-by-step thinking systems and
the search systems which start w i t h determining what we are
really trying to do, regardless of any other condition, proceed
with exhaustive development information. We then jell up the
key problems which, when solved, w i l l make lots o f difference.
We then move into the creative solutions, the judicial actions.
This type of disciplined thinking fits all problem-solving, as well
as the cost problem. For example, lighter weight, more performance, smaller size, better sales appearance, more sales, less noise,
better management. A general manager, who took a 120-hour
seminar wrote a three-page letter to the president o f the company and said that 'when our top management starts using
these methods of Value Analysis i n their considerations most
of the problems that we spend most of our time on will disappear.'
I haven't seen anything that changes my views on that. I t also
shows that i t is suitable f o r solving other problems.
I answer the question also 'yes' because the present Value
Analysis system o f disciplined thinking has added to i t much
supplementary procedure and technique that is particularly
adaptable to reducing costs, to getting functions f o r costs; so that
i f we take the whole book and all the package o f techniques we
have, not just the 'heart' problem-solving system, we see that we
have attached to this heart a specific field of knowledge and o f
technique that is tailored to solving the cost problem.
There is no reason why other fields o f knowledge, and other
patterns of techniques suitable to achieving other objectives that
are important to management, cannot be 'attached' to this
problem-solving system.
Examples of Application
For example, take the subject o f 'light weight'. I remember the
first V . A . seminar we held on the G E J-79 jet engine. There was
some apprehension that using Value Analysis techniques would
add weight. As soon as the seminar was over there was the
possibility of removing 30 pounds of weight, which came by
accident, not by intention; ten pounds was immediately removed.
When they were 'frightening' us with the possibility that these
alternatives might add weight, they said, 'We will penalise you
$3,000 per plane per pound for any weight you add.' I asked them
how much credit we would get f o r any weight we removed, and
they said, 'None. That's just a side issue.'
69
Let's not forget lower maintenance cost because of a simpler,
better way of doing the j o b .
'Better appearance.' I remember one project that had a cost of
$43. A l l engineering and manufacturing work were done i n
creating the new product and it was ready to tool. The general
manager said, 'Now, I want to find out i f this problem-solving
system w i l l do even more.' A couple of months later the cost was
reduced to S8 and the new product looked so much better than
its predecessor that the sales department would have no part of it.
Again, as a side objective, the appearance was drastically
improved. What I am stressing is that we don't have to keep our
technology just where i t is and look only at cost w i t h these other
objectives being the side issue. Soon we are going to start fitting
it i n to solve these other problems faster and more efficiently.
Cost Decisions
Y o u might ask the question: W h y was Value Analysis first used
i n the cost area?
Cost decisions are relatively unscientific. They are often thought
to be mixed i n w i t h a man's professional reputation and considered very personal. Often, they are not supported by meaningf u l and satisfactory data. There seemed to be, therefore, a greater
need to use this problem-solving system i n the cost area first.
A n d that's essentially where i t has stayed until now.
I t is simple f o r me to understand why I used it first i n the cost
area. Removing cost was my job. But many people asked, 'Can't
I use this system to improve performance instead of to lower
cost?' For 20 years I always said, ' N o . ' I am changing my
answer today. I always said, ' N o , ' f o r 'Political' reasons. I didn't
want to put this young technology into f u l l class competition with
everything and with everybody. I f we had said that i t w i l l help
the engineer improve his performance, i t would have been looked
upon as a competitor to engineering.
This is the reason why until today I have always kept Value
Analysis confined to the field o f cost. I am saying that i t is strong
enough now to pull its own weight. Its methodology is well
known, its problem-solving ability proven, so that the future will
see men using i t i n many other areas. Perhaps they will call it by a
different name, perhaps by many different names, but they will
use this tremendous problem-solving system.
Now, I want to move to the other part of my discussion: What is
ahead i n the use of Value Analysis i n its original f i e l d - t h e
efficient identification of unnecessary costs.
I would like to use the analogy that is in the Conference
Program,* that we require good seed and good soil and proper
nourishment. I t was first necessary to put together something
that would get results in favorable conditions, and this is not
unlike the way any new plant is developed.
That has been done. We have the good seed. Firms like Value
Analysis Incorporated are teaching it with a thoroughness and
w i t h a skill that people can learn it.
New Applications
N o w i t is time f o r the next move, to put this plant i n soil that is
not suited to it where it will not bring f o r t h the f r u i t that it is
capable of. The first steps we've been going through these years
were to pick the places where the soil was fertile enough so that i t
could bear reasonable f r u i t and then, o f course, by communication, endeavor to make the soil even more fertile.
We are now moving into the stage where the development of the
soil and the development o f the seed should proceed forward as
one project. I t becomes essential that we i n Value Analysis work
to help modify the management of areas into which the work w i l l
go. A t the same time we must further change our approaches i n
Value Analysis so that we are modifying the seed and the soil
together without taking the strength out of the problem-solving
approach.
* Tenth Anniversary Conference sponsored by Value Analysis
Incorporated and held at M i a m i Beach, Florida, i n November
1968.
70
I am sure that the next five years w i l l see us make changes which
w i l l allow us to fit i t closer into the types of business management
that we find, and that we can help to modify to fit i t . So now the
task is to modify both so that the real management problems
become less and less as we look down the pike.
We must eliminate embarrassment. We must eliminate the feeling
of competition between industrial engineering, and between
engineering, and perhaps other functions. We must present it f o r
what it is.
Now, back to the question of what i t is. Value Analysis is a
superior problem-solving system.
Because we regard Value Analysis as a tremendous problemsolving system, the place f o r it to be used is i n the mature
businesses. I f a mature business uses the superior problem-solving
system that is Value Analysis, quality w i l l be maintained, and
whatever weaknesses it has will be identified and minimised. Such
a company will endure.
The best comparison to the use of Value Analysis to solve the
problems due to the competition faced by the mature business is
to think of it in terms of 'coaching of .champions'. D o you know
of any winning teams who, because they are at the top, don't have
coaches? D o you think that the men who are superior golfers
do not have coaches ? D o you think that just because golf is a
mature game, and that they are good at i t , that they go into these
tournaments without coaching?
I n a certain respect, using Value Analysis i n a matured business
is like teams competing i n the W o r l d Series. They are good or
they wouldn't be i n that matured business. Their competition is
also good.
Summarising
To me, this offers one o f the greatest opportunities f o r Value
Analysis.
I would summarise my comments by saying that I believe we can
communicate more effectively what Value Analysis is, and help
in furthering its use, i f we identify i t i n more general terms f o r
what i t is - a tremendous problem-solving system. I was interested
to hear Value Analysis called 'just horse sense'. I t is horse sense,
but it is also a tightly tailored system built around the way men's
minds work and the way information must be gathered, the way
the judicial part of the mind must be held back while we search
for new systems. I t is disciplined thinking.
Next, the future will bring us the use of this problem-solving
method f o r achieving other objectives. I n the cost field, I can say
that in the turbulent type of business, its place is quite well staked
out. I n the non-turbulent type of business, the highly competitive
mature type of business, it will be considered as essential as the
coaching of champions - a problem-solving system used by
people who are making the decisions so that the one who has this
coaching will stay i n business and will be the winner.
An Interesting Query
How, M r Miles, did you arrive at the term, 'Value
Analysis' ? When was this cost reduction technique first
called, 'Value Analysis?'
M r Miles: I n early 1948 I had much evidence o f the
effectiveness of this functional approach. M y boss was
the Vice-President o f Purchasing f o r G E . He set up a
meeting with Harry Winne, the Vice-President of
Engineering. We showed h i m some results, hoping to
get his support. We got his wholehearted support and he
said, 'What are you going to call this? This is the best
method yet found to help engineers identify
unnecessary
costs, either before they design, or on redesigns.'
I said, ' I don't know what to call i t . ' Harry Winne said,
'What you are really doing is dealing with value because
value has a performance and a cost part.' A n d then he
said, 'Why don't you call it Value Analysis?' I was so
pleased to get his support, I said, 'Value Analysis i t is.'
Value Engineering,
September
1969
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Value Engineering,
September
1969
& Technical Publications Division, Pergamon
Press Ltd.,
71
MISCELLANY
T h e t w o - s t a g e modification of o b s t a c l e s
M r P. F . Thew i n his address to the Engineering Materials and
Design Association's symposium (10/11/64) suggests this method
f o r helping to overcome obstacles:
These usually result f r o m negative thinking. Everyone has an
inbuilt desire to be right or be thought right. This very often gets
distorted when someone thinks they are better by saying ' I told
you so' than the man who tried to make i t work.
When you are not sure i t is always easier to say ' I t w i l l not work'
than to find out how to make it work. This is obviously the wrong
approach f o r cost improvement.
The following examples show how obstacles can be modified i n
two easy stages until they provide solutions to the problem. This
does not mean that every obstacle can be solved. I t does, however,
ensure that every idea is judged on its merits and not by falsely
preconceived ideas.
Obstacle
I t won't work
We always do it
that way
Obstacle turned
through 90 degrees
Obstacle turned
through 180 degrees
I f we could overcome
the problem i t would
work
By changing X i t now
works
W h y do we always
do i t that way ?
By changing the
method we save 30 %
of the cost
I t works, why
change it ?
There must be a
cheaper way to do i t
This is just as efficient
and much cheaper
The customer
would not like it
Let's ask the
customer
The customer prefers
it, always wanted i t ,
but did not know it
was possible
We tried that 10
years ago
Conditions have
changed, let's t r y
again
W i t h the new process,
the problem is now
solved
Lower cost
means lower
quality
Can we use cheaper
material and maintain the quality ?
This new material is
just as good and half
the price
We could not
pay f o r the tools
Could we pay f o r the
tools?
Using simple tools we
pay f o r them i n six
months
Current British Directories. Edited by G . P . Henderson and I . G .
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organisations in a particular industry, trade or group.
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Scientific Research in British Universities and Colleges, 1967-68.
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Sciences). H . M . S . O . 1,419 pp. 130s.
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*
*
*
Value Analysis or C o s t Reduction ?
Cost reduction is normally concerned with reducing the cost of a
part of product.
Value Analysis is concerned with reducing the cost of performing
a given function.
The Information Basic Basics
Directory of British Associations, 1967-68. Bcckcnham, Kent,
C.B.D. Research Ltd. 293 pp. 80s.
Covers the interests, activities and publications of trade associations, scientific and technical societies, professional institutes,
learned societies, research organisations, chambers of trade and
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72
T o illustrate take the alternative approaches to making savings
on the rat trap.
1. Cost reduction applied to a rat trap would consider the base,
the spring, etc., and reduce the cost o f manufacture f r o m Is. to
lOd.
2. Value Analysis applied to a rat trap would consider its function. This would probably result i n the use of three-penny w o r t h
of rat poison. The quality being enhanced because the rat would
die somewhere else.
Value Engineering,
September
1969
Reprint
No. 2:2:3
Indirect
Costs - Value Assurance
— Basic
Concepts
Value A s s u r a n c e - A Hidden Management
Development Tool
by Fred C. Schwarz*
After outlining
the growth of value assurance, the author
answers
the question
'How can a value
assurance
program be launched?'
Following
out the five-phase
Job
Plan which includes - information,
speculative,
planning,
execution
and reporting
phases - Professor
Schwarz
shows its relationship
to the solution of problems and the
development
of specific management
skills.
Value assurance may also be applied to indirect costs. The
basic function of each of these costs can be stated in two
words - the verb/noun.
Next it may be determined if the
function is necessary, how much it will cost, what is the
alternative, how much would this alternative cost, and so
on.
'Value assurance' - quotes the author - 'is
fundamental;
it's basic; it's not a trick. It isn't a fancy set of symbols or a
particular
magic formula which you repeat like a witch
doctor's chant. It's a return to a way of looking at problems
that goes right back to the fundamentals
that underlie any
effective problem of solving
activity.
When American industry speaks of its problems i n light of
today's economic situation, it talks first of cost improvement
and next of developing management talent, f o r these are times
of rising costs, the profit squeeze, and high competition. The
need f o r better profit return, and the human imagination to
gain it, is probably greater now than ever before.
method as a means of reducing costs of purchasable equipment.
Miles' program caught hold fast throughout industry and the
Department of Defense. The Bureau of Ships o f the U.S. Navy
was one o f the first Department of Defense organisations to
establish a value assurance program, labeled by them 'Value
Engineering'.
There exists today a management tool which gets at both
problems. I t is called 'value assurance', or as i t is known by
other names: 'Value Engineering', 'value control', 'value i m provement', and 'Value Analysis'. I t is beginning to prove itself
consistently and w i t h startling results as a reliable method o f
cost improvement. But to associate a value assurance only with
cost improvement is to ignore a very valuable second function
which this profit improvement program can provide no less
dynamically - development of quality management timber.
I t is the latter function o f value assurance w i t h which this article
w i l l deal i n the main. I n an introductory sense, however, value
assurance first needs to be explained and defined.
Since those earlier days, value assurance has become an integral
part of the operations of hundreds of companies. First efforts
were placed particularly with purchasing and engineering
departments. But it has now become apparent, as value assurance
has evolved, that cost control is not effected by single departments
operating independently. As a result, value assurance has come
to imply inter-departmental efforts at cost control, and now is
seen as a corporate function rather than the function o f one
particular department or another. I n fact, a survey by the
Electronic Industries Association indicates that the value
assurance function tends to report to the higher management
levels. For companies of over 3,000 employees, value assurance
reported to the general manager or president i n 16 per cent o f
the cases; to the vice president or section manager i n 61 per cent
of the cases; and to supervisors or unit managers i n 23 per cent
of the cases.
Value assurance history
Value assurance programs actually have their roots i n the work
simplification processes established by Allen Mogenson back i n
the depression days. The disciplines used i n all value assurance
programs are traceable to the Gilbreths, Frederick Taylor and
numerous others who contributed initially to the lore o f scientific management.
Value programs as such owe their existence to L . D . Miles, an
engineer f o r General Electric who, i n 1945, came up w i t h the
* Fred C. Schwarz
is an Assistant
Professor
at the
University
of
Wisconsin
in the
Management
Institute.
Prior to joining
this staff,
he was
Corporate
Director
of Manpower
Development
for
Honeywell.
Additional
industrial
background
includes experience
as. Personnel
Manager
for the
Vitro Laboratories
in West Orange, New Jersey and
Silver
Spring,
Maryland
and for the
Applied
Physics
Laboratory,
John Hopkins
University.
He
has also conducted
various management
seminars
for several professional
societies.
His address
is:
The University
of Wisconsin,
432 North
Lake
Street,
Madison,
Wisconsin
53706,
U.S.A.
Value Engineering,
September
1969
Today, we are seeing value assurance move directly into the
managerial spotlight. Companies are reporting savings as
much as 30 - 40 per cent on specific equipment. I n recognition
of these results, the Department of Defense announced i n
December, 1962, that i t was making value programs prerequisite on all government contracts o f over $100,000. The
Department's interest is not new. I n 1961, then-Deputy Assistant
Secretary o f Defense James N . Davis emphasised the growing
importance of value programs to government and private
industry alike by describing what he called 'a basic fact o f
life:'
The Department of Defense is determined to discourage waste
by improving its contracting arrangements, particularly by
rewarding success and penalising failure. I t is quite apparent
that industrial management is analysing carefully the i m plication of these various statements. I f incentive type contracting is the trend of the future, Value Engineering w i l l be a
valuable asset to management i n adjusting to this trend. I n
any event, whether used on incentive bases or not, Value
Engineering is an indispensable instrument f o r economic
survival.
73
The repeated and urgent demand of the Defense Department
for cost reduction is not a mere repeat of an old refrain. I t
reflects rather acute recognition that the cold war is not
exclusively a competition between technological and military
capabilities. I t is also a test of our economic structure. The
viability o f this structure is derived f r o m competition. Waste,
on the other hand, erodes and undermines i t . A n d to a major
degree, waste reflects inadequate competition. I t seems to me,
then, that management i n its own interests and i n the national
interest, would be well advised to exploit every available
tool, technical and administrative, to keep itself competitive.
Accordingly, activities such as Value Engineering should be
incorporated into industrial practice as a routine capability.*
The Department o f Defense stated last spring that it expected
a saving of $64 millions on the fiscal year ending June 1, 1963,
and that i t was shooting f o r a saving o f $100 millions via value
programs f o r the present fiscal year. Recently, the Department
of Defense also set up a traveling team to meet with top management of government contracting firms at various points around
the country i n an effort to explain value assurance and what
w i l l be involved i n the Armed Services Procurement Regulations
for government contracts.
As this article goes to press, emphasis among educators on
value assurance is becoming evident. Dean Albert Everett o f
Northeastern University has been quoted as saying that all
engineering schools w i l l eventually have Value Engineering
courses i n their curricula, due to pressure f r o m industry f o r
more cost-conscious engineering graduates.
W h a t is value a s s u r a n c e ?
The obvious questions at this point are, o f course, what is
value assurance and how does i t w o r k ? Very simply, value
assurance is a systematic method of determining the function
of a product or service, placing a dollar value on that function,
and then endeavoring to provide that function at an optimum
cost. I t is not a magic f o r m u l a ; i t does not replace traditional
methods of cutting costs; and, as has been noted, i t does not
associate itself w i t h any one particular department i n the
organisational structure. Rather, i t is a broad, imaginative,
on-going, objective method of determining what changes can be
made and where they can be made to improve a company's
profit picture.
The f o u r immediate goals of the value assurance program are:
to overcome resistance to change within the organisation,
to recognise the importance of the task force approach, to
control costs and improve profits, and to develop, by implementat i o n o f the preceding three steps, skills needed i n industrial
management. I t is obvious f r o m these goals that value assurance
is concerned w i t h other goals besides cost improvement. H o w ever, the predominate emphasis by manufacturing today is
on value assurance as a cost-cutting tool.
Implementing a value assurance program
A value assurance program is launched by a four-step series
of actions:
1.
Indoctrination o f top management personnel concerning
value assurance objectives.
2.
Training task force teams i n the elements and tools of
value assurance.
3. Organisation of the task force teams f r o m various departments within the organisation.
4.
Application of value assurance tools and techniques on
selected projects.
• J A M E S N . D A V I S , 'Value Engineering and National Defense',
Address given before the Southern California Chuptcr of the
Society of American Value Engineers, Los Angeles, California,
November 9, 1961.
74
The task force team will then investigate its assigned project i n
an effort to s u p p l y - a t a better c o s t - t h e same function o f
the specific part of the service i t is assigned. The team may
identify an unnecessary function on the production line; i t
may suggest a better way to make the same part by a change i n
design or material; i t may suggest simplification o f a part, or
even elimination of that part altogether. A series of task force
teams, combining the value assurance tools and techniques
w i t h their own imagination, might conceivably arrive at a whole
collection o f cost-improving suggestions which affect the entire
manufacturing process.
Time and again value assurance has shown its worth i n this
area o f cost improvement. But i t also has a second important
application - management development - that should not go
unheeded. The methods and techniques inherent to the value
assurance approach can be seen as fundamental, basic and
valuable steps f o r developing managerial talent.
How can value assurance accomplish this? First, let's review
the previously mentioned steps involved i n implementing a
value assurance program. The appreciation session consists
of at least one f u l l day o f explanation to top management and
should involve an exercise on an actual problem i n which the
tools and techniques of value assurance are explained. I n f o r mation such as specifics of length o f training f o r task force
teams (normally a minimum o f 40 hours) and the results which
can be expected (sometimes as much as a five to ten dollars return
on each dollar invested i n the program) are explained. I n step
two, the training o f the task force teams, anywhere f r o m f o u r
to forty employees at a time are trained i n a seminar. The
seminar is characterised by a workshop on company products
and services. A checklist to be used f o r selecting a project f o r
task force study and analysis is shown i n Figure 1. Composition
of the task force teams is usually f r o m production, procurement,
engineering, design, accounting, marketing, and other departments represented i n the company organisation. Following
several hours o f indoctrination, the teams are then given a
project to examine.
The task force team is guided i n its efforts by use o f the five-step
job plan shown i n Figure 2. Each of these phases can be considered a lesson i n management skills as well as a phase i n the
cost improvement function o f value assurance. The series o f
information phase, speculative phase, planning phase, execution
phase, and reporting phase is readily recognised as the scientific
approach to problem solving.
Five-phase job plan
I n the information phase the task study group proceeds to gather
all the background information on the project or service selected
for study. First, and a most important step i n the whole sequence,
is establishing the basic function of the product or service.
Here the group members are asked to describe the basic function
i n two words, a noun and a verb. For example, i f a car has been
chosen f o r study, i t would be decided that the basic function o f
the car is to 'transport weight'. The secondary and tertiary
functions may also be listed. However, establishing the basic
function i n two words is the heart of the information phase.
The speculative phase is one characterised by creative thinking.
The task group attempts to develop a resource list of alternate
parts, products or services which will perform the same basic
function as the item being studied. The technique o f 'brainstorming', i f utilised with proper direction, can contribute
significantly to the success of this phase. The demarkation
between phases is not as clear cut as might be expected. Frequently an idea for an alternate part or service creates a need
for more information. Therefore it requires going back to phase
one. Figure 2 shows the interchange between the various phases.
The third, or planning, phase is concerned w i t h the sifting and
analysis of ideas generated in the speculative phase. Care must
be taken to uvoid the common human tendency to reject new
ideas because of biases. One objective o f the program is to
develop acceptance to change. I f a negative attitude prevails
;
Value Engineering,
September
1969
TESTS FOR VALUE
Our Challenge... Our Obligation
Every material, every part, every operation
must pass these tests
1.
Does its use contribute value ?
6.
Can a standard product be f o u n d which will
be usable ?
2.
Is its cost proportionate to its usefulness ?
7.
Is it made on proper tooling - considering
quantities used?
3.
Does it need all of its features ?
8.
D o material, reasonable labor, overhead and
profit total its cost ?
4.
Is there anything better f o r the intended use ?
9.
W i l l another dependable supplier provide it
for less ?
5.
Can a usable part be made by a lower cost
method?
10.
Is anyone buying it f o r less ?
MANAGEMENT CONTROL
SPARK C ^ E ^
AND A N A L Y S I S D I V I S I O N
p
l
u
VALUE ANALYSIS
DEPARTMENT
g
T H E ELECTRONICS DIVISION O F GENERAL MOTORS CORPORATION
Reproduced by permission
Fig. 1
among those responsible f o r the growth o f the organisation,
a value assurance plan should produce a desirable change i n
behavior. The essence o f the planning phase is to consider what
else will do the j o b , and to determine its cost.
I n the next phase - the execution phase - the task group evaluates
the new product part or service by comparing its cost to the
price paid f o r the product or service presently used. Costs are
assigned according to function, a method which contributes
to accurate determination of potential savings.
The reporting phase entails selling the idea to those concerned.
Many fine ideas are rejected because of poor salesmanship, and
V a l u e A s s u r a n c e J o b Plan W o r k F l o w
SOURCE
LOW VALUE
HIGH COST ITEMS
the value o f any project is negated unless its results are successf u l l y communicated to those who will approve or utilise its
findings. I n a complete value assurance program, each task
study group is required to make a formal presentation before
management and its peers on the analysis and savings o f the
proposed improvement. This minimises the possibility o f presenting incomplete or inaccurate ideas as alternate solutions.
I t also requires that good recording habits be exercised i n all
preceding phases.
Value assurance and management development
What is the connection between a value assurance program and
the development o f management talent? Let's briefly review
some of the skills and qualifications of a good manager. The j o b
of managing is usually considered to possess many parts and
S t e p s of the
Scientific Approach
to S o l v i n g Problems
S t e p s of the
Value Assurance
Approach
ACTION
ON SOLUTION
SELECT A N D
DEVELOP
SOLUTIONS
i
CONSIDER
SOLUTIONS
ANALYSE
INFORMATION
GATHER
INFORMATION
ITEM BY ITEM T O
L I N E A U T H O R I T Y FOR
ACTION FOLLOWED BY
COMPOSITE REPORT
Fig. 2
Value Engineering,
I
I
REPORTING
PHASE
EXECUTION
PHASE
PLANNING PHASE
ANALYSE
AND
DEVELOP IDEAS
SPECULATIVE
PHASE
DEFINE PROBLEM
INFORMATION PHASE
DETERMINE FUNCTION
GET T H E F A C T S
SELECT T H E PROBLEM
SELECT T H E PROJECT
Fig. 3
September
1969
75
therefore requires that results be obtained through other people.
The classical articles and texts state that a manager should be
able to plan, organise, direct, control and evaluate. Another
requisite of an effective manager is his ability to identify problems w i t h which he is confronted. The ability to analyse problems and solve them can be developed, and the procedures
followed i n a value assurance program lend themselves ideally
to the development of this ability.
The value assurance approach to problem solving is identical
to the scientific approach as shown i n Figure 3. The unique
difference i n using the value assurance program is that the
problems used are company problems which managers are
currently facing; the training experience i n a good value assurance program is entirely j o b related. Most other development
programs use case studies or other abstract situations i n an
attempt to teach management principles and techniques.
I n summary, the following diagram illustrates the direct relationships between the five steps of the value assurance j o b plan and
specific management skills.
communication vehicle i f top levels o f management participate.
I n one large midwestern manufacturing company the VicePresident of operations personally selects the projects f o r task
group study analysis. H e is present f o r the task group reports and
is apprised o f the implementation of the ideas or reasons f o r no
action.
Value assurance and indirect costs
Though the original programs of Value Analysis and Value
Engineering were concerned with purchased items and production
items, some recent application has been i n administrative
operations. The value assurance approach is equally effective i n
helping the knowledgeable manager reduce indirect costs. The
job plan may be used to analyse indirect costs such as these and
reduce them:
Administrative Functions
duplicating
employment
accounting
Value Assurance Job Plan
Phase One - Information
What is it?
What does it do?
What must it do?
What does it cost?
Management Skill Developed*
Planning, organising and
problem identification;
setting objectives f o r cost
control
Administrative Manpower
office supervisors
office specialists
clerical employees
Phase T w o - Speculative
Eliminate
Develop new information
Brainstorm
Exercising imagination;
developing new ideas
Facilities and Equipment
floor space
offices
files
Phase Three - Planning
What else w i l l do the j o b ?
What does that cost?
Critically analysing ideas
Phase Four - Execution
Evaluate by comparison
Use standards
Predict savings
Record
Making the best decision;
coordinating project
Phase Five - Reporting
Summarise
Make effective presentation
Sell your ideas
Establish plan f o r
implementation
Planning, controlling,
communicating
copying equipment
High investment return
A n unusual feature of the training period i n this program is
that there is a return on investment o f about five dollars or more
for each dollar invested. This contrasts sharply with the readily
apparent cost and the often unidentifiable return found i n most
other training programs. Measurement of savings i n one large
midwestern electronics firm is reported i n the millions o f dollars
each year, f o r the past three years. Few management development
programs can be measured i n terms o f profit improvement while
simultaneously providing a vehicle f o r developing management
skills.
There are also some intangible results which follow f r o m an
effective value assurance program. Since value assurance establishes task study groups on an inter-departmental basis, i t
requires cooperative effort to achieve results. The improved
inter-departmental communications and respect f o r previously
unknown abilities o f participants has more than paid f o r many
programs. This program can be an excellent management
•Conference leadership skills can be developed by rotating this
responsibility each day of the training period.
76
furniture
I t can be seen that the basic function of each o f the items or
groups listed can be determined and stated i n two words. Next
determine i f i t is necessary. I f so, what does i t cost? What else
w i l l do the j o b ? H o w much w i l l that cost? A frequent experience
in companies installing a value assurance program is that they are
unable to determine costs f o r specific operations. A n d , unless
these costs can be specified, their value and alternate sources can
hardly be determined. This revelation, although embarrassing, is
a step which may pay f o r a good part o f the program i n itself.
Perhaps the following excerpt f r o m a recent speech by M r G . E.
Morse, Vice-President o f Employee Relations f o r the Honeywell
Company, reflects the concept best of using a value assurance
program f o r the development of management talent: 'Value
assurance is fundamental; it's basic; it's not a trick. I t isn't a
fancy set o f symbols or a particular magic formula which you
repeat like the witch doctor's chant. It's a return to a way o f
looking at problems that goes right back to the fundamentals that
underlie any effective problem-solving activity. Value assurance
focuses not by coming up closer i n the sense o f the aerodynamicist's highly technical specialised training; not coming up closer
i n the terms of the techniques and formulae of the cost accountant, but i t focuses by stepping back, taking a look at a project i n
terms of its purpose, and asking certain simple, basic questions...
We need to take value assurance not as just another procedure but
as an experience that works its way into our method of thinking
about all o f our business problems . . . We see i n i t specific values
for the company as a whole and f o r the individual i n his career
development.'
M r Morse, i n citing the dual benefit of value assurance, has
described its most important and perhaps most appealing feature.
Certainly, today's business organisations cannot ignore cost
reduction as a factory influencing its short-term profit picture.
But i t is becoming equally apparent that the availability of a competent managerial corps will similarly influence a company's
long-run efforts to maximise profits. Never before has the direct
relationship between management education and profitability
been quite so evident and never before has the vehicle f o r
realising this goal been so readily available.
Value Engineering,
September
1969
Reprint No. 2:2:4
Indirect Costs - Maintenance -
Scheduling
Reducing Direct Labor Costs through
Short-Interval Scheduling
by Martin R. Smith*
Mr Martin Smith claims that indirect labour efficiency has
not received the attention it warrants and offers the aid of
short interval scheduling.
S.I.S. or Short Interval Scheduling is a management
system which enables non-routine
and semi-routine
operations to be controlled by making regular checks on
worker performance over brief spans of time.
Maximising the efficiency of indirect labor functions until
recently, has never been a prime goal of management. But the
pressure to be more effective w i t h fewer people always increases
in times of rising labor costs and shortages o f competent workers.
A d d to this the burgeoning ranks o f indirect labor jobs and the
problem becomes readily apparent. Many companies finding
themselves i n just this situation today are turning to short-interval
scheduling to ease the pressure. Some of them have been
astounded by the results the technique has achieved f o r them i n
such areas as maintenance, warehousing, engineering, materials
handling and clerical support.
SIS (short-interval scheduling) provides maximum control of
non-routine and semi-routine operations through regular checks
on worker performance over very brief spans of time. I t focuses
management's attention continuously on indirect labor activities
and encourages managers and supervisors to be constantly on the
lookout f o r improved operating methods. Most companies that
have applied the system to its operations have been able to slash
indirect labor costs by 20 to 30 per cent; some have reduced
indirect labor costs by as much as 70 per cent.
Typical Applications
The technique has been used by almost every type of business
conceivable and has been applied, i n one f o r m or another, to all
indirect labor activities. Used most frequently i n clerical and
maintenance operations, i t has been successful i n many other
indirect activities. Here are a few examples:
1. A prominent door and window frame manufacturer used the
technique i n its engineering department, where most of the work
was semi-routine. I t found i t could get by with 40 per cent fewer
engineering aides without impairing engineering quality or falling
behind i n its schedule.
2. A large maintenance department o f a New England paper m i l l
improved its services to manufacturing after installation o f SIS
while managing to reduce maintenance payroll costs by 25 per
cent.
3. W i t h i n six months after i t turned to SIS, a large New Y o r k
garment warehouse was turning over 10 per cent more goods
with 20 per cent fewer workers.
* Mr Martin
R. Smith,
is the author
of the
book
entitled
'Short-interval
Scheduling.'
His address is
53 Steele Avenue,
Sommerville,
New Jersey,
08876
U.S.A.
Value Engineering,
September
1969
1
Many companies who have adopted the system have been
able to reduce their indirect labour costs by around 25
per cent. It has been applied most frequently to clerical
and maintenance work. After explaining how S.I.S. works
the author lists the advantages which may be derived
from its application.
Before a company can put SIS into effect, i t must take a thorough
and objective look at itself to uncover inherent weakness and
problems i n its operations. I f a company does not have a welldefined and operating maintenance order system, f o r example,
this will impede the effectiveness of SIS i n the maintenance
department. The sooner such problems can be resolved, the
sooner the new scheduling system w i l l be productive.
H o w S.I.S. Works
Just how does a company go about applying SIS to one o f its
indirect labor operations? This can best be illustrated by using a
specific example. Let's assume the system is being instituted i n a
maintenance department o f a large metal fabrication plant.
The first step that management must undertake is the classification of all jobs i n the department and the establishment of realistic
hourly or bi-hourly standards of performance f o r each j o b . I n
maintenance SIS, work standards are generally applied to the
three recognisable segments of the maintenance function;
routine maintenance, preventive maintenance and emergency
maintenance. Time study, engineered standards, work estimating
or any other means of j o b measurement can be used to set the
standards. The objective is not to increase the craft workload, but
to establish levels o f performance that can be met comfortably
and sustained on a day-in, day-out basis.
Next, management must examine the entire maintenance structure, paying close attention to the work flow or maintenance
order system. F o r example, assume that the fabrication plant's
maintenance department has been instructed to rebuild a stamping press. The production superintendent issues a w o r k order
and gets approval f r o m the area maintenance supervisor. The
work order is forwarded to the maintenance administrative
section, where i t is logged and estimated, showing the crafts that
will do the j o b , the equipment that w i l l be needed, and the total
number of estimated man-hours.
D u r i n g the daily scheduling meeting o f maintenance supervision,
the j o b is assigned a priority according to its commitments. The
work order is subsequently broken down into daily segments and
inserted i n a tickler file which schedules work i n calendar
sequence. A project number is assigned to the j o b .
The day before the project is scheduled to commence, the
maintenance clerk pulls the tickler file and makes out workticket copies f o r each craft scheduled to work on the project. The
work tickets are forwarded to the applicable craft foremen, who
then schedule the men f o r the j o b .
Equipment and supplies are made ready, and the following
morning the craft foreman assigns his men to do the j o b . They
11
receive w o r k tickets specifying what is to be done, and the w o r k
is segmented to establish short-range goals. Each segment has
been assigned a time value by the foreman, based on the original
estimate, and the craftsmen are informed o f the goal.
some craftsmen consistently exceed the standards, he can see i f
their work methods might not enable other workers to l i f t their
output. I f this proves to be the case, higher standards can be
introduced throughout the department.
The project starts, and progress is checked at specified short-time
intervals by the foremen. I f the schedule is being attained, no
action is taken. I f the craftsman does not meet the standard, his
foreman checks with h i m immediately to find out why the target
has been missed. The craftsman may be using inefficient methods,
supplies may not be reaching h i m as they should or his tools may
not be functioning properly. Whatever the reason, the supervisor
notes this i n a 'schedule miss' sheet, which he turns over to the
department manager. The manager then sees to i t that the operator gets the assistance he needs - engineering help, maintenance
aid, supervisory coaching.
Short-interval scheduling offers these additional advantages:
The department manager gets a record o f the hourly performance
of all craftsmen, whether or not they f a l l behind the standard.
F r o m these data a 'schedule control' f o r m is filled out every two
hours. This lists the accomplishments i n man-hours o f individual
craftsmen and the entire department on both a bi-hourly and
cumulative basis f o r the day. The department as a whole and the
individual craftsmen are rated on the percentage o f maximum
scheduled output that has been achieved.
The Advantages
The 'schedule miss' sheet and the 'schedule control' f o r m are
filled out even after maintenance craftsmen have little trouble
meeting the new standards. I t is the continuous surveillance of
operating conditions and worker performance that makes SIS so
effective. The periodic reports alert supervisors and managers
to any new problems as soon as they appear. Some o f these may
be minor or isolated, but others may be symptomatic o f difficulties that could later disrupt production seriously i f not attended
to i n time. Similarly, i f the maintenance manager discovers that
1. The frequent appraisals of performance ensure that workers
will produce at the standard level or close to i t throughout the day.
When daily output totals are the only guide to performance, a
supervisor doesn't find out that a craftsman has not been turning
i n f u l l performance until the day is over and it's too late to do
anything about i t . This is particularly true i n indirect labor
activities where the jobs have seldom been expressed i n manhour standards.
2. The periodic analysis o f work-flow and operating methods
along w i t h procedures that are needed to keep the department's
performance up to standard provide a stimulus to managers,
department heads and supervisors to devise more effective
methods of operation.
3. Probably the most enticing advantage o f SIS is that i t instills
in both workers and supervisors an immediate sense o f urgency
to get the j o b done. The effect is psychological and occurs because
SIS establishes obtainable goals on a short range basis. Frequent
checks on work accomplishment enable a supervisor to remind a
worker very quickly that his work is below par and encourage
him to do better. I n effect, both parties stay on top o f the j o b .
To sum up, SIS gives management a high degree of control over
indirect labor functions. I t provides an environment i n which
workers function at top capacity without being overburdened.
Most companies that have installed the system have experienced a
decline of at least 20 per cent i n their labor costs. For concerns
whose operations have been rather loose, the savings are more
substantial.
Principles of Motion Economy
1. The two hands should begin as well as complete their motions
at the same time.
2. The two hands should not be idle at the same time except
during rest periods.
3. Motions o f the arms should be made i n opposite and symmetrical directions and should be made simultaneously.
4. H a n d motions should be confined to the lowest classification
w i t h which it is possible to perform the work satisfactorily.
5. Momentum should be employed to assist the worker wherever
possible, and it should be reduced to a minimum i f it must be
overcome by muscular effort.
12. ' D r o p deliveries' should be used where ever possible.
13. Materials and tools should be located to permit the best
sequence of motions.
14. Provisions should be made f o r adequate conditions f o r seeing. Good illumination is the first requirement f o r satisfactory
visual perception.
15. The height o f the w o r k place and the chair should preferably
be arranged so that alternate sitting and standing at work are
easily possible.
16. A chair of the type o f height to permit good posture should
be provided f o r every worker.
6. Smooth continuous motions of the hands are preferable to
zig-zag motions or straight-line motions involving sudden and
sharp changes in direction.
17. The hands should be relieved of all work that can be done
more advantageously by a j i g , fixture or a foot-operated device.
7. Ballistic (i.e. free swinging) movements are faster, easier and
more accurate than restricted or controlled movements.
19. Tools and materials should be pre-positioned wherever
possible.
8. Rhythm is essential to the smooth and automatic performance
of an operation, and the work should be arranged to permit easy
and natural rhythm wherever possible.
20. Where each finger performs some specific movement, such
as in typewriting, the load should be distributed i n accordance
with the inherent capacities o f the fingers.
9. There should be a definite and fixed place for all tools and
materials.
21. Handles such as those used on cranks and large screwdrivers
should be designed to permit as much o f the surface of the hand
to come i n contact with the handle as possible.
10. Tools, materials and controls should be located close in and
directly in front of the operator.
11. Gravity feed bins and containers should be used to deliver
the material close to the point of use.
78
18. Two or more tools should be combined wherever possible.
22. Levers, crossbars and hand wheels should be located i n such
positions that the operator can manipulate them w i t h the least
change i n body position and w i t h greatest mechanical advantages.
Value Engineering,
September
1969
Reprint
No.
2:2:5
Work Study - Basic Concepts
-
Training
Value Engineering—The Human Aspect
by Donald E. Williams"
The author
describes
a plantwide
program
combining
Work Simplification
and Value Engineering
which
was
developed at the Barber-Colman
Company. It had for its
objectives
the acceleration
of the improvement
of all
activities throughout
the company, and the
improvement
of the creative performance
of all employees on a continuing basis.
* ,
Problems
associated
with
V.E. are highlighted
in the '
article,
the Mogensen
approach
to improvement
explained,
and the company's
improvement
program
was
based on three steps - Appreciation
(why the
program
was necessary;
what it could accomplish;
and how
it
would
operate);
Education
(desire to improve
is not
enough — people must know how); and Application
(to
specific projects and involving
the entire
organisation).
Mr Williams'
conclusion
is that his management
is
pleased with the program because it furnishes a vehicle for
better management
of people's
improvement
potential
over the whole of the
company.
Can the total improvement results of a company be accelerated
by an organised plantwide program? Our competitive, profit
squeeze economy has led most companies to study this question
i n recent years.
There was general agreement that profit improvement could only
come f r o m people - continuous improvement i n their ideas,
attitudes, and performance.
This paper is a case history of the development and installation of
an improvement program by the management of the BarberColman Company. The program, called the Barber-Colman
Improvement Program (BCIP), combines W o r k Simplification
and Value Engineering.
T h e C o m p a n y in 1 9 6 2
The Company was a diversified manufacture w i t h approximately
5,000 people, largely i n two plants i n the Rockford, Illinois area.
Its product line varied f r o m minute electronic assemblies to 75 f t
long textile processing machines. Between these wide extremes
existed a variety of products utilising over 100,000 parts. This
diversity resulted i n a high percentage of engineering and
technical personnel.
Program goals
A n executive management group led by the president began
exploring the potential of a corporate program i n 1962. They
selected these conditions and objectives f o r consideration i n
developing the program:
1. Profit improvement, regardless of its importance, cannot
have the universal motivating value of performance or j o b
improvement.
I n 1960 the Company had been organised into four major
divisions made up of related products. Some staff functions had
not been divisionalised, but the objective i n decentralising had
been to divisionalise wherever feasible and the concept had been
expanded since the original plan was installed. The over-all result
of divisionalisation had been an improvement, but the sharing of
know-how between divisions had suffered.
2. Improvement ideas can, and ideally should, be developed by
all people.
3. Attitudes of people usually improve i n proportion to their
opportunity to submit ideas.
4. The creative potential of people is not being tapped.
5. Management practices often stifle creative potential.
6. Improvement ideas don't develop automatically - they need
to be encouraged.
These objectives were selected:
1. Accelerate the improvement rate i n all activities throughout
the company.
2. Improve the creative performance of people on a continuing
basis.
*Mr D. E. Williams
is Education
Manager
for
the
Barber-Colman
Company
of Rockford,
Illinois,
United
States
of America.
He is an
experienced
industrial
educationist
with a clear appreciation
of
the practical
difficulties
besetting
those who
would
try to gain the involvement
of every member
of the
company
in profit
improvement
and
individual
improvement
programs.
Value Engineering,
September
1969
Value Engineering for plantwide i m p r o v e m e n t ?
Some members of management had heard of the success of Value
Engineering (V.E.). A committee was directed to explore V . E . to
see i f this technique would satisfy the improvement program
objectives of the Company. Their report, i n early 1962, called
attention to the following weaknesses:
1. People growth, and planned involvement, seemed secondary
to dollars saved.
Dollars saved were necessary f o r profit improvement, but
the management wished to emphasise the improvement of
the day-by-day decisions and development of people.
2. Emphasis was directed toward improvement of hardware parts and assemblies.
Most books, articles, or oral reports about V . E . emphasised
the techniques, including the functional approach, the
determination of value, and the use of an organised
approach. The before and after examples used, particularly
i n 1962, were mostly of part and assembly improvement. I n
other words, V . E . seemed to be more useful i n improving
hardware than i n improving all activities.
3. Only a few 'experts' were involved rather than the entire
organisation.
79
Most V . E . plans stressed the training of a select group and
often created V . E . 'experts' whose sole duty was the
improving of existing hardware. The need f o r 'using good
human relations' was mentioned, but few suggestions were
given. I t appeared that improvements were made i n spite o f
people - not with them. V . E . was often introduced, and the
training conducted, by outside personnel which necessitated
internal management 'drop everything'. Although these
plans often resulted i n attractive cost reduction ideas, they
were not conducive to long program life.
4. Guidance f o r a 'do-it-yourself program was missing.
Most of the V . E . know-how existed i n a few companies or
w i t h a few consultants. The V . E . technique had not reached
the development stage where a great deal had been published. This shortage of installation know-how had been
overcome by some companies, but our management wanted
more information.
The survey committee reported that V.E. was a useful and effective discipline, but by itself would not satisfy the Company's
plantwide, all activities, people development need.
The search continued.
The Mogensen approach to improvement
Several members o f the management had read o f the W o r k
Simplification (WS) concept of A l l a n Mogensen and his staff.
Although many companies, including ours, referred to any f o r m
of cost reduction as W o r k Simplification, the Mogensen philosophy and principles seemed to have more breadth and depth,
and seemed w o r t h exploring. The exploring group f o u n d that
Mogensen's WS involved many, and ideally everyone, i n the
organisation. WS recommended the use of many tools of
improvement, selected to f i t the project, one of which was V . E .
I t was a broad program which actually developed an organisation's ability to manage its improvement potential through
development and involvement of its people. The developers of
WS stressed that 'successful programs were developed by people
- not imposed upon them', and directed their training towards
helping companies develop their own programs.
The executive management decided to install V.E., but within the
organisational framework and climate of Mogensen's W o r k
Simplification concept. They decided to send the Education
Manager to the 6-week W o r k Simplication Conference conducted
by Mogensen. The Education Manager would be responsible f o r
guiding and educating the management i n the development and
installation of the Company's improvement program to f i t the
Company's needs.
A f t e r the W o r k Simplification Conference, these steps were
taken under the direction o f the Education Manager:
T h e s t e p s in d e v e l o p i n g t h e p r o g r a m
What
i t would
2. Education - How to work with people, tools which could be
used f o r improvement, organisation of the program, and
practice i n use of the techniques on a real project.
Desire to improve is not enough - people must know how.
3. Application - Assignment of projects, scheduling of time,
and recognition o f improvement performance - on a
continuing basis.
Management of the Improvement Potential o f the entire
Organisation.
A more detailed description of each phase follows:
80
Next those persons reporting to the President received an
explanation. Part of that explanation was given by the President
and Education Manager. Because of the importance of complete
understanding by this group, A l l a n Mogensen was engaged f o r
an all-day, out-of-plant meeting. Program potential, necessary
steps, and what other companies had done, was the theme of his
presentation. A great deal of enthusiasm was generated i n this
meeting, therefore the meeting was a success.
The Sales, Engineering, Production Manager level received their
explanation i n a 3-hour, out-of-plant meeting. The President
explained why the program was necessary and what i t would do
for the participants and the Company. The Education Manager
explained what it would include and how i t would be organised.
This meeting was designed to create a receptive climate and i t was
successful. These people, and those mentioned i n the previous
paragraph, were given a 9-hour, out-of-plant refresher early i n
the third year of the program. The theme of the refresher was
'what the program can do f o r you as a manager'. This type o f
refresher needs to be repeated often.
Plans called f o r the balance o f the management to receive their
introduction to the program i n a 'boiled down' version of the
3-hour meeting. Extenuating circumstances caused a deletion o f
this plan i n favor o f oral man-to-man communication f r o m those
already oriented. The meeting plan would have been more
effective.
The balance of the people received their introductory explanation
through our house organ and by oral communication f r o m those
attending the appreciation meetings. This method was adequate,
but would have been better i f the line management had been
better informed as originally planned.
The approach in the entire Appreciation Phase was designed to
make people a part of the program, stimulate desire f o r i t , and
create the very important improvement climate. This phase took
time which wasn't immediately understood by everyone. Feedback f r o m the Appreciation Phase indicated that we errored i n
the direction of under, rather than over, communicating.
A t this time, 2\ years after the introduction o f the program, we
recognise the need f o r almost continuous reinforcement of the
Appreciation Phase.
I t has been said that creating desire only encourages a person to
do the best he knows - it doesn't improve his know-how. The
next phase solves this problem.
The Improvement Program was patterned closely after the recommendations presented i n the W o r k Simplification Conference and
was developed around these three phases:
1. Appreciation - Why program necessary,
accomplish, and How i t would operate.
Communication to everyone involved.
Appreciation phase
Mogensen refers to the necessity of whole-hearted support by
'the person i n the company who can say yes or no and mean it'.
We had that support. The President of our Company wanted
complete understanding o f the program and its potential. He
spent many hours gaining that understanding. His support
proved invaluable i n the program's early development. This step
should not be slighted.
Education phase
The executive group approved a 50-hour pilot training course
split as follows:
Hours
Material
6
Change and People - Resistance, resentment, and
getting acceptance - why improvement - benefits
for the participant.
4
General Improvement
Tools - Problem-solving
steps, flow process charting, practice i n team
problem-solving.
14
Value Engineering
Techniques - The functional
approach, value, the step-by-step plan, sources of
improvement help (internal and external) and the
presentation and report.
Value Engineering,
September
1969
YES
OR
NO
MAN
TOP
i EXECu
PILOT
GROUP
MANAGE.
MENT
MANAGEMENT
GROUP
1
/
/
Syr/RE
WORK
2.
MANAGE- I
MENT
GROUP
2
WORKED
GROUP
,
1
/
W RK
0
G
F E
ftO(jp
s
STEERING
COMMITTEE
BY PILOT
GROUP
^SUMMARIES)
3
PROJECT ?^
4^R£?°^
^
—
Fig. ].*
24
(approx.)
2
Three Phases of an Improvement
Improvement Practice - A n out-of-class team project on a real company product, process, or part.
N O T E : Experience with several training groups
indicated that a longer project often leads to a more
meaningful experience.
Report to Management - A n oral report by teams,
o f their project experience and their improvement
ideas. Attended by managers a m i n i m u m o f two
levels above the participant.
The first class was a selected pilot group of twenty key persons
who were responsible f o r recommending revisions i n the material
and approach f o r later application. The managers selected persons who were opinion leaders i n their areas. I n attempting to
match the training material and the Company's needs, i t was
f o u n d necessary to develop two courses. One course would have
an engineering/purchasing orientation or be hardware oriented.
The other course would be sales/office procedure oriented. This
split necessitated two pilot groups. The training approach was
identical through the first ten hours, but V . E . used i n the hardware group was replaced by Systems Charting and F o r m Design
improvement techniques i n the office procedure group. The real
project was hardware oriented i n the first group and office
procedure oriented i n the latter group. Both pilot group reports
were given to executive management i n out-of-plant dinner
meetings. These reports about real Company projects created
enthusiasm f o r the program's potential and offered a meaningful
recognition opportunity f o r the pilot group members.
A f t e r the training was revised to incorporate both pilot group's
recommendations, additional groups were trained. This k i n d o f
training will continue, with revisions to match the attendees
specific needs, as long as the managers think i t is economically
justifiable. The level at which training w i l l stop w i l l be determined
by our experience. Some companies include everyone i n the
organisation. The managers consider the improvement o f
attitude and the value of better day-to-day improvement decisions
in their economic justification.
Application phase
Many programs fall down after installation because there is no
organised plan f o r continuation. This is one o f the strongest
* Taken f r o m : ' W o r k Simplification' by Herbert F . Goodwin,
Factory Management and Maintenance, July 1958.
Value Engineering,
September
1969
f s
JOB
Program
points i n Mogensen's W o r k Simplification and therefore, our
Improvement Program.
A steering committee, chaired by an executive officer, gives our
program top management support, determines broad policies,
supplies top management recognition, and guarantees program
permanency. The Corporate Co-ordinator of the program serves
on the steering committee. He works between divisional coordinators and the steering committee to make certain the
Company receives maximum benefits and value f r o m the
program.
A n unexpected bonus appeared during the training period. The
four- or five-man project teams were manned by persons f r o m
different divisions. This mix improved the creativity and the
exchange o f know-how between divisions to such an extent that
this 'cross-polination' has been made a permanent part o f the
organised program.
Our experience confirms the wisdom of the three phase approach
with emphasis on the Application Phase. The Appreciation Phase
will generate desire f o r improvement, the Education Phase will
increase improvement know-how, but neither are effective unless
time f o r improvement is regularly scheduled. This scheduling of
time must be done by management. We feel that regular scheduling o f time is the key to a successful program. Our steering
committee has insisted that a portion o f each trainee's time be
budgeted f o r scheduled improvement activities.
Figure 1 shows the relationship of the three phases o f a
continuing improvement program.
Summary
Our management wanted t o :
1. Accelerate the improvement rate in all activities throughout
the Company.
2. Improve the creative performance of people on a continuing
basis.
Their investigation indicated that Value Engineering alone would
not f i t these needs. The three phases o f Mogensen's W o r k
Simplification concept, w i t h V . E . used as one o f many improvement tools, provided the climate, organisation, and techniques to
satisfy their objectives.
81
The Improvement Program is three years old. Two hundred
persons have been trained f r o m engineering, sales, purchasing,
personnel, and accounting functions - many f r o m high-level
management positions. Projects completed and partially completed have generated a great deal of enthusiam f o r the potential
of the program.
Has every manager i n the organisation used the program fully?
The answer is no. One hundred per cent utilisation w i l l probably
never occur. The manager's reasons are not always known, but
here are our best guesses:
1. Reluctance to invest time now f o r long-term benefits.
2. Feeling that team approach is less productive than individual effort.
3. Too busy 'putting out daily fires' to improve operations.
4. Reluctance to admit they don't know all answers and that
they need help.
Even though we don't have maximum utilisation, our management is pleased with the program because i t furnishes a vehicle f o r
better management o f people's improvement potential i n the
departments, divisions, and therefore, the Company. They feel
confident that day-by-day decisions by participants are improved
as a result o f their involvement and development, and their
improved enthusiasm and attitude.
Is there a better way to insure long-range profit improvement?
N O T E : See addenda for periodic
which was initiated in late 1962.
status
reports
of the
program
A d d e n d u m - J u l y 1966
BCIP is a method of managing the improvement process utilising
the W o r k Simplification combination of people, tools, and a
plan of action. As our manager's understanding o f the potential
of the concept grows, more of the program responsibility is being
shifted to the divisional organisation. For example, corporate
guidance, supplied by the original steering committee, has been
shifted to one corporate officer, and the time o f the Corporate
Coordinator and the Education Department has been reduced to
about half of the original amount. This change not only frees
corporate personnel f o r other assignments, but more important,
puts the responsibility for program success with those people who
w i l l benefit most f r o m i t .
A t the present time, the corporate staff is responsible f o r the
initial ten hours of training. The emphasis i n this training is on
the W o r k Simplification philosophy, the reaction o f people to
change, and an appreciation o f some of the improvement tools,
including Value Engineering. The training is designed to create
desire f o r the program f r o m the viewpoint of the attendee.
Determination o f additional training needs, and the implementation o f a plan of action, is the responsibility of the divisional
organisation. This approach results i n a program which fits
divisional needs.
A d d e n d u m - A p r i l 1967
Progress Report of B C I P s i n c e J u l y 1966
Two hundred and forty-six supervisors and key people have been
trained (total since program installation 630).
The material and teaching techniques have been improved.
Classes continue to be scheduled f o r two hours per day f o r five
consecutive days.
Training continues to be done by the corporate training staff.
Our objective is to delegate all or part of this to the line organisation w i t h corporate materials and format.
We are offering twenty hours o f after-hour volunteer training
similar to BCIP. Attendees consist largely of operating people,
f r o m the factory and office. The training emphasises improvement - why ?, how ?, and implementation w i t h existing company
systems. Sixty persons have completed this training, and i t will
continue.
We are developing a BCIP refresher f o r those who have attended
the training w i t h emphasis on the setting o f improvement goals.
The current objectives of the program were given i n a recent
letter by one of our Vice-Presidents. He said, 'Our program is
directed towards improvement i n all areas, including quality,
engineering, office procedures, or an improved way of doing
whatever has to be done. We put considerable emphasis on the
people aspect, that is, i n the training of our people to want to do
better regardless of their j o b . '
I n explaining why our training was reduced to ten hours, he
wrote, ' I n this way, we were able to reach more people and
encourage them to apply their knowledge i n their day to day
work, and not depend entirely upon specific projects f o r further
development. Formal projects are used only whenever they are
considered the most practical way of solving certain types o f
problems, usually those that entail more than one department.'
Enthusiasm f o r the program continues to be strong among all
levels of management and key people. Our executive management
feels that Mogensen's concept, implemented by BCIP, is our
pattern f o r leadership.
A d d e n d u m - November 1968
P r o g r e s s R e p o r t of B C I P s i n c e April 1967
One hundred and ninety-seven supervisors and key people have
attended the 10-hour BCIP class since the A p r i l 1967 report.
This number makes a total of 827 attendees since the start o f the
program.
One hundred and forty supervisors and key people have not
attended and i t is our plan to offer the class to them by the
Summer of 1969.
The line management has accepted the responsibility of applying
the BCIP concepts i n the day-to-day work. The line management
also has agreed to accept the responsibility f o r additional BCIP
training after the above supervisors and key people are covered.
The corporate education staff will develop the training materials
and will offer guidance to the line organisation.
Three hundred and eighty-four people have been trained to date,
starting with the president and continuing through the organisation. The training rate is approximately forty people per month.
It is our objective to train all supervisory and key people before
involving others i n the program.
The BCIP class material and teaching techniques continue to be
improved based on feedback and class experience. Classes are
conducted two hours per day on five consecutive days. The
training rate is approximately twenty persons per month.
Since BCIP is a dynamic program, i t is constantly being reviewed
for improvement possibilities. I t has been our practice to hold top
management refreshers no less than once a year. This practice will
be continued and extended to additional management. Changes
have been made in the program and enthusiasm is stronger today
than at any time since its introduction.
Three hundred and fifty graduates of the BCIP training have
attended a 1 | hour refresher developed by the corporate education staff but conducted by the line organisation. Our plan is f o r
all graduates to attend the refresher approximately one year after
the 10-hour class. We feel that periodic refreshers are necessary
and worthwhile.
82
Value Engineering,
September
1969
1
There is a growing interest by the line management to offer a
version of BCIP to additional levels of employees, both office and
shop, which will be conducted by the line organisation with
corporate education department guidance.
Is it a high cost, bottleneck, or trouble item?
W i l l the return justify the project cost ?
Does the Project Team's resources match the j o b to be done?
The objectives of BCIP have changed somewhat since its inception. We are putting more and more emphasis on stimulating the
desire f o r personal improvement and reviewing or learning
techniques f o r overcoming resistance to change and resentment
of criticism where improvement is involved. We feel that the key
to better personal performance is better techniques o f working
w i t h others.
2. Get the Facts - Support information
What is it?
What does it do ? (Function)
How does i t work?
What does it cost?
What is i t worth?
What are the specifications ?
Is it used i n other units ?
What is its history?
Our top management continues to have enthusiasm f o r the results
f r o m BCIP. We began an extensive Professional Management
development program involving 190 of our top management i n
late 1967. Even though this management development is making
heavy demands on the time of the management, our president
and his staff insist that BCIP continues because the concepts
reinforce Professional Management. They also see BCIP as a. way
of influencing behavior and attitudes among more people'
quicker, thereby making them more acceptable to accelerated
improvement throughout the organisation.
Current training outline
Session
Time
Number (in hours)
1
2
Session
Outline
Why Improvement
Necessary
Introduction and why BCIP by Division
Manager.
Why improvement - f r o m the attendees viewpoint.
Participation i n a group dynamics workshop.
F i l m : 'The Real Security'.*
2
2
Implementing
Change
Case study o f change implementation.
Discussion o f above case.
F i l m : 'Overcoming Resistance to Change'.f
Discussion of f i l m .
3
2
Planning for Change
Human reaction to change.
Getting results through people.
Overcoming resistance and resentment.
Involvement results.
F i l m : 'People D o n ' t Resist Change.'*
4
2
Tools of Improvement
Systematic problem-solving.
Value Engineering - the functional approach.
V.E. workshop.
F i l m strip - a hardware improvement at
Barber-Colman.
5
2
Planning for Behavior Change
Review o f the first f o u r sessions.
F i l m : ' Y o u , Yourself, Incorporated.'*
Class critique.
A commitment by each attendee of what he
will do differently as a result o f the class.
BCI PLAN
A tool f o r sound decision making
1. Select the Project - Continue to weigh project cost vs.
potential return
Is cost high vs. function performed?
Is it an 'A" part?
* F i l m available f r o m The Bureau of National Affairs, Inc.,
1231-24th Street, N . W . , Washington, D . C . 20037.
f F i l m available f r o m Roundtable Films, Inc., 321 South
Beverly Drive, Beverly Hills, California 90212.
Value Engineering,
September
1969
Facts - not opinions
Reasons - not alibis
Logic - not sentiment
3. Challenge each Detail
What else will do the job ?
Speculate:
Try everything
Eliminate function
Over - simplify
Blast - create - refine
Question every detail
Why?-Why?-Why?
Accept any idea - write it down
Involve others
Eliminate ' G o l d Plating'
No evaluation in this step
4. Develop Preferred Solution
What does that cost ?
Analyse Accomplish function only
Evaluate all ideas
Put a % sign on each idea or function
List why all ideas will or won't work
Attack each reason individually
Weigh and decide
Use vendors and purchasing department
Balance human and economic considerations
5. Install Improvements
Plan
Develop and finalise ideas
Gather convincing facts
Select first choice and alternate
Consider Facts, Dollars and People
Act
Prepare presentation
Displays, charts, pictures (moving or still)
Make presentation - Credit those that helped
Implement Ideas
What is to be done?
Who w i l l do it?
When will it be done?
How will it be followed through ?
How w i l l results be checked?
Who will make project reports and to whom ?
Report
Document project i n detail
Credit those who participated
Communicate to other divisions
Follow-up
Was your plan carried out ?
Verify the ideas and savings
Communicate findings
S3
S o u r c e s of related
information
Articles
Mogy's Work Simplification is Working New Miracles
By Auren Uris, Research Institute of American, New Y o r k City.
F r o m : Factory Management and Maintenance Magazine,
September 1965.
Improvement Must be Managed
By Herbert Goodwin.
F r o m : Herbert Goodwin, Sloan School of Management,
Massachusetts Institute of Technology, Cambridge, Massachusetts.
What Every Worker
Wants
By Whiting Williams.
F r o m : Fred Kersting and Associates, 4159 Buena Vista Street,
Dallas, Texas 75204.
Work Simplification for Improved Business Controls and
tions of all Functions.
F r o m the Series of Articles 'Paperwork/Simplification'.
F r o m : Ben S. Graham, Tipp City, Ohio.
New England Work Simplification Appreciation
Conference
Write: Leo B . Moore, 800 H i g h Street, Dedham, Massachusetts.
Fred Kersting and Associates
4159 Buena Vista Street, Dallas, Texas 75204.
One week W o r k Simplification Appreciation Seminar.
Cape Conference - Managing
Improvement
Write: Herbert F . Goodwin, Concord Road, South Lincoln,
Massachusetts 01773.
Professional
Societies
International Work Simplification Institute,
Box 6778, Cleveland, Ohio 44101.
Inc.
Society of American Value Engineers
c/o W . M . Prichard, Atlantic Research Corporation, Alexandria,
Virginia.
Opera-
Breakthrough in On-the-Job
Training
By Earl R. Gomersall and M . Scott Myers.
F r o m : Harvard Business Review, July-August 1966.
V.E.
Films
Evaluation of Function, Cost and Worth
F r o m : Merit F i l m Productions, 3805 West Magnolia Boulevard,
Burbank, California.
Related
V.E.
Reading
Value Engineering - Handbook
Hill
F r o m : Superintendent of Documents, Government
Office, Washington, D . C . 20402.
Training
~
Allan Mogensen's Work Simplification
Conferences
Box 30, Lake Placid, New Y o r k 12947.
Printing
AN APOLOGY
'Yardsticks for
Management'
It is very much regretted that the material appearing under this heading
on page 56 of the June 1969 issue of Value Engineering was not properly
acknowledged to be the work of Mr Anthony Vice, Editor - Business
News, The Times, London.
This material was based on an article in The Times Business News dated
29th November 1968.
84
Value Engineering,
September
1969
'Creative
Clues'
Project 3000's prime
their improvement.
purpose
is to semantically clarify
creative
processes
advantageously
to
It i s e d i t e d b y L t . C o l . B e r t D e c k e r , D i r e c t o r , P r o j e c t 3 0 0 0 , D i v i s i o n o f C o n t i n u i n g E d u c a t i o n , H a y e s
A , SUIMYAB, B u f f a l o , N e w Y o r k , 14214, U . S . A .
' C r e a t i v e C l u e s ' is a v a i l a b l e m o n t h l y f o r $3.00 per y e a r .
H o w inventions teach
'Many claim we learn f r o m nature. We do. A t least we learn f r o m
our verbal interpretations o f nature. However, man's inventions
teach h i m most of all. Nature per se appears too chaotic. M a n
grasps that which has been simplified f o r h i m . He learns much
more f r o m his inventions than f r o m this complexity called nature.'
'The clock taught us much. The swinging o f its pendulum, f o r
instance, provided verbalisations now used i n electronics. F r o m
the invention o f the steam engine sprang verbalisations concerning temperature, pressure, volume, condensation and vaporisat i o n that influenced the development of modern thermodynamics.
When artists invented perspective which gave a three-dimensional
look to a two-dimensional canvas, the mathematicians soon
jumped to projective geometry.'
' A l l o f man's inventions seem to have further impact upon his
creativeness. Claude Shannon's creative and comprehensive
theories concerning communications and information were
derived f r o m a simple invention called the telegraph. However,
Shannon's mathematical theories concerning information, helpful
as they are, have nothing to do w i t h meaning and the General
Semantics problem inherent i n language. M u c h was learned about
the human body f r o m verbalisations learned when designing and
inventing machines. The arm was never a "lever" until man
invented a lever.'
T h e hologram and the head
'One o f man's recent inventions may teach us how to talk much
more effectively concerning how the brain works. Most scientists
today are baffled by the sheer complexity o f the brain. D r J. H .
Biglow of the Institute of Advance Study at Princeton recently
pointed out the brain's complexity is greater by many powers o f
ten than any physical system man can claim to understand today.
M e n who study the brain know that any system conceived by
man to date cannot contain the information recorded by the brain
i n a volume the size o f the body much less the size of the head.
Yet one recent invention might develop verbalisations that could
create a helpful breakthrough. That invention is the hologram.'
'The hologram is a unique way of recording three-dimensional
photographs on a two-dimensional surface by utilising the interaction o f precise, coherent frequencies of a laser beam. Holograms can store much more information per square inch than
any other known device because i t maps - places i n one-to-one
correspondence - all the points i n a volume to the points on a
plane. This could have important ramifications.'
'We usually visualise information i n relation to physical space
and time even i f that information concerns physical, chemical or
electronic activity. I n the human cell, o f course, especially i n a
nerve cell, physical, chemical and electronic actions have a nasty
habit o f turning out to be merely three ways o f talking about the
same interrelated activity! However, i n the brain there is also a
lot o f frequency activity. The brain generates patterns of certain
waves which, incidently, seem to subside when we sleep.'
'The above triggers more questions than answers. Does the brain
work like a hologram? Is our memory the recording o f specific
frequency generating capability? Is each functional subsection
of the brain a unique resonant circuit capable o f generating basic
and harmonic frequencies when triggered by external stimuli ? D o
these unique, different frequencies o f each subsection react and
Value Engineering,
September
1969
interfere w i t h each other as do the frequencies o f a hologram?
Does this explain the higher order o f complexity and information
i n the brain? Is this frequency interaction, this combining mix of
many unique patterns, this triggered symphony of silent songs,
our consciousness ? Does the sight o f a beautiful female trigger a
rhapsody of brain waves ? Is it that only a few basic chords o f that
rhapsody are recorded but that her associated name pattern, a
• ' unique input triggers that rhapsody again so we again see her i n
our 'mind's eye' ? Is remembering a replaying o f silent songs ? Is
life a melody rather than a thing? Is living the patterned behavior
of interacting frequencies as well as the periodic pulse of pumping
heart? What might such questions trigger?'
'Inventions have and can teach us much. Holograms and how
they function, might provide creative clues concerning how the
brain works. However, we need not wait until some invention
does allow us to advantageously discuss i n verifiables the operations o f the brain. There is much to clarify concerning the input
and the output. Only when we can discuss them w i t h precision
can we correlate them with the operations o f the brain. Semantic
clarification of language must come first. Inventions have always
helped such clarifications. Our creative clue is; study inventions!'
The one creative culture
'Sir Charles Snow i n his book "The Two Cultures and the
Scientific Revolution' stressed the great gulf he assumed lies
between today's scientists and what he called the "literary
intellectuals". T o h i m , that gulf was one o f mutual incomprehension, hostility, dislike, and most o f all, lack of understanding.
Further, he claimed this "lack o f communications" between the
" t w o cultures" was caused by the "scientific revolution" and
could be fatal to the Western world.'
'To one who has studied the creative behavior o f scientists,
literary people, artists, businessmen, educators, engineers,
inventors and even housewives and military men, Snow's pessimistic thesis appears as semantic confusion, and based upon
erroneous, nonproductive assumptions. Students of creative
behavior are confident that there is one dominant culture i n our
Western world that cuts across all professions and disciplines.
I call i t the "One Creative Culture". Some scientists belong to i t .
Some literary people belong to i t . Even educators, military men,
and businessmen belong to i t . I n fact, no discipline or profession
are excluded. Our "One Creative Culture" is a highly diversified
group. But they dominate, have dominated f o r centuries are are
highly apt to dominate f o r centuries to come.'
'Those i n the "One Creative Culture" all have an influential,
important characteristic common to all. A l l have a unique way o f
behaving common to all. Further, that common characteristic is
the basis o f both their individual creativeness and their effective
creative cooperation. That common characteristic is this. A l l are
effective communicators. A l l create a close and effective correlat i o n between the symbols they use and the actualities they interpret. Their words are easy to grasp. Their meanings are obvious.
Their verbalisations gain public acceptance. Naturally, there is a
reason f o r this.'
'Whether scientist or literary genius, creative men deal not in
vagueness except when vagueness is required as a creative tool.
The meanings o f creative men are easy to grasp because their
verbal relationships are verifiable. They deal i n specifics. The
meanings o f their basic verbalisations are demonstrable and
85
visible on the non-verbal level when so demonstrated. Who could
doubt the meaning of Churchill when he said, " A l l I can promise
is sweat, blood and tears!" One cannot define sweat, blood and
tears clearly except by pointing at them. Thus the scientist also
defines his arbitrary inch.'
'The words of the creative literary man paints obvious images.
Scientific statements such as " A body i n motion tends to stay i n
motion unless acted upon by some outside force" are also
obvious. This is the common, characteristic, verbal method of all
creative men. Because "a word has no meaning by itself" all
creative people utilise either intuitively or deliberately what can
be defined as "verifiable functions".'
'That verbal effectiveness dominates. History has documented
this again and again. Especially today is the creative effectiveness
of verifiable functions very noticeable i n Value Engineering,
Programed Learning, PERT, the Critical Path Method, and
other modern, profitable techniques. Even our greatest political
leaders were noted for verbal effectiveness. F D R would not
tolerate garble-de-gook. Verbal effectiveness also has tenacity.
History has not tolerated excessive vagueness long. The vague,
semantically confused Hitler came to power because of a few
beneficial specifics but his consistent confusion caused his bloody
downfall.'
'There is a lot of persistent vagueness i n our society. But Snow's
dualism concerning the " T w o Cultures" is as erroneous as that
verbal booby trap concerning the soul and body.'
Synectics
'We have no research findings which indicates that any one
technique such as Synectics or Bionics or Brainstorming is better
than any other technique. U n t i l we do, it seems advantageous to
assume that all have something to contribute. Further, the review
of all successful creative techniques - and synectics have been
highly successful f o r some people - is extremely helpful i n our
search f o r common denominators, that is, behavior patterns
common to all creative techniques.'
'Several years ago, Bob Gillespie who has more creative techniques at his finger tips than any man I know, asked whether I
thought he should take the Synectics training course in Cambridge.
1 agreed he should but added that I would like to make a prediction concerning Bob's probable reaction to the course, However,
I didn't tell Bob my prediction. Instead, I wrote i t down on a slip
of paper f o r h i m to read after he had taken the course.
'After taking the course, Bob read and agreed with my prediction.
M y prediction was that Bob's reaction would be that the most
effective Synectic technique was one that they would not
especially stress as the important one, namely, their practice of
recording everything on tape and having i t typed f o r creative
review and evaluation.'
'Like most creative techniques, Synectics, as reported by Bill
Gordon, its founder, is burdened with vagueness. For instance, i t
defines the creative process as "mental activity" whatever that is.
Worse, there is no evidence that B i l l is aware of his persistent
vagueness and when vagueness can and cannot be used creatively.
This, however, does not negate the effectiveness of some o f the
Synectic techniques.'
'Synectics does stress that which is common to all creative techniques. Every creative technique stresses the need to avoid conventional verbalisations and talk about the problem situation differently. Synectics does this w i t h its four metaphorical analogies;
Personal Analogy, Direct Analogy, Symbol Analogy, Fantasy
Analogy. They help. They trigger random responses. They get us
making remote associations. They have us verbalising other
aspects of our problem situation. Further, an analogy is not
merely another way of talking about the same thing. I t adds to the
situation. For instance, machine gun fire is usually called "short
bursts of noise" but can also be called "brief periods of silence".
I n other words, an analogy provides an associated sameness but
it is the differences they provide which contain the diversity we
seek.'
'Bill Gordon also points out what a semantic investigation of any
creative process reveals. He claims that abstractions such as
intuition, deferment, empathy, play, involvement, detachment are
almost impossible to teach because of their lack o f concreteness.
I agree w i t h the exception of "deferment" which can and is
taught very effectively when defined as a function of time. I n fact,
"defer judgment" as advocated by Alex Osborn is perhaps the
most powerful generalisation i n the Creative Education field.
Korzybski was saying practically the same when he advised us to
avoid the "signal response".'
'The Synectic structure explained i n Appendix I I of Gordon's
book does not reveal the many decisions f o u n d i n the creative
process as outlined by O F PISA. This does not negate the value
of some o f the Synectic techniques. The more creative techniques
one knows the better.'
This invention called language
'People use inventions like telephones very creatively without
having the foggiest idea how they work. The way women use
cars, f o r instance, w i t h such destructive confidence and utter
ignorance sometimes, truly amazes most men. Yet the invention
we all use most creatively without having the slightest idea how it
works, is this amazing highly effective invention called language.
I t , man applies to everything!'
'Why? Because we all learn to use language as children without
being given an explanation of how i t works. We learn to
generalise and abstract without being told to note sameness and
ignore differences. A young child learns to use complicated
grammar structure yet may later fail an English course which
attempts to explain rules concerning that structure. They seem to
intuitively know the how but care less about the why.'
'This intuitively learning, this learning on the non-verbal learning,
this learning while unaware o f what we are precisely doing, this
inability to verbalise exactly how we use these conditioned, verbal
patterns, has been going on f o r centuries. So occupied has man
been with using his highly complicated, creative gift, so long and
laborious has been its bit by bit growth, so unaware has man been
with each increment o f improvement so effectively shaped by
laborious trial and error, man has failed to define i n very simple
and verifiable terms the many steps i n the extremely complicated
and highly flexible behavior.'
'Our inability to precisely define i n verifiable functions just how
our creative language works naturally handicaps our attempts to
both teach and duplicate creative verbal effectiveness. This is the
reason f o r our stress on the semantic clarification of creative
processes i n a manner advantageous to their improvement.'
'This we know. This verbal creativeness is learned behavior. N o
babe can talk at birth. To teach i t , we must first learn how it is
learned. For this reason, herein, we stress Skinner, his operant
conditioning and his helpful discussions concerning verbal
behavior.'
Skinner's creative operant
'One of man's most effective simplifications, a real creative verbal
invention, is D r B . F . Skinner's operant. W i t h i t , he astounded
the world by teaching three and four year old children to read,
spell and type by merely putting them i n a r o o m w i t h a pretty
machine that'dispensed gum drops with preplanned precision!'
' C r e a t i v e C l u e s ' g o e s o n to d e s c r i b e h o w t h e s e c o n c e p t s of D r S k i n n e r c a n be used to s h a p e creative
behavior.
86
Value Engineering,
September
1969
Reprint
No. 2:2:6
Education
- Local
Government
-
PPBS
The Management of Education through the
Concepts of Value Engineering
by Neal V. Musmanno*
In government
'efficiency'
and 'savings'
are words for
'profit'.
Wide as is the present range of educational activities,
those
which the State of Pennsylvania
is contemplating
are little'
short of breathtaking.
Area vocational-technical
schools, "
community
colleges, programs for gifted and
handicapped
children,
and teacher training
are to name but some.
Headstart, Follow
Through, Upward Bound
movements
are also
included.
I am grateful to Value Analysis, Inc. f o r what they have done i n
Pennsylvania. This past summer a hundred selected executives
f r o m the state attended a two-week seminar conducted by Value
Analysis, Inc. They provided these executives - and I was privileged to be o n e - a n awareness of Value Analysis which never
existed before i n our State.
I t sounds almost curious to say that i n this day and age someone
who has been i n public life as long as I have, that I didn't have an
awareness of Value Analysis. But there are many things a person
is not aware of until someone comes along and creates a little
'turbulence'. Turbulence, therefore, is sometimes important and
rewarding.
Value Analysing education
I w i l l explain how Value Analysis and Value Engineering concepts
are applied to the management o f public instruction. I would,
however, prefer to use only the term, 'Value Analysis'. 'Value
Engineering' is, after all, descriptive of the same basic concept, as
is evident f r o m the single definition used f o r b o t h : 'a systematic
method of achieving the necessary function o f either a product or
service at a minimum cost'.
When a saving per airplane of ? 1,600, f o r example, is effected by
redesigning a hatrack, then I think the term, 'Value Engineering',
may be more appropriate. But when i t is a public school endeavor,
when i t is people we are talking about, then I suggest we may
safely use 'Value Analysis'.
Value Analysis operates differently i n different contexts. Business
and industry are the home grounds o f Value Analysis and Value
Engineering. They are the contexts i n which its concepts and
techniques are most often used. But there are important differences between business and industry on the one hand, and
governmental concepts such as education on the other. Some o f
* Dr Musmanno,
Deputy
Superintendent,
Department
of Public
Instruction,
Commonwealth
of
Pennsylvania,
Harrisburg,
U.S.A.,
is
responsible
for all administrative
and executive
functions
of the
Department
of Public Instruction.
One of his duties
is to oversee the Planning,
Programming,
Budgeting System,
a new tool which enables needs to be
fully and realistically
examined.
Value Engineering,
September
1969
t
All this present expenditure
and expansion
plans
pose
administrative
problems in which the technique of V.A. is
now playing a part in solving.
Finally, the author, who presented this paper at the 10th
Anniversary
Conference
of Value Analysis
Incorporated,
explains P.P.B.S. (Planning - Programming
Budgeting
System). This method is to gather alternatives for action,
quantify
the costs of each alternative,
and assess their
benefits.
the most important differences have to do with profit, w i t h cost,
and w i t h the matter of survival, economic or otherwise.
I t may well be that business and industry are not preoccupied
w i t h profits to the extent they once were. I n business and industry
today there is a much more widespread regard and interest i n
social concerns. This is all to the good f o r the welfare o f our
country.
There is no question that this change stems i n part f r o m a
heightened sense of altruism i n the business and industrial community. I think that i n part i t has also been prompted by a
recognition that the change of climate has been i n itself smart
business. Business and industry have come to see that, i n many
instances, what is good f o r society i n general is good f o r business,
and vice versa. Though some of the changes have been forced on
business by the non-business community and by government,
business has by no means been reluctant to accept this process o f
change. Yet the necessity to turn a profit is f u l l y as much a
necessity as i t ever was.
'Efficiency' and 'Savings'
The situation w i t h government is similar. Government has no
interest i n showing a profit - yet, when government is being
asked to provide more and more services, and when there are
more and more people requiring these services, and when the
electorate is becoming more knowledgeable about the k i n d of j o b
government does i n providing services, government must come
up with something to show its stockholders - the voters and taxpayers.
I n government, 'efficiency' and 'savings' are our words f o r 'profit'.
Just as business and industry have stockholders and profits to
contend with, we i n government have the voters and the taxpayers,
and their natural anxiety about taxes. However, I do not want to
convey an impression of compatibility between education,
government, and business. I t is, at best, only an uneasy alliance.
T o an extent greater than we are able to gauge, the effectiveness
being achieved i n the management o f business through Value
Analysis complicates our own j o b . W h y ? Because the increased
success o f Value Engineering, cost analysis, and thereby the
success o f marketing, places pressure on the consumer (taxpayer,
voter) as he budgets his dollars. Value Analysis-oriented marketing-enhances the persuasion to which the consumer is subject.
H e distributes his income, consequently, less than perhaps he
should to needs that originate within himself.
87
Therefore, you have a turbulence that is created by an outside
force. As described by Vance Packard i n The Hidden
Persuaders,
you have marketing that creates a turbulance to create an awareness o f Value Analysis i n the consumer.
I n other words, business on the one hand, and government on the
other, vie more and more i n direct competition i n the market
place f o r the tax dollar. Indeed, there is an escalation brought on
by the use o f Value Analysis techniques, by both industry and
government.
Certainly we i n education cannot afford to be without these
techniques, and w i t h ever increasing attempts to strengthen our
knowledge o f them, and our experience with them.
The size of e d u c a t i o n
Let me now give you an idea of the size of the education enterprise. I n Pennsylvania we now spend more than a billion dollars a
year f o r education, over half the General Fund budget of the
entire State. When the expenditures of Pennsylvania's school
districts are added, the outlay goes well over two billion dollars a
year. The amount spent by the State has more than doubled i n
the last ten years. I n fact, the budget f o r education this year is
twice as much as the entire State budget was seven years ago
under the administration o f another governor. These expenditures probably will double again i n the next ten years. I n our
planning, programming, and budgeting, and i n our five-year
projections, we have indicated that this will take place within
the next ten years.
More than three million of Pennsylvania's citizens - children,
young people, and adults - well over a quarter of our entire
population, are this year attending school or college on a f u l l - or
part-time basis. To teach them we have nearly 150,000 professional people.
We have more than 4,500 public school buildings, more than
1,600 private, parochial, and diocesan schools, and 146 institutions of higher learning. The capital plant f o r all this carries an
'estimated value' o f well over six billion dollars - and we are still
building.
This year, f o r example, the Pennsylvania Department of Public
Instruction has so far approved a total of 252 public school
buildings, which w i l l add an estimated $458 million to capital
plant already existing.
P a c e - m a k i n g in e d u c a t i o n
The range of educational activities i n which a State such as
Pennsylvania is involved is nothing short of breathtaking: Area
vocational-technical schools: community colleges; special programs f o r exceptional children, both the gifted and the handicapped; inter-group education; educational quality assessment;
and preparation of teachers
New efforts are concentrated on the training o f teachers to
work i n the ghettos. We are involved i n Headstart and FollowThrough and U p w a r d Bound; computerised instruction;
individualised pupil instruction through the computer; education
for the children of migrant workers; adult basic education;
state-owned, state-related, and state-aided colleges and universities; pre-school and kindergarten; aid to private colleges and
universities - we own 14 colleges i n the State.
Our legislature, as a pacemaker i n the nation, provided direct
appropriations to parochial schools, private schools, or to the
children attending private schools. I t is not just that these things
are going on i n the State; the State government itself is involved involved i n providing money, i n furnishing services, i n conducting
research, i n providing some measure o f direction and proposing
some measure of control through Value Analysis.
The administration problems
It is an enterprise ranking i n size and complexity with gigantic
corporations and you can imagine the administration problems
it presents.
88
When we move f r o m the State to the Federal level, the figures
are so large that it sounds as though we are talking about the
entire national debt as far as education is concerned. The latest
figures I have (school year of 1967-68) are estimates by the
National Education Association. I n most cases they represent
moderate increases over the figures o f the preceding years - i f
you can call several million dollars a moderate increase.
I n enrollment, f o r example, the estimated figure is more than 45
million people attending school. Total instructional staff w i l l be
around two million, with most of that number being classroom
teachers; i n other words, more teachers than Costa Rica has
people.
Total expenditures are expected to reach more than $40 billion
this year f o r current expenses, almost four billion f o r capital outlay, and nine-hundred and sixty-five million f o r interest i n school
debt. A n y endeavor that big must have all the help it can get,
including the help that we get f r o m Value Analysis!
I n running such a large governmental enterprise, as contrasted to
private enterprise, there are certain complicating factors over and
above those that the private enterprise has to meet. These factors
have a bearing on the role that Value Analysis plays and w i l l
continue to play. ( I am not implying, however, that business and
industry do not have complicating factors of their own to contend
with.)
Labor union and government are two examples that come to
mind. But a political administration, I believe, must face not
only a different set o f complicating circumstances, but a more
formidable array. The net result is that government and public
instruction, as part of government, cannot operate within as
tidy a framework as business and industry. More variables are
involved. There is turbulence because you have more people
involved. Everyone wants to go into the classroom to tell the
teacher how to teach. N o one would dare tell a surgeon how to
operate, and no one would dare tell a lawyer how to try his case,
but everyone is i n the classroom telling the teacher how to teach,
telling the school administrator how to administer schools, and
telling the governor how to govern.
Control is very difficult. I t is entirely conceivable that an administration may be doing everything correctly f r o m a management
standpoint and still find itself out o f office.
I n place o f a board and a chairman, we have a president, or a
governor and his cabinet. A n d just as all the employees i n a
business or industrial organisation help determine the success or
failure of the organisation, so i n government do all o f the
workers f r o m the chief executive on down through the bottom
ranks help to determine the success or failure o f a particular
political regime. That is the reason why Governor Shafer asked
Value Analysis, Incorporated to come to the Commonwealth o f
Pennsylvania to help develop an awareness i n all ranks o f the
executive branch o f how Value Analysis could provide the
increased services that our people are requiring and asking f o r with no commensurate increase i n revenue.
Difficulties of decision
The whole of the government is responsive to the will o f the chief
executive, and through h i m to the w i l l of the people. I t is, therefore, quite possible f o r a politician or a party to be doing an
inferior j o b and remain i n office. I t is even conceivable that what
is wrong f r o m a Value Analysis standpoint would be clearly right
f r o m a political standpoint.
For example, a government may be using a product backed by a
strong lobby. Suppose this government finds a good substitute
for the product that can be purchased at a cheaper price. The
men who make the decision might be inclined to continue using
the more expensive product i f the savings f r o m using the less
expensive substitute could be effected only at the cost of their
political lives.
This is a turbulence that we find i n government. We all know that
difficult decisions - difficult ethical decisions - have to be made
Value Engineering,
September
1969
not only i n government but i n business and industry and i n every
field o f human endeavor. A n d we also know that the electorate is
sometimes fooled, and sometimes insufficiently concerned, and
thus sometimes guilty o f mistakes. But it is not often that we have
for very long both the condition of inadequate conditions, and an
electorate inadequate to correct the condition. Over the years our
democratic system has worked well and can be considered a
success.
W i t h i n the range of honest alternatives there are many choices,
and the problem is to find the best answer, all things considered,
and that includes the political considerations. I n the product
example I mentioned, the choice to use the more expensive
product (because of the strong lobby) might be made by a
politician who had no interest i n remaining i n office beyond what
he could do f o r himself, but i t might equally be made by a
politician with no interest other than to remain i n office and
continue his public service. They must follow the will of the
people, but they must also try to lead. Furthermore - and this is
most important - perhaps the people must believe that they are
unmanaged i n order to be managed most effectively.
V . A . in g o v e r n m e n t
What does all this mean for Value Analysis ? Let me suggest some
of the routes by which Value Analysis can be used to attack the
problems of government; pointing out some of the ways i n which
the techniques of Value Analysis are being used i n the management o f public instruction i n the Commonwealth of Pennsylvania.
One possibility is to use Value Analysis techniques to reduce
cost. Though the survival of the governmental enterprise is not
strictly a matter o f reducing costs, i t is nevertheless important
and increasingly so, because of the revenue factor and because of
taxes.
I f one is not faced w i t h the necessity of economic survival, the
chances are that there will be less real effort to economise. But
the size o f the educational enterprise, and the amount o f money
being spent, means that a substantial part o f our tax money is
going to the support o f that enterprise. Also, the rising concern
of the electorate about taxes means that there is a real thrust f o r
economy i n education.
The reason why government concerns itself with cost reduction is
because i t wants to make the tax dollar do as much as possible.
I f tax revenue remains constant, Value Analysis provides a
means f o r furnishing more government services f o r the same
amount of revenue.
I f taxes rise, Value Analysis provides a means o f getting maximum
mileage out o f the increase. This means perhaps that the tax
increase may not have to be so large i n the first place. Or, i f taxes
are reduced, the cutback i n services need not be as severe i f the
methods of Value Analysis are applied.
There is another use f o r Value Analysis i n the management of
public instruction: the achievement of goals in human relations,
goals which cannot be made finite beyond ones capacity f o r
perceiving the nature of social justice.
Government often is confronted with problems so severe, as i n
the social disruption of educational institutions of entire communities, that cost considerations become of secondary importance. W i t h minor problems as well as w i t h major ones, cost
considerations often are negligible or, even i f substantial, vary
little between one solution and another. F r o m a strict cost standpoint, therefore, i t matters little which course of action is pursued.
Value Analysis plays an important part in selecting and implementing the right course of action. Value Analysis is, after all, a
method f o r solving problems. A n d because so many problems i n
government are complex, admitting o f neither tidy analysis nor
clear-cut solutions, the Value Analysis approach to solving these
problems is vitally needed.
Value Engineering,
September
1969
Different levels of u s e of V . A .
The novel ' M o b y Dick', speaks at a number of different levels
of meaning. Besides being the story of Captain Ahab and his
pursuit of the great white whale, it is also an allegory of fate, or
destiny, or God, or some other omnipotence. I think we can
likewise say that Value Analysis speaks on more than one level
in the management of public instruction. To me, there are at
least three levels i n which Value Analysis can be used i n attacking
our own great white whale, and I am confident that i f we put it
to use we will fare better than Captain Ahab. (Again, I am
speaking i n terms o f goals i n human relations, as well as costs.)
The first level, and the basic one, is the education of children and
the specific programs designed to bring it about. For example,
you and I went to school and sat at a desk while Miss Smith read
f r o m a book, talked, and wrote on a blackboard. That is the way
it was done; it seemed entirely natural, and i f nobody had
thought about it we might still be doing it that way today.
Habits are not easily changed.
The scene has changed. Go to school today and you will find that
Miss Smith is playing a record, or showing slides or a movie,
rather than reading f r o m a book. A n d when she writes on the
blackboard it may be an easier-on-the-eyes green one rather than
the traditional black. More surprising, we may find that Miss
Smith is now a machine.
Although I do not advocate replacing Miss Smith with a machine,
one of the most promising developments i n education is programmed instruction - the child sitting at the console of a
computer, being questioned by the machine, giving it his answers
and working at his own speed and ability. Though this is one o f
the most startling innovations i n education, many others are
being tried - some are good, some not so good. The point is that
if no one had questioned the traditional ways, i f no one had
looked around to consider the alternatives offered by modern
technology, i f no one had used the Value Analysis approach, we
would still be going along i n the same old way. M a n y o f these
innovations are expensive, so we can't say we are saving money,
but the Value Analysis approach helps us to get the new things
as inexpensively as possible. I t also helps us to determine whether
the accomplishments of the new methods justify their costs - this
is especially important because our money supply is decreasing
while our service requirements are increasing.
The second level at which we have found Value Analysis useful is
in administration. By 'administration', I mean something more
than the staff part of the traditional 'linestaff' distinction. We, of
course, have the staff services, including the 'housekeeping'
functions, the same as every enterprise, public or private. There is
paper flowing and people are being hired and supplies are
being procured and budgets are being devised and money is being
spent. But there is also the managing and organising of the
educational programs that is different f r o m the internal operation
of our Department of Public Instruction. A t this second level,
that concerns administration, we are engaged in a number o f
activities that make use of Value Analysis techniques. A n
excellent example is the cost reduction program instituted and
backed by Pennsylvania's Governor Raymond P. Shafer. This
was part of the program we instituted last summer under Value
Analysis, Inc.
This is a program whereby ideas f o r cost reduction are solicited
generally and reviewed by a team whose members have been
selected f o r their knowledgeability i n various areas. When the
review discloses merit, the idea is adopted and put into effect.
The testing of the suggested ideas is by the principles o f Value
Analysis. O f the programs reviewed last summer under the direction of Value Analysis, Inc., potential savings were estimated at
around twenty-five million dollars f o r the Commonwealth o f
Pennsylvania. Many of these ideas have been implemented.
Because of these potential savings, the governor's office has sent
employees of the Commonwealth outside the State f o r instruction
in the methods, and brought specialists into the State to conduct
K9
concentrated courses f o r additional employees. The program is i n
effect now throughout the government, including the Department
of Public Instruction. The results to date are gratifying and show
substantial savings. Here are some o f the cost savings resulting
f r o m our Value Analysis program. They range f r o m as little as
$48 f o r a change i n the punching o f inter-departmental envelopes,
well into millions.
Never should any cost reduction be down-graded or inhibited, no
matter how little the amount might be. Forty-eight dollars i n one
department was recognised by our governor just as enthusiastically as some o f the larger ones. This helps to stimulate interest
and desire f o r further savings.
A new approach i n the method o f purchasing dormitories, f o r
example, w i l l result i n an anticipated savings o f one and twothirds million dollars this year. Standardisation i n the bindings of
library books is expected to save over $8,000 this year.
There are also several promising cost reduction projects now
under way dealing w i t h educational matters. We are, f o r example,
investigating the standardisation o f design and materials f o r
public buildings, particularly school buildings, and have assigned
a potential savings to this o f $25 million.
We also are considering the use of prefabricated buildings f o r
some school structures to be used on a temporary basis. We are
thinking i n terms of a $290,000 savings. I n connection with the
furnishing o f new school buildings, we are considering the
possibility of centralised purchasing f o r the entire state. This may
result i n a savings of about $2 million this year.
Finally, we are exploring the possibility o f different arrangements
for the purchase o f bonds f o r school construction. We expect the
savings would amount to about $6 million or more annually
throughout the life o f the school bonds.
Management methods units
A b o u t a decade ago we established management method units i n
the various government agencies. W i t h the increasing shift to
computers, these management method units, including the ones
within the governor's office, have grown both i n size and i n the
range of their activities. But their basic purpose remains the same:
to streamline and facilitate the operations o f the State government
through the application of Value Analysis and other management
techniques.
The management methods units have a wide role, dealing w i t h
either 'housekeeping' or wider administrative matters according
to where problems occur and improvements can be made. Here's
an example: Vocational education is one of the more perplexing
problems i n public instruction. First, vocational education is
expensive because of the shops, laboratories, and equipment.
Second, i t is difficult to know what should be taught. I f you train
a thousand beauticians and ten thousand farmers and then find
that the need is f o r ten thousand beauticians and a thousand
farmers, y o u are i n trouble - as are nine thousand farmers.
I n an attempt to alleviate the difficulties caused by the first o f
these problems (the expense), Pennsylvania is i n the process of
setting up a network - now almost complete - o f area vocationaltechnical schools. The idea is: We want to have a good vocational
education available f o r every Pennsylvania student who desires i t .
Insofar as possible, we want the student to be able to study what
he wants, whether i t is auto mechanics or f o o d preparation. I n a
large area such as Philadelphia or Pittsburgh, there are so many
students that i t is possible to provide a varied program o f vocational education courses. But the multitude o f smaller school
districts have a real problem. H o w can a school district w i t h a
total enrollment o f a thousand students hope to find the resources
to teach air conditioning and retailing and all the other courses
that a student might want to take, or be able to have? T o answer
a rhetorical question, it can't. So instead of just doing what we
could under existing circumstances, Pennsylvania - through
Value Analysis - has changed the circumstances i n order to be
able to do more. We have formed what amounts to new, voca90
tional school districts. A number o f school districts band
together, build a school at some central location, and then
transport the students to i t . Value Analysis has often demonstrated that great problems may have simple answers, i f only they
can be found.
The problem of matching supply with demand, o f making sure
that the vocationally trained students w i l l be able to find a j o b
after they graduate, still faces us. We are now applying our efforts
to that problem's solution. The approach we take is to go to
business and industry and determine their needs, both existing
and anticipated, f o r vocationally trained students. We are making
an initial survey now (which is costing about $160,000) to elicit
the information so that we w i l l know what is the demand f o r
trained students i n the various vocational fields. A t the same time
we will be keeping tabs on the vocational training programs to
see how many students are enrolled. Both aspects, supply and
demand, w i l l be drawn together i n a single computerised system.
We will then be able to obtain quickly an accurate picture of the
overall situation that w i l l enable us to determine what new
training courses are needed and where. We w i l l then be able to
make adjustments i n our vocational draining programs to insure
that the output o f students remains i n balance w i t h the j o b
market. The t h i r d of the three levels amenable to Value Analysis
techniques, is the ordering o f priorities. The state must decide
what to do with the money available to i t . Because there is never
enough money to do everything, i t must decide what i t w i l l do
first, second, and third, and so on. Sometimes i t must do all three
or f o u r or all ten, whatever the number, simultaneously. Because
the money comes out of one f u n d , the Department of Public
Instruction is i n competition with all other departments and
agencies, and none can have its needs and programs considered
independently. The review and the determination must be f o r the
State government as a whole, and f o r all the people i n the State.
Planning-programming-budgeting system
Pennsylvania, under the leadership o f Governor Shafer, has
embarked (along w i t h several other states) i n following the lead
of the federal government i n a program f o r the institution o f a
planning-programming-budgeting system (PPBS) i n the state
government. This is one o f my new responsibilities.
Basically, the method is to gather alternatives f o r action, quantify
the costs of each alternative, and assess their benefits, again i n
quantitative terms. This is done by 'purpose', or 'mission', rather
than i n the traditional way o f line-items i n the budget, or by
having each organisational unit determine its own programs. The
process proceeds, as the name suggests, f r o m planning to the
programming o f the plan selected to put i t into effect, to the
providing of the necessary monies i n the budget.
PPBS, which was initially instituted by Secretary of Defense
Robert MacNamara, is not a simple system to establish, but we
are fully confident that the greater knowledge and control we w i l l
gain f r o m i t w i l l be w o r t h the trouble - i t is complicated, hard to
understand, and hard to sell, because i t is creating an awareness
of Value Analysis. What do we want to provide? What do the
people need? What do they want? Certainly the elements o f the
system, which are also elements of the Value Analysis approach the assignment of costs, the use o f specifics rather than generalities
the consideration and comparison o f the whole range o f alternatives, to name a few - w i l l give us much more o f the kind o f
concrete information we need f o r intelligent decision making.
I n some cases a problem may need to be treated on all three of
the levels I have discussed. The reason I categorised them was to
emphasise that we are confronted w i t h different kinds o f situations o f varying complexity which we accordingly approach i n
somewhat different ways. But I don't want to give the impression
that everything we encounter is neatly compartmentalised. Take
the case of the education of children i n the big city ghettos. We
are trying to do something about i t at all three levels. On the first
level, we recognise that such children, because o f the circumstances i n which they find themselves, are not as effectively
taught by the usual pedagogical methods. We are, therefore,
Value Engineering,
September
1969
engaged i n research to find new methods o f teaching that will be
effective f o r these children. Compensatory education is an
example.
On the second level, we are changing the pattern o f instruction so
as to provide extra schooling f o r children disadvantaged by their
environment. I n the Headstart Program, for example, the children
are given special pre-school instruction i n the nature of compensatory training designed to enable them to compete with their
classmates by the time they enter kindergarten or first grade.
Here we must be careful, also, or we'll have a follow-through
f r o m the first grade. We must be sure that the children offered
compensatory education don't get ahead of the children that
don't get i t at all.
On the third level, we are considering this program i n relation to
all the other programs o f the state government. We want to
determine: Does our governor want to put a priority on the
instruction of ghetto children?
I n our State we are suffering f r o m demonstrations i n our big" ,
cities, turbulence because o f human relations, defacto segregation "
of our schools, and racial imbalance i n our schools.
I n a study conducted recently, we found out that 17 of our school
districts had school buildings i n which 80 per cent or more o f the
children were black, and then we found that an additional 26
school districts had school buildings with 50 per cent or more of
the children who are black.
Through Value Analysis we determined that this is not i n keeping
with our social structure; that these children are disadvantaged
because they are not i n the mainstream o f American life, so we
are committed to an integrated educational program on all aspects
of construction, administration, and priority, these three levels.
I n all o f these ways Value Analysis has proved of real benefit and
we are looking forward to increasing benefits. We have f o u n d it a
helpful management tool and plan to give i t increasing scope i n
the conduct of our operations.
'Common sense' and V.A.
I n conclusion, may I suggest that the simple terms, 'commonsense', 'pragmatism', 'prudence', could well be substituted f o r the
term, 'Value Analysis'; that i n fact these virtues have been a part
of our best efforts i n government and business f o r centuries.
We use the term, 'Value Analysis', i n the same spirit today as we
use the term, 'vote profile analysis', when, i n fact, we speak
simply o f counting votes. We use the term, 'extramedial correlation i n curriculum', when we speak simply of using television and
newspapers i n the classroom. We use the term, 'managerial
technostructure', when we speak o f a business operation. We use
the term, 'cost analysis programming parameters', when what we
mean is simply how do you budget your money. The spirit o f term
proliferation is, I submit, part of the general effort to popularise,
to put a new and appealing package on an item so that more will
buy it. There is nothing wrong w i t h this. I t creates an awareness,
and i f we must put new tags and new titles on these things to
create an awareness, I am all f o r i t . But what i t amounts to is
good commonsense and integrity so that what the few among us
have done by instinctive judgment can be understood and
practiced by all.
MISCELLANY
Values Attached to Thoughts
Hard Work Represses Fantasies
The extent to which the mind thinks of other things when carrying out a particular task is directly related to the amount o f
information that must be absorbed during the task. F r o m this
conclusion, D r John S. Antrobus, a psychologist at City University, New Y o r k , infers that both the information perceived by the
senses and that stored i n the memory are processed by a common
mental mechanism.
I t is a common observation that when one is driving a car or
listening to a lecture thoughts about altogether different matters,
day dreams or fantasies, may intrude on the consciousness.
Concentration is best when the task performed is demanding,
such as driving i n heavy traffic.
I t is worse when an interview f o r a j o b , i n an examination, or a
wedding lies ahead.
Bonus to Encourage Concentration
H o w does the mind determine the balance between external
thoughts, brought up f r o m the memory, and the immediate results
of experience which are relevant to the j o b i n hand?
D r Antrobus hoped that by measuring how the difficulty o f a
task affects the tendency to think of other things he would gain
an insight into the way the mind obtains information.
The task devised was to respond to sounds o f a particular pitch
by pressing the corresponding key. The difficulty o f the task was
varied f r o m test to test by presenting the sounds at a faster rate,
so that the subject had to cope with a maximum of six bits o f
information a second.
Value Engineering,
September
1969
A f t e r each test the subject had to signal whether he had thought of
matters unconnected w i t h the test during the 15 seconds of its
duration. The 50 undergraduates who took part i n the experiment
were paid a bonus according to performance, so as to encourage
them to concentrate.
Measurement of Private Thoughts
The results of the experiment were gratifyingly consistent, which
indicates that precise measurements can be made o f essentially
private thoughts. D r Antrobus found that the proportion o f tests
i n which irrelevant thoughts occurred fell off i n direct relation to
the number of bits of information presented i n the test. When
only one sound had to be recognised every five seconds, external
thoughts were reported i n slightly over half the tests, a proportion that decreased steadily to a quarter o f the tests by the time
six bits of information were being presented.
The inference that D r Antrobus draws is that the m i n d has a
limited capacity to process information, and that i t must make
the choice between so much attention given to the task i n hand,
and so much given to thoughts welling out o f the memory.
Presumably some value must be attached to each kind o f
thought, depending on its relative importance and the urgency of
the situation. The figures suggest that all external thoughts or
fantasies could be repressed i f information f o r a task were presented at a rate o f ten bits per second, although the maximum
rate at which information can be processed and acted on, as
distinct f r o m merely being taken i n , is probably about three to
f o u r bits a second.
91
A N e w Plastic Technique - and Import
substitution
The Japan Atomic Energy Research Institute has recently developed f o r the first time i n the w o r l d a new technique f o r mass
production of 'polyoxymethylene', a plastic as hard as iron, by
means of irradiation.
This plastic is produced f r o m 'trioxan', colourless, transparent
crystals resembling granulated sugar, which is an ingredient of
the 'formalin' used as a disinfectant i n hospitals. This substance
is exposed to radiant electron rays emitted f r o m an electron
accelerator, f o r several seconds and then kept at a temperature
of about 50 degrees Centigrade f o r about three hours.
The polyoxymethylene thus produced is i n the f o r m of a white,
lustrous powder. Gears, chains nails and various other items can
be manufactured by injecting this powder into the mould.
For instance gearwheels made w i t h this plastic are as hard as
iron. N o t only that, they are light, do not rust, require no oiling
and do not make much noise. This promises a broad range of
applicability as component parts of diverse machines, including
motor vehicles.
This new technique was originally invented i n 1960 by Professor
Seizo Okamura of K y o t o University and the then Assistant
Professor Koichiro Hayashi of K y o t o University (now professor
at Hokkaido University) at the Japan Radiological H i g h Polymer Study Society (predecessor o f the present Osaka Laboratories
of the Japan Atomic Energy Research Institute). But their
research was taken over by the Takasaki Laboratories o f the
Institute, which has since established test facilities and carried out
experiments i n commercial production.*
* Two major American chemical makers, D u Pont and Celanese,
are already manufacturing the same plastic by means of chemical
reaction using a catalyst. But since Japanese makers are not yet
allowed to use this technique, Japan has so far depended on
imports f r o m the US to meet domestic needs f o r the new plastic
material.
Air Bearings
A 'compliant-surface air bearing' has been developed by the
N . E . L . to provide almost-frictionless movement and accurate
positioning o f heavy loads. Air-bearing pads are attached to
the load and move over 0-25 i n . sheet rubber or neoprene - the
'compliant surface'. The pads are made of porous stainless-steel,
through which high-pressure air is passed, and the clearance
between the pad and the surface is typically 0 00025 i n .
air supply
Compared with conventional types of air bearings (using a single
orifice i n a non-porous pad, moving over a rigid, smooth surface)
the new design can carry more than twice the load f o r a given
pad area. The neoprene absorbs roughness effects o f the floor,
and deforms locally to give a greater load capacity; while the
porous pad enables the bearings to cross substantial gaps i n the
surface.
M r F . D . Penny, N . E . L . Director, believes that this low-friction
support system might be applied to high-speed trains i n the
future. I t could be an alternative to the hovercraft (which uses
much lower-pressure air and has a much greater ground clearance) f o r tracked vehicles capable o f over 200 m.p.h. - possibly
using a linear induction motor f o r propulsion.
Meanwhile, back i n the present at East Kilbride, a B . M . C . M i n i
saloon has been fitted with pairs of pads instead o f wheels and
glides along a short neoprene-covered track, propelled by a
gentle push f r o m a female laboratory assistant.
World's Strongest Steel
The development o f the strongest steel i n the w o r l d was announced at a recent meeting of the Japan Metallurgical Society
held at the School of Engineering of T o h o k u University i n
Sendai, north-east Japan.
Called ' I N - U Steel', i t is ultra high tension steel, developed by
Doctor of Engineering Hajime Nakamura, director of the
Technical Research Institute of the Ishikawajima-Harima Heavy
Industries Co., k n o w n f o r the construction o f the world's biggest
tanker. I t has enough tensile strength to resist up to 250 kilograms o f pressure per square millimetre.
D r Nakamura is also the inventor of the high-tension steel T N
Steel' used f o r high-pressure containers, such as spherical tanks
for propane gas, as well as ships and bridges.
The tensile strength o f ' I N Steel' is 100 kilograms or considerably
lower than 180 kilograms o f American-developed steel f o r jet
aircraft. But the newly developed ' I N - U Steel' is 1-5 times
stronger than the American steel. Ishikawajima-Harima Heavy
Industries has applied f o r patent rights not only i n Japan but also
in foreign countries, such as the United States, West Germany
and Britain. A t the same time, i t is conducting intensive research
for practical application of the new steel.
D r Nakamura i n completing the new ultra high tension steel
obtained a hint f r o m the method o f making Japanese swords.
Under this method, many sheets of iron, each with different
ingredients, are placed one upon another and tempered into a
sword. The Japanese sword consists o f strong steel that even cuts
helmets. But it is apt to be brittle and snaps sometimes.
D r Nakamura hit upon the idea o f sandwiching thin sheets of
copper, nickel and other metals, only 10 microns thick, between
sheets of strong steel, used f o r the Japanese sword, just like
plywood. He has finally developed ' I N - U Steel' w i t h a tensile
strength of 250 kilograms by putting together and tempering these
sheets of different metals.
nn
porous
pad
Several problems, including a welding method, remain to be
resolved before the f u l l practical application of the new steel.
But D r Nakamura is optimistic i n this respect.
rigid
floor
92
compliant
layer
' I N - U Steel is characterised by low cost, great strength and light
weight. I n the near future, i t w i l l be used as material f o r a wide
range of products, such as super-high-speed engines and gas
turbines. The new steel will also meet the needs of space science,'
said D r Nakamura.
Value Engineering,
September
1969
Reprint No. 2:2:7
VALUE ENGINEERING
Volume 1 Index
TITLE
i
1
(An) Application of Value Analysis to Building
..
(The) Application of V.E. Effort for Maximum Effectiveness
Case Study: The High-Cost Dispensary
(The) Challenge of V.E. - First Appraisal
(The) Challenge of V.E. - Making the Theory Work
..
(The) Challenge of V.E.-The Theory Behind the Savings
(The) Constraints to Creative Value Engineering
Contractual Value Engineering Provisions in the United
States..
..
..
..
(The) Contribution of Ergonomics to Value Engineering
Cost Visibility and the Value Engineering Functional Cost
Analysis
Developing and Organising an Effective Value Engineering
Programme, Part 1 : The Fundamentals of V.E.
..
Developing and Organising an Effective Value Engineering
Programme, Part 2 : The Installation of V.E
Economic Production and its Disciplines
Essential Factors for a Successful Value Analysis/Engineering
Exercise
Factors Underlying Successful Value Engineering . .
Information Processing and New Ideas - Lateral and Vertical
Thinking
nstant Money and How it Works
nsurmg an Effective V.E. Workshop Seminar
Low Cost Design in the Aircraft Industry
Management Considerations for a Value Engineering Programme
(A) New Breed . . . The Value Manager
(The) New Management Tool - Value Administration
..
(The) Numerical Evaluation of Functional Relationships
..
INDEX
301
179
333
107
233
165
139
135
149
337
303
355
29
93
297
269
241
237
7
327
279
147
169
'
*
93
297
269
165
107
233
53
51
177
207
277
147
23
139
279
337
75
263
73
11
69
283
241
81
113
ABSTRACTS
Accurate Time Standards in Less Time
A.S.M.E. Paper 6 3 - P R O D - 1 6
Blast and Refine . . . The New Cost Saving Technique
SlSk^^
::
Costing Plastics
Cost Reduction and Cost Avoidance by Value Engineering . .
Creative Thinking and How to Develop It
Value Engineering,
September
1969
53
95
177
207
277
113
201
99
27
69
15
209
143
273
51
111
81
213
117
V g | u e
T
V a l u e
AUTHOR
Astle, P
Blundell, Brian F
deBono, E
Bowyer, Frank R
Bowyer, Frank R
Bowyer, Frank R
Buck, C. Hearn
Burnside, J
Burnside, J
Burnside, J
Burnside, J
Chappell, Anthony G
Crum, L. W
Decker, Bert (Lt.-Col.)
Decker, Bert (Lt.-Col.)
Decker, Bert (Lt.-Col.)
Decker, Bert (Lt.-Col.)
Dell'Isola, A. J
Erlicher, Harry L
Ferguson, Rex
Fouch, George E
Fridholm, George H.
Gregg, Duncan
Hanks, V. M.
Harrison, Bryan
On Catching the Fleeting Thought
(The) Operational Characteristics of Value Engineering
..
Organising the V.E.-Effort in a Company
Organising the V.E.-Effort in a Company
Organising the V.E.-Effort in a Company
Packing Materials and Factors in Packaging Evaluation
Patents for Inventions
(The) Preparation and Use of the Value Engineering Functional Chart
Purchasing's Contribution to Value Analysis
Sectarianism, Value Engineering and Business Profits
..
Sharpen Up Your Selling Power with Value Analysis
Should V.E. be Value Engineering Itself
Stimulation of the Individual
S.P.C.L. - A New Approach to Value Engineering
(The) Technique of Value Engineering as an Aid to Profit
Management
(The) Training of Value Engineers in Britain
Value Analysis at the Rover Company
Value Control at North American Rockwell Corporation
Commercial Products Group
Value Engineering as Training for Management
..
Engineering Cost Effectiveness . . . A Tool for the
Designer Too
,. . %
.
,,
...
9 ' e e n n g - Dynamic Tool for Profit Planning
..
(The) Value Engineering Functional Approach Techniques
Value Engineering in Rolls-Royce Aero Engine Design
..
Value Engineering, Its Contribution to Profitability . .
What is a Value Engineer?
En
n
D 1
n
263
„
283
43
23
11
199
0 0
INDEX
Hiles, K. W
Jackson, Kenneth M
Jacobs, G. H.
Jacobs, G. P.
Kaufman, J. J.
Kaufman, J. J
Livingston, Patricia B
Martin, J. Harry
Martin, J. Harry
Matossian, B. G
Matossian, B. G
Meldrum, T
Mudge, Arthur E
Mudge, Arthur E
Murrell, K. F. H
Newby, Frank
Pearson, Nigel
Sherwin, Frederick S
Sherwin, Frederick S
Sherwin, Frederick S
Sherwin, Frederick S
Simpson, Dennis C.
Spear, D. F
Tocco, Anthony
Williams, Edward J.
15
135
7
179
95
237
199
49
209
303
355
111
99
169
149
201
301
143
117
43
327
27
273
29
213
TITLES
256
384
380
Design Guide to Value - Eliminate Redesign with this
Do Not Disturb - Brainstorm Under Way
Dunlop Get a Grip on Rising Costs
382
256
192
192
320
61
375
Effective Value Analysis Needs Strong Management
..
(The) Engineer and the Corporation - Task-Oriented Value
Engineering - Key to Systematic Value Control
..
..
First Lesson in Value Engineering
320
255
382
93
A B S T R A C T S - TITLES—continued
Frequent Design Reviews Help Product to Succeed..
(The) 'Function' in Value Engineering
Good Things Come in Big Packages
How to Control Indirect Costs
How to Cut Costs with Value Analysis
How to Get V.A. Help from Specialty Vendors
How to Get Value from Analysis
How to Obtain Greater Value by Designing Intricate Mechanical Functions with Small Diecastings
(The) Inefficiency of Waste
(The) Internal Auditor
(An) Introduction to Value Engineering
(A) New Approach to Cost Reduction Through Value
Analysis
New Techniques in Management-4. Value Engineering, A
New Look at an Old Problem
Pin-Point your Lowest Cost Production Process at the Initial
Design Stage
Pressure Diecasting Composite Assemblies with Separate
Inserts Rigidly in Position
Progress in Value Engineering
Second Lesson in Value Engineering
'Second Look' Value Analysis Pays off at Boeing
Selling Employees on Change
Seven Ways to Improve Plastic Mouldings
Simplified Cost Control
State Boost Needed for Cost-Cutting Tool
Systems Value Engineering
Techniques and Benefits of a V.E. Programme
Trimming the Overheads Burden
Value Analysis
Value Analysis
Value Analysis in the Systems World
Value for Money where it Counts
Value Analysis Philosophy
V.A. Engineer Talks About Problems of Introducing Techniques
V.A. Is Really Worthwhile Money-Saving Technique Only If
Correct Approach can be Employed
Value Analysis Saves Money
Value Analysis: How to Apply It . . . and where
Value Analysis - The Seminar Approach of the Bendix
Corporation
Value Analysis - SCOW Take a Long Hard Look
Value Analysis - A Practical Example
Value Analysis - The Way to Lower Costs
Value Analysis - Cuts Product Cost by Systematic Analysis of
Design and Production
Value Analysis Engineering
Value Analysis Applied to Machine-Tool Procurement
Value Analysis - A Management Tool
Value Analysis at Bilston Iron and Steel Works
63
192
255
127
379
128
64
128
375
191
192
378
126
381
127
320
382
382
128
128
126
126
384
128
63
381
62
256
192
128
319
319
376
377
383
380
380
379
379
379
378
377
62
Value Analysis - Is it a Cost or an Investment ?
Value Analysis as a Contribution to Management Development
Value Analysis/Engineering
Value Analysis in the Rubber Industry
Value Analysis - How to Apply it . . . and where
Value Engineering
Value Engineering
Value Engineering . .
V.E. Case Histories - No. 1 - Mouldings Replace Hot
Stampings
V.E. Case Histories - No. 2 - Is the Design too Good for the
Job
..
V.E. Case Histories - No. 3 - Standardising the Requirements
Slashes Labour Costs
V.E. Case Histories - No. 4 - Changing to the Proprietary
Component . .
..
..
V.E. Case Histories — No. 5 - Reducing Machining and
Finishing
V.E. Case Histories - No. 7 - Adhesives can Save Assembly
Time
V.E. Case Histories - No. 8 - T h e Production Potential of
Stud Welding
V.E. Case Histories - No. 9 - Redesigning from Scratch
V.E. Case Histories-No. 10-Saved Labour Costs Outweigh
Extra Material and Engineering
Value Engineering
Value Engineering in the Electronic Industry
(The) Value of Value Engineering
Value Engineering: A Practical Application of Creative
Thinking
Value Engineering - An Engineer's Heritage and Discipline
Value Engineering in Practice
Value Engineering in Perspective
Value Engineering - Its Application to British Industry
Value Engineering
Value Engineering - Functional Attack on Costs
Value Engineering - Some examples of Remarkable Savings
Achieved
Value Analysis Steps Out
Value Engineering Favours Brass
Value Engineering - I.H. Makes it Work
Value Engineering Management for Engineers
Value Engineering Tool and Manufacturing Engineers
Value Engineering Pays Off
Value Engineering Management Decision
Value Engineering : Only Too Simple
Value Engineering Means Improved Value in Plastic Components
What Price Value Analysis?
What Are These Swedes Doing ?
63
61
62
62
126
383
381
376
191
191
127
127
126
192
256
191
128
125
255
255
256
383
382
381
378
378
376
320
320
319
62
63
63
127
64
125
126
375
377
ABSTRACTS - AUTHORS
Anon
Anon
Anon
Anon
Anon
Anon
Anon
Anon
Anon
Anon
Anon
Anon
Bean, K
Beesly, L. R
Bowser, W
Boyd, L
Cahn-Speyer, P
Carney, C. J.
Chase, C. L.
Cirtin, A
Coldstream, P
94
375
381
126
63
127
191
192
256
377
379
380
381
380
255
381
62
378
127
128
127
126
Davis, J. H. W
Dillard, A. E
Dove, M. L
Duval, R. E
Dwyer, R. M.
Eades, B. W
Easton, W. H.
Eccleston, D.
Engwell, C
Ewans, J. R
Gage, W. L
Gage, W. L
Garratt, A
Gibson, J. F. A
Gibson, J. F. A
Gioia, R
Goodwin, J. M
Hargraves, A.
Harris, A
Harris, A
Hayes, R. M.
62
192
61
256
63
376
375
63
319
61
126
320
64
62
128
384
379
376
125
192
384
Value Engineetring, September
1969
ABSTRACTS - AUTHORS—continued
f
t
Huggins, R. T
Humble, J. W.
Hunt, D
Kaplan, M
Kennard, A. D
Kerr, J. A
Kramer, G. M .
Leslie, H. L. C
Leslie, H. L. C
Leslie, H. L. C
Malik, R
May, T. R.
Mazel, J. L
Mazel, J. L
Meile, C. H
Miles, L. D
Milillo, J. P
Moon, J. W
Moon, J. W
McDermott, J. J
McKay, J
McKinnon, R.
Oakley, E. H.
Phillips, B. W
382
128
377
382
127
256
191
319
125
382
256
255
377
126
62
379
63
127
256
128 /
192
320
191
378
BOOKS
Achievement Through Work Study
(The) Affluent Worker: Political Attitudes and Behaviour . .
(The) Affluent Worker: Industrial Attitudes and Behaviour . .
After Donovan ?
Analytical Methods in Quality Engineering
Applied Statistics - Statistics for the Social Scientist (Vol. 2)
Application of Value Analysis/Engineering Skills
(The) Art of Decision Making
(The) Art of Listening
BACIE Register of Programmed Instructions: Vol. 2,1968 . .
Behaviour
..
Break-Even Charts - Their Interpretation and Construction
Business Cycles and Manufacturers' Short-Term Production
Decisions
Buyers'Views on Salesmen
I.M.S. Clinic Proceedings 1967
Corporate Strategy
Cost Estimating and Contract Pricing
Cost Reduction Charts for Designers and Production
Engineers
Creative Synthesis in Design
Creativity and Performance in Industrial Organisation
..
Creativity at Work
Decimal Day
Design Departments
Design Engineering Guide - Adhesives
Design Engineering Guide - Electrical Connectors . .
Design Engineering Guide - Electric Controls
Design Engineering Guide - Fluidics
Design Engineering Guide - Metrigrams
Design Engineering Guide - Stress Analysis
Design Engineering Guide - Value Engineering
Design Engineering Handbook - Electric Motors
Design Engineering Handbook - Metals
Design Engineering Handbook - Plastics
Discounted Cash Flow: A Method of Investment Appraisal
Discourse on Method and Other Writings
Effective Communication
Effective Technical Presentation
Electronics Industry Cost Estimating Data
Engineering Aspects of Supervisory Management
Engineering Data for Product Design
Engineering Materials Handbook
Engineering Materials
(The) Enterprise and Factors Affecting its Operation
..
Ergonomics - Man in his Working Environment
Essays on Creativity in the Sciences
First European Value Conference Proceedings
Fitting the Job to the Worker
Fluid Logic in Simple Terms
Framework of Technical Innovation
Value Engineering,
September
1969
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Posser, F
Raven, A. D
Roberts, E. E.
Ruggles, W. F
Saks, J.
Saywell, P. W. L
Schaidt, L
Sherwin, F. S.
Smith, E. P
Spiers, D. 1
Stamford, M. S
Stead, E
Stoll, K. M
Taylor, D. R
Teague, J. T.
Thew, P. F
Thew, P. F
Tripoli, P
Van Vechten, C. C
Whelam, R. G. L
White, M
Wilkinson, J. F
Wojtowicz, A.
Zappacosta, A. D
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TITLES
Fundamentals of Numerical Control
Fundamentals of Operations Research
(The) Genesis of Modern Management
Glossary of Management Techniques
Glossary of Purchasing and Supply Management Terms . .
(A) Guide to Operational Research
Handbook for Estimating Machining Times
Handbook of Fastening and Joining of Metal Parts
How British Industry Buys
How to Cut Office Costs
How to Get the Better of Business
How to Launch a New Product
How to Find Out: Management and Productivity
How to Find Out About Patents
How to Read a Balance Sheet
Human Relations in Modern Industry
Human Resources for Industrial Development
Industrial Democracy
Industrial Design for Engineers
Industrial Society: Social Sciences in Management
(The) Industrial Training A c t : How it Affects You . .
Industrial Training Boards: BACIE Report, No. 3
Industrial Training Handbook
Integrated Simulation
(An) Introduction to Critical Path Analysis
(An) Introduction to Cybernetics
Introduction to Mechanics
Introduction to Technological Economics
Introducing Statistics
Introducing Statistics - Statistics for the Social Scientist
(Vol.1)
(An) Introduction to Workshop Processes
Invention and the Evolution of Ideas
Is Scientific Management Possible?
Labour and Automation (7 vols.)
(The) Learning Curve
Left Luggage - From Marx to Wilson
Library and Information Services for Management . .
Machinery Buyer's Guide, 1968
Main Economic Indicators
(The) Manager and Programmed Learning
Managing for Results
Management Glossary
(The) Management of Production
Manufacturing and Machine Tool Operations
Manufacturing, Planning and Estimating Handbook
Materials for Engineering Production
Materials Handbook
Materials Management
Measurement and Control of Office Costs
Measuring Productivity
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B O O K S - TITLES—continued
(The) Measurement of Work
..
(The) Mechanical Behaviour of Engineering Materials
Mechanical Details for Product Design
(A) Modern Elementary Logic
Modern Management Methods
Multi-Purpose ETV on a Budget - A Guide to Television in
Education and Training
Municipal Work Study
Negotiated Purchasing
New Ideas in Materials Management
(The) New Materials
Non-Production Workers in U.S. Manufacturing
Operational Research
Organised Cost Reduction Techniques for Modern Warehousing
Penguin Science Survey 1968 : Physical Sciences
(A) Penguin Survey of Business and Industry 1967/68
Planning Your Business
Plastics for Engineers
Primary Standard Data
Preparing and Conducting a V.E. Training Seminar
Problems of Product Design and Development
Procurement
Product Engineering Design Manual
(A) Programmed Introduction to Critical Path Methods
Propulsion Without Wheels
(The) Psychology of Interpersonal Behaviour
Public Sector Purchasing
I.E.A. Purchasing Directory, 1968
Purchasing Handbook
Purchasing Problems
Quality Control Handbook
Quality Control for the Manager
Reduce Costs and Improve Equipment Through Value
Engineering
Report from Iron Mountain
Report Writing
S.A.V.E., Vol. 1 - Society of American Value Engineers,
Proceedings of the 1966 National Convention
BOOK
Alger, J. R. M
Ansoff, H. I
Ackoff, R. L
Ash by, W. R.
Alterman, H
Aljian, G. W. (Ed.) ..
Argyle, M
BACIE
BACIE
BACIE
BACIE
Baily, P
Bakewell, K. G. B
Bakewell, K. G. B. (Ed.)
Barber, J. W. (Ed.)
Barraclough, S. (Ed.)
..
Biggs, W. D
Birn, S. A
Blyth, J. W
deBono, E
Bowyer, F. (Ed.)
Brady, G. S
British Productivity Council
Broadbent, D. E.
Buck, C. Hearn
Buckner, H
Cooper, J. D.
Crosby, A
Coler, M . A. (Ed.)
Connolly, J
Compton, H.K
Currie, R. M
Crouse, R. L.
Cambridge Consultants (Training) Ltd.
Cowan, A. F.
Coker, E. E
Currie, R. M.
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S.A.V.E., Vol. 2 - Society of American Value Engineers,
Proceedings of the 1967 National Conference
S.A.V.E., Vol. 3 - Society of American Value Engineers,
Proceedings of the 1968 National Conference
Science and Technology in Europe
(A) Search for V.E. Improvement
Second European Value Conference Proceedings
Selection of Materials and Design
(The) Selection and Use of Teaching Aids
Shop Steward Training
Short-Interval Scheduling
(A) Simple Introduction to Capital Expenditure Decisions
Sixteen Case Studies in Value Analysis
Skills Analysis Training
Social Stratification
.?
Successful Industrial Design - Its Creation by Good
Management
Systems and Procedures for Business Data Processing
Teach Yourself Statistics
Technical Information Sources - A Guide to Patents
Standards
..
Thinking and Reasoning
'
(A) Training Officer's Guide to Discussion Leading
(The) Use of Lateral Thinking
Use and Abuse of Statistics
Value Analysis
Value Engineering 1959
Value Analysis/Value Engineering
Value Analysis - The Rewarding Infection
Value Engineering and Analysis
. ..
Value Engineering and Value Analysis
Value Engineering, Volume 2
Value Engineering in Manufacturing
Work Measurement and Cost Control
Work Measurement: Some Research Studies
Workshop Processes and Materials for Mechanical Engineering Technicians: 2 ..
Work Study
Work Study and Related Management Services
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Davies, D.
Debenham, A. I. S
Delehanty, G. E
Delves, F. (Ed.)
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Descartes, Rene
Directorate of Value Engineering DoD
Drucker, P. F.
Duckworth, E.
Dudley, N. A.
England, W. B
Falcon, W. D. (Ed.)
Farago, P. J
Fishlock, D. . .
. . . .
Gage, W. L
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Garbutt, D
. . . .
Gibson, J. F.
Goldthorpe, J. H
..
Goldthorpe, J. H
Goodman, R.
Goodman, G.
Gorgon, T. W.
Graham, C. F.
Greenwood, D. C. ..
Greenwood, D. C. (Ed.)
Greenwood, D. C
Gwyther, J. L.
..
Halsall, J. J. H
Hartmeyer, F. C
Hillenbrand, E. (Ed.)
Houghton, B.
Houghton, P. S
International Labour Office
International Labour Office
Irish National Productivity Committee . .
Jackson, J. A. (Ed.)
Johannsen, H.
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Value Engineering, "September 1969
BOOK
Jordan, R. B.
Juran, J. M
Kelly, J
Laithwaite, E. R.
Laughner, V. H.
Learning Systems Limited
Learning Systems Limited
Learning Systems Limited
Learning Systems Limited
Learning Systems Limited
Leduc, R
Leslie, H. C. L. (Ed.)
Levinson, I . J .
Lewin, L. C
Lloyd, M. H
Lockyer, K. G.
Lockwood, G. B.
Longman, H. H
(The) Machinery Publishing Co. Ltd.
Makower, M. S
Mandelkorn, R. S
Mandelkorn, R. S. (Ed.) ..
Mantell, C. L. (Ed.)
Marsh, A
Maxwell, R
Mayall, W. H
Maylan, M. J.
Millward, J. G
Moonman, E. (Ed.)
Morgan Bros. (Publishers) Ltd.
Moriguchi, C.
Morris, J
Moss, A. W.
Murrel, K. F. H
McKibbin, B. N
McNeill, T. F
Nair, N. K
Neale, F. J
Newby, F.
Norton, K. A.
O.E.C.D
O.E.C.D
O.E.C.D.
Palin, G. R
Parkinson, D. Northcote
Parsons, S. A.
Peat, A. P
Philpott, B. A. (Ed.)
REVIEWS - AUTHORS—continued
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Pollack, H. W.
Pollard, S
Product Journals Limited
Product Journals Limited
Product Journals Limited
Product Journals Limited
Pym, D. (Ed.)
Radford, J. D.
Randall, C. B.
Rankin, J. A.
Reichmann, W. J.
Roberts, C. R. W.
Roberts, J. C. H.
Robertson, A. (Ed.)
Roderick, M. D. (Ed.)
Romiszowski, A. J.
deRose, L. J.
Ross, T. A. (Ed.)
S.A.V.E
Schon, D. A.
Seymour, W. D.
Sharp, H. J. (Ed.) . .
Simberg, A. L.
Smith, M. R
Smith, W. N.
Snodgrass, R. (Ed.)
Stebbing, S. A.
Tack Research Limited
Taylor, D. R
Tredgold, R. F.
Truscott, W. T.
Van de Mark, R. L.
Vatery, N. (Ed.)
Wason, P
Weaver, G. G. (Ed.)
Weaver, G. G. (Ed.)
Webb, S.
Webster, E. ..
Welch, K.
Whitmore, D. A.
Wilson, F. (Ed.)
Wilson, F. (Ed.)
Wilson, G.
Wolff, P.
Woodward, R. G.
Yeomans, K. A.
Yeomans, K. A.
MISCELLANY
'Creative Clues'
Written by Bert Decker, Director of Project 3000, State University of New Y o r k at Buffalo, New Y o r k , 14214, this Project 3000
Monthly News is now available f o r $3.00 per year. Project 3000's
prime purpose is to semantically clarify creative processes
advantageously to their improvement.
Persistent Vagueness
Bert Decker, Director Project 3000, State University of New
Y o r k at Buffalo, writes: 'Nothing has amazed me more than
people's persistent passionate, erroneous belief that they know
the precise meaning o f vague words. H o w emotive they become
when you question that belief. I t upsets me, too, since time and
time again I see people fail to solve problems because of that
vagueness.
' A n awareness of how that erroneous belief develops helps. I t is
shaped by random, intermittent reinforcement which shapes all
kinds of persistent behavior. For instance, inventors are reinforced on a random, intermittent basis. Every one of their
inventions don't succeed. Inventors are use to failures. They learn
to persist when not reinforced continuously. That is why inventors
are so persistent. Burbank, f o r instance, tried 25,000 different
hybrids before developing the corn he desired.
'Random, intermittent reinforcement is also the reason why
Value Engineering,
September
1969
people stupidly persist i n playing slot machines. The payoff is at
random.
'Superstitions are also shaped by random reinforcement. A man
says, "It's unlucky to walk under a ladder!" as he walks under
one. O n a random, unrelated basis, he is unlucky. He develops a
persistent belief that it is unlucky to walk under ladders.
'Reinforcement is the only way we learn the meaning o f words.
We learn the meaning o f words i n accordance with the way other
people respond to them. Their response reinforces us.
'Vague words evoke random responses f o r the simple reason they
are vague. A teacher says, " T h i n k ! " to students and on a random,
intermittent basis some students behave the way the teacher
desires. That random, intermittent reinforcement has the teacher
believing she knows the precise meaning of " T h i n k ! " She
doesn't. N o one does. H o w the brain works is still a mystery.
Tt is my contention that this erroneous, persistent belief that
people know the precise meaning of vague words is one important
reason why we have poverty i n the midst of plenty, ignorance i n
the middle o f an information explosion, and stupid wars amidst
billions praying f o r peace.
' H o w do we avoid this erroneous, persistent faith i n vague words ?
The answer is very simple. Define them i n verifiable functions.
U n t i l you can do that, don't use those vague words except with
extreme caution.'
97
A verifiable function
'Few value engineers can tell you what a verifiable function is i n
spite o f the fact that they save millions by putting costs u p o n
verifiable functions instead o f upon vague 'things' '.
'So what is a verifiable function? It is a demonstrable verb and a
countable or measurable noun whose combined verb-noun meaning
can be demonstrated on the non-verbal perceptual level without
using other words. I f you cannot 'see' its meaning, i t isn't a
verifiable function. Examples of verifiable functions are 'move/
weight', 'kiss/girl', 'count/numbers', 'underline/verbs', and
'reverse/pencil'.'
'Learn all y o u can about verifiable functions. They can help you
be very creative.'
Manipulative verbs
'People too often fail to grasp the importance of deliberately using
manipulative verbs to increase their creative productivity. I t
helps, however, i f people demonstrate the importance of manipulative verbs to themselves. That can be done as follows:'
'First, take three minutes to list as many ways you might change
the r o o m y o u are i n . Consider changing anything i n the r o o m . '
'Second, after you have done that, take three more minutes to do
this. Deliberately apply the following manipulative verbs, one at a
time, to anything i n the r o o m and list those changes.
Reverse
Twist
Eliminate
Slope
Raise
Twist
Lengthen
Lower
Shorten
Multiply
Enlarge
Combine
Minify
Cut
Rearrange
Widen
Sand
Magnify'
' N o w compare your first list w i t h your second. The first usually
reveals habitual responses. However, the second list developed by
deliberately using the manipulative verbs is highly apt to contain
ideas which you will conclude you would not have thought of if you
had not applied those verbs'
'When that demonstration is tried with a group usually between
70 to 95 percent agree that the verbs help increase their creative
productivity. Y o u have the ideas i n your head but it takes the
deliberate use of manipulative verbs to get them on paper.'
%
%
T h e C o s t of C a s h
W h a t is t h e function ?
Currency has been in circulation for some 3,000 years and has
become so much an accepted part of existence that the need for it is
seldom queried. However, in a society in which the cost of labour
is rising steadily, one must begin to ask whether or not the transference of paper and metal from one person to another, using, as it
does, so much hidden manual effort, is really the most efficient
way to carry on trade.
W h a t d o e s it c o s t ?
Experts i n the U.S.A. have calculated that cash is costing that
country three billion dollars per annum, which suggests that,
allowing f o r the exchange rate and the relative population figures,
a cost o f approximately £300 million is likely f o r the U . K . Moreover, the movement of cash absorbs a tremendous amount o f
manual labour which could otherwise be productive, and i t is not
ideally suited to the application o f automated handling techniques.
Absolute quantities can be meaningless i n isolation and the figure
of £300 million must be viewed i n the context o f the gross
national cash expenditure. I n this way, it can be determined that
cash costs between 1 % and 3 % of the total turnover, to which
must be added the unknown value o f increased production i f
manual effort could be released f o r that purpose.
What else would do the job?
Alternative methods o f conducting transactions exist, e.g.
cheques and credit cards, but neither of these is a complete
98
substitute f o r cash and neither, as currently used, can be said to
reduce manual effort.
W h a t would that alternative c o s t ?
Moreover, such methods also cost money, and estimates carried
out to determine the costs of using the various exchange media f o r
transactions show that cash costs f r o m 1 % to 3 % o f the cash
used, cheques cost f r o m 2 % to 5% of the cash value of the
cheques used, while credit-card systems cost f r o m 3 % to 8 % o f
the cash represented.
Clearly, whatever method is adopted f o r exchange transactions,
there is a residual cost of between 1 % and 8 % o f turnover which
is either exacted explicity or is covered indirectly by bank charges,
equipment capital costs, insurance policies and clerical labour
costs. A n y attempt to substitute a more automated approach to
exchange procedure must offer not only a reduction i n the total
employment of manual effort to halt the escalating costs arising
f r o m wage awards, but must also do this at a cost of less than 1 %
of turnover.
A proposed solution
The whole process of exchange is simply a method o f transferring
credit or debit f r o m one person or organisation to another i n
return f o r goods or services rendered or received. I n essence, the
medium of exchange is some numerical measure o f value represented by cash or by written numbers derived f r o m cheques or
credit cards, while the exchange process is carried out by vast
numbers o f accountants, book-keepers, bank tellers, etc.
I n the present-day environment, i t would seem sensible to adopt
a weightless medium of exchange totally compatible w i t h automated data-transmission and processing techniques. I n addition,
it would be wise to adopt a 'system' approach which, although
entirely automatic, permitted manual inspection of the account at
any time.
A n obvious way to do this is to represent the smallest element of
the currency (i.e., the penny) by an electrical pulse. These pulses
can be stored, transmitted at the speed of light, and counted at a
rate approaching 10 per sec without much trouble, and a system
can be envisaged able to function w i t h existing data-processing
facilities and requiring little or no manual effort to provide a
substitute medium f o r cash throughout the entire country. Such a
system could provide a means of reducing selling costs (for all
commodities), reducing outstanding debt, obtaining up-to-date
marketing statistics, reducing clerical costs and increasing the
yield on capital investment.
7
T o use such a system, everyone would require a 'purse' i n which
he could store 'pennies' and f r o m which he could pay 'cash'. The
purse would need to be i n the f o r m of a portable store f o r pulses.
I n addition, some equipment analogous to a cash register would
be required f o r debiting or crediting these pulses. Clearly, the
equipment would have to be so cheap that the smallest shop could
afford to rent one at a cost o f not more than 1 % o f turnover.
Each household would also require similar equipment, o f
vanishingly small cost, to enable pulses to be transferred f r o m
one 'purse' to another within a set comprising the total used by
the family.
W i t h such a system, the 'purse' could have more than one function. Thus, it could be used as a clock card or works pass w i t h the
added attraction that each individual could take his accumulated
pay at any time. He could opt to be paid by the month, week, day,
or even hour, or at any random point i n time. There is, i n fact,
no technical reason why the purse could not be inserted i n a
machine at, say, a workbench, and payment made continuously.
These ideas may seem far-fetched, but they are feasible even at
the present time and offer enormous scope f o r labour saving i n
banks, book-keeping, taxation and revenue collection. The
principal defect is the feeling that, since the system operates as a
comprehensive data network, a 'Big Brother' supervision o f
individual wealth would be available to local and national
government. This fear is, however, largely groundless since i t
could equally apply to present-day bank accounts and government has, so far, not taken advantage o f the possibility.
Value Engineering,
September
1969
Reprint No. 2:2:8
Local Government - Cost Reduction - indirect Costs - Systems
The Development and Management of the
Value Analysis and Engineering Program
in the Commonwealth of Pennsylvania
by John S . Hollar, Jr.*
The author describes the application of V.E. principles to
the conservation of government funds in the State of
Pennsylvania.
He quotes the results from its application, and mentions
several interesting innovations which have assisted in
Government is an unusual animal to a young fellow just out of
college. I t was my last choice as a career. I f you had questioned
me three or four years ago as to what I wanted to be, I would have
firmly stated, 'Well, probably a salesman; or I would like to
work i n electronics or aerospace, or maybe get my commission
in the Service and then decide what to do.' But an unusual set of
circumstances forced me into taking a temporary position w i t h the
government, resigning myself f r o m a hard-nosed family o f
corporate capitalists. I took a position w i t h the government,
tongue i n cheek. I f o u n d a new world. I couldn't believe i t
existed. As a young person, turning his talents and energies
towards government service, I realised that I almost stood alone.
Where were the other young people i n government? Where were
their ambitions, their creativity? Where was their excitement? I
found them, but I didn't find as many as I thought I would. I had
discovered that perhaps government is not attracting young
people i n the way i t should. For example, government hires
young people and trains them. But government can't offer them
the substantial salaries that industry can, and after a while they
are absorbed into industry. So government has to start all over
again. We start to learn about government i n the seventh or
eighth grade, and I think i f it were made more attractive to young
people, more would want to enter government service. Young
people can do something about government and they can do i t
now, not tomorrow, not i n fifteen years when they gain the
excellence of administrative levels where they can make decisions,
but they can do it today.
Local G o v e r n m e n t and C o s t Reduction
I am going to tell y o u about the management and development of
the cost reduction program i n the State of Pennsylvania. Basically, we are three years old. Secretary Samson, who at one time
was the Secretary of Property and Supplies, was instrumental i n
bringing this concept to the State o f Pennsylvania. He was
supported wholeheartedly by Governor Shafer w i t h the ultimate
* Mr Hollar,
Program
Supervisor.
Governor's
Cost
Reduction
Program,
Commonwealth
of
Pennsylvania, Harrisburg.
Pennsylvania,
received
his BS
in Economics
from Lehigh and has done
Masters
work at the University
of Pennsylvania.
He was
formerly
Staff
Director
of WSAV-TV,
Savannah,
Georgia.
This paper
was presented
to the
10th
Anniversary
Conference
of Value Analysis
Inc.
Value Engineering,
September
1969
1
its very full acceptance by his colleagues in government.
The use of the IDEA-line; Red before a Green after
presentation of V.E. proposals; and the use of VE as an
induction method to get a new man cost conscious early
in his career.
objective of increasing services while decreasing costs to the taxpayers of Pennsylvania. I t wasn't easy to start a cost reduction
program.
H o w do you do it? It's a mix o f a suggestion system, of creative
ideas that you try to solicit f r o m people; but what do you do
with the ideas after you've gotten them. H o w do you evaluate
them, what technique do you use? What do you propose you can
do about it? Send that to us. Let us work on i t . Let us report the
savings, i f there are any, to the taxpayers.
We f o u n d that cost reduction i n the State of Pennsylvania was
not only necessary i t was an important part of government, an
important part o f getting employees and state service people
involved i n government. I t opened up a whole new range of
thinking f o r people i n government and f o r taxpayers to participate, not only i n the savings that we were able to produce, but i n
motivating them to continue the savings aspect of government.
This term has been categorised, it's called, 'Cost avoidance'. I
think the ultimate objective o f any program, whether i t be cost
reduction or cost improvement, or any medium by which cost
improvement is done through Value Analysis, is definitely cost
avoidance. This is the ultimate objective, but we needed to take a
look first o f all at some of the areas of government expenditure to
figure out how we could save money.
A Two-Phase Program
When the program was planned, they created three phases to this
program: Phase One dealt strictly w i t h commodity purchasing.
Phase Two was extending the cost reduction concept and Value
Analysis way of evaluating these ideas to all state institutions,
including school boards who received state subsidies. Phase Three
we scrapped because some commercial soap manufacturer stole
the name f r o m us, so we went on to Phase Four - the granting o f
incentive awards to those individuals within the government who
submitted ideas that saved money.
Let's take a look
Government is a
and they spend
services that are
taxpayer himself
education.
at Phase One. Phase One looked at purchasing.
big spender. They get taxes f r o m the tax-payer
money i n order to throw back some o f the
necessary to the taxpayer. The things that the
cannot provide; highways, f o r example, and
But how does government really buy things? D o they take a look
at the alternate resources available? D o they really make a
choice? Well, as a young fellow out o f college this was a question
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that bothered me. I f o u n d out that i n government perhaps there
really wasn't a choice; perhaps the choice was already made and
we merely chose among the alternatives that had already been
selected. Let me explain by saying that i n Pennsylvania, as i n other
states, a class of items to be purchased is usually put on a commodity code. I n other words, the bidder or vendor would
advance several products f o r consideration, and at the end of this
consideration point, after our analysis, we would take a range of
products serving the same function and use these products as our
purchasing selection f o r that year. This would be under a commodity contract basis. As a government agency, i f we were to
purchase products f r o m this commodity range, we would select
f r o m the range. The idea behind this was to take advantage of the
lowest bidder and get the lowest cost. But one important thing
was perhaps forgotten here, and that was value. I f this sounds
like I am leading you into a definition of Value Analysis, I am.
A quality that is required, not necessarily desired, is I think the
most important thing i n determining the purchasing of any commodity i n state government operations. We've got our price, our
need, our quality selections, and we have our value. What can be
done w i t h this word, 'value' ? The Federal Government has been
making some interesting innovations i n Value Engineering
analysis. They have been requiring that private industry maintain
Value Engineering programs i n order to qualify as being considered f o r their products to be purchased by the Federal
Government. W h y can't states do it ?
S l o w Introduction of V . A .
The use of Value Analysis i n Pennsylvania developed slowly.
Three years ago a Value Analysis seminar was held on the
campus of Penn State University. A t that time several government administrators were selected f r o m the complex i n Harrisburg and taken to Penn State, away f r o m their working areas,
and given a training period i n Value Analysis. They produced
substantial savings on the products they studied, and they did
one more important thing: They brought back to the central
complex i n Harrisburg a new concept that the state government
was unaware of.
I n a typical presentation about the features of Value Analysis
and Engineering; you always have the table filled with the
products, and you have the slides showing the 'before' and 'after'.
But I think i t is difficult to apply the same thinking to people, to
systems, to procedures. These are the problems that all states face
in applying Value Analysis.
Last June we invited Value Analysis Incorporated to Pennsylvania to conduct a second seminar, at which time, about 108
administrators came unwillingly f o r a one-week seminar. This
seminar was held at the most crucial period o f state government
operations - one week before the budgets of each of the agencies
were due. Quite a few people were indignant about coming. That
was the first day. A complete metamorphosis took place during
the week and at the end of the week it was difficult to get r i d of
the attendees. Since that time, strange things have been happening
in the State of Pennsylvania. I am here to tell you about them,
and I think I can tell you best by saying what isn't happening. I n
the first place, old line administrators aren't delegating much
work any more. They walk around and they mutter to themselves.
They have crazy ideas and they're sane people, and they seek the
company of other graduates o f the Value Analysis seminar, not
because their organisational lines are the same, but perhaps
because they are misunderstood i n their agencies. We have
tasted the f r u i t of Value Analysis. Once you have tasted this f r u i t
it is hard to stomach anything less, and we are indeed attempting
to sell Value Analysis to all levels of state government by showing
them the way. I t might seem strange to you to see a young lad
up here - I ' m 26 years of age, I've had a pot-pourri of education
and experience and it almost looks misguided on a personnel
f o r m . I've been a disk jockey, a T V announcer and director.
1 used to do a little printing once in a while. I like public relations,
I like public speaking. I graduated f r o m Lehigh with a degree i n
economics, which means I know a little bit about resource allocation, but not enough to get by. But i f you think you can hook
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young people on something great, try Value Analysis and
Engineering. I f you look at youth today and see long hair and
Paisley shirts and Nehru jackets and you want to do something
about i t , try Value Engineering. Believe me, i t is the easiest thing
in the w o r l d to get hooked on. I did and a lot of other people i n
my area have too. Selling the program is not as hard as it is
getting the ideas with which we can apply Value Analysis. This is
why we use Value Analysis as a vehicle i n Governor Shafer's cost
reduction program. Essentially, the program is nothing more
than an employee suggestion system, with one major difference.
Most o f these are placed i n the personnel office i n government.
Their use is primarily incentive, perhaps a grievance function, a
few other things like that. I n Pennsylvania, Governor Shafer
firmly feels that the cost reduction program is not necessarily a
personnel function, but a method f o r management improvement . . . a method f o r promoting his slogan f o r his administration, 'Economy, Efficiency and Excellence,' Triple E.
The Results from V.A.
We consider you gentlemen as the creators. I consider myself as a
practitioner o f the science of Value Analysis. D u r i n g the seminar
100 administrators attended-let me present some interesting
statistics. One hundred administrators is equivalent to about
3,000 years o f administrative experience. I t represents 1 -4 million
dollars of salaries per year, and they submitted themselves to
Dusty and D o c f o r one week. That's a big chance. I think we
came further than 3,000 years i n that week, and I think we saved
more than 1-4 million dollars. So it was w o r t h the chance we
took. We came, we saw, we responded to Value Analysis
Incorporated, we paid their bill, but we got something out of i t .
We studied 20 projects, and the projects were primarily designed
f o r study purposes only. As a result, five o f the projects we
continued under an immediate task force set up by the Governor
called Operation Blue M o o n . This was a three-month task force
study group. Today is Tuesday, November 19, and today these
reports should be i n . I have no news f o r you on the balance of
these reports, but as a potential savings uncovered during the
seminar of §108 million, we are hoping maybe 10 per cent of
that would be a realistic figure.
We are not finished, we've got a lot of work to do. The cost
reduction program was started five years ago and today it has
amassed approximately $53 million i n savings. I have to qualify
this by saying that savings as a result of a suggestion system, and
savings as a result of cost consciousness are often times confused.
We have divided our cost reduction program into two parts: The
first part is a suggestion system. We use a format similar to the
Value Analysis f o r m . We have gone one step further. The old
method is i n red, the new method is i n green.
An Executive Inventory
Recently i n Pennsylvania an interesting project was undertaken.
I t has been done i n the Federal Government, and this project
was an executive inventory. A total sum knowledge of every
administrator above a certain level o f qualification i n the State of
Pennsylvania was inventoried and placed i n a computer. Out of
Pennsylvania's hundred thousand employees, only 8,500 employees qualified f o r the executive inventory. That means that the
balance are clerical and technical people, supposedly the educational level or administrative level that would not permit them to
participate i n the program. The idea behind this was closely
related to PPBS (Planned Program Budgeting System). I t is
nothing more than Value Analysis i n action. Total Value
Analysis applied to everything i n a state, or even i n the United
States, f o r that matter. This is the objective behind PPBS, but to
implement it you need certain tools. Supposing y o u do find that
there are certain objectives i n government and y o u budget f o r
them; what else do you need? Y o u need people. Where do you
get them ? F r o m an organisation ? Yes, traditionally. H o w about
the executive inventory? I f we put the requirements f o r the
objectives into the computer, we can get a program mix of all the
people that we need to r u n the program. This guards against an
important governmental term called in-bred executives, one
of the biggest pitfalls i n State government. H o w do you destroy
Value Engineering,
September
1969
the bureaucracy i n government ? H o w do you destroy the empires
that are built up over the years in certain areas ? Perhaps PPBS
is a way to do this. Perhaps the Value Analysis approach to
PPBS is a way to do this. This is exactly what we are trying to do
in Pennsylvania, but we needed the tools of Value Analysis to do
this, and we have to apply them not just to commodities and to
purchasing, but to overall objectives; to the taxpayers, to the
services that we as a government are responsible to the taxpayers
for.
A frightening future looms for all state governments and local
governments if, without proper planning, we fail to live up to our
responsibilities to the people we serve. Education, as D r
Musmanno t o l d you, is soaring. But the idea behind PPBS is
simply this: Long-range planning, programmed integration,
long-range budgeting, and trying to get people together towards
common ends.
Increase Services, Decrease Costs
We are right back to where we started f r o m : Increase services,
decrease costs. What do we do w i t h the 8,500 people who make
managerial decisions every day that save money? We created
another program called the Management Improvement Reporting System. I t is a simple system, and it is quite closely related to
motivating people. Y o u have 8,500 administrators who make
decisions every day that save money. When they make a decision
in their own area we ask them to f i l l out this Management
Improvement f o r m ; we invite them to f i l l it out; they are reluctant
to do so. The reason given is, 'This is my j o b , this is what is
expected of me. I don't want to tell anybody else about i t . This is
what I have to do.'
Our argument to this is very simple. ' Y o u are 8-5 per cent of the
Commonwealth employees i n the State of Pennsylvania. That
means that 91-5 per cent of our employees look to you f o r
leadership i n trying to maximise the resources of government, to
economise, to save money.
' W o u l d you now f i l l out one of these forms so that we can tell
them about your accomplishments ?' W i t h this i n mind, they do
it. This is where our $53 million came f r o m . Perhaps they are
everyday decisions that produce money. The Department of
Highways has saved $23 m i l l i o n ; why can't Welfare save $18
million ? W h o are best, the people i n the Highway Department or
the people i n the Health Department? It's an exciting series of
happenings that is taking place i n Pennsylvania because people
are being made to be cost conscious because o f themselves. This
is our objective. When this 8-5 per cent produces savings that we
publicise, we turn to the other 91-5 per cent and say, 'Here's your
chance. What have you got to tell us about your operations?
Where can y o u save money i n government ?'
V a l u e E n g i n e e r i n g P a p e r w o r k is H a r d
D r Musmanno told you yesterday about the importance about
projects ranging between $48 or $23 million, i t all depends on
which end o f the stick you're on. Well, he didn't know, but I
brought along the example he was talking about and I ' m going to
show you today how hard Value Engineering is to apply on paper
management, management f o r systems, and various other things.
This is an inter-departmental transmittal envelope (photo). I t
originated when W i l l i a m Penn signed the Charter f o r Pennsylvania back i n 1653, and it had six holes i n it f o r that many years.
What are the value of the holes ? To see i f there is anything inside.
A l l right, the $48 was realised by reducing the number of
holes. M u l t i p l y that by 50 years, what do you have? Another
example was the distribution of mail i n the Commonwealth. The
central complex employs about 33,000 people and they're
located w i t h i n three square miles o f each other. Y o u can imagine
the monstrous task of sending a memo to a buddy i n another
building or to an associate i n another department. We have staffs
that sort mail and r u n it through the offices and the average time
for delivery is about 48 hours. This means that we may have to
send one o f our secretaries to deliver the letter i f it is urgent. One
of the projects at the Value Analysis seminar was how we could
improve the mail distribution - not w i t h an eye to saving money,
Value Engineering,
September
1969
but to increase efficiency. We learned that perhaps the biggest
problem i n distributing mail was the fact that the addresses were
not uniformly placed on the envelope. They had already gone
beyond the three holes and into a more crucial look at the
envelope. We f o u n d that there was no organised way of sending
anything to anybody. The names were put on and i n some cases
the information wasn't even called f o r . The result was the new
envelope, controlled routing. We start out w i t h the department,
the division and bureau, the r o o m number and building, and
finally the person's name. That is the least important element of
value i n determining where this envelope is going to go, because
if the mail boy can get it to the right building and to the right
room number, then somebody else will get i t to the name. That's
not his responsibility. But we gained another benefit f r o m this
that we didn't realise. The old envelope had blanks f o r 14
addresses on one side and 14 on the other side, or a total of 28.
I f the old envelope were to be completely used we could have 28
controlled routings before we could throw it away. But on the
new one we have 20 on each side. That's 40 routings before the
envelope is thrown away. Our cost reduction program reported
an estimated savings i n paper alone on this project o f $2,100.
The efficiency of the mail system we hope, as a result o f this
change, will increase by 30 per cent.
The U s e of an Idea-Line
We've heard a lot about motivation, we've heard a lot about
getting people to react, and this is one o f our big problems i n
Pennsylvania. H o w do you get a hundred thousand people to
submit a cost reduction idea? Y o u must appeal to them as
government servants to yield some of their creative thinking to
the cost reduction program. We have used several methods to do
this. One of them is an innovation to Pennsylvania and I must tell
you a brief story about i t . The Secretary of Administration and
Budget Secretary, A r t h u r Samson, made an unusual request of
the head of our General State Authority (GSA) i n Pennsylvania.
He called h i m on the telephone one afternoon and said, 'Bob, I
need the telephone number of your Procurement Office.' Bob
recoiled and said, 'What do you mean? It's 4332.' A n d Secretary
Samson said, ' I ' m sorry, you don't understand, I need the
number. I've got to have the number.'
A n d Bob said, 'It's 4332. That's the extension.'
Finally we got the affair straightened out that the idea behind
4332 is very simple. The letter configuration o f 4332 forms the
word, 'idea', and thus launched one of the most exciting programs i n the Governor's cost reduction program, and this is the
I D E A line. H o w do you use an I D E A line? H o w do you tell a
hundred thousand state employees about it? We decided to take
advantage o f an interesting phenomenon of state government,
and that is rumor. We never have too much difficulty when it
snows of informing some 33,000 employees that 3.30 is the time
that they may leave. N o one has yet been able to explain how this
101
piece of information can be transmitted so quickly throughout the
Capitol area.
We took a chance i n the cost reduction program by releasing the
I D E A line the same way. We sent to key officials i n our cost
reduction program, to key evaluators who participated i n our
program, a simple letter. I t said, 'It's here. Call I D E A on your
program.' I n one week's time, we recorded 3,500 calls on our
I D E A line. We had a recorded announcement which said, 'Good
afternoon, you have just called the I D E A line. Welcome.'
We decided we would schedule i t f o r a m o n t h : The first week
we'll use a rumor, see how that works; the second week we'll
use a newspaper advertisement i n all the newspapers i n Pennsylvania; the third week we'll release posters; and the f o u r t h week
we'll go by and start taking out ideas.
I t worked. We got all kinds o f calls and publicity, and everything
was running smoothly until a task force f r o m the Bell Telephone
office walked i n and said, ' Y o u can't do this to us. We have
millions o f dollars worth o f equipment installed i n the Commonwealth o f Pennsylvania and i f there is an overload o f over 40
calls on there at one time, you'll blow the entire communications
of the State of Pennsylvania.'
I thanked them f o r the idea. But they did make us put i n an
additional line so that the probability o f 40 people calling at one
time and overloading the circuits would be proportionately
raised to something like 1,100 and their voltage regulators could
take i t .
How else do you promote a cost reduction program? Through
your evaluators. These are the unsung heroes o f cost reduction.
These are the men that sat through the Value Analysis seminar
and came back excited and ready to go, and you have to motivate
them by supplying them with the right type o f information that
they can evaluate. For example, before we had Value Analysis,
we were giving projects and ideas just as they had been received
by the suggestors. We f o u n d this was wasting time. Perhaps we
could combine some o f the ideas into a broad area o f study, then
assign a project to a team to take a look at i t i n this way. This was
the answer to our evaluation problems.
We received about 300 suggestions each month. H o w do you
evaluate and give credit to all of the suggestors ?
Value Analysis Teams
We developed a simple way of grouping individual ideas into
subjective areas. When we have a meeting o f the project development council, which consists o f two value engineers and a few
other selected people on our advisory council, we write up projects. This is a most important thing: how you give the problem to
the team. A Value Analysis team is a group o f individuals who
must be carefully selected f o r their interaction with each other,
and f o r their creative abilities to lose their hang ups and do some
constructive thinking about i t . A case i n point was the creation of
Value Analysis Team N o . 11 i n the State of Pennsylvania. We
have 16 teams. Serving ten o f these teams are various subcommittees. We designed the teams around various structured
areas o f state government, such as education, purchasing, and
equipment. But the one team that was just newly created, and I
think i t is like giving birth to a new idea, was Team N o . 11,
H u m a n Services. This is the new team f o r health and welfare. I t
consisted o f one M D , one comptroller, one budget analyst, one
drug expert, one expert on Medicare, one administrative assistant
to a secretary level, and one management analyst. Some o f them
have had a little experience i n medicine, but not all o f them. Their
first project, which is being used as a pilot project to get them
through Value Analysis, is a project that deals with radio
advertising i n the State o f Pennsylvania. I t is quite an unlikely
project f o r a human services team whose qualifications are
primarily medical. Here again, they were expecting to receive
projects on Medicare, various rates, and things o f this sort. This
team is so excited about this project that they have scheduled
many extra meetings and are well on their way to not only
realising the concepts behind Value Analysis, but i n enjoying the
fruits o f their labors quickly so that they can move on i n their
102
areas and be creative i n what they have learned. We loaded the
gun w i t h the bullets o f Value Analysis and turned them against
ourselves i n June. A t this time we looked at Governor Shafer's
cost reduction program and f o u n d out that Value Analysis was
the only way. We produced i n less than two week's time a complete projected plan f o r the program: public relations aspects,
new forms, and a new reporting system that costs less, reports
more and gives everyone an idea o f what is going on i n Governor
Shafer's cost reduction program.
We had meetings w i t h our team members. We said, 'Okay, you've
learned i t . D o n ' t forget i t . We're going to continue.' We constructed a special meeting room. I t is a think tank and when the
men go into this room they leave all o f their problems behind
them and become ours f o r the time that they are there. They are
given an area of their own and we are firmly convinced that rather
than meeting i n various offices and being disturbed by secretaries
and telephone calls, these men can go i n and forget everything
that goes on outside of that r o o m and concentrate their f u l l
efforts on evaluating the projects that the program produces f o r
them.
We have had to adopt some creativity i n the administration of
Governor Shafer's cost reduction program. We have used Value
Analysis to do this. We have used every possibility o f thinking
creatively i n doing this, and we have also discovered many
interesting things. First, how about using Value Analysis to find
the problem i n the first place. Supposing no one recognises the
problem, it's not even being studied? We are free o f commodities,
we are free of the profit motive, and we are applying them against
administrative procedures and various other aspects of the state
government. I n fact, we are experimenting i n other areas,
wherever we can, to see how it works. Let me tell you about an
interesting thing that happened. The Department o f Health has a
division of sanitary engineering. Its responsibility is to license
and inspect and award construction permits to engineering firms
or communities, who are putting up a public sewage disposal plant
or system. Communities that desire to build this type o f system
must submit plans to an architect or consulting engineer, who
designs the plant to meet the requirements. N o two sewage
processing plants are exactly the same, so it's a monstrous task
f o r the State Division o f Sanitation to evaluate the hundreds o f
blueprints that come i n during a year. There are certain basic rules
and regulations that must be followed, and interestingly enough
one o f the basic criterion set down i n the sanitary water board's
codes f o r the construction o f sanitary facilities is outlined i n
functional terms - a foresight that was not taken advantage o f
before. As a result of this, the Division of Sanitation produced a
70-page questionnaire dealing with every conceivable area o f the
construction of a sanitation facility. As a result o f this, a consulting engineer merely had to fill out this questionnaire and submit
it to the Division of Sanitation f o r processing. This meant that
problems could be instantly located. We could reduce the evaluation o f the analysis o f all these plans to a clerk or technician level,
rather than using a high-priced engineer to do i t . The engineer
would be free to clear up critical problems which developed.
There were no dollar savings i n this. I t cost a lot o f money to do
this. Perhaps i n several years i f you amortise it, there w i l l be some
savings. What i t did do was to reduce the backlog o f the award of
construction permits f o r sanitation facilities to communities by
two years. This is the idea of increasing services.
One o f the things that interests us i n the cost reduction area is
how to excite people to know the results o f them, and not close
their minds to the new ideas that are coming into the program.
We don't want people to rebuke everything that comes i n as a
cost reduction idea. Cost reduction is often a thorn i n many
people's sides because we deal i n free-lance management. We
dabble f r o m area to area; we go f r o m organisation to organisation. We don't have one plan o f events, we randomly discover
areas o f savings. Administrators who methodically think we
should go i n one direction or study one problem are upset about
this, but I think Value Analysis has proven a very essential point.
As a free-lance manager, dabbling into the problems here and
there are producing savings, we do create the basis o f crossconsciousness which we then can transmit to all government
Value Engineering,
September
1969
employees, taxpayers, and interested states. We've been given the
methods, we've been given the tools, we've been shown the way
to do the j o b . We have a difficult task ahead o f us, but I know
we can do i t . Selling the program is easier said than done. We
have started at the bottom i n Pennsylvania, and I ' d like to explain
now one o f the most exciting things that has taken place during
the past month - our government training program. H o w can a
k i d out o f school make a positive contribution to government?
Well, we are going to give them that opportunity i n the cost
reduction program by subjecting the trainee to one month o f
Value Analysis training. This man is going to learn at a very
early age i n his state career how to save money. We are going to
show h i m the way, we are going to teach h i m Value Analysis and
how to apply Value Analysis techniques to a given problem, and
we are going to let h i m take the ball f r o m there with our guidance.
The possibilities are extremely challenging because here is an
opportunity f o r a man coming out o f college to be given the
chance to make a positive contribution to government i n terms of
dollar savings.
A d v a n t a g e s of V . A . P r o g r a m s
We feel that the advantages of this program are three-fold.
Number one, we give this man a way o f thinking cost consciousness early i n his career. H e is going to take i t right up to the top
i f he stays i n government. He is going to take i t right up to the
top i f he goes into industry, but he's going to know about it at
the beginning.
Secondly, he is going to make a positive contribution to government, which is going to stimulate his feeling towards his ability to
do something about government.
Thirdly, there is a possibility that the savings which he derives
w i l l offset his training costs to the State. These are three exciting
factors, and we credit Value Analysis f o r this because i t has given
us the ability to do something like this, and perhaps offer a
challenge to a young government career trainee. But is that as far
as we can go? We are talking about Harrisburg only. H o w about
the state institutions, semi-autonomous school districts, the
hospitals; what are we doing there?
Last February, Governor Shafter made history i n Pennsylvania
by going live on the educational television network, which was a
network constructed f o r this one broadcast i n Pennsylvania. A t
that time he invited all institutions, all state schools and colleges,
everybody receiving state aids and subsidies, which, by the way,
comprises approximately 78 per cent o f our tax dollar i n Pennsylvania, to j o i n the cost reduction team. A l l they have to do is
appoint a key man i n each agency to carry the ball and we'd
take it f r o m there. Results? We got 16 per cent. That's a total of
314. Three hundred fourteen institutions, and this is a mix o f
educational and mental and all state-supported works, sent i n
their coordinator cards and have started cost reduction programs
using the Value Analysis techniques i n their institutions. They
don't have big projects, but they are working on it. We are hoping
we can expand this.
I ' m going to offer you now the same challenge that Secretary
Samson offers every state that he goes to on a speaking engagement. Challenge your state officials. Find out what they are doing
about i t . D o n ' t tell them what they're doing about i t , but find
out what they are doing to save money. Are they using Value
Analysis, cost improvement, and cost reduction? D o this first
and with your many contacts see i f you can't do something.
Carry the ball to them. I can offer an addition to his challenge,
because you are all involved i n Value Analysis. Have you ever
thought o f inviting government officials to some o f your interesting team meetings and getting them involved? I t might work. I
think a government administrator would be quite interested i n
seeing what y o u are doing. Y o u have only your own money to
save by doing this. I think it is our j o b , not only to produce the
savings that we can w i t h Value Analysis, increase the productivity
and the efficiency o f our endeavors through Value Analysis, but
also we must spread the word. Soon w i l l come the day when
states cannot handle their own responsibilities and the Federal
Government w i l l take over more and more and we all know
what that means.
I am talking not only about State government, I ' m talking about
county government, I am talking about city government. Y o u
may start anywhere you want to, but let's get started.
Miscellany
Management Techniques*
Behavioural techniques
Perhaps the most important techniques f o r the manager are those
concerned w i t h human relations. To judge by the awakening o f
interest i n recent years, many senior managers are turning their
attention to this field, which uses such social sciences as sociology
and psychology. The techniques are less precise than those
associated with physical systems, because o f the much greater
variation o f behaviour; nevertheless a lot o f progress has been
made i n the control of human systems i n industry and business.
Two fundamental managerial skills should be developed by all
managers: decision making and communication. Many managers
are unable to make up their minds effectively and then to let
others know of the decisions they have taken; yet all management
is concerned w i t h these two processes. I n the first case, there is a
need to develop a logical system o f judgement. I t should apply
widely, and i t calls f o r accurate problem definition, data analysis,
and setting up hypotheses to explain the behavioural situation
and its environment.
A lot of attention is also being paid to techniques affecting job
performance: getting the j o b specification correct and modifying
it as time goes on. That calls f o r analysis of the elements involved
in the j o b and the skills associated w i t h i t : f o r instance, do many
jobs really need graduate level training f o r their accomplishment;
or, again, are we teaching a new appointee the right skills? The
improvident use of managerial manpower can largely be prevented by rational analysis of what is really needed.
Value Engineering,
September
1969
Such studies lead to general techniques o f appraisal and counselling which are part of a system o f performance review. Managers
should be given regular assessments o f their success or failure i n
the tasks they have been asked to undertake. Clearly, that needs
close and systematic planning of targets and measurement o f
achievement; a technique f o r the purpose is called management
by objectives.
Planning techniques
Problems o f company strategy - an understanding o f environmental competition and market changes involving long and
short-term planning methods - are among senior management's
main responsibilities. Forecasting techniques are now used
widely; based on statistical methods which can narrow down the
field of error of judgement i n forecasting, they are inevitably
dependent on the quality o f information available. Quantified
information on growth patterns, sales performance, new product
demand, and so on, are all part o f the input system on which
output analysis and trend lines depend.
Games theory: analysis of competitive strategies and what
returns they offer - is a technique o f growing value.
Decision trees are a method o f laying out i n an orderly way the
choices that exist and the probabilities of success associated w i t h
them. The decision-maker sets out opposed alternatives: to build
a factory, or not to build; to build it here or there; to build it now
or then; and so on. Different costs, 'pay-off' values, likelihood
of success and other contingencies can be deduced f o r each action.
103
The value of the method is to force the decision-maker to the
disciplined examination of choices i n his scheme.
Network analysis is another family of techniques involving a
'closed' system (one w i t h starting and end points). I t sets out all
that happens during commissioned activity - building a house,
launching a new product, publishing a book, planning a merger.
Time intervals between stages are calculated, and the dates laid
out i n a series of interlinked lines of development, f r o m start to
finish, taking the shortest route. Computation of costs, probabilities, resources used and other variables can be added to the
system. Examples of such techniques are Critical Path Method
(C.P.M.), Programme Evaluation and Review Technique
(PERT), Resource Allocation and Multiphase System (RAMPS).
They are of great value as inspection and control methods i n
complex operations, f o r which earlier graphical techniques were
not adequate.
Financial techniques
I n the quest f o r increased profitability there have been many
recent developments i n financial investment and management
accounting.
graphically dispersed and unsystematic points? When the time
spent and orders received have different values, analysis cart be
complicated.
5. Search techniques are applied to location studies o f all kinds.
Siting and warehousing problems can be solved by computing
the 'centre of gravity' of operational events and the 'satellite
requirements' associated w i t h them. For example, how should
distribution facilities - road lorries, rail terminals, shipping - be
related to storage depots and manufacturing centres?
These more sophisticated analytical methods can be supported
by many other management techniques i n all functional areas of
business. Value Analysis and engineering examines the costs o f
components and processes; cost benefit analysis looks at social
as well as economic prices. Management auditing systems,
budgetary control and performance assessments are further
examples.
* The above information appeared i n British Industry Week, 29th
November 1968. I t presents a system f o r classifying the vast
array o f management techniques.
Discounted cash flow ( D C F ) is a method o f calculating interest
rates and Capital recovery as an annual 'flow of cash through
the company's books over a period of years. When project costs
have been calculated, as-in a bank overdraft or a building society
mortgage loan, the value of the investment in terms o f adequacy
of return can be assessed.
?
Variations to D C I • include Net Present Value (NPV) - present
capital outlay less the income discounted at an acceptable interest
rate - and Annual Capital Charge (ACC), an 'annuity' system
where yearly capital charges arc compared with yearly incomes
less outlays.
Operational research techniques
Among more, sophisticated techniques available to management
are management sciences or, more specifically, operational
research. The general principle is the use o f rigorous scientific
methods and mathematical techniques i n problem solving.
The management scientist tries to identify the true nature of any
problem, to explain the behaviour of the data, and to devise a
model that enables similar issues to be solved without returning
to base each time. He identifies perhaps only six families o f
scientific problems i n business. These are:
1. Allocation: a way to use raw past and a probability estimate
for the future; it can become a complex mathematical exercise.
I t is important for a company tp keep its stock of parts, unfinished
components and finished items at a level which will satisfy all
reasonable demands without unnecessarily tying up capital i n a
non-productive activity.
2. Replacement techniques are similar to stock control - components i n any kind of system, including manpower planning, are
renewed according to a calculated life pattern.
3. Waiting time: where people or items queue f o r many different
kinds of service a mathematical study of arrival and service time
patterns is needed. The best use of service installations can be
calculated f r o m its estimate of traffic density. There are many
examples Of queueing problems i n management systems, such as
assembly lines w i t h servicing bays, each taking a different length
of time to complete a particular service and causing intermediate
queue build-ups; 'Line-balancing' involves the installation of just
sufficient service channels to prevent an unacceptably large
build-up of waiting items. Other examples of queue problems
involve people who are impatient customers and may refuse to
wait for service.
4. Routing is an attempt to solve 'network events', such as the
travelling salesman with a programme of calls to be made over a
given territory within limited t i m e - h o w does he call at geo104
B o n d i n g by u s i n g E x p l o s i v e s
Incorporating Fibres into M e t a l s
A way of incorporating strong fibres into metals has been put
forward by two scientists who work f o r the United Kingdom
Atomic Energy Authority. C. M . Jarvis and P. M . B . Slate have
shown that a sandwich of fibres and sheets of metal can be
bonded firmly together by the use o f explosives. This, they say,
avoids some of the problems o f conventional methods.
A variety of strong, stiff fibres has been developed; the best
known are the carbon fibres used i n the turbine blades of the
Rolls-Royce R B 211 engine. To make use of the properties o f
fibres like these, they must be incorporated into a matrix many
times weaker than themselves.
Getting Around the Difficulties
When metals are involved, most of the processes so far devised
require prolonged periods at high temperatures, which may
weaken the bond between the fibres and the matrix. I n some cases
oxide films may f o r m on the surface of the fibres; i n others, the
high temperatures may encourage the formation o f compound
between the fibres and the matrix.
Jarvis and. Slate argue that explosives may be used to get round
these difficulties.
Copper - Tungsten - Fibre
They have produced a copper-tungsten composite by laying
alternate layers o f copper f o i l and tungsten wire on top of one
another i n a specially designed anvil. A flat layer of explosive was
placed on top, w i t h a plastic buffer and a metal compressor plate
between i t and the sandwich.
When the explosive was detonated f r o m one end, the detonation
wave travelled across i t , forcing the sandwich together and f o r m ing a strong bond between the layers. The process, known as
explosive forming, produces only a momentary increase i n
temperature, and after the weld is complete the piece is only a few
tens of degrees above room temperature.
When the final material was tested, the strength was well up to
theoretical predictions, and there was no evidence that the fibres
were being pulled out of the matrix.
Value Engineering,
September
1969
Reprint
No.
2:2:9
The Value Engineer's
Bookshelf
' T h e r e is a g r e a t d e a l of d i f f e r e n c e b e t w e e n t h e e a g e r m a n w h o w a n t s t o r e a d
a b o o k , a n d t h e t i r e d m a n w h o w a n t s a b o o k t o r e a d ' — G . K. Chesterton
Can you read six books a day ? When did you last read a
book on Value Engineering
or one dealing with a related
subject? In 1961 over forty new titles of books of interest
to value engineers appeared each w e e k . Plan to catch up
now by reading these reviews and sending for those books
for which you have practical
use.
One star (*) against the review indicates that although
Basic Concepts
-
The methods are not covered i n great depth, the only requirement
f o r their understanding being commonsense.
Applications
*Value Engineering
Roberts,
Product
J. C. H.
Journals
Ltd.,
1969
important - the information
deals with a subject on the
fringe of a value engineer's interests; two stars (**)
that
' the book is very useful; and three stars (***)
that it is
particularly
significant
for value
engineers.
The number in parenthesis ( ) refers to the publisher's
name
and address given on the inside of the back cover.
26 pages
7/6
(126)
Description of the following statistical methods are interwoven
w i t h practical demonstrations of their use:
Operating characteristic curves.
This book f r o m the author of the ' A . B . C . of Value Analysis' is a
most worthwhile addition to the value engineer's bookshelf as
well as providing a short introduction to the subject for all those
who are interested i n gaining an appreciation of it.
Why V . A . ? What is V . A . ? What is Value? H o w is function
identified? Ten steps to obtain good value. Seven stages i n
successful V . A . The rules to follow. THESE T R I E D A N D T R U E
M E T H O D S A R E ALL V E R Y F A M I L I A R T O T H O S E W H O
H A V E S T U D I E D O R P R A C T I S E D V . A . They are simply and
clearly stated with an economy of language.
The author then discusses the type of organisation for V . E . and
answers the o f t asked question 'which method is best?'.
He completes his explanation of V . A . with the publication of the
practical results achieved f r o m use of the technique by a 250
employee ship steering machinery manufacturing company; a
large company w i t h 820 employees producing specialised electrical equipment; and an 8,500 employee unit.
B.W.
Statistics
- Quality
*Can you manage Statistics?
Co. Ltd.,
1969
83
pages
'As a tool for the manager, statistics is as useful as a pint of beer.
Or is it ?' So the preface to this slender book runs. The book's
aim is to outline a few simple statistical methods which can be of
everyday practical use to the manager. ... and to the value
engineer. I t succeeds admirably i n doing this and tells how to
(md out such things as whether the public prefer Brand A to
Brand B, which production inspection method is sufficiently
sound in a given set of circumstances, and what sale will be likely
to be made in each month of a year.
Value Engineering,
September
1969
Medium, Mode and Mean, and Correlation.
Standard deviations, Skewness, ' U ' distributions.
Histograms and frequency polygons.
Significance and chi-squared test of goodness-of-fit.
Forecasting - linear regression - moving averages - exponentially weighted moving averages.
Acceptance sampling - random and stratified, systematic and
purposive.
Diagrams - pie charts, bar diagrams, pictograms.
Central limit theorem and process control.
The book contains much that w i l l be of use to those who are
concerned w i t h problems of controlling the quality of both
processes and products. Practical examples of methods which
may be applied to refining the inspection of quality are given.
The requirements of such methods are usually expressed i n terms
of Consumer's Risk and Producer's Risk, and four sampling
schemes are tabulated as under:
1. Minimising the sample size subject to stated chances of
wrongly accepting bad boxes and wrongly rejecting good
boxes.
Control
Campling,
G. E. G.
The Machinery
Publishing
20/(122)
Frequency distributions, Ogives, Normal Distributions.
2. Minimising the average total number of items inspected f o r
a stated input quality and a stated chance of wrongly
accepting bad boxes.
3. Minimising the average total number of items inspected f o r
a stated input quality and a stated maximum quality level
outgoing.
4. Conforming to a given Operating Characteristic Curve
(dictated by level of inspection) for a stated maximum
satisfactory input quality level.
Reference is also made to D.E.F. 131 sampling procedures and
tables (published by H M S O i n 1961) which are based on the
105
T
American MIL-STD-105 schemes. The aim of these procedures
is to keep a check on the quality o f production because i f this is
high the quality o f output will also be high. The author refers
the reader to M r I . D . H i l l ' s paper 'Sampling Inspection and
Defence Specification D.E.F.-131' i n the Journal of the Royal
Statistical Society (Series A , V o l . 125, part 1, 1962) f o r further
information.
J.K.
Technology - New Products
*Gaps in Technology between
Member Countries—Scientific
Instruments
O.E.C.D.,
Direct Costs
^Minimum Wage Fixing and
Economic Development
International
(120)
Labour
Office,
1968
217pages
17/6
Back i n 1911 the Harvester A w a r d defined the minimum f o r basic
wages i n Australia as the amount that was necessary to maintain
man, his wife and two children i n a reasonable state o f comfort.
Since then the words 'reasonable state o f comfort' have been the
subject of innumerable arguments and interpretations.
Governments that decide to f i x minimum wages need to have
regard to the effect of wage decisions on cost, prices, economic
growth and employment. However, very little is known about the
quantitative importance o f these effects i n different circumstances.
I n minimum wage fixing, account should be taken o f (a) the
needs o f the worker and his family, (b) capacity to pay and (c)
wages paid f o r comparable work elsewhere. A good starting
point f o r minimum wage fixers is investigating how far higher
wages can be expected to pay f o r themselves through higher
productivity.
Unless money wages rise at least as fast as the cost of living
workers suffer a drop i n living standards.
M i n i m u m wages may be fixed by statute; by decisions of governments; by collective agreement between employees and employers. The data required f o r minimum wage fixing includes:
details of the labour force
wage rate and other incomes
- family expenditure surveys
consumer price indices
costs, price and balance of payments
national income.
The book which was prepared as background information discussed all the points o f view which should be taken into account
when considering the setting of minimum wages.
J.H.L.
Materials
*Design Engineering Guide—
Sealants
Garrido,
M. J.
Design Engineering
Ltd.,
1969 32 pages
Handbooks,
Product
7/6
(126)
Journals
M r Garrido of Thiokol Chemicals L t d . has made an excellent
summary of the current information i n this subject.
1969
178pages
21/-
(124)
A picture of Europe as only part o f a world-wide business arena
for competing U.S. firms emerges i n this report on the problems
of 'technological gaps' and innovation. The report is the first i n a
new series of industrial sector studies being published. I t forms
part of the detailed finding o f the OECD's 'gaps' survey discussed
at the March 1968 meeting o f science ministers f r o m Member
countries.
The report - on the scientific instrument industry - was compiled
by a group o f independent experts f r o m eight Member countries
and by O E C D science affairs Staff. They f o u n d marked differences i n management policies and attitudes between U.S. and
European firms i n the industry and they noted the emphasis laid
by big U.S. firms on carrying out a world-wide business strategy.
Over the last ten years, the leading U.S. instrument companies like the American computer firms - had developed not only sales
networks but also production activities i n many countries and
trading areas. I n contrast, European instrument companies had
continued to rely on home-based production and traditional
method o f exporting their wares. Only a few actually manufactured i n the U.S. and none had production facilities i n Japan.
Hence, i n the view of the experts, the sensitivity of European
and Japanese exporters to tariff restrictions and other trade
barriers which American competitors operating internationally
felt less.
Referring to the size of firms as one of the many complex factors
at the root of differences i n the growth and performance of
instrument firms, the experts said that although size might not be
as important i n this sector as i n others, it was clear that a successf u l world-wide operation was dependent on a certain company
size. However, they also noted that apart f r o m the big firms
which accounted f o r a large share o f the market, there were many
small companies at work i n the sector and some of them were
very successful i n their activities.
The size o f the U.S. market and its associated R & D activities
had certainly favoured American instrument firms both i n terms
of company growth and rate of technical innovation. I t was a fact,
they reported, that the United States domestic market and its
associated industry represented almost 50 per cent of the total
world market and world production capacities i n this sector.
To some 200 pages of facts and figures on these and other issues
such as R & D , patents, capital and procurement, the experts
added a list of non-technical comments on the origins of the
'gap' and management psychology. For instance, U.S. firms
appeared, through subsidiaries and sales offices abroad, to maintain closer personal contacts w i t h customers. They also paid more
attention to complaints and suggestions. Thus, they were able to
produce what their customers really wanted i n large production
r u n s - w i t h consequent effects on sales and profits. European
firms seemed more inclined to produce technically sophisticated
instruments, even though sales prospects might sometimes be
limited.
A f t e r discussing the five types o f sealants and the supplementary
sealants, the terms used i n the text are defined before going into
details. Joint types i n relation to sealing are explained with design
calculating. Twelve specifying authorities are listed followed by a
Product Guide to Sealants which lists the characteristics of the
products o f some thirty companies.
Greater emphasis was placed by U.S. firms on detailed medium
and long-term sales planning and technological forecasting.The
experts noted i n contrast a record of failure o f some European
firms i n this work. They believed too that i t was not without
significance that Americans were also convinced market forecasters. This helped produce a climate where expansion and the
desire to participate produced the predicted market patterns.
Designers and value engineers will find the book a convenient
reference source to Sealants. A similarly well-presented Guide to
Adhesives is also available f r o m the same publisher. i
H.C.P.
They also concluded that the part played by active market
research might be an important factor i n shaping the disparities
between Europe and the United States. Two other issues, they
noted with interest during the investigation, were American
106
Value Engineering,
September
1969
management's technical and entrepreneurial competence and the
early recognition and material reward it gave to your employees
with potential abilities. The experts added that a very different
state of affairs still prevailed i n most European Member countries.
However, in. their overall conclusions they decided that, on the
whole, no general or deeply-rooted disparities existed i n the
technology o f scientific instruments between the European countries participating i n the study, Belgium, France, Germany,
Italy, Sweden, Sweden, United Kingdom, Japan and the United
States.'
The fields where American technological leadership was apparent
mostly concerned instruments related to electronics - electronic
testing and measuring equipment, analytical instruments of the
more modern types, incorporating electronic devices, nuclear
instruments and modern process control equipment.
There were also differences i n successful product innovation.
While i n some American firms up to 70 per cent of new orders
involved products less than five years old, the experts found no
evidence of a similar level o f performance among European
firms. I n their view this product innovation had played a significant part i n the expansion of U.S. firms' sales.
R.R.
observation and interpretation of symptoms that are important;
and then the exercise of judgement to determine what the course
of action should be. Managers used to be given the necessary
analytical tools quickly, but i n such a way that they really
appreciate the value that can be derived f r o m their proper use and i t is this role that training bodies should seek to fill.
To be really meaningful manager training courses, according to
the author, need to be problem-oriented.
A list of references are provided at the end of the book and these
include:
Job Evaluation ( B . I . M . , 1961).
Clarke, C. Growthmanship
Economic Affairs).
Kaldor, - N . Causes of the Slow Growth
Kingdom (C.U.P., 1967).
^Productivity Now
Butterworth,
Pergamon,
J.
1968
148 pages
211-
(102)
Containing eight very fully documented case studies, this book
presents practical solutions o f warehousing, bagging paper,
library, hospital, construction, supermarket, j o b evaluation and
factory reorganisation problems. I t rests on the philosophy o f its
author that action can best be studied by action, that men learn
by doing, and that there is no compromise with reality.
As the writer of the foreword put i t : 'the proper study of management is still the study of the manager trying to manage', and this
is what D r Butterworth describes i n this most interesting book.
The author refers to the oft-quoted query o f M r W i l l i a m Allen:
'is Britain a half-time country, getting half-pay f o r half-work
under half-hearted managements?'. The questioner's contention
was simply that British managements were prodigal of the
resources at their disposal. I t brought f o r t h naturally much
counter-argument and explanation: labour's restrictive practices,
and low capital investment. But i f things were to be changed, i t
was clear that managements must take the initiative.
However, those armchair critics (says the author) after a week
looking after forty-eight looms or supervising an out-patients'
clinic may alter their views as to how easy or difficult it is to do
what they are criticising.
As the famous Hawthorne experiment demonstrated, people are
extremely complex mechanisms who w i l l alter their output
achievements f o r a variety of reasons.
One of the difficulties with case studies as a training medium is
that when the relevant has been separated out f r o m the meaningless mass of information, the solution often seems so obvious.
I n real life, however, the observer is seldom impartial or detached.
He may be harassed by absenteeism, shortages, machine breakdowns, etc. which prevent h i m f r o m giving the problem his time.
Unfortunately, many organisations involve themselves i n
expenditure which has no (or at least a long) chance of paying
off. Typical of this is the current introduction of computers
where many firms think i f they spend £100,000 or more, the
hardware they have purchased has solved their problems. What
is wanted i n management (as i n most disciplines) is the selection,
Value Engineering,
September
1969
Papers:
Rate
Instituting
in the. United
H.C. M c D .
Operational Research - Decision Theory
^Statistical Decision Theory
Peston, M. and Coddington,
H.M.S.O..
1968 20pages
Productivity - Training
(Hobart
A.
31-
(105)
Many of the C.A.S. Occasional Papers (which are published by
H . M . Treasury to develop the study of economics, statistics,
decision theory and management techniques by civil servants)
are also of interest to those who are engaged i n private'industry.
Occasional Paper N o . 7 f r o m the Centre f o r Administration
Studies deals mainly with individual decision-making under
conditions of risk or uncertainty. What appears in the paper is
also relevant to group decision-making.
As the two writers point out 'whether or not there are objectively
measurable relevant pay-offs does not affect the logic o f the
decision-making problem!'
The beginner i n the subject has been most helpfully referred to
five publications which explain Game Theory and Probability
i n more detail than i n this text.The two dimensions met with i n decision-making, strategic
interdependence and state of knowledge are illustrated. I t is
pointed out that the market price f o r a particular commodity is
determined by the decisions o f all buyers and sellers. Where the
decision of any one buyer or seller has only an imperceptible
effect on the market price then this is not strategic interdependence since each decision-maker does not take into his reasoning
the mutual dependence of his choice on all the other choices
made. However, where there are only two sellers of the commodity and there is mutual dependence o f choices this is strategic
interdependence.
The second dimension is concerned with the extent, of knowledge
of the decision maker - certainty, risk and uncertainty.
I n terms of this six-fold classification o f decision situations,
statistical decision theory has been mostly concerned w i t h the
case of risk but no strategic interdependence. The case of
uncertainty with strategic interdependence - as the authors point
out - is virtually unexplored territory.
There are five essential steps i n decision-making - (1) Setting out
the available alternatives. (2) Stating the various external influences which affect the decision. (3) Specifying the possible outcomes of each action. (4) Evaluating each of these outcomes, and
finally (5) taking the decision.
The possibility of preservation of the status quo and preferences
should not be overlooked.
A f t e r explaining the framework f o r decision-making, decisionmaking under risk and under uncertainty are then dealt with.
The maximim and the minimax regret criteria (both of which are
pessimistically oriented) are described as a prelude to the
107
Hurwicz criterion which gives weight through a pessimism/
optimism index 'a' to the best outcome which can arise f r o m a
situation.
Bernoulli's Principle of Insufficient Reason ('If, f o r a mutually
exclusive and exhaustive listing of states o f nature S S . . . S
there is no evidence to suggest that one state is more likely than
another, we may take them all as equally probable) is as the
authors point out, controversial. The reasonableness of the
supposition o f equally probable states is queried.
u
2
D
Problems such as choosing between a coal-fired or nuclear power
station; whether to raise or lower taxation; or how far to go
with sampling f o r S.Q.C. lend themselves to the type o f analyses
described i n this booklet. But it is well to remember what
Professor Schlaifer says; 'there is ho substitute f o r commonsense and business judgement! Statistical decision theory is
complementary to these attributes'.
J.C.W.
Sections containing checklists, and describing rota systems,
classification and coding; scrap control, standardisation and
variety reduction, planned preventive maintenance, and Breakeven analysis add to the value o f the book.
The following basic techniques o f O.R. - linear and dynamic
programming; assignment problems; queuing and sequencing
theory; symbolic logic; information and communication theory;
theory o f games; decision bidding and replacement theory;
Monte Carlo Theory; simulators and models - are described.
The section on data processing, visual aids, report writings and
forms design should also help the value engineer to gain a
familiarity with these matters.
Span of control and the work o f Graicunas i n 1933 is interesting.
Given Manager A supervising B and C the following relationships exist:
Direct Single
Direct Group
Cross
On Maximum
Basis
A B and A C
2
A B C and A C B 2
B C and CB
2
On
Minimum
Basis
AB, AC
2
ABC/ACB
1
BC/CB
1
6
4
Operational Research - Models
^Operational Research, Models
and Government
Bane, W. T.
H.M.S.O.,
1968
14pages
2/6
For various numbers o f subordinates these are the relationships:
Number of
(105)
A further centre f o r Administrative Studies' Occasional Paper
( N o . 8) explaining, i n simple terms, the construction and use o f
models fills a long-felt want. I t is highly commended to value
analysts who wish to obtain an understanding o f O.R. and (in
particular) system models.
The Operational Research Society - defines O.R. as 'the attack
' o f modern science on complex problems arising i n the direction
and management o f large systems of men, machines, material and
money i n industry, business government and defence'.
The O.R.A.'s definition which then goes on . . .
'the distinctive approach is to develop a scientific model o f the
system, incorporating measurements o f factors such as chance
and risk, with which to predict and compare the outcomes of
alternative decisions, strategies or controls . . .'
explains the function
Total
o f a model.
A construction o f a flow model is simply illustrated by (1) the
method o f supplying trained doctors and (2) the movement of
freight. A sequential decision model f o r the gas industry, taking
account of the discovery o f N o r t h Sea gas, is then described. A
model allows the effects of proposed changes to be more clearly
understood, studied and evaluated before the changes are
actually made.
For value engineers, the interest i n this O.R. technique is practical; They can, by constructing a model, often predict the outcome
of their proposed actions in a real-life situation before committing
themselves or their companies to such an action.
K.L.G.
subordinates
Relationship
Formula
1 2
6
Number of relationships on a maximum
basis
Direct single
n
1 2
Direct group
n(n - 1)
0
Cross
•(H
0,2
Total
n (
\
2
-
+
n
n - A
J
12
1
2
6
6
12
186
24564
30
132
222
24708
I t can readily be seen how quickly the relationships increase
beyond six subordinates. I t is customary to accept a limit of five
or six subordinates f o r each supervisor.
H.W.
Production Control - Computer
*Production Control by Computer
Truster, J. D. C.
The Machinery
Publishing
30/(122)
Co. Ltd., 1969
134pages
While the use of computerised production control may still be i n
its early stages i n some countries its effectiveness has been well
proven i n others. A method o f production control with the use
of the computer i n the 500 productive employee size jobbing shop
is simply and clearly explained i n the book.
The benefits f r o m computerised production control are:
Management
Techniques
Reduced W.I.P. and buffer stocks.
*Performance and Profitability
Accurate up-to-date information.
Clay, M. J. and Wally, B. H.
Longmans,
1968 610 pages
Better communication.
63/-
(159)
This book, in the Management-Studies series edited by E. F . C.
Brech, is concerned with the whole range of cost reductionproductivity improvement technique. I t will provide value
engineers seeking a one-book reference with exactly what they
have been looking for.
108
Allows foremen to plan ahead.
Progress chasers know what to chase.
Reduces paperwork i n use at any one time.
Overload and underload of machines shown.
Tightens up management-control by providing targets. .
Value Engineering,
September
1969
As he points out 'generally the greater the complexity of the task
being undertaken, the greater the complexity o f the paperwork
needed to control i t . Moreover, the greater the number o f parts
in a j o b , the greater the amount of paper, since each particular
operation must have a piece o f paper. Just as the equipment is
assembled so too must the paper be assembled . . . I n a simple
jobbing shop w i t h 10-20 men, paper will present no problem . . .'
'Consider a shop of, say, a hundred men engaged on jobbing
work. The average time per operation may be four hours or half a
hour a day and there will be on average three operations per
component. Assuming five days worked per week, f o r each man
there will be ten transactions per week, i.e. ten operations completed. For a hundred men this will be 1,000 operations per week.
I f the shop works on a minimum forward load o f f o u r weeks
there w i l l be 4,000 operations to be handled by the computer
each week.'
The introduction of a computerised method must be preceded
by a systems study o f the distribution and circulation of production information. Then there is the scheduling problem i n which
decisions as to what to optimise must be made. Possible optimisations include:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
M i n i m u m idle facility investment.
M i n i m u m in-process inventory.
M i n i m u m facility set-up costs.
Day-to-day stability o f work force.
Adherence to promised shipping date.
M a x i m u m output (production rate).
M i n i m u m materials-handling cost.
Adherence to arbitrary j o b priorities.
Technological feasibility.
Sensitivity to production changes.
General flexibility.
Non-dependence on unreliable processes.
Reserve capacity f o r rush orders.
Optional in-plant transportation schedule.
M i n i m u m shipping costs.
M i n i m u m total expected costs.
M a x i m u m weighted facility utilisation.
M a x i m u m utilisation of manpower.
Optional assignment of labour grades.
M i n i m u m raw material inventory.
M i n i m u m finished product inventories.
M i n i m u m investment i n inventories.
M i n i m u m obsolescences o f products.
Shortest make-span.
M i n i m u m overall fabrication span.
M i n i m u m risk o f excessive losses.
Anticipated changes i n price.
The author sets out the parameters o f utilising the productive
resources - men and machines - o f the organisation.
Both marked-sensed and punched card input systems f o r raw
data are described as well as real-time systems. N o British companies are yet using this latter.
Materials control problems, its author holds, are almost as great
as those o f production control - there are many who would rank
them more difficult! Explosion and implosion programmes are
mentioned. M r Trusler reveals his practical approach when he
says: Tt is most important that all concerned i n the factory, f r o m
the top management to the floor sweeper, should understand
what the system is all about, what it is endeavouring to do, and
that the system will not have adverse repercussions on them. There
is always a tendency to think that the introduction o f computerised systems w i l l first make people redundant and at a later
stage force them to work harder.'
A book contains a most useful list o f over forty references f o r
further reading.
J.M.D.
Value Engineering,
September
1969
Basic concepts - Checklists
*A.B.C. of Value Analysis—a
practical guide to cost reduction
Roberts,
J. C.
Modern
Management
471(164)
Techniques,
1967
165
pages
Director o f Value Engineering at Mawrob Company (Engineers)
Limited and also author of Value Engineering (published by
Product Journals L t d . ) , M r Roberts deals with the fundamentals
of the subject i n a clear and concise manner.
Efficient materials management, he advances as the answer to the
problem o f increasing competition, and advocates the use o f V . A .
techniques quoting the cost savings it has achieved f o r British
and American companies. V . A . he contends protects us f r o m
technical obsolescence.
The book contains the following checklists:
1. Basic information checklist on design, manufacturing,
purchasing and sales.
2. Checklist f o r producing new ideas.
3. Blueprint f o r effective cost control i n design.
4. Value Analysis checklist.
5. Value Analysis idea-stimulator.
6. Aids f o r locating unnecessary cost.
7. Rules for. problem solving.
M r Roberts' tips on Report writing round o f f an excellent
guide book f o r the embryo value engineer to obtain and study.
His emphasis on the keep-it-simple approach is to be commended
when so many writers o f management texts today seem to
succeed i n making the subject they are expounding even more
confusing to the reader.
T.W.
Basic concepts - Training -
Applications
*The Proceedings of the First
Annual Conference of the Value
Engineering Association
Peter
Peregrinus
Ltd., 1969
73 pages
10/-
(165)
The proceedings of the first V.E. Association's Conference held at
Shakespeare's birthplace, Stratford-upon-Avon i n October, 1967
which records the names and applications o f nearly a hundred
participants is an important publication f o r British value
engineers. Amongst those attending were f i f t y representatives of
larger companies and seventeen of medium and small companies,
ten who are connected with V.E. training, ten f r o m public bodies
and ten wives of conferees.
Apart f r o m the dozen papers indicating the state-of-the-art i n
Britain, the care which the arrangers o f the Conference took to
cover the important current practical matters i n the field is at
once evident i n the following subject list:
Selling V.E. to Management.
Training f o r V . E .
Costings f o r Make-or-Buy.
Functional cost analysis.
Low cost design (domestic products, aircraft engines and aircraft)
V.E. i n shipbuilding.
V.E. o f low volume products.
Value administration.
109
The recorded Questions and Answers show the great interest
which the speakers' remarks stimulated. This reveals that the
gathering was largely a dialogue between platform and floor, a
truly most effective way of conferring.
The proceedings contain some diagrams which those who are
interested i n V . E . training w i l l f i n d particularly useful:
The Basic Elements o f Cost.
Direct Cost Breakeven Curve.
R.O.I. Curve.
The Product Development Process.
The number of parts trend.
Cost trend during design.
Total cost and reliability.
Cost o f machining light alloy components.
Apart f r o m the obvious practical worth o f many o f the ideas
expressed by the speakers as a result o f their experience i n
successfully applying Value Engineering, readers would indeed
be helping this new Association by purchasing the Conference
Proceedings.
B.D.W.
Operational Research
*Mathematics and the
Imagination
Kasner, E. and Newman,
J.
Penguin,
1968 322 pages
7/6
(135)
A sphere the size o f the sun can be split into parts aso as to fit
comfortably into your top pocket!
This book is a mixture o f mathematical wizardry and high spirits
which the authors call 'haute vulgarisation'.
Explanations of finite and infinite classes, ' « ' dimensional geometry, paradoxical logic, Change and Chance, are served up
under such titles as Zeno's Hare and Alice i n Wonderland.
Management
*Developing a Small Firm
Matthews,
T. and Mayers,
C.
B.B.C. Publications,
1968
150 pages
21/(178)
The book describes a simple method of planning and control f o r
small manufacturers. The problems have been viewed f r o m the
standpoint of the hard-pressed boss who very often must do these
things himself. The authors deal with the practical subjects of:
Planning the Market
Reaching the Market
Setting Company Objectives
Managing a Factory
Understanding Business Finance
Managing, delegating and supervising
Ways to Expand
About 75 per cent of the 195,000 manufacturing plants i n the
U . K . employ under ten people and 48,000 plants have under 250
employees. I n France and Germany the proportions o f small
enterprises is even larger. The small f i r m will undoubtedly
continue and is i n need of management counsel. A man i n
business on his own needs two mistresses - luck and logic - of
the two, logic is the more dependable.
The book is f u l l of home-spun philosophy much o f which the
small business man will have heard before. I n the chapter on
making growth decisions there is a useful checklist covering the
subjects - Receiving, Production Area, Despatch Area, Service
Area, Grounds, What would a removation plan involve? What
would an expansion involve? Is the necessary land available?
What is the best location? What about trends i n your industry?
and Can y o u pay f o r the expansion?
Finally, the book suggests the reader (who has successfully put
into practice its precepts) should write to the Chairman o f a
company ten times bigger than his o w n :
'Dear Sir,
A f t e r careful consideration of your size, achievements and
potential, we find you most attractive. We would therefore like
to be taken over by you
The book w i l l well repay the attention of the busy one-man-band
fellow.
G.S.
A l l this, as Chaucer says,
'Out of olde bokes, i n good feith,
Forecasting
Cometh al this newe science that men lere!'
G.T.
Basic Concepts
*Value Analysis: Half-Day
Conference Notes
Gibson, J. F. A.
British Productivity
Council,
1964
10pages
(110)
A set of cyclostyled notes used f o r a half day conference on V . A .
arranged by the B.P.C.
Cost is like a balloon - unless you anchor it down, i t w i l l rise.
A diagram shows the difference i n the range of costs which
V . A . attacks.
Received information (Phase 1 of the V . A . Job Plan) is divided,
in E D P language, into 'Hardware' (the components) and
'software' (the paperwork).
'Freedom to generate and explore ideas restricted only by the
tether labelled " f u n c t i o n " ensures that a
value-engineered
product is a better product.'' This is how the author concludes his
very interesting brief explanation of the subject.
K.I.
110
^Britain and Europe—Volume 1:
An Industrial Appraisal
Confederation
of British Industry,
1966 34 pages
10/(175)
Compiled under the direction of a distinguished committee o f
twenty-four members, this book reports the findings on past and
prospective development o f the European Communities with the
E.E.C., E.C.S.C. and Euratom. The Committee have sought to
assess the implications of this f o r British industry.
W i t h 180 million people the European Economic Community
rivals the U.S.A. I t is one o f the world's most dynamic markets
for manufactured goods. The committee f o u n d that:
1. I t would be an advantage to British industry f o r Britain to
j o i n the E.E.C.,
2. The Treaty of Rome's terms are acceptable given a transition period, and
3. Entry should be negotiated as soon as possible.
Backing these findings there is considerable detail o n :
Markets
Agriculture
Availability and Cost of Labour, etc.
Taxation
Costs and prices
and two Appendices set out the cost implications f o r the U . K .
of the common agricultural policy.
G.C.
Value Engineering,
September
1969
Materials Management - Purchasing - Factory
Layout
inventory
Control
***Supplies and Materials
Management
**Stock Control in Manufacturing
Industries
Compton,
H. K.
Business Book Centre Ltd., 1968
437pages
105/(173)
M r Compton produces another most useful work i n the field of
materials management. His 'Glossary o f Purchasing and Supplies
Management Terms' (published by the Institute o f Purchasing
and Supply) is well-known.
Thomas, A. B.
Gower Press, 1968 213 pages
60/(166)
Big reductions i n costs and increased R . O . I , are the end-products
of more efficient stock control. The author of this text displays his
wide practical experience by his approach to a wide variety o f
stock control problems.
'Good stock control', says the author, 'calls f o r high precision
only when the results justify the associated costs; there are many
places where low precision is good enough'. There are few more
helpful statements.
Chapters headed 'What should be stocked?', ' H o w much should
be ordered?', and 'When should an order be placed?' indicate
the scope of the subject covered. The leading Features o f Stock
..Control Systems are tabulated.
Appendices deal among other things with Error Detection and a
Simple Smoothing System, and a list of references point to further
information i f required.
Value engineers are recommended not to miss this excellent
book.
F.T. M c C .
The book surveys the whole gamut of supply operations. I t deals
with all items of interest to the Supplies Division including
Specification, Order quantity, Packaging and Inspection. A novel
way o f applying the A.B.C. analysis to the classification o f
purchases and stocks is set out.
There is a Section on Value Analysis which describes it as 'one
aspect of purchasing research' which also includes standardisation, simplification and variety reduction. The Value Analysis
curve showing the true cost and value lines is included i n this
Section, and an Appendix gives a check list of Technical considerations, Physical properties, Operational qualities and purchasing and financial points.
The practical needs o f Stores layout are backed up by the following legal requirements:
1. Clean, clear and well-marked aisles.
2. Tidiness i n storage and stacking.
3. N o overhanging or unsafe stacks.
4. Clear location and bin marking.
5. Adequate working areas i n stores.
6. Sufficient cleaning material and equipment.
7. Regular cleaning o f walls, etc.
8. Maintenance of reasonable temperature.
9. Provision of adequate ventilation.
10. Suitable lighting without glare.
11. Drainage o f floors.
12. Provision of lifting devices.
13. Safe hoists and lifts.
14. Sound chains and slings.
15. Fire precautions and escape ways.
16. Provision of drinking water.
17. Provision o f washing facilities.
18. Accommodation f o r clothing.
19. Facilities f o r sitting.
20. Provision o f first-aid boxes.
21. Safe working loads on mezzanine floors.
22. Provision o f kerbs to prevent liquid f r o m flowing unrestrained.
H.T.
Materials - G.I. Castings - Design
*A Practical Guide to the Design
of Grey Iron Casting for
Engineering Purposes
The
Council
of Ironfoundry
Associations,
1967
56 pages
gratis
(183)
This is one o f a series of publications available free o f charge to
value engineers and others who have responsibility f o r specification of materials. I t aims at helping to achieve greater economy
in the design of grey iron castings. Production costs can be
reduced by attention to the matters mentioned i n this very
practical design guide. Castings made to finer limits, o f greater
strength, and with easier to make patterns w i l l result f r o m following the hints given i n this book.
The conclusion contains 16 rules to follow f o r obtaining good
castings.
J.W.T.
Value Engineering,
September
1969
Economics
*Economics—The Science of
Prices and Incomes
Speight,
H.
Methuen,
1968 750 pages
30/(141)
Considerably revised, M r Speight's very valuable introductory
book to the subject o f economics, will give value engineers useful
information on such subjects as:
The Effective Use o f Resources
Comparative Cost
The Determinants of Demand
Short R u n and Long Run Cost Curves
Marginal Productivity
What is Profit?
The Full-Cost Theory o f Pricing.
Defining 'economics' at the beginning o f the study o f the subject
is like the problem of defining 'blue'. Only after one has studied
the subject can a meaningful definition of economics be f o r m u lated.
Economics is not a body of k n o w l e d g e - i t is a method o f
thought. The author deals with the simplest model o f the
economy - the Robinson Crusoe example. Robinson Crusoe is
faced with three economic decisions:
1. H o w much time to devote to work and how much to leisure ?
2. What f o r m he will take his income in ?
3. When he w i l l take his income?
Desert Island Economics introduces the reader to two fundamental economic laws - the law o f Diminishing Marginal
Substitutability and the Law o f Marginal Productivity. I t also
makes use o f the marginal technique of economic analysis.
The reader is introduced to the notions of specialisation,
exchange, terms o f trade and supply and demand i n both simple
and complex economics. The theory of demand will interest
value engineers i n regard to purchasing and price considerations.
Pricing is often done by adding what is considered to be a 'fair'
profit margin. However, to fix prices without reference to
demand - according to the author - is like preparing f o r a dinner
party without knowing how many guests w i l l be there! This
section of the book w i l l be of particular interest to value engineers,
who will also benefit f r o m reading about the other economic
concepts contained therein.
A good economic system requires efficiency, equity and stability
and this book provides answers as to why these requirements are
not always fulfilled i n the world we know.
F.C.
111
Basic Concepts - Creativity - Computer
Application
***Value Analysis and Value
Engineering
Oughton,
F.
Pitman,
1969
118 pages
25/(119)
This book - intended to be complimentary to V . A . Courses covers the basic concepts of V . A . / V . E . , the organisation of a V . A .
department, the thought-processes o f value engineers, and has an
appendix titled 'Value Engineering i n the Home'.
Denying that V . A . is a panacea f o r ailing industry, the author
says, 'Basically, i t is an amalgam of commonsense, applied
psychology and a number o f existing aspects of industry. I t has
the virtue of lending itself to a certain amount of modification,
and this enables it to be practised i n several different forms.'
V . A . , the author points out, applies not only to production but
also to office operations. I t is not beyond reason to apply it to
'politics and diplomacy'.
Value Analysis emerges f r o m his treatment as a systematically
utilitarian approach to the management o f design, development
and production, and to the selection of materials, made necessary
by the increasing multiplicity o f alternatives. I t has more to do
with function and synthesis than with either value or analysis.
The author sees the future role f o r the computer i n V . A . as an
information storage bank and f o r purposes of evaluation. Computer application he holds to be the key to efficient V . A .
The fully automated factory of the future where new materials
and processes will be used will be designed by the technologist i n
collaboration with the value engineer who will also have a
considerable hand i n running i t . Production and value engineers
w i l l find themselves concerned w i t h designing out maintenance,
the swift removal of the swarf f r o m tools capable of cutting steel
at the rate of 1,000 f t / m i n .
The value engineer will work outside industry i n office procedure
analysis, i n investigating Direct Operating Cost (D.O.C.) i n
airline operation, and so on.
The book contains nine case histories out of which these remarks
are distilled:
N o successful V . A . exercise represents a long-standing debit.
Specialised adhesives now have many totally unexpected
applications.
Many proprietary products have applications which are overlooked by their manufacturers.
There may be higher level cost on one part o f an operation
while the cost i n another direction may drop.
One great advantage of a step-by-step introduction o f V . A . is
that i t can be halted at any time and operated i n the f o r m
which appears to best suit the needs o f the company.
The author concludes his most readable exposition o f the subject
with three appendices:
V.E. i n the Home,
Exercises, and
The Basic Information System.
The book is one o f the best books written on V . A . / V . E . since
Miles' classic text.
B.W.
Packaging
*A Guide to Air Freight
Packaging
Temple Press. 1969 36 pages
21/(179)
Prepared f r o m information compiled by the Transport Packaging
Committee of the Electronic Engineering Association this book
deals with
Cushion Material Selection
External Fillings f o r Containers
Selection o f Containers
Package Testing
A i r p o r t Handling Equipment.
In designing packaging f o r air shipment it is necessary to consider
the conditions under which cargo will travel. Aircraft freight
112
holds are usually at 11 p.s.i. Since the cargo packed at ground
level is at 14-7 p.s.i. there is a pressure difference o f 3-7 p.s.i.
between the inside and outside of the pack. W i t h an unpressurised
aircraft this difference could be 8-9 p.s.i. A n adequate safety margin must be built i n . There is also the problem o f temperature
differences perhaps f r o m — 40°C to + 55°C.
The destructive environmental factors are tabulated as are the
properties of bulk cushioning materials. Fittings and attachments
to containers are illustrated.
Chapter three presents a dual-table method f o r selecting the
most suitable type o f container i n which to pack goods and i n this
section the now famous 'Rueopak 88' freight discount-qualifying
pack is fully described.
This book will be o f interest to value engineers who carry their
investigations through to the packaging stage.
T.W.P.
Material Handling
*
^Material Flow Systems
Reed, R.
Industrial
and Commercial
Techniques
Ltd.,
1968
46 pages
40/(154)
I n a product (as opposed to a service) enterprise a profit is largely
made through the conversion of the f o r m or shape o f materials
and the relocation or movement of these materials. I t is the interrelationship between material quantities at the various stages o f
conversion, the location and movement o f these materials, and
the information necessary f o r decisions related to conversion and
location that is referred to as the material flow system. To improve
the effectiveness o f the functional units i n a business it is necessary
to establish an integration o f (1) materials quantity control at all
stages o f conversion and distribution, (2) materials movement to
provide quantity allocations at desired locations, and (3) information necessary to arrive at proper decisions to maximise the
effectiveness o f quantity control and materials movement.
The author asks: 'So what's new?' The newness is i n the integration of quantity control, material movement, and information
processing as a simple system.
I n the design of a materials flow system we should, as D r Reed
puts i t , be seeking t o :
1. Optimise cost.
2. Reduce in-process inventory.
3. Reduce delay between work stations.
4. Improve despatching.
5. Reduce 'lost parts'.
6. Reduce handling damage.
7. Improve handling i n distribution.
8. Improve information systems.
I n the case of flow-line production the problem is primarily one of
line balancing to equalise the demand on the sequenced work
stations.
Surveys have indicated the carrying-cost of inventory range f r o m
14 to 36 per cent; physical distribution costs to sales average
18-5 per cent; and cost o f material handling i n production
between 20 and 35 per cent. Thus it will be seen what a major
segment i n the total cost is represented by the flow o f materials.
The identification o f these areas o f potential cost reductions is
therefore vitally necessary. T o do the Pareto Distribution or
Value Curve concept is useful. This is merely a formal way o f
stating the familiar 80-20 rule - i.e. 80 per cent of the cost is
accounted f o r by 20 per cent of the items.
Value Analysis may be applied to Materials Flow Systems. I t will
tell i f (1) we have good value; (2) i f we are accomplishing a necessary function f o r the lowest possible cost; and (3) help us to
generate alternative ways i f these prove to be necessary.
The author also introduces Relaxed Waiting Line (or Queueing
Models), and Monte Carlo Simulation i n the solution of specific
problems.
R.M.
Value Engineering,
September
1969
Synthetic Costing - Value Standards - Time Study Coding
***Master Standard Data
Crossman,
R. M. and Nance, H. W.
McGraw-Hill,
1962 257 pages
84/(101)
M.S.D. enables j o b performance to be predicted f o r both skilled
and unskilled work - f r o m (as the dust cover puts it) operating a
press to upholstering a sofa. The book explains how to apply
Master Standard Data without any previous knowledge of time
study.
M . S . D . is a new concept of applying work measurement procedure supplementing all the previous methods which have been
developed. Its breakthrough with coding is one of its main
attractions. I t satisfies the industrial engineer's requirements of
accuracy, consistency and economy - i n fact it satisfies the
requirements of:
Consistency
Economy
Understandability
Reproducibility
The book then describes the most common motions, Reach,
Grasp, Move, Release and Align, and goes on to detail 'Obtain
and Place', 'Finger Shift' and 'Exert Force', etc.
I t also sets out the method used f o r setting up alpha-mnemonic
coding and gives examples of applying this system to machine
shop and non-mechanical processes. The book contains all the
information that is necessary f o r the building up and use of
M.S.D. i n daily activities carried on i n manufacturing and other
types of companies. I t gives the value engineers the basis f o r
constructing a useful set o f value standards.
M.N.
Quality
Control
*Profit through Quality
Weinberg,
S.
Gower Press, 1969
169 pages
55/(166)
The author is Chairman o f the National Council f o r Quality and
Reliability and a consultant. He writes f r o m a background o f
wide experience and describes:
H o w to analyse quality requirements.
H o w to establish an effective Q. & R. policy.
H o w to manage day-to-day quality procedures.
I n a foreword L o r d Robens says, T would certainly commend this
book to all managers, whatever the size of the undertaking,
whose concern is w i t h increasing profitability, better customer
relations and more successful design and performance.'
Injunctions to introduce Q. & R. are i n the same category as
injunctions not to sin. The high priests of Q. & . R. techniques
often'expect them to be accepted f o r their own sake. However,
Q. & R. activities must be examined f o r potentiality to increase
profit.
Quality is a collection of attributes to suit a purpose. Reliability
carries implications o f trustworthiness, dependability and
availability f o r use.
The fundamental steps on which successful control of quality can
be based:
1. Consultation with the customer as to his exact requirements.
2. Design and development.
3. Writing specifications to ensure performance, quality and
reliability.
4. Examination of the processes f o r capability to produce to
requirements (specification).
5. Formal procedure f o r acceptance by the manufacturer of
responsibility f o r quality.
6. Inspection as an important part of the control of quality.
7. Advice and instruction to the customer.
8. Taking positive steps to acquire the valuable experience o f
the user.
Value Engineering,
September
1969
Colour blindness is not an uncommon defect i n males, yet how
many personnel managers make this a feature of examination i n
choosing an electrician to whom the unmistakable distinction
between red and green is usually vital f o r safety?
Y o u get what you pay f o r . The same value f o r money can be
obtained by paying a high price f o r high quality or a low price
f o r low quality. The purchaser's object is to locate the point of
best bargain.
The book contains a Complaints Code dividing the causes of
complaints into those about delivery and quality, and those
concerning customer orientation.
G.P.
Materials
**Material Utilisation in the
Metal Working Industries
t Institution
of Production
Engineers,
1955
32
pages
5/(168)
W i t h the constant uptrend i n the cost of materials, which
normally accounts f o r such a high proportion o f total factory
cost, any viable ideas on their conservation are always welcome.
This work of the Material Utilisation Sub-Committee of the
Institution o f Production Engineers is based on their review of 35
case histories.
The proportion of material purchased which is converted into
saleable goods is seldom greater than 70% and is frequently less
than 30%. To this waste has to be added the costs of machining
and handling labour and floor space.
After studying illustrations f r o m fabrication, cold heading, forging, casting, moulding, pressing, tube work and powder metallurgy the following broad conclusions emerged:
1. There is no golden rule about which f o r m o f semi-finished
material offers the best chance of achieving the highest
material utilisation.
2. A very useful index to material utilisation performance is
the weight of raw material consumed f o r each part multiplied by the man-hours to convert i t into the final product.
3. The f o r m of semi-finished material selected and the unit
amount of it used should be as close as possible i n shape
and size to that of the finished part.
4. I t may pay well to spend more money i n purchasing a f o r m
of semi-finished material closer to the shape and size of the
finished part so as to save costs of further processes.
The booklet ends with the reminder:
'This is not to suggest that material utilisation is the exclusive
responsibility of the design office: i t is, i n fact, everybody's
business - that of the designer, development engineer, planner,
purchasing officer and the shop-floor operative.'
The value analyst as well!
E.F.
Plant Layout -
Warehousing
*Factory or Warehouse Design
Falconer,
P.
The Electricity
Council,
1966 20 pages
gratis
(167)
'Many pitfalls', says the author, 'can be avoided by the use of a
specialist organisation capable not only of analysing overall
production, storage, handling and distribution requirements . . .
but also of providing a complete cost analysis o f the different
types of structure that could house the development together w i t h
comparative estimates o f heating, lighting, maintenance and
other attendant expenditure.
The consideration of building shape, lighting, handling and
transport is followed by notes on examples of factory and warehouse layouts.
A comprehensive list of reference sources—subdivided info
subject—and a list of films puts the reader i n possession of a
ready means f o r follow up.
G.C.
113
Producibility
-
Methods
**Production Engineering
Technology
Radford,
J. D. and Richardson,
D. B.
Macmillan,
1969 377 pages
55/(142)
The authors by their selection and treatment o f the subjects i n this
book demonstrate the advantages o f clear and practical exposit i o n which come f r o m the possession of both industrial and
teaching experience. They achieve their objective - to provide a
concise treatment of production engineering technology f o r
student degree and Higher National Diploma.
The illustrations commencing w i t h main subdivision i n Metal
Shaping provided through the book are particularly helpful and
chapters on the Economics of Metal Removal, New Techniques
of Metal Working and Plastics indicate the up-to-date approach
adopted by the authors.
Information on Ultrasonic machining, Electrochemical machining ( E . C . M . ) , Electrical Discharge Machining ( E . D . M . ) , and
Chemical M i l l i n g w i l l be useful to value engineers. The Performance o f Machine Tools is covered i n such matter as acceptance
tests, vibration and regenerative chatter. Control o f Machine
Tools, Metrology and Statistical Quality Control round o f f a
very useful book.
M.H.O.
Management
Accounting
*Hardy Heating Co. Ltd.
Ray, G. and Smith,
J.
B.B.C.
Publications,
1968
180 pages
17/6
(178)
The book presents a case history i n the application of management
accounting. Starting ab initio w i t h the Certificate of Incorporation
the authors define the purpose of the accounting system outlining
what the Chief Accountant has to do. I t then explains the Balance
Sheet and distinguishes it f r o m the Profit and Loss Account.
The strength of a company lies i n its plans and i n the ratios which
are revealed f r o m its own figures and by comparison w i t h other
firms of similar size i n the same type of business. The interrelationships of the various types of budgets are explained w i t h
the aid o f a diagram, and the standard cost system is outlined.
Planning f o r growth and f o r funds (both short and long-term) is
dealt w i t h and there is a useful bibliography on page 136.
The businessman is then given an over-view of the British
e c o n o m y - t h e business climate i n which he operates. The
facilities available to h i m are described. Factors like price and
availability o f labour, raw materials and money; and the degree of
competition and the strength o f demand are no longer simply
affected by pure market forces but are increasingly influenced by
government intervention.
F.M.
Materials Handling -
Automation
^Materials Handling and
Automation
Goodman,
L. L.
The
Electricity
Council,
1969
12 pages
gratis
(167)
This monograph (A3) deals with some of the new developments
in materials handling. Handling may now be computercontrolled. This has been demonstrated by the application o f
simple analogue computers. There are also electronic devices f o r
sorting and inspection.
When handling is automated the parallel flow o f paper work
should be studied as carefully as the flow of materials i n order to
see that delays in the paper do not cause delays i n handling.
Even such simple pieces o f apparatus as tape recorders can
replace written documentation. Loading lorries can be f r o m lists
'read out' by machine.
F.G.I.
114
Automation
^Automation in Practice
Foster,
D.
McGraw
Hill, 1968
152 pages
45/(101)
The performance of machines is limited by their 'blindness' to
targets, materials environment, people, other machines, and selfdeterioration. These defects may be compensated f o r by having a
sufficient number of knowledgeable human beings to observe
machines at work and control them i n compensatory fashion i f
their w o r k deteriorates.
Automation is the technique of controlling the patterns o f
material processes by means of corresponding electrical patterns
contained i n a robot brain. Its applications i n the steel industry,
numerical machine tool control, assembly and inspection, warehousing, mailing, medicine and education is explained.
Taking postal automation - there are four main forms: size
grading, letter facing, coded letter sorting, and parcel sorting. A
letter i n transit may be sorted five or six times. A code o f six
characters is allocated f o r each section o f a postal area. The first
three represent the postal district, and-the second an area within
it, such as a street, which permits sorting direct to the postman.
A typical address reads:
Mrs. K . Jones,
26 N o r t h Street,
NORWICH,
NORFOLK.
NOR12G
Letters are presented automatically at a viewing window on the
coding desk before which sits the operator with a keyboard. He
presses appropriate keys which 'inputs' a binary code i n the
f o r m of phosphorescent clots printed on the envelope. The code
marked thus can be automatically read by photoelectric logic
and automatic sorting can take place.
'Nothing' says the author, 'can reverse the progress of automation . . . The civilisation of the future w i l l be by the machines,
of the machines, and f o r the machines.' What a sombre thought!
T.I.
Salary
*Executive Remuneration in the
U.K.
Merrett,
A. J.
Longmans,
1968
108 pages
21/(159)
'No profession', writes the author 'which accounts f o r some 37
per cent o f the educated labour force can rely f o r its effectiveness
on the hazard of the individual's selection o f his career and the
hope o f vocational motivation.'
Business requires standards of efficiency and application which
are far f r o m universally acceptable and even contrary to the basic
trends of modern societies towards greater leisure and vocationally enjoyable employment. The role of the pricing system i n this
situation is to override these trends and cause a sufficiently high
proportion o f the educated labour force to accept what would
otherwise be unacceptable.
The complexity o f the modern corporation requires a broadening
of the base o f profit responsibility, imposing on a higher proportion o f executives a greater degree of profit responsibility, a
higher standard of management efficiency and acceptance of a
higher level o f management discipline.
The results o f enquiry into hours worked, bonus schemes,
attitudes to directorships, relative remuneration o f U . K . and U.S.
executives, and j o b mobility w i l l undoubtedly be o f great interest
to all executives.
Such other details as length o f holidays (2-4 weeks being commonest), and the ages and wealth of directors have also been
graphed.
For those concerned w i t h salary evaluation and corporate
planning work this book provides basic information which
would be of considerable help.
S.S.T.
Value Engineering,
September
1969
Materials
Handling
^Materials Handling in Industry
The Electricity
Council,
1965
147 pages
gratis
(167)
Materials handling is the unproductive part of the production
process; to reduce i t is to immediately increase productivity.
Mechanical handling (the use of machines i n place of manual
methods) is an important part o f the field of Materials Handling.
I n most cases there is only one type of mechanical handling
devices which offers the best solution to any handling problem.
This book makes the correct choice easier.
I t is true to say that there is no other process i n a works which w i l l
so repay detailed study as materials handling. I n many factories
50 tons o f material are lifted, moved, loaded, unloaded and
reloaded f o r every t o n of finished product produced. Materials
handling may account f o r up to 85 % o f the cost of production of
an article.
Efficient mechanical handling can result i n :
1. Increase i n output.
2. Upgrading labour skill.
3. Reduction i n production cost.
4. Fewer accidents.
5. Freeing of floor space.
6. Reducing damage to products.
7. Increased handling speed.
8. Faster operating speed.
9. Consistent level of production throughout the whole plant.
10. Increased production f r o m existing buildings and plant.
11. Less volume of work i n progress.
12. Buffer stocks on conveyors between processes.
13. Reduction i n goods i n and out handling time.
14. U n i t loads tend to eliminate pilferage.
15. Encouragement o f study of work layouts.
Three useful Appendices:
I . Equipment f o r handling individual units and bulk material.
I I . British Standards applying to Material Handling Equipment.
I I I . Bibliography under different subject headings and including films.
- complete a most useful modern text.
H.L.
Marketing - Salaries - Quality Assurance
*A Penguin Survey—Business
and Industry 1967/8
Robertson,
A. (ed.)
Penguin,
1968
158 pages
8/6
(135)
Was devaluation a good or bad thing? I n modern capitalintensive industry where technological progress is moving at a
rapid pace and research becomes more expensive annually are
business mergers inevitable? Are British companies looking i n
the right directions to sell their products? What is agribusiness?
Answers to these and other questions can be obtained by the
reader of this year's survey o f the business scene.
M r Davis' essay provides us w i t h an aide memoire to the events
which led up to devaluation and w i t h the advantage o f hindsight
many argue that M r Wilson should have been much tougher
right f r o m the assumption o f the reins of government. He concludes w i t h the grim warning that a second devaluation would
have bitter consequences f o r us all.
It is disturbing to read that 'a company's present markets are
almost incidental'. M r Buckner also says that f o r success a
company:
• must be committed to exporting as part o f its long-term
planning.
• must build up a proprietary position i n each overseas market.
• must use a stage-by-stage approach i n formulating its export
strategy.
I 'alue Engineering,
September
1969
The applicability o f Pareto's law (the law of the trivial many and
the critical few or the 80-20 rate as it is sometimes called) to
salaries is interesting. I t postulates that there are i n a given
country or industry ' y ' people w i t h a salary of V . Then, according to Pareto's law, any rate of change i n 'y' with respect to ' x '
can be represented by the equation
—
— =
— where C is a constant and ^ is the rate of change,
dx
x
dx
I n answering the question 'Is Reliability a liability?' M r Osborne
writes:
'While reliability acquires special virtue when failure means life is
imperilled, much o f Q . R . Y . has been spent advantageously by
firms removing and the liability o f reliability. M o r e and more
companies have set up formal value analysis teams to examine
w i t h a critical eye their traditional manufacturing approach.'
Value engineers should get this book and read on.
F. M c N .
Japan -
Management
^Japan's Managerial System—
Tradition and Innovation
Yoshino, M. Y.
The M.l.T. Press,
1968
292pages
117/-
(169)
Dealing with the economic cultural, social and ideological backgrounds to Japanese industry, the author (who is Assistant
Professor of Business Administration at the University o f
California) presents the underlying reasons f o r that country's
economic growth.
Japanese management has-since the inception of large-scale
industry - encouraged an ideology o f continual adaptation and
innovation. Management occupied a pre-eminent position i n
Society and there is an awareness of the need to reassess 'the
Japanese way o f management'. There is a departure f r o m the
paternalistic system.
D r Yoshino's book explains the problems being faced by management throughout the world as the problems that challenge
Japanese management are also facing large corporations i n every
highly industrialised society.
The rise of new business leadership can be attributed to the
dissolution o f the Zaibatsu system and the diffusion o f corporate
ownership; the Occupation's sweeping purge of prominent wartime executives; and the rise of a number of successful foundertype entrepreneurs including men like Matsushita, Idemitsu,
Ibuka (Sony) and Honda.
'Perhaps,' says D r Yoshino, 'the most significant characteristic o f
the Japanese managerial elite is their high level of educational
achievement.' Nearly 90% are graduates.
The Social Responsibilities of Business Leadership - a statement
f r o m the leaders o f Japanese industry - holds: 'The function o f
management i n a modern corporation goes far beyond that o f a
search f o r profit. F r o m a moral as well as practical point of view,
it is vital that modern corporate managers strive to supply
products of highest quality at the lowest possible prices through
the most effective utilisation of productive resources . . .' Want a
'climate' conducive to Value Engineering!
There is a penetrating examination of the strengths and weaknesses of Japanese managers and corporations, of personnel
practices and rewards. Reference is made to T . W . I , and M.T.P.
programmes, the Japanese Productivity Centre and the Japanese
Management Association as well as to in-plant training. Systematic executive development is practised. Value engineers also will
recall that there is a Japanese Society of Value Engineers. Each
year delegations f r o m Japan attend the S.A.V.E. National
Conference.
S.T.
115
Human Relations
Human Relations - Creativity
**Leadership and Motivation
**Brains Down the Drain—The
misuse of highly-qualified
manpower
Bennis, W. G. and Schein, E. H.
The M./.T. Press, 1968 286pages
(eds.)
21/-
(169)
These essays of Douglas McGregor begin w i t h a description of
his 'Theory X and Y ' derived f r o m the managerial philosophy he
developed. He then writes on leadership - about the conditions of
effective leadership, and an analysis o f leadership.
Union-Management relations he treats under the chapter titles:
Union-Management Cooperation - A Psychological Analysis
The Significance o f Scanlon's Contribution
The Scanlon Plan Through a Psychologist's Eyes.
The growth and development of individuals and groups, management development, and performance appraisal are covered i n
Part I V . Then 'The Manager and the H u m a n Sciences' discusses a
theory of motivation developed by Abraham Marslow. I t also
includes such matters as 'perceived versus objective reality',
'rational versus emotional man', and 'contrast the managers' with
a system view of organisation.
'Managers', he writes, 'must be somehow persuaded that the
search f o r the one best way o f managing human resources is not
only futile but irrelevant . . . attempting to choose between hard,
soft, and firm-but-fair strategies is like choosing between various
lengths of levers f o r the purpose of putting a space vehicle on the
moon. These are not, i n fact, separate strategies, but tactics within a single strategy: the manipulation of extrinsic rewards and
punishments in order to control behaviour.''
A.C.
Stanic,
Anbar
(130)
V. and Pym,
Publications
D.
Ltd.,
1968
40
pages
10/-
Those suffering f r o m the abuse by management of value engineers
will f i n d i f they read this monograph they are not the only
highly-qualified manpower being misused.
Misutilisation is described i n terms of time and type of work, and
the implications noted.
F r o m a study of the likes and dislikes of 500 chemists these facts
emerged:
Too much red tape.
Communications were poor.
Lack o f technical support and clerical assistance.
Inadequate apparatus and work-space.
Salary not satisfactory.
Status poor and career prospects not encouraging.
There were considerable gaps between the actual and the expected
allocation o f time.
The above views are amply supported w i t h quotations of
opinions expressed and led to the following conclusions:
• There is extensive misutilisation of scientists and engineers i n
British industry.
• Manpower planning at this level is meaningless unless we take
into account the utilisation of highly qualified personnel.
Creativity
^invention. Discovery and
Creativity
Moore,
A. D.
Doubleday
£r Company
Inc., 1969
180 pages
14/(177)
Professor Moore says: Tt is often noted that children are our
most creative people . . . A n d one of our most pressing problems
is to f i n d how to keep them that way, on up to adolescence and
into maturity.' Perhaps by reading what creative men have said
about being creative might help? To be creative:
1.
2.
3.
4.
5.
6.
Recognise the problem.
Become deeply involved.
Put f o r t h effort.
D o not rely on logical reasoning.
Intuition must be welcomed.
Inspiration comes at an unpredictable moment.
'Serendipity' - says the book - 'is a w o r d coined by Hugh
Walpole and is based on an ancient Ceylonese tale about Three
Princes of Serendip. By accident or sharp observation they were
always discovering things not looked for. Serendipity works f o r
the creative.
One o f the most quoted statements is f r o m Pasteur: T n the field
of observation chance favours only the prepared minds.' Thus
preparation precedes creativity - i t goes like this:
Preparation
Incubation
Illumination
Verification
About thirty books are listed at the end of the book including:
Your Creative Power (Alex Osborn)
Wheels in His Head ( M . M . Musselman)
America's Greatest Inventors (J. C. Patterson)
.
- all o f which could well repay the time spent i n reading them.
E. M c E .
116
. Utilisation is closely linked with the appropriateness of the
organisational structure.
. Communications can be greatly improved by deploying people
according to product, problem or task, and by reducing the
length of the managerial chain of command.
There is a most useful bibliography f o r those who wish to pursue
this vitally important subject more deeply. Reading the monograph and those articles and reports listed i n the bibliography
would provide managements with a clear knowledge o f the
problems and methods of overcoming them which they w i l l
undoubtedly meet when controlling the work of value engineers
and other highly skilled technical people.
G.M.S.
Assembly - Fasteners
^Manual of Light Production
Engineering—Volume 1: Assembly
methods and types of fasteners
Clements,
R., Heap, H. R. and Roud, K. (eds.)
Business Book Centre Ltd., 1968
591 pages
(173)
126/-
Written f o r those who are interested i n assembly methods and
types of fasteners the book covers the field extremely well. The
methods which i t reports have all stood the test o f practice.
The latest types of random parts feeders and feeder ancillaries are
described. Manually-operated, power-operated, and automatic
clamping devices are covered. Adhesives are dealt w i t h i n some
depth and those best suited f o r specific purposes are indicated.
I n the last part of the book electrical connections are described.
This is a most useful book f o r value engineers, production
engineers and designers. I t is the first i n what appears to be going
to be a very practical, worthwhile series o f publications.
H.S.
Value Engineering,
September
1969
Computers - Human Relations
Creativity
^Computers: Planning for People
**Men, Machines and Modern
Times
Mumford,
Bats ford,
E. & Ward, T. B.
1968
176 pages
37/6
(171)
Management needs to be able to recognise the likely problem
areas which may arise i n installing computers f o r lack o f realisation of these could result i n delays, frustrations and unnecessary
additional costs.
Mrs M u m f o r d and M r W a r d have aptly chosen to remind us of
the difficulties facing innovators with the quotation f r o m
Machiavelli's The Prince:
'There is nothing more difficult to arrange, more doubtful of
success, and more dangerous to carry through than initiating
changes
Planning inadequacy needs to be overcome and this book sets
out to do this. 'To employ the jargon of the the subject this book
it not hardware oriented. . . . Neither is i t software oriented . . .
I t is liveware oriented. I t goes through all the phases of computerisation - right f r o m the initial feasibility study. I t describes
the problems likely to be encountered when installing a computer
and recruiting the staff. The impact upon existing live management and top management is also described, and the advantage of
a systematic approach to the social problems o f change is
stressed.
'The successful company of tormorrow', the authors conclude,
'will be the one which is not only prepared to risk the introduction
of technical innovation, but which can successfully identify and
handle the problems of implementing and managing the changes
involved . . .'.
A t page 142 there is ' A scheme f o r Handling the Social Problems
of Change' which value engineers might usefully adapt i n handling the problems of innovation and implementation which they
constantly have to face.
G.T.
Productivity - Statistics
^Productivity, Statistics and
Management
Smith,
R.
The
Electricity
Council,
1966
12 pages
gratis
(167)
This industrial Monograph (G4) prepared by Professor R. Smith,
Joe Hyman, Professor of Marketing at the University o f M a n chester, is concerned with a reasonable measure by which companies can assess the results of their efforts.
In the last twenty years three methods o f measuring results have
been evolved:
1. Input/Output analysis,
2. Interfirm Comparison, and
3. Product profitability - study.
It is now widely held that the reason f o r high and low industrial
productivity lies i n general social conditions which influence the
attitudes (hence behaviours) of management and labour.
There is a k i n d of management called entrepreneurial innovation
in which there is a strong desire to innovate either as regards
manufacturing methods or new products. The other kind o f
management merely continues i n the same way day after day. The
monograph stressed the needs, i f the standard of management is
to be upgraded, f o r
setting down detailed responsibilities and duties o f managers,
providing information to foremen as to their responsibilities,
formulating targets f o r managers to aim and achieve,
developing good lines of communications, and
having proper salary scales and career prospects within the
organisation.
Hy doing this productivity can be improved and there will be a
hillhcr standard of living f o r all.
J.W.T.
I '«/«<• Engineering, September
1969
Morison,
E. E.
The M.l.T. Press,
1966
234pages
14/-
(169)
This book which received the McKinsey Award, holds the
reader's attention by gaining his sympathy. I t begins w i t h stories
which illustrate the resistance, which there is, to change. The
author indicates the current problem of how to organise and
manage innovation so that it will confer to the limitations
imposed upon i t by people.
For fifteen years the author has met on one evening a month, f o r
the exchange of views, fourteen colleagues. Their conversations
ranged over the whole gamut of industrial society.
When inventing was the work of single men it appeared often as
haphazard. Today, we seem to be on the way to what Whitehead
,i called the greatest invention - the invention of the method o f
invention.
'Gunfire at Sea' is the chapter heading of a case study of innovation. I t begins w i t h this story. I n the last war a time-motion expert
was called i n to suggest ways to simplify firing procedure. He
watched one of the gun crews of five men at practice i n the field.
Puzzled by certain aspects of the procedures he took some slow
motion pictures o f the soldiers performing the loading, aiming
and firing routines. When he ran the pictures he noted that a
moment before firing two members of the gun crew ceased all
activity and came to attention. He showed the pictures to the
colonel and asked what this meant. The colonel too was puzzled
and asked to see the pictures again. When the show was over he
said ' A h , I have i t . They are holding the horses.'
True or not, the story suggests the difficulty with which the
human being accommodates to changes. The book contains many
such stories f r o m which the writer draws many conclusions which
w i l l be most useful to value engineers who are faced w i t h the
accomplishment o f change.
'We are not yet', according to the writer, 'emotionally an adaptive
society, though we try to develop forces that tend to make us one.
We encourage the search f o r new inventions . . . yet we too
frequently try to find security through the shoring up o f ancient
conventions . . .'
Having the above sample to go by, with such chapter headings as
'Data Processing i n a Bureau Drawer', 'The Pertinence of the
Past i n Computing the Future', and 'Almost the Greatest
Invention', the store o f interesting material i n this book is plain.
D r a w upon this treasury.
C.D.T.
Production
*The Application of Compressed
Air to Production
John, E. J.
The
Electricity
Council,
1966
16 pages
gratis
(167)
Low capital cost has always been one of the major advantages o f
compressed air equipment. One of the biggest barriers to the use
of this equipment has been the lack of pneumatic knowledge.
Power units (the basis of any automated process) translate the
power supply into mechanical movement - either rotary or linear.
For general rotary applications (lathes, belt conveyors, etc.) the
electric motor is the obvious choice. However, f o r some applications an air motor has certain advantages - compactness, variable
speed, and where fire is a hazard. Rotary actuators employed f o r
controlling valves and operating indexing tables are normally of
a pneumatic type.
117
Mechanical handling and machining often require linear movements f o r which both hydraulic and pneumatic cylinders are suitable. A n electric motor would require some f o r m o f gearing.
Hydraulic cylinders are used where thrusts over 10-tons are called
for but their cost is much higher than that of pneumatic cylinders.
Combinations of hydro-pneumatics may also be used.
A i r cylinders are available i n three grades of construction - light
duty (used f o r small j i g and fixture w o r k ) ; standard range; and
heavy duty. Both single acting and double acting cylinder-types
are available.
The air cylinders may be used as positional controllers and i n
control systems. A i r jets and air curtains have been used to detect
the edge o f material passing over process rolls.
This monograph (P4) is a handy introduction to the subject and
the reader is recommended to other books f o r further information.
J.F.
Value Standards - Work Measurement
*The Concept of Predetermined
Motion Time Systems
Burman,
P. M.
Institute
of Work
Study
Practitioners,
1967
23
pages
(172)
This I.W.S.P. Monograph 2 makes a plea f o r the Predetermined
M o t i o n Time System (P.M.T.S.) holding that Time Study is 'as
extinct as the dynosaur'.
The author traces the history of the development o f W o r k Study
outlining the parts played by Frank Gilbreth and his wife, F. W .
Taylor, Russell Currie to the point where A . B . Segur - i n 1927 stated: ' W i t h i n practical limits the time required f o r all experts to
perform true fundamental motions is constant.'
Prior to this W o r k Study engineers had known they required an
objective technique which would enable them to make a preproduction study. M r Segur had provided the missing connecting
link and motion and time had become truly related.
F r o m 1930-1950 three main systems were developed - M o t i o n
Time Analysis, M o t i o n Time Standard, and W o r k Factor. Then
there came Dimensional M o t i o n Times (Geppinger), the Holmes
System (so named after its deviser), and Methods-Time Measurement (Maynard, Stegemerten and Schwab).
M . T . M . , like the other systems, was based on assigning time
values to each of the basic motions which the body is capable o f
performing. Methods-Time Measurement overcomes the problems o f rating, i t may be given specifiable accuracy, it is capable o f
being developed to cope with any specific requirements, i t is
internationally accepted. M . T . M . is reproducible i n an exact,
consistent f o r m , anywhere at any time.
The cornerstone is M . T . M . - l , the original Methods-Time
Measurement system. M . T . M . - 2 (which is f o u r times faster to
apply) is a second generation less detailed data system based
upon M . T . M . - l . M . T . M . - 3 applies to equipment tools; M . T . M . - 4
to sub-operations within a j o b ; and M . T . M . - 5 to j o b classification.
The writer illustrates these five M . T . M . systems by the task o f
changing the wheel o f a car. Level 1 i n basic M . T . M . would
analyse reaching f o r the tool, moving the tool to the studs on the
wheel, positioning i t over a stud, unwinding a stud, etc. Level 2
would involve a simplified version o f this motion pattern i n which
Reach, Move, Position, etc. were expressed i n broader units o f
work such as G E T , P U T , etc. Level 3 would refer to the use of the
necessary tools - e.g. there would be a value f o r removing one
nut. Level 4 would consist o f data blocks (removing a wheel f r o m
a car) and level 5 would refer to a complete j o b (removing all
wheels f r o m a car).
Research in the refinement and extension o f M . T . M . is going on
all over the world. Films on the G E T and P U T o f M . T . M . - 2 have
been produced.
118
Second generation M . T . M . derived systems include:
Master Standard Data
Primary Standard Data
Master Clerical Data
Universal Maintenance Standards.
For those wanting a preliminary approach to M . T . M . type
systems this monograph is excellent.
G.F.G.
Economic
Indicators
*Charting the British Economy
Mar low, B.
Longmans,
1968
713 pages
30/-
(159)
The assembling of some 70 economic indicators i n such an easyto-follow f o r m provides a useful service to value engineers and
other executives seeking an overall picture of the British economy.
Each chart is accompanied by a note on its data source, the
significance which may be placed upon i t , and the limitations of
the data on which it is based.
*
Speaking of limitations, a Prime Minister once complained the
statistics of the British economy were like an out-of-date Bradshaw. The Editor seeks to avoid such criticism by inviting readers'
views o n how to make Mrs Marlow's book, w i t h periodic
revisions, a lasting and useful volume. M r George Polanyi - a n
experienced economist - provides illustrations of the shortcomings of statistics i n a prologue. This section should be
required reading f o r all embryo and some practising economists
who seem all too often unaware of the dangers which surround
forecasting and, indeed, interpretation!
According to M r Polanyi economic statistics have three functions:
T o indicate what has happened; to indicate what is likely to
happen; and to provide a basis f o r decision as to what ought to
happen i n the future.
I t may be interesting to note these statements culled f r o m the
book which readers - with the enlightenment o f the basic data i t
contains - may care to cogitate upon:
• 'One o f the problems facing Britain arises f r o m the age
distribution o f its population.'
• 'The projections should be interpreted as representing what
would occur i f existing trends continue, and not as a prophecy
of what w i l l happen.'
• 'This record o f uncertainty (about the growth of U . K . population) should induce caution i n using population projections . . . '
• '. . . the present trend to larger families might make the
population (and its composition) very different f r o m that
shown by the projections.'
• '. . . married women are expected to f o r m an increasing
proportion of the total working population and other females a
declining proportion.'
• ' O f all the world's statistics, perhaps those o f national incomes
must be treated with the most caution . . . one people's way o f
life is not another's.'
• 'The relationship between output and employment is generally
accepted as a measure of the productivity o f labour.'
D.F.T.
Automation
*Low Cost Automation
Goodman,
L. L.
The Electricity
(167)
Council,
1968
20
pages
gratis
Another industrial monograph (A4) by the author o f Materials
Handling and Automation, because i t is free, may be passed over.
I t should not be f o r it provides a clear concise description o f the
w o r d 'automation'.
Value Engineering,
September
1969
'Automation,' the author holds, 'is the technology of automatic
working i n which the handling methods, the processes and design
of the processed material are integrated to utilise as f u l l y as is
economically justifiable the mechanisation of thought and effort
in order to achieve an automatic, and i n some cases, a selfregulating chain of processes.'
Low Cost automation can achieve greater output not only by
improving outputs of men and machines but also by making use
of inherent skills and by allowing a company to obtain experience
of simple types of mechanisation which will stand i t i n good stead
when it has to re-equip.
The tendency to place more emphasis on function design than on
producibility is mentioned by the writer.
To achieve results i n L . C . A . management must accept the idea, i t
must seek out all the relevant information which is available.
Low Cost Automation can increase the productivity o f men,
machinery and of existing floor space. I t w i l l reduce scrap and
make better use of skilled men. I t can initiate an 'efficiency spiral'.
A feature of L . C . A . is its use of simple types of equipment i n the
f o r m o f 'building blocks' f o r 'attachment' to various types of
machines. I t begins w i t h a study of the method o f manufacture.
It may be applied to automatic production on capstan lathes,
multiple drilling, marshalling containers, indexing tables,
assembly operations and feeding components into machines.
On the inside back cover there is a most useful list of thirteen
sources o f information and further reading.
C.F.V.
^Licensing Check Lists
D. E.
Mason
Ltd.,
1966
56 pages
421-
Plastics, the fastest growing branch o f the chemical industry, is o f
increasing significance f o r the industrial future of the larger
O E C D Member countries as well as f o r the medium and smaller
ones, the report says. A m o n g the forecasts i t makes, is that, i n
terms of volume plastics production may be comparable to steel
output by 1985. I n the words of the report: 'adaption o f the
mentality o f consumers might contribute to this'. Currently,
plastics production is growing at a rate three times faster than
- t h a t o f steel.
The report, the third i n the series, follows the studies on the
scientific instrument and electronic components sectors.
CCB.
Foreign Languages
^Foreign Language Needs of
Industry
Licensing Contract - New Products - Check fists
Braze//,
Kenneth
However, i n the field of innovation of specialised plastics, the
United States has definite lead over Europe, which is due partly
to government-sponsored research projects f o r space and defence
programmes. Plastics produced under these circumstances, the
experts note, have up to now had only limited application and
some have not been exploited commercially. Since no comparable
research projects are being performed i n Europe, there exists a
definite gap i n technology between the United States and European countries. I t is feared by some European experts that space
technology, although not now commercially important, might at
a later stage have significant market implications.
(174)
This aide-memoire is aimed at preventing oversights by those who
are engaged i n negotiating licensing contracts. I t covers:
Evaluating the other party to the contract.
Questions the intending licensor should ask.
Questions the prospective licensee should ask.
Factors to be considered by the licensor i n drafting the contract.
Factors to be considered by the licensee f o r inclusion i n the
contract.
The United States anti-trust laws.
Reference is made to a 72-page Directory of Licensing
Consultants
obtainable f o r 50s. f r o m Kenneth Mason Publications Ltd., and
also to Product Licensing Index, a monthly bulletin obtainable
f r o m the same source.
J.T.
Plastics
*Gaps in Technology—Plastics
Federation
of British
Industries,
1964 80
pages
101(175)
Compiled by a working party of what is now called the Confederation of British Industry this booklet is being reviewed
because o f the interest i n foreign languages expressed by value
engineers i n a recent survey of their needs, etc.
The working party's recommendations to meet the foreign
language needs of industry were:
• Greater encouragement should be given to the use o f existing
language skills.
• More specialised training should be available to those w i t h
languages.
• Sales literature i n foreign languages should be improved.
• Natural standards f o r tests o f practical language skills should
be established.
• Industry should show convincingly that language skills are
required and would be used.
• Language courses f o r industry should be based upon the
natural sequence of language Jearning, i.e. hearing, speaking,
reading and writing.
Experts f r o m the industry, business and the academic world f r o m
14 countries assessed the findings of the report f o r the O E C D .
They describe scale o f production as a critical growth factor and
recall that U.S. firms lead the trend i n size o f plant.
As for research, they report that efforts i n this field are carried
out on a substantial scale and future emphasis, i n their view, w i l l
lie, as at present, on developing newfields o f application o f current
materials.
A1963 report showed the priority f o r the different languages then
to be:
1. French
5. Russian
9. Norwegian
2. German
6. Portuguese
10. Danish
3. Spanish
7. Swedish
11. Chinese
4. Italian
8. D u t c h
12. Rumanian
Following the recommended sequence the learner may be
assisted by fundamental vocabularies of frequently occurring
(and required) words. A n experiment with German i n this way
resulted i n a basic requirement o f only 639 words taking some 60
hours instruction. The beginner is warned against trying to learn
a language by approaching it f r o m a written angle first. Textbooks
are no substitute f o r good teaching but several very useful books
are mentioned i n the report.
Against this background, the experts hold that no general
Icchnological or production gap exists between Europe and the
United States i n the field of bulk plastics. The technology is
largely international, and there is a rapid and effective circulation
of basic scientific information between countries.
Where language courses are provided abroad is listed, a list o f the
glossaries of technical terms used i n different industries is
provided and the addresses of colleges with facilities i n different
languages is set out. The report contains the addresses o f some
language laboratory equipment suppliers.
A.B.S.
O.E.C.D.,
1969
162 pages
211-
(124)
The role o f large-scale production and big research and development facilities is stressed i n a report on the plastics industry
published by the O E C D .
Value Engineering, September
1969
119
Maintenance - Incentives - Work Measurement
Warehousing - Mathematical Model - O.R.
*Guide to efficient Maintenance
Management
*A Mathematical Model for
Handling in a Warehouse
Stewart,
H. V. M.
Business Book Centre Ltd., 1968
157 pages
401(173)
Intended f o r the practical maintenance engineer the author sets
down the essentials of planned maintenance. He also deals with
methods f r o m his background o f practical experience o f their
application f o r assessing maintenance labour performance,
designing-out-maintenance, critical path analysis, and activity
sampling.
Some defects will not cause any loss of quantity or quality o f
production; others w i l l . The use of the U-graph f o r determining
the optimum amount of predetermined maintenance is illustrated
and the need to build up historical data is mentioned.
Scheduled (planned) maintenance consists o f all those activities
which have been entered i n a time-table of work. The schedule
primarily consists of repetitive work and confers these advantages
- n o t h i n g is overlooked, attention is given before breakdown,
higher operating efficiency of equipment, improved labour
performance, improves morale, leads to use o f correct equipment,
contributes to good storekeeping and cost control.
Listing, categorising and arranging f o r plant down-time is
explained and the time-saving f r o m visual control is pointed out.
Procedures f o r interim maintenance inspection, lubrication
scheduling and the setting up of equipment history cards is
outlined.
M r Stewart's particularly interesting contribution to the maintenance problem is his 'Booklet of Questions' - a separate booklet being used f o r each maintenance problem. He considers three
main aspects need investigation-(1) the eliminating o f the
function; (2) alternative means o f performing the function; and
(3) improvement i n the present means of performing the function.
These D . O . M . (Design-Out-Maintenance) Booklets offer recorded information of w o r k already done which prevents wasting
time doing i t again and i t presents a logical pattern of questions
which need to be answered by the investigator before making his
recommendations.
The author discussed the introduction o f Universal Maintenance
Standards (U.M.S.) developed by H . B . Maynard and Co. L t d .
which he has applied to between 80 % and 90 % o f the total manhours worked on maintenance. He also holds that:
Tt can be shown that no matter what the situation or conditions
i n any factory, large or small, the most effective means of
reducing the maintenance labour cost to anything approaching
the measured standard is by means of an incentive scheme
based on work measurement.'
A chapter on 'Maintenance Control Indices' suggests that these
factors be covered:
1. D u r a t i o n of scheduled shut-downs.
2. D u r a t i o n o f breakdowns.
3. D u r a t i o n o f defective plant running time.
4. A m o u n t of scrap due to defective plant.
5. Overtime hours of maintenance staff.
6. Labour performance of maintenance section.
7. Methods of carrying out maintenance work.
8. Inspection techniques improvement.
9. Frequence of lubrication, inspection and repairs.
10. Standardisation of parts and equipment.
11. Design of equipment.
12. Use of uneconomic materials f o r equipment.
13. Excess stocks of spare parts.
Graphing the indices on a Moving Annual Total ( M . A . T . ) basis is
recommended.
Prior to undertaking a major overhaul the application of Critical
Path Planning is recommended and this method is o f particular
value i n attempting to f i t i n major overhauls during the fixed
period of annual shutdown.
The book concludes with most interesting details of the practical
problems met with and overcome i n introducing modern maintenance techniques.
RT.
Kay, E.
Pergamon,
120
1968
80 pages
211-
(102)
This addition to the Commonwealth and International library by a
member of The Materials Handling Research U n i t at the College
of Aeronautics at Cranfield, England, is described by Professor
Loxham as 'an interesting and valuable contribution to the
present state of knowledge i n the increasingly important subject
of materials handling'.
This is how the book, which covers the movement of materials
within the warehouse, order picking, storage policies, space costs
and automation - also appeals to the reviewer.
The 'model' covers a store using pallets i n pallet racking and led
to the formulation o f such 'rules' as:
1. Incoming goods should be stored i n the nearest free location.
2. Outgoing goods should be issued f r o m the nearest f u l l
location.
3. Storage blocks should be formed w i t h dimensions to allow
for the performance characteristics of the handling equipment.
4. Each commodity should be stored i n accordance with a
calculation which uses as its data the average rate o f
throughput and the maximum expected storage capacity f o r
that commodity.
The application of these 'rules' enables a decision on the capacity,
shape, and layout of a warehouse that minimises total cost.
The purpose of construction mathematical models to gain insight
into complex systems, and to derive 'rules that w i l l optimise the
performance of such systems'. 'Optimising' denotes either
maximising profits or minimising costs.
As the writer observes: '. . . to apply the model to any real
situation requires observations o f the real situation . . .' N o doubt
those interested i n the subject o f materials handling and warehousing will do this.
I n warehouse automation, the human element is excluded f r o m
the two types of activities involved, that is, information processing
and physical handling of goods. The author refers to the automation, i n America, of 'the kitchen of Sarah Lee', Another such
good example is the mail order house of Quelle i n Nuremburg,
Germany.
C.W.W.
Economics
^Managerial Economics
Clarkson,
G. P. E. (ed.)
Penguin,
1968 429 pages
91(135)
Marginal economics deals w i t h the process of decision-making
within the f i r m . I t uses the concepts of U t i l i t y and the Maximising
of Profits and employs statistical and mathematical 'tool'. This
book analyses i n eleven articles the following range of business
problems:
the interactions of economic theory and operations research,
a decision model f o r diversification,
a Markovian approach to the dynamics of brand loyalty,
the estimation by means of M a r k o v chains of the allowance f o r
doubtful debts,
capital budgetry f o r interrelated projects,
lot size programming,
the industrial application of linear programming,
These and many other decisions which have an economic content
are the concern of managerial economics. This book which
introduces the subject of Normative microeconomics (or
management science, or engineering economics or operations
research) contains lists of further reading.
A.B.M.
Value Engineering,
September
1969
Value - Communications
- Creativity -
This article describes the origin and extension of V . E . , gives
examples o f successful cost reduction by this method, provides
information on sources of V . E . training. Value engineers would
be 'strained' to agree with the author's view that 'stripped of its
jargon V . A . is not revolutionary'.
Cybernetics
"Value Systems and Social
Process
VicfcGFS G
Tavistock Publications
Ltd., 1968 217 pages
38/(140)
Just as the names referred to - Abercrombie, Kenneth Boulding,
Buchanan, Erikson, Huxley, Mahalanobis, Peters and Shonfield indicate the extent of the author's reliance on the present; the
names of St. Thomas Aquinas, St. Augustine, Benthan, Bunyan,
Descartes and Marx indicate his debt to the past.
Sir Geoffrey Vickers, lawyer, economic intelligence officer and
personnel administrator has written a useful book f o r the
thoughtful value engineer.
Sir Geoffrey's aim is to describe the process by which men and
societies develop and change the values by which they live. He
contends this is a continuous process of mutual persuasion which
conditions the response of individuals to their situations.
The first part of the book (The Ecology of Ideas) describes
various value systems powered by the idea o f progress; then
illustrates more generally the power o f what it calls 'appreciative
systems' (the intimate mixture of ways of perceiving and ways of
valuing a situation) as partly autonomous, self-regulating systems.
Then i t considers the changes which would be needed i n our
current appreciative system to establish control over a situation so
obviously unstable as our own - a situation called 'the end of
free fall' and described both as an ecological trap and as a
failure o f communication.
In the second part (The Tower of Babel) the author examined the
near-impossibility o f making or executing adequate national
policies when value systems are i n collision at a time of rapid
change, and considers the contributions that may be expected
from techniques o f system analysis, system design, and programme-budgeting.
The third part o f the book (Beyond Descartes) draws implications f o r science f r o m the ways of thought exemplified by the
book and looks forward to a better relation between the physicobiological and the psycho-social sciences, when reality is conceived as neither dualistic nor monistic but hierarchic. Communication is identified as a major agent of stability and change; and
developments i n communication science are welcomed f o r their
conceptual, rather than f o r their technological, promise.
F.M.
The selection and salaries of executors is covered i n two articles
followed by an article on programmed learning ( ' A New Way to
Learn Y o u r Job').
C.F.V.
Computers
*Simple Efficiency
'Peter
Anbar
Simple'
Publications
Ltd.
40 pages
10/-
(130)
This and other stories are told about computers:
... ' A man got a demand f o r no pounds, no shillings and no pence
„> f o r his quarterly electricity account. He did not answer and got a
final demand. He then forwarded a cheque made out f o r no
pounds, no shillings, and no pence and duly received a receipt.'
Replete w i t h such fables, the book makes reference t o :
. disloyalty to the export drive being treasonable felony,
• the paper-crazed functionaries of Millbank Tower,
. freelance computer programming f o r housewives being the
cottage industry of the future,
. oxide-coated tickets used on the underground,
. 100 'new days' each being with 3-65 old days,
and many other way-out ideas.
Employers, the book points out, no longer dare talk of minimum
shorthand and typing speeds. Instead, they stress their own
lovability. Is this fair? The secretary may find herself faced
instead with the same old without-it boss w i t h a vile temper and
hair growing out of his switched-off ears!
Proposing such things as:
• The Imperial Correspondence School of Ombudsmanship.
. Citation f o r conspicuous Independence of M i n d .
• Flat converters of 'White elephant' office blocks.
The potential reader is i n f o r a real breath of fresh air blowing
across many long-accepted fallacies and fancies.
B.L.T.
Communication
-
Creativity
^Persuasive Technical Writing
Operational Research - Critical
Analysis - Training
Path Analysis
-
Value
**New Techniques in
Management
Shanks, M. and Coldstream,
P.
Financial
Times, 1964 16 pages
2/-
(14)
Seven articles which appeared i n the Financial Times have been
collected i n this small brochure. Although vogue-words or new
jargon may give rise to a degree of scepticism, the importance of
these new techniques i n modern management should be realised.
Increased interest i n numeracy, or quantifying the decisionmaking process, is the marked change i n business management.
Articles deal, among other subjects, with Operations Research ihc application of the principles and methods o f science to
problems of strategy; Cybernetics - the study o f communication
and control as applied by animal (including human) organisms,
and Line of Balance - designed f o r pin-pointing bottlenecks.
One article calls Value Engineering 'a new look at an old
problem'.
I 'alue Engineering, September 1969
Banks, J. G.
Pergamon,
1968 54 pages
7/6
(102)
The purpose of this book, recorded on the back cover is 'to create
an awareness amongst technical authors that their companies'
products must be marketed as well as described'.
The author illustrates clearly the customer motivation or the
reason why customers should buy and, although writing ostensibly f o r the student wishing to take examinations i n Technical
Authorship.
The element of persuasion is all too often absent f r o m technica'/
sales literature.
The author needs to use his powers o f imagination, call upon his
knowledge of the psychology of selling, and develop his ability to
combine technical features w i t h motivational factors. Twentytwo basic motivational facts ( f r o m Acquisitiveness to Vanity) are
listed.
The publications i n the marketing sequence includes sales letters,
catalogues, brochures, folders, booklets, photographs and drawings, service manuals. Preparing a Press Release is described.
'Buyers are People' is the useful-to-remember title of the last
section and the author concludes:
'Motivational factors are not confined to any one phase of
industry and commerce.'
C.C.T.
121
Training
**Principles of Training
Holding,
D. H.
Pergamon,
1965
156 pages
17/6
(102)
The author, who is i n the Department of Psychology at the Leeds
University, brings together i n one volume the results of research
into training. The book includes information about:
Training problems
Methods of training
Visual Aids
Verbal and M o t o r learning
Learning Curve
Transfer Training
Programmed Learning
'Too often,' says D r Holding, 'training schemes have amounted to
little more than "sitting by Nellie".' Sit-by-me training depends
largely upon initiation and since so much training is done by this
method it is perhaps surprising that so little research on initiation
has been done.
Whereas the skilled man works smoothly, has plenty of time, and
is i n complete control of his movements, the beginner is harassed
and jerky. Skill is built up by practice which allows the learner to
f o r m associations between stimuli and responses. These associations allow h i m to anticipate the course of events, making his own
performance smoother and more predictable. Improvement
slackens off as skill is attained, giving rise to a learning curve.
The learning of one task affects one's learning of the next - this is
known as transfer training.
The various forms of teaching machines which were i n vogue ten
years ago are illustrated, and the programme characteristics
described. I n the linear (or Skinner-type) programmes, the object
of the programme designer is to avert errors. The branching (or
Crowder-type) programmes is to cater f o r a modicum of errors.
The writer concludes that:
'Teaching machines and learning programmes do teach,
usually with some saving i n time and effort . . .'
A most useful list of references is contained at the end of the
book.
C.C.T.
Cost Reduction
**Cost Reduction Guide for
Manufacturing Management
Morse,
Clifton,
H, and Wyatt, E. E.
Morse 8-Associates
Inc.
234 pages
$24
(176)
The two authors of this book must have spent years compiling the
valuable information it contains. I n their view, i f cost reduction is
to be effective, i t must be a continuing, company-wide management function whose objectives are clearly spelled out and understood by everyone i n the organisation. Appropriately, they stress
that cost reduction is not achieved through a series o f letters f r o m
the company president, directing subordinates to save, nor does it
follow f r o m executive decree arbitrarily dictating a 10 or 20 per
cent cut i n costs. Cost reduction, they point out, is a systematic
program o f (1) waste prevention, (2) operation analysis, and (3)
feed-in of new ideas.
Because waste prevention deals with tangibles, the results of a
waste-prevention drive should be immediate and evident to all
employees. I f the drive is effective, it invariably generates
company-wide enthusiasm and cooperation, the authors believe.
They give numerous examples of the results achieved by the
practical application o f waste-prevention principles.
Operation analysis, they explain, is a methodical examination of
the company's operating methods, aimed at pinpointing i n efficiencies. As f o r the third phase of the program, they stress that
it must be set up so that it will be receptive to new ideas not only
f r o m within the organisation, but also f r o m outside sources. The
proper organisation of a cost-reduction program, the authors
suggest, entails the following steps:
122
1.
2.
3.
4.
5.
6.
7.
Involve as many employees as possible.
Make one person responsible.
Keep the program simple.
Watch expenses.
Set goals.
Conduct cost-reduction seminars.
Measure and control performance.
Particular emphasis is placed on the fact that cost reduction is
neither a one-man j o b nor the sole function o f any one group or
department. Accordingly, one whole chapter is devoted to the
function and role of the coordinator and his relation to other
members of management.
Realising that development of employee participation i n a costreduction program is a basic problem, the authors suggest
numerous ways of publicising the program to being about
effective two-way communication among management, supervision and employees.
A cardinal principle here, they maintain, is to tell and re-tell the
cost-reduction story through every possible medium at the
company's command.
Section I I of the book is devoted entirely to case histories. They
are reported i n great detail and with ample substantiating data.
Each case discussed shows the valuable results that can be and
are being attained through effective cost-reduction programs.
A n d to prove that cost reduction is not limited to manufacturing
operations, the authors give examples of its application to
inventory control, product simplification and standardisation,
packaging, material handling, and warehousing, and successful
sales planning and distribution.
Section I I I offers a brand-new tool f o r systematically auditing
every phase of the company's operations. Titled 'Operation
Analysis Audit', i t consists of virtually hundreds of well-thoughtout, well-directed questions that, when answered, should provide
all the information needed to take a good look at the entire
organisation. This section is even better organised than a
C.P.A.'s approach to a financial audit and, with some minor
adjustments, could profitably be used by any organisation.
A l l i n all, the new approach to an old problem exemplified i n
Cost Reduction Guide is highly impressive. The book is so
original, so practical, so different, and so comprehensive that i t
should be on every manager's desk f o r handy reference at all
times. Certainly it should be must reading f o r every newcomer to
the practice of cost reduction and waste control. I t can save
practically any company a lot of trial and error, as well as time
and money.
C.H.M.
Tribology -
Maintenance
^Fundamentals of Lubrication
Ellis, E. G.
Scientific
Publications
35/(182)
(G.B.)
Ltd., 1968
134pages
Sub-titled 'the basic facts of lubrications; lubricants and their
selection, prescription; specification and testing' this book has
been written w i t h the requirements of the practical engineer well
in mind. Unless executive engineers who are concerned w i t h the
shop floor appreciate the advantage of keeping abreast of
developments i n tribology and lubrications then a lot of research
currently going on w i l l be lost.
The book starts with a description of 'friction', various types o f
lubrication, and properties of different types of lubricants.
Mineral oils and additives, greases, and tests f o r lubricant
effectiveness are then dealt w i t h and a chapter is devoted to
Nomenclature and Classification of lubricants. Applications of
lubricants i n industry are described and the book concludes w i t h
a chapter on Process lubricants (Cutting Oils, Machine T o o l
Oils, and Heat Treatment Oils).
AC.
Value Engineering,
September
1969
Computers - Design
Work Study - Value Standards - Direct Labour
*Computer Graphics—Techniques
and Applications
**Principles of Work Study
Pars/ow, R. D., Prowse, R. W. and Green R. E. (eds.)
Plenum Press, 1969 247 pages
80/(181)
This is a book of the twenty-one papers presented at the 1968
Brunei University's Symposium on computer graphics. This has
applications i n computer-aided design, process control, and
information storage and retrieval.
M r Gordon Black, Director of the National Computing Centre at
Manchester, i n his foreword, mentions the current problems of
economic application of computer graphics. The editors, i n their
preface, say 'one picture is worth a thousand words' and draw
attention to the future potential of computer graphics.
This book covers the hardware and software, the stage of
development of computer graphics i n the U.S.A. and U . K . , and
case histories of successful applications. I t provides answers to
the question, 'What has computer graphics to offer?' Over 45
areas of application are listed.'
Value engineers may possibly find some of these applications
which they can take over to help them i n their own work.
For those f o r who, such words as Sketch Pad, Machine-Aided
Coguition ( M . A . C . ) , and C.R.T. are fashionable catch phrases
ihe book will have interest. Interactive Displays, where the interaction between operator and computer is possible via an interactive device such as a light pen or keyboard, are dealt with i n
some detail.
M r Torson, who heads the Computer-Aided Design and Manufacture project at Rolls Royce Limited, deals with the limitations
of using computer graphics i n mechanical design. These include
input data being too susceptible to error, output i n tabular f o r m
was not ideal, and elapsed time between problem formulation
and solution was too long.
The book concludes with details of currently available computer
graphics systems and a useful glossary of the terminology used i n
ihc subject.
T.J.W.
Human Relations
*The Management of Human
Relations
Gellerman,
S. W.
Holt, Rinehart
St Winston,
1966
143 pages
28/(180)
In the Basic Management Series this book is written by M r
(iellerman of I . B . M . W o r l d Trade Corporation begins:
'The Manager who would have an effective influence on the
behaviour of the people he supervises must first learn to
analyse their situations realistically.'
Morris,
J. W.
Heinemann,
1968
130 pages
15/-
(137)
The author claims to answer three questions
> H o w can WS be applied ?
• Is i t easy to understand?
. H o w w i l l i t affect the supervisor and the workmen?
- which he does very well indeed. Covering the N E B i n supervisory studies' syllabus the book provides a guide to work study
for others who might be interested i n the subject. W i t h over thirty
years' work study practice behind him, M r Walker-Morris draws
attention to many matters of value to beginners i n the subject.
W o r k study is not an alternative f o r good management; it can
only be successful where there is good management.
The causes of excessive work content i n a j o b include:
Bad design
Lack of standardisation
Incorrect quality standards
W r o n g machines
W r o n g process
W r o n g conditions
W r o n g tools
Wrong materials
Bad layout
Bad methods
The author lists about forty 'indicators' which may be used to
highlight projects f o r methods study and stresses that 'only i f we
describe i n precise terms exactly what we are trying to do shall we
be able to see whether we are making progress i n the right
direction'. 'Indicators' are also listed f o r use i n selecting a project
to which to apply work measurement. One o f the commonest
forms of work measurement is time study using the stop watch
and making various appropriate allowance f o r both the worker
and the timer. Another is Methods-Time Measurement (or
M - T M ) which its inventors (Maynard, Stegemerten and Schwab)
describe as:
'a procedure which analyses any manual operation or method
into the basic motions required to perform i t and assigns to
each motion a predetermined time standard which is determined by the nature o f the motion and the conditions under
which it is made . . . i t is basically a tool of method analysis
that gives answers i n terms of time without the necessity of
making stopwatch time studies'.
M - T M removes the need f o r trained time study engineers and the
performance rating of these engineers, and it produces consistent
values as they all stem f r o m the same basic data. The very close
analytical study o f the work also encourages the search f o r
methods to improve it.
The author provides a useful list of books (including the famous
I L O ' s Introduction to Work Study) to which the reader interested
i n following the subject still further may refer. He makes brief
mention of Value Analysis.
A.G.
History is f u l l of strikes, restrictive practices and other forms of
productive behaviour. O n the surface this seeing to support the
belief that human nature is hardly a worthwhile topic f o r a
practical man to study.
Describing the Hawthorne experiment, the Likert theory, the
Argyris Analysis, and the McGregor Theory X and Theory Y ,
M r Gellerman passes on to the importance and forms of communication.
(iricvance channels, Performance Appraisal and Employee
< ounselling, Executive Development and Succession Planning,
Mc-training, and Retirement Preparation indicate some of the
tubjccts covered i n the book.
I he effective management of human relations,' according to M r
< tt-llcrman, 'is not only merely possible i n the light of what
'x hiivioural research has revealed, i t is also essential i n the light
•>i our rapidly evolving social and political order.'
A.B. M c N
• nine Engineering, September
1969
Marketing -
Exporting
^Selling British Abroad
Lennard,
P.
Pergamon,
1969
16 pages
2/6
(102)
What really prevent (hinders) Britain f r o m selling abroad? Our
attitude, our amateur approach, our poor communication
ability, and our design f o r the home market are certainly not
helpful. We are also hindered by lack of membership o f the
Common Market, by the barriers of the Eastern bloc countries
and by our lack of knowledge of overseas market requirements.
Selling Britain abroad, the author warns, can no longer be done
by the armchair brigade.
F.S.S.
123
Computer - Personnel
Purchasing
*The Computer and Business
Unity
^Decision Rules for Inventory
Management
Hitchcock,
R. and Wille, E.
Edward Arnold,
1969
230 pages
Brown,
R. G.
Holt, Rinehart,
50/-
(146)
Written by two men with considerable experience i n computing
the book sets out how the computer can be used i n business
management, and how its introduction may affect employees.
There is an outline of a computerised system f o r personnel
records, and a Management Information System f o r Market
Planning, Purchasing and Stores. This is followed by an application f r o m the Coal Industry.
The outline of a one-day introduction to computers, flow charting
and F O R T R A N programming is presented; as also is the plan of
a more advanced course. M I D A S (the name given to the Management Information Direct Access System) which puts Management into direct contact with the data banks by means of telecommunication links and terminals is described. Pre-defined
Questions (P.D.Q.'s), which puts part of management into the
computer, is the way i n which decision-taking can be regularised.
Management has, however, to establish the right attitude towards
computers, it has to view computers i n their right perspective.
Perspective is gained by understanding and to help this understanding is the object of this book.
B.T.
Management Techniques - Training
*The Effective Executive
Drucker,
P. F.
Heinemann,
1967
148 pages
30/-
1967
400 pages
(180)
How the explanation of such mundane subjects as A B C , B i l l of
Materials, Demand Data, EOQ, Fourier analysis, and so on can
be woven into this attention-getting introduction is difficult to
imagine but the Report-form type of presentation used by the
author is most effective.
The Report topics include:
• Economical Order Quantity Formula.
• Manufacturing Order Quantities.
• Machining Lots.
• Inventory Rules f o r Spare Parts.
• Demand Data and Forecast Models.
. Working and Safety - Stocks.
• Inventory Control Systems.
The problems dealt within the book are practical ones which are
encountered i n industry and the author's method of dealing with
them indicates an appreciation o f the difficulties which must be
overcome i n implementing the suggested solutions.
F.C.D.
(137)
Professor Drucker's systematic study of the effective executive
revealed that effectiveness can be learned. He presents a method
for gaining this very valuable skill i n getting the right things done.
If
•
•
•
effectiveness can be learned, the questions arise:
What does it consist in?
What does one have to learn?
Is i t a skill which one learns as an apprentice or is it a practice
which one learns through doing the same things over and over
again ?
Effective executives differ widely, but there are five habits of the
mind that have to be acquired f o r an executive to become
effective:
• A knowledge of where his time goes.
• A search after achievement.
. A building upon strengths.
• A concentration upon a few areas.
• A sequence of actions.
I n Chapters headed ' K n o w Thy Time', 'What can I Contribute ?',
'Making Strength Productive', 'First Things First', and 'The
Elements of Decision-making' the author draws upon considerable experience and wide reading on the subject. He concludes:
'The manual worker had only economic goals and was content
w i t h economic rewards . . . The knowledge worker demands
economic rewards too. Their absence is a deterrent. But their
presence is not enough. He needs opportunity, he needs
achievement, he needs fulfilment, he needs values. Only by
making himself an effective executive can the knowledge
worker obtain these satisfactions . . .'
The reader will come across quotes, notes and anecdotes. 'Nurse
Bryan's rule, "commitment to contribution" whereby everybody
in a hospital got to asking themselves, " A r e we really making the
best contribution to the purpose of this hospital?" could be
applied in business as well.' The task of the executive - says the
author - is not to change human beings but to multiply performance capacity of the whole by putting to use whatever strengths
there are in individuals.
T.V.Y.
124
Winston,
This book opens up new avenues i n the theory of inventory
management - lot-size, forecastings, safety stocks and so o n and has been written by a man w i t h fifteen years practical experience i n the field. These ideas are presented i n an unusual but
nevertheless interesting manner. The opening sentence 'As the
bonnet of his M . G . found its way eastward along U.S. 30
through the pleasant curves o f Southern Pennsylvania, Roger
Langdon thought to himself. . .' encourages the reader to
proceed.
Metrication - Design - Checklist
**Making the Most of Metrication
Vick&rs J S
Gower Press,
1969
164 pages
35/-
(166)
This book has been written by the Chief Engineer of the British
Standards Institution's Planning Group f o r change-over to the
metric system. Colonel Vickers, who has been responsible f o r the
last three years f o r co-ordinating the B.S.I.'s role i n England's
adoption of the metric system, is i n an excellent position to write
on his subject.
The book shows how the conversion can be made at least cost,
and how the conversion can be made the occasion f o r reviewing
the current practices i n engineering, manufacturing and marketing. I t also covers the problems met with by retailers i n the
changeover. There is some interesting information on the S.I.
(Systeme Internationale) limits, their development and adoption.
I t is interesting to note that dual dimensioning (i.e. putting
English measurements alongside metric ones) is not favoured
and examples supporting this view are put forward. I n this
connection, too, the writer's views on just how much training i n
metric working should be given is important. He says: ' i t by no
means follows that the whole labour force needs the same amount
of or kind of training . . . The gradual introduction of metric
work up . . . clearly assists i n spreading the training load . . .'
'Careful planning of the change', says the author, 'can minimise
the costs . . .', and i n the last chapter a very valuable checklist is
provided so that managements may ensure that nothing is being
overlooked i n Operation Metrication. Finally, a list of B.S.I,
metric reference publications should give the sources of any
further detailed investigations i t may be necessary to make.
The Gower Press and Colonel Vickers have performed a very
useful service to the nation with this timely and competent
publication.
S.T.F.
Value Engineering,
September
1969
Purchasing - Inventory
**Stock Control in Manufacturing
Industries
Thomas, A. B.
Gower Press, 1968
213 pages
60/-
(166)
When with most products the major portion of the cost lies i n
material a better planned approach to the control of stocks can
yield worthwhile returns. To clear up confusion i n terminology
the author recommends the reader to consult the American
Production and Inventory Control Society's Dictionary
of
Production and Inventory Control Terms.
Complicity pressures are at work i n stockholding decisionsmake a longer run, get the quantity-discount, etc. Decision
requires a balanced approach.
Mention is made of the Brisch code and the Opitz system, both of
which methods of classification consists of 'fields' each describing
some particular feature of the part.
Stock out costs are of two kinds: those arising f r o m the stockout
itself, and an acceptance of the direct consequences, or the costs of
action taken to deal w i t h the situation arising f r o m the stockout.
A chapter goes into the causes, effects and cures of stockouts.
Methods of 'exploding' orders are illustrated - gross explosion;
level-by-level netting explosion, and level-by-level netting explosion w i t h low-level coding. A f t e r dealing w i t h methods of forecasting the author discussed what should be stocked including the
concept of system instability.
Finally, there is an enlightening discussion of the use of a
computer f o r stock control, and appendices deal with the
detection of errors i n copying numbers, stock movement analysis,
adaptive smoothing system, and calculating quantity discounts.
A useful list of book covers, production control, stock control,
forecasting, and statistics; and reference is made to periodical
literature and conference proceedings.
This is an eminently practical book which those interested i n
applying modern methods to stock management should read.
G.F.
shop is characterised by (1) a variable product mix, (2) the
physical arrangement of equipment, (3) the large number of
alternative manufacturing paths, and (4) the information and
decisions required f o r its operation.
Two excellent papers discuss the interfaces between activities and
information i n production systems, and f o u r papers outline
several approaches to production-line balancing problems - the
heuristic approach and the computer approach.
How often has the reader heard these type of statements made
connected w i t h inventory:
• We are out of stock too often.
• We have too much money tied up in stock.
. We have too many short production runs through insufficient
inventory.
• Competitors are operating with lower inventory/sales ratios.
Some methods very effectively used f o r curing these complaints
are outlined, and the conflicting pressures on inventory levels are
• graphically illustrated.
How management can use the improvement phenomenon - the
'learning curve' as it is sometimes called - is described, and the
book presents the conclusions on the impact of new technology
on management reached by M r Melvin Anshen of Columbia
University:
1. Change w i l l not proceed as fast or as far as some enthusiasts
think.
2. Professional experts i n the new techniques of management
will occupy positions of growing influence i n the organisation.
3. The trend toward decentralisation of decision-making i n
large organisations will be i n part reversed.
4. The tasks of middle management will resemble more closely
those now associated with top management.
5. The most successful managements will act promptly to
strengthen their understanding of the capabilities as well as
the limitations of the new technology.
G.K.P.
Computers
Production Management - Management
Techniques
**Readings in Production and
Operations Management
Buff a, E. S.
John Wiley
St Sons Ltd., 1966 608 pages
53/(125)
Designed as a supplement to his two previous books, Modern
Production Management (1965) and Models for Production and
Operations Management (1963), these thirty-four selected readings
deal with such important topics at line balancing, linear programming, priority sequencing, and factory simulation. A n outline of
the shape of things to come is given i n two forward-looking
articles entitled 'Management i n the 1980's' and 'The Manager
and the Black Box'.
Production systems today cover greater scope than they did a few
years ago. Today we find production systems i n hospitals, supermarkets, warehouses, government reduction.
11 is pointed out i n the first paper that no industrial plant is
i omplctely straight-line or completely jobbing type. I n the former
she production sequence is fixed w i t h linkages and based on work
iMte; in the latter the production sequence is variable and output
.» based on work content. There follows a description o f the
.1* u-lopment of a mathematical model o f a production system.
I in- next set of papers are case studies of the practical application
linear programming, simulation and waiting-line theory. O f
,.«i»ulerable interest is the paper on the j o b shop techniques used
M *IH- I I Scgundo division of Hughes Aircraft Company. The j o b
I *tw Engineering, September
1969
*The Effective Use of Computers
in Business
Losty, P. A.
Cassell, 1969
148 pages
30/(187)
EDP (or Electronic Data Processing) is described i n this book
which is divided into three parts:
How computers function.
Important implications of computers.
How to put jobs on to the computer.
I t is the message of this book that many of the difficulties of
installing and using computers would be overcome i f management asked the right questions, o f the right people, at the right
time, and knew how to evaluate the answers they received.
The business information system (BIS) is a coupling between
Management and the physical operations of the business. The
BIS requires I N P U T and O U T P U T with processing between the
two. Processing is controlled by the Programme. Prior to programming comes systems analysis which breaks down a flow of
work into simple elements. Too often, i n computerisation, so the
author contends, management abdicates its responsibilities until
it is too late to take effective action. Things conspire to push
organisations deeper and deeper into computing. This may be
due to D.P. people treating computing as an end i n itself, rather
than as a means to an end. While both consultants and computer
manufacturers can offer valuable assistance i n the computer
project they cannot discharge the responsibility of management
to ensure that the computer adequately meets the requirements of
the business.
T.F.T.
125
Long Range Planning - Ire/and
The book is well-documented with such quite disturbing facts as:
^Planning in Ireland
FitzGerald,
G.
I.P.A. & P.E.P.,
1968
246 pages
What's left after tax.
What does it cost to live.
60/-
(188)
I n this PEP study, D r FitzGerald analyses the role of economic
planning i n Ireland. When the First Programme started i n 1959,
Ireland had experienced a decade when G N P grew by less than
1 per cent a year; whereas i n the following decade growth
averaged 4 per cent a year. Although this sudden changeover f r o m
stagnation to rapid growth occurred precisely at the time when
economic planning was introduced, other external factors were at
w o r k - n o t a b l y the British boom of 1959-1960 which gave the
Irish economy its initial fillip.
The role of economic planning i n Ireland is a source of stimuli to
growth and expansion i n the private sector, where the small size
of the home market and earlier experience o f economic stagnation had weakened sensitivity to growth opportunities. I t plays an
even more important role i n the public sector - providing a
mechanism to secure consistency amongst public policies
devised by different government departments, as well as a
weapon w i t h which to resist demagogic pressures f o r popular
policies that weaken the ability of the economy to maintain an
adequate growth rate.
The book also gives a detailed 'inside' picture of planning as i t
actually works. M u c h o f what has been written about planning
hitherto has been at a very general level; here we see a concrete
case-study o f planning, highlighting such practical issues as the
statistical measurement o f performance by comparison with
targets and the actual working of consultations with industry i n
connection w i t h the setting of targets and the review of subsequent progress. For the British reader there is the particular
interest of seeing how Europe's only other English-speaking
country has tackled planning. The small scale of the Irish
economy - the Republic's population is much less than that of a
typical U . K . region - gives this case-study a special interest at a
time when there is a trend towards regionalisation. Finally the
working of the National Industrial Economic Council as
described i n this book provides an interesting contrast, w i t h the
operation of the N E D C i n Britain.
R.G.H.
Information
Retrieval
*The Knowledge Revolution
Chorafas,
D. N.
Allen & Unwin,
1968
142 pages
30/-
(189)
Professor Chorafas holds that the 'European disease' is due to
Europe having failed to create the sort of education and industrial
structure that is relevant to the problems o f today. Europe, he
contends, must revise her relationships so as to be able to take f u l l
advantage of mass-production and mass markets. However, he
does not think the E.C.C. is the way to do this.
Written for all those concerned w i t h Europe's future the book will
be of great interest to value engineers who wish to understand the
economic setting i n which they will be called upon i n the future
to do their work. I t was President Kennedy who said: 'The
requirements of our science and technological based industries,
are outstripping our capacity to produce them.' D r Chorafas also
prescribes a cure f o r the 'disease' but feels that inertia makes i t
highly improbable that adequate measures w i l l be taken i n time.
The Knowledge Revolution promises to be as great an upheaval
as the Industrial Revolution. I t is marked by the 'brain drain' i n
which the loss of scientists is not the only manifestation; the loss of
intellect i n any field of industry, scientific or not, is also a serious
erosion of national economic strength. Also i t is likely that
emigrants, as such, are people that a country can least afford to
lose.
126
Where British engineers are going.
University-level of training.
The greatest failure of the Common Market, according to the
writer, 'has been their inability to manage the mechanism o f
growth'. The historians summing up on ancient Athens and the
Athenians could well apply to Europe i n 1990 i f we do nothing
about the present educational and industrial environment.
Tn the last analysis, they wanted freedom, security and a
comfortable life - and they lost them a l l . . . The more the
Athenians wanted to give nothing to society and to receive
everything i n exchange, the more they were overtaken by
evolution. When the freedom to which they were aspiring had
become nothing more than freedom f r o m responsibility, then
Athens ceased being free and has never been free since.'
R.C.M.
Planning — Salaries
^Progression Handbook
Jaques, E.
Heinemann,
1968
72 pages
35/-
(137)
Professor Jaques, who is well-known for his close association with
the Glacier Project, describes how earnings progressions may be
plotted and used (1) to assess the potential capacity of individuals
in progressing them i n their work and salaries, and (2) i n manpower planning. This book o f his forms a supplement to the
Time-Span Handbook (Heinemann, 1964). The two books are
together intended to show how this policy can be implemented i n
a practical way.
This is one of the ten books which have been written about the
Glacier Project and i t contains a comprehensive bibliography on
the Project. Its comments on such matters as age and capacity,
assessment of subordinates, capacity of young people, career
planning, car allowances, earnings and time-span, equitable
payments w i t h other countries, fringe benefits, promotion and
succession are of immense interest to value engineers who
consider inter alia 'a fair day's work f o r a fair day's pay' as one of
the measures of value.
Earnings progression technique makes i t possible f o r wages to be
reviewed w i t h i n a policy set f o r each individual. I f his manager
judges that he has been employing his full capacity i n his work
then he gets normal progression i n salary.
The technique also gives managers a means o f discussing an
assessment of their capacities w i t h their subordinates i n terms
more definitive than the statements 'very good', 'fair', and so on.
The technique indeed requires discussion with subordinates since
they plot their own progression curve, and measure f o r themselves
the time-span of the w o r k assigned to them. The effects of having
an explicit framework f o r payment and promotion are:
• employment of people i n roles which are consistent w i t h their
capacity,
• establishment of level-of-work range f o r each employee,
• rewarding o f exceptional performance i n response to special
demands by payments made at the time.
The author concludes w i t h these words, 'We live i n a money
economy. Money payment gives free choice. If the effort that went
into thinking up fringe benefits and tax avoidance schemes were put
into arranging equitable payment. . . we would be contributing to a
more satisfying work environment and a better society.'
H.K.T.
Value Engineering,
September
1969
Reprint
No.
2:2:10
Selected Abstracts of Recent
Literature on Value Analysis/
Engineering
Miss C. Maby — Abstracter
' E v e r y f e w y e a r s s o m e w o r d is t h r o w n t o t h e s u r f a c e of m e n ' s m i n d s a n d p r o v e s
p o w e r f u l e n o u g h t o c o l o u r a n d c o n d i t i o n t h e i r t h i n k i n g . A t p r e s e n t t h e w o r d is
A u t o m a t i o n ! ' — F r o m Political
and Economic
Planning's
publication.
The Growing
Economy.
These Abstracts
are based on a survey of periodicals
and
books, supplemented
by a selection
of abstracts
which
have
already
appeared
in other
Abstract
Journals.
Permission
to reproduce
the latter is gratefully
acknowledged.
The addresses of the publishers
of the periodicals
containing the abstracted
articles may be obtained by noting
the
number appearing
in the round brackets and referring
to
the addresses on the inside of the back
cover.
Abstracts [104] to [116]
[107]
[104]
Applications
Applications
Anon
Anon
Short
Value
Cut to Low
Engineering
Costs
Ltd., 1962
Brochure,
1 page
(51)
IMus Lighting L t d . reduce a lamp-holder assembly f r o m seven
parts to one, achieving a 69-5 per cent cost reduction.
Dunlop Company L t d . devise a new lower cost brake ratchet
mechanism costing 62 per cent less.
These are but two instances of the advantages of using Value
I ngineering.
[105]
Quality
control
-
Value Analysis
Metalworking
57
(38)
Inc. Sets up in U.K.
Production,
13th Mar.
1962
pp.
56¬
The essential feature of V . E . is that i t examines minutely the
performance, materials and design o f component parts and subassemblies, using specific techniques with the aim of optimising
the value o f the final manufactured product.
Experience of companies setting up V . E . programmes has been
that they make a 50 per cent saving on investment within the first
three months, and by the end o f the year the saving is o f the
order of ten to one.
Applications
Anon
Where Quality
Ends
Electronics
Weekly,
and Waste
Begins
10th Oct. 1962 pp. 9-11
(52)
Value Engineering is proving itself a winner as a means o f
reducing costs. Value Engineering L t d . provides a leam-by-doing
course which teaches and guides employees i n value thinking.
[108]
Applications
Anon
Seven Case Studies
in
Data S- Control
March
- Basic
concepts
Anon
Importers
of Value
The Factory
Manager,
Engineering
9th Sept. 1962
pp. 3-4
(53)
I
near-missionary enthusiasm f o r V . E . is described. The value
ntgmccr 'determines where quality ends and waste begins'. The
it\ lo his success lies i n creating effective communication between
^IMrtments. He works on cost-prevention as well as cost-v.liiclion.
i
Engineering,
September
1969
p. 15
(45)
Quoting BSA Tools, Creed & Company L t d . , D u n l o p Rubber
Company, Walter Kidde Co., STC, The Serck Group and Plus
Lighting, the writer gives positive evidence of the savings which
can be made through Value Analysis.
[106]
Applications
V.A.
1963
M r W . Dickson, Creed's Chief Production Engineer, has this to
say:
'We are convinced that the creation of a company-wide Value
Analysis programme is essential. We shall be able to upgrade the
reliability and reduce the cost of every sub-assembly o f the
teleprinter . . . and the combination o f higher reliability and
lower cost may enable us to double or treble our present market!
127
[113]
[109]
Basic concepts -
Local
Applications
government
Heller, E.
Finch, E.
Techniques
of Value
Electronic
Equipment
p. 52
(58)
Course to Provide
City Department
Data
The Schenectady
Union Star
19th June 1962
(56)
Engineering
Engineering
Oct.
1961
The Value Coordinator of General Dynamics, Pomona, California,
writes:
'V.E. may be contrasted with other cost reduction techniques
by recognising that, rather than attempting to reduce the cost
of the product, we apply Value Engineering to eliminate
unnecessary costs in the performance of the function.''
Illustrations connected with die-casting, substitution of channel,
and unnecessary heat treatment are given by the author. The
percentage reduction of costs given are those normally achieved
by V . E . efforts.
[110]
Involvement
of Management
Mass Production
Oct. 1962
Functions
p. 3
(9)
V.E. involves design, production and purchasing at a management level. V . E . cuts costs by determining the most economical
means by which components can perform their essential functions.
Marketing
Anon
Marketing
and V.A.
Sales Management
Roberts, E. E.
Oct. 1962
p. 10
The concept of working backwards f r o m the market sets the V . A .
people a target cost.
Value Engineering is used to identify V . A . at the design-concept
stage. I t is V . A . upstream; i t is first-look V . A .
Second-look V . A . is after the product has been made and is
being marketed. Both 'looks' are important and worthwhile. A t
Boeing the second-look oriented programme i n the material
department is saving $45 f o r each dollar of programme cost.
[115]
Applications
- Basic concepts
Anon
A New Approach
to Cost
Prevention
The Factory
Manager,
16th Sept.
1962
(53)
pp.
9-10
Value Analysis is little more than a systematic approach to
commonsense asking the questions: Just what does this component do ? Can i t be made simpler, and - above all - can i t be
made cheaper?
A ten to one return on investment following the application o f
V . A . is regarded as normal.
[112]
- Architecture - Construction
Industry
Anon
[116]
Wax
Journal
Applications
3rd
April
1963
p.
56
Are you familiar with the latest play-word?
The article mentions a book which Value Engineering L t d .
issues 'which classifies shapes and what they w i l l cost to make i n
various ways, different materials, and different quantities' - a
sort o f philosopher's tome!
It suggests that architects using this book could demonstrate to
manufacturers how to produce building components of twice
their present efficiency at half the present price.
The V . A . technique is putting intelligent people together, away
f r o m a restricting it-can't-be-done atmosphere and making them
think out their problems f r o m scratch.
128
(57)
(54)
The idea o f a marketing man kicking o f f a V . A . program is
unusual, f o r traditionally purchasing, manufacturing and
engineering reserve this function f o r their own w i t h marketing
either disinterested or barred f r o m V.A.'s inner sanctum.
Ships - Sealing
The Architect's
(55)
After
First-look V . E . can be likened to preventive maintenance, the
second-look V . A . as corrective maintenance.
Companies find it increasingly difficult to buy f o r less or sell f o r
more i n order to increase earnings. However, the marketing
executive's responsibility remains constant - to increase profits.
He cannot afford to ignore any possible means of doing this and
V . A . is one way he should explore.
Applications
[114]
Basic concepts
Studies are also being carried out i n the areas of:
Packaging
Materials Handling
Maintenance, Repairs and Operation.
[Ill]
-
After analysing functions and their costs one or two w i l l be
selected f o r detailed study using the principles of Value Analysis.
V . A . is certainly not new. Seeking the lowest possible cost f o r an
article has been a practice since the earliest days o f barter. N o t
until recently, however, has i t been put on a systematic basis.
Anon
Applications
Value Analysis Inc. is cooperating with the Schenectady City
Government to study the cost of refuse collection, tax billing,
park upkeep, fire hydrants, street lighting, etc.
Value-Analysis
- Reducing
Costs Before and
Initial
Production
Aircraft
Production
January
1962 pp. 6-7
Applications
p. 8
- Basic concepts -
Purchasing
Potash, J .
Value Analysis
of Special
Components
Electronic
Equipment
Engineering
Oct 1961
(58)
p. 55
This article presents an insight into some of the problems involved
w i t h the procurement, f r o m a value viewpoint, of special or nonstandard components.
The most common controlling factors i n design are volume,
weight, cost, reliability and performance.
A prompt-board shows ' H o w to get Value Analysis Benefits' i n
negotiating f o r the procurement of a specialised component.
The design approach employed is an 'image parameter design'.
Value Engineering,
September
1969
Publishers' Names and Addresses
Journals
9.
14.
38.
45.
51.
52.
53.
54.
55.
56.
57.
Books
101.
102.
105.
110.
119.
120.
122.
124.
125.
126.
130.
135.
137.
140.
141.
142.
146.
154.
159.
164.
165.
166.
167.
168.
169.
171.
172.
173.
174.
175.
176.
177.
178.
179.
180.
181.
182.
183.
187.
188.
189.
Mass P r o d u c t i o n , 4 L u d g a t e Circus, L o n d o n , E.C.4, England.
The Financial Times, Bracken House, 1 0 C a n n o n Street, L o n d o n , E.C.4, England.
M e t a l w o r k i n g P r o d u c t i o n , M c G r a w Hill House, S h o p p e n h a n g e r s Road, M a i d e n h e a d ,
Berks., England.
Data a n d C o n t r o l , Business Publications Department, M e r c u r y House, W a t e r l o o
Road, L o n d o n , S.E.1, England.
Value Engineering Ltd., 6 0 W e s t b o u r n e Grove, L o n d o n , W . 2 , England.
Electronics W e e k l y , H e y w o o d Temple Industrial Publications Ltd., 3 3 - 3 9 B o w l i n g
Green Lane, L o n d o n , E.C.1, England.
The Factory a n d W o r k s Manager, India Publications Co., 31 H a m m a m Street,
B o m b a y 1 , India.
Sales M a n a g e m e n t , Sales M a n a g e m e n t Inc., 6 3 0 3rd A v e n u e , N e w York, U.S.A.
The A r c h i t e c t s J o u r n a l , Architectural Press Ltd., 9 Queen A n n e ' s Gate, L o n d o n
S . W . 1 , England.
The Schenectady U n i o n Star, K. & ' M . Publishing Co. Inc., 211 C l i n t o n Street,
Schenectady, N e w York, U.S.A.
Aircraft P r o d u c t i o n , lliffe Science & T e c h n o l o g y Publications Ltd., 3 2 H i g h Street,
G u i l d f o r d , Surrey, England.
M c G r a w Hill Publishing Co. Ltd., M c G r a w Hill House, S h o p p e n h a n g e r s R o a d ,
M a i d e n h e a d , Berks., England.
. Pergamon Press Ltd., H e a d i n g t o n Hill Hall, O x f o r d O X 3 O B W , England.
Her Majesty's Stationery Office, 4 9 H i g h H o l b o r n , L o n d o n , W . C . 1 , England.
British P r o d u c t i v i t y C o u n c i l , Queen Street Place, L o n d o n , E.C.4, England.
Sir Isaac Pitman & Sons Ltd., Parker Street, L o n d o n , W . C . 2 , England.
International Labour O f f i c e , 4 0 Piccadilly, L o n d o n , W . 1 , E n g l a n d .
The M a c h i n e r y P u b l i s h i n g Co. Ltd., N e w England Street, B r i g h t o n , Sussex, England
O.E.C.D., 2 rue A n d r e - P a s c a l , Paris 16e, France.
J o h n W i l e y & Sons Ltd., Baffins Lane, Chichester, Sussex, England.
Design Engineering H a n d b o o k s , Product J o u r n a l s Ltd., S u m m i t House, Glebe W a y ,
West W i c k h a m , Kent, England.
A n b a r Publications Ltd., 3 4 The M a l l , Ealing, L o n d o n , W . 5 , England.
Penguin Books Ltd., H a r m o n d s w o r t h , M i d d l e s e x , England.
H e i n e m a n n Publishers L t d . , 15 Queen Street, L o n d o n , W . 1 , England.
Tavistock Publications Ltd., 1 6 7 Fleet Street, L o n d o n , E.C.4, England.
M e t h u e n & Co. Ltd., 11 N e w Fetter Lane, L o n d o n , E.C.4, E n g l a n d .
M a c m i l l a n & Co. Ltd., 4 Little Essex Street, L o n d o n , W . C . 2 , England.
Edward A r n o l d Publishers Ltd., W o o d l a n d s Park A v e n u e , M a i d e n h e a d , Berks.,
England.
Industrial a n d C o m m e r c i a l T e c h n i q u e s Ltd., 3 0 Fleet Street, L o n d o n , E.C.4, England.
L o n g m a n s Green & Co. L t d . , 4 8 Grosvenor Street, L o n d o n , W I X O A S , England.
M o d e r n M a n a g e m e n t T e c h n i q u e s , 81 Scarisbrick N e w R o a d , S o u t h p o r t , Lanes.,
England.
Peter Peregrinus Ltd., Stevenage, Herts., England.
G o w e r Press, 1 7 0 0 B r o a d w a y , Denver, Colorado, U.S.A.
The Electricity C o u n c i l , 3 0 M i l l b a n k , L o n d o n , S . W . 1 , England.
The Institution of P r o d u c t i o n Engineers, 1 0 Chesterton Street, L o n d o n , W . 1 ,
England.
The M.l.T. Press, C a m b r i d g e , Mass., U.S.A.
B.T. Batsford L i m i t e d , 4 Fitzharding Street, L o n d o n , W . 1 , E n g l a n d .
Institute of W o r k S t u d y Practitioners, 9 / 1 0 River Front, Enfield, M i d d l e s e x , England.
Business Publications, Business B o o k Centre Ltd., M e r c u r y House, W a t e r l o o R o a d ,
L o n d o n , S.E.1, England.
Kenneth M a s o n Publications Ltd., 13 and 14 H o m e w e l l , Havant, Hampshire,
England.
Federation of British Industries, 21 Tothill Street, L o n d o n , S . W . 1 , England.
M o r s e & Associates Inc., 2 0 3 N. W a b a s h A v e n u e , C h i c a g o , Illinois 6 0 6 0 1 , U.S.A.
D o u b l e d a y & C o m p a n y Inc., Garden City, N e w York, U.S.A.
B.B.C. Publications, British Broadcasting C o r p o r a t i o n , Broadcasting
House,
L o n d o n , W . 1 , England.
Temple Press Ltd., 4 0 B o w l i n g Green Lane, L o n d o n , E.C.1, England.
Holt, Rinehart & W i n s t o n Inc., 3 8 3 M a d i s o n A v e n u e , N e w York, N.Y., U.S.A.
Plenum Press, 2 2 7 W e s t 1 7 t h Street, N e w York, 1 1 , U.S.A.
Scientific Publications ( G . B . ) Ltd., Brosley, Shropshire, England.
The C o u n c i l of I r o n f o u n d r y Associates, 14 Pall M a l l , L o n d o n , S . W . 1 , England
Cassell & Co. Ltd., 3 5 Red Lion Square, L o n d o n , W . C . 1 , England.
Political & E c o n o m i c P l a n n i n g , 12 Upper Belgrave Street, L o n d o n , S . W . 1 , England.
A l l e n & U n w i n Ltd., 4 0 M u s e u m Street, L o n d o n , W . 1 , England.
Henry Burt & Son Ltd, College Street.. Kempston,
Bedford
ANNALS OF THE
Editors Prof. P. Dinichert Neuchatel
Prof. F. Koenigsberger Manchester
Prof. G . Spur Berlin
Published Quarterly
This publication is the
official journal of the International
Institution for Production Engineering Research
(CIRP).
The primary aim of this international journal is to promote,
by scientific research, the study of mechanical processes of all
solid materials, including checks on efficiency and quality of work.
The Annals of the CIRP provides a medium for the publication of papers
describing theoretical and experimental studies, which contribute to
the understanding of the problems of production engineering. Such topics
as metal cutting, grinding, forming, electro-chemical machining, machine tool
technology, metrology, surface technology and quality control are covered.
Papers are submitted in English, French or German, by members of
the Institution and are selected for publication by an international committee
at the Annual General Meeting of CIRP. Each paper is preceded
by an abstract in English, French and German.
As an incentive for scientific work, the International Institution for
Production Engineering Research has instituted the F. W. Taylor
Medal of the CIRP - a distinction for young scientists under
the age of 35. The medal will be awarded annually, on the
proposal of a member, to the author of a paper
presented to the CI R P. The subject of the
paper must be within thef ield
of interest of the CIRP.
A small selection of papers from a recent issue
C . A . G l a d m a n D e s i g n f o r p r o d u c t i o n in t h e c o m p u t e r age
J . P e k l e n i k A n a l y s i s o f s c i e n t i f i c a p p r o a c h in C I R P
W . K o n i g a n d IM. D i e d e r i c h C u t t i n g f l u i d s i m p r o v e t o o l - l i f e of c a r b i d e t o o l s b y c h e m i c a l r e a c t i o n s
J . E l l i s a n d G . B a r r o w T o o l w e a r in metal c u t t i n g a n d its r e l a t i o n s h i p w i t h t h e t h e r m o - e l e c t r i c c i r c u i t
W r i t e n o w f o r free i n s p e c t i o n c o p y a n d details of o t h e r j o u r n a l s i n t h e f i e l d .
Pergamon Press
OXFORD • NEW YORK • LONDON • PARIS • SYDNEY
6/69