Reducing Process Costs with Lean, Six Sigma, and Value Engineering Techniques

Reducing Process Costs with Lean, Six Sigma, and Value Engineering Techniques

by Kim H. Pries, Jon M. Quigley
Released December 2012
Publisher(s): Auerbach Publications
ISBN: 9781466597631

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Book description

A company with effective cost reduction activities in place will be better positioned to adapt to shifting economic conditions. In fact, it can make the difference between organizations that thrive and those that simply survive during times of economic uncertainty. Reducing Process Costs with Lean, Six Sigma, and Value Engineering Techniques covers

Table of contents

  1. Cover
  2. Half Title
  3. Title Page
  4. Copyright Page
  5. Table of Contents
  6. Preface
    1. A. Tight Economic Conditions!
  7. Acknowledgment
  8. About the Authors
  9. List of Figures
  10. Chapter 1. Introduction
    1. I. The Use of Rubrics
    2. II. Questions to Ponder
    3. III. Cost Improvement Scenario
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    4. IV. A Brief Overview of Value Engineering
    5. V. Product Life Cycle
    6. VI. What Is Value?
    7. VII. Cost Improvement Challenge
    8. VIII. Cost Avoidance
    9. IX. Cost Reduction
    10. X. Profit Improvement
    11. XI. Green and Corporate Stewardship Are the Same
    12. XII. The Case for Cost Reductions
    13. XIII. Planning for and Managing a Value Improvement Project
      1. A. Project Concept
      2. B. Project Information
      3. C. Project Business Case
    14. XIV. Conclusion
    15. XV. Exercises
  11. Chapter 2. Saving Money with Homegrown Ideas
    1. I. Rubric for Homegrown Ideas
    2. II. Questions to Ponder
    3. III. Cost Improvement Scenario
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    4. IV. Your People Matter
    5. V. Laboratory Equipment
    6. VI. Production Equipment
    7. VII. Production Test Equipment
    8. VIII. Logistics Material
    9. IX. Engineering
    10. X. Marketing
    11. XI. Accounting/Finance
    12. XII. Procurement
      1. A. Financial Determination
    13. XIII. Brainstorming
      1. A. Product, Process or Service Preparation for Critique
      2. B. Suspend Judgment
      3. C. Build on Ideas
    14. XIV. Mind Mapping
    15. XV. Selection Method
      1. A. Weighted Matrix Such as a Pugh Matrix
      2. B. Majority Decision
      3. C. Voting Decision
      4. D. Consensus
      5. E. Rating
      6. F. Delphi Method
      7. G. Nominal Group Technique
      8. H. Group Passing Technique
      9. I. De Bono and His Thinking Hats
      10. J. Advocacy and Inquiry
      11. K. Strategic Assumption Surfacing and Testing (SAST)
      12. L. Team Syntegrity
      13. M. Facilitation
    16. XVI. Exercises
  12. Chapter 3. Arbitrary Cost Down Approach
    1. I. Rubric for Costing Down
    2. II. Questions to Ponder
    3. III. Cost Improvement Scenario
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    4. IV. Why the Arbitrary Cost Down Approach
    5. V. Cost Down Process
    6. VI. Cost Management Cycle
    7. VII. When to Use
    8. VIII. The Greedy Approach
    9. IX. Cost Generators
    10. X. Cost Generators and Cost Cutting
    11. XI. Exercises
  13. Chapter 4. The Isuzu Approach to Teardowns
    1. I. Rubric for Teardowns
    2. II. Questions to Ponder
    3. III. Cost Improvement Scenario
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    4. IV. What Is the Isuzu Approach?
      1. A. Dynamic Teardown
      2. B. Cost Teardown
      3. C. Material Teardown
      4. D. Matrix Teardown
      5. E. Process Teardown
      6. F. Static Teardown
    5. V. Why Use This Technique
    6. VI. Teardown Example
      1. A. Design for Assembly
      2. B. Value Analysis Contribution to the Teardown Process
      3. C. Value Analysis Teardown and Improvement/Innovation
      4. D. Value Analysis Teardown Method and Its Components
      5. E. Recognizing Parts Suppliers’ Competitive Capability
      6. F. Collecting New Suggestions for Improvement
      7. G. Case Study
    7. VII. Exercises
  14. Chapter 5. The DoD Approach
    1. I. Rubric for the DoD Approach
    2. II. Questions to Ponder
    3. III. Cost Improvement Scenario
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    4. IV. Benefits
    5. V. Function
    6. VI. Worth
    7. VII. Cost
    8. VIII. Value
    9. IX. Effective Value Engineering Programs
    10. X. Cost Analysis
      1. A. Variance Analysis
      2. B. Ratio Analysis
      3. C. Trend Analysis
      4. D. Management Analysis
    11. XI. Exercises
  15. Chapter 6. Classical Value Analysis / Value Engineering Techniques
    1. I. Rubric for Classical Techniques
    2. II. Questions to Ponder
    3. III. Cost Improvement Scenario
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    4. IV. Benchmarking
      1. A. Is Benchmarking Valuable?
      2. B. Performance Benchmarking
      3. C. Benchmarking Process
    5. V. Exercises
  16. Chapter 7. Classical Techniques
    1. I. Rubric for the FAST Approach
    2. II. Questions to Ponder
    3. III. Cost Improvement Scenario
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    4. IV. FAST Introduction
    5. V. Creating a FAST Model
    6. VI. Exercises
  17. Chapter 8. Saving Money with Six Sigma Projects
    1. I. Rubric for Six Sigma Projects
    2. II. Questions to Ponder
    3. III. Cost Improvement Scenario
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    4. IV. What Is Six Sigma?
    5. V. How Does Six Sigma Relate to Value Engineering?
    6. VI. The Phases of Six Sigma
    7. VII. Choosing Six Sigma Projects
    8. VIII. Costing Six Sigma Projects
    9. IX. Using Design for Six Sigma
    10. X. Rational Expectations from Six Sigma
      1. A. Enterprise Process Management and Metrics
      2. B. Define
      3. C. Measure
      4. D. Analyze
      5. E. Improve
      6. F. Control
      7. G. Design for Six Sigma (DFSS) Frameworks and Methodologies
    11. XI. Exercises
  18. Chapter 9. Saving Money with Lean Manufacturing
    1. I. Rubric for Lean Manufacturing
    2. II. Questions to Ponder
    3. III. Cost Improvement Scenario
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    4. IV. What Is Lean?
    5. V. Production Organization or 5S
    6. VI. Lead Time Reduction
    7. VII. Kanban
    8. VIII. Demand Segmentation
    9. IX. Production Scheduling
    10. X. Inventory Reduction
    11. XI. Lean Six Sigma
      1. A. Lean Six Sigma Overview
      2. B. Lean Six Sigma Goals
      3. C. LSS Project Management
      4. D. Team Organization and Dynamics
      5. E. Defining Opportunities
      6. F. Measurement Techniques
      7. G. Improvement Techniques
    12. XII. Exercises
  19. Chapter 10. Saving Money with Optimization
    1. I. Rubric for Optimization
    2. II. Questions to Ponder
    3. III. Cost Improvement Scenario
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    4. IV. Operations Research Approaches
      1. A. Evolution of Operations Research in Academics
      2. B. Origin, History, and Developments
      3. C. Operational Research Activities
      4. D. The Operations Research Approach
      5. E. Significance of Operations Research
      6. F. Operations Research in Manufacturing
      7. G. The Operations Research Experience in the U.S.
      8. H. Growth of Operations Research in Different Sectors
      9. I. Challenges in Operations Research
      10. J. Future Trends
      11. K. Conclusion
    5. V. Genetic Algorithms
    6. VI. Particle Swarm Optimization (PSO)
    7. VII. Ant Path Optimization
    8. VIII. Simulations
    9. IX. Exercises
  20. Chapter 11. Regaining Money with Cost Recovery
    1. I. Rubric
    2. II. Questions to Ponder
    3. III. Cost Improvement Scenario
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    4. IV. What Is Cost Recovery?
    5. V. When to Use Cost Recovery
    6. VI. Benefits of Cost Recovery
    7. VII. Steps to Cost Recovery
    8. VIII. Two-Way Cost Recovery
    9. IX. Exercises
  21. Chapter 12. Other Methods
    1. I. Rubric for Other Methods
    2. II. Questions to Ponder
    3. III. Cost Improvement Scenario
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    4. IV. Other Tools
      1. A. Project Management
      2. Risk
      3. B. What Is DFA?
      4. C. Design for Manufacturing
      5. D. Rapid Prototyping
    5. V. Exercises
  22. Chapter 13. Finding Cost Reductions
    1. I. Rubric for Finding Cost Reductions
    2. II. Questions to Ponder
    3. III. Cost Improvement Scenario
      1. A. Situation
      2. B. Objectives
      3. C. Actions
      4. D. Results
      5. E. Aftermath
    4. IV. Finding Cost Reductions in the Plant
      1. A. Operations
      2. B. Engineering
      3. C. Accounting/Finance
      4. D. Purchasing
      5. E. Marketing
      6. F. Project Management
      7. G. Human Resources
    5. V. Finding Cost Reductions in the Office
      1. A. Office Supplies
      2. B. Equipment
      3. C. Copies/Printing
      4. D. Paper/Paperless
    6. VI. Finding Cost Reductions in Education
      1. A. Operations
      2. B. Accounting/Finance
        1. Facilities
      3. C. Purchasing
      4. D. Project Management
      5. E. Human Resources
      6. F. Sports and Extracurricular Activities
    7. VII. Finding Cost Reductions on the Personal Side
      1. A. Used versus New Material
      2. B. Quantity versus Quality
      3. C. Food
      4. D. Clothing
      5. E. Furniture
      6. F. Housing
      7. G. Vehicles
    8. VIII. Exercises
  23. Chapter 14. When Cost Improvement Goes Wrong
    1. I. Rubric
    2. II. Questions to Ponder
    3. III. Cost Improvement Scenario 1
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    4. IV. Cost Improvement Scenario 2
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    5. V. Cost Improvement Scenario 3
      1. A. Situation
      2. B. Objective
      3. C. Action
      4. D. Results
      5. E. Aftermath
    6. VI. Material
      1. A. Substitution Is a Poor Fit
      2. B. Bulb Removal Tool
      3. C. Vehicle Diagnostics Connector
      4. D. Supplier Selection
      5. E. Scope or Design Review
      6. F. Material Reuse
      7. G. Drop-In Replacement
      8. H. Reuse of Material
    7. VII. Exercises
  24. Index

Product information

  • Title: Reducing Process Costs with Lean, Six Sigma, and Value Engineering Techniques
  • Author(s): Kim H. Pries, Jon M. Quigley
  • Release date: December 2012
  • Publisher(s): Auerbach Publications
  • ISBN: 9781466597631