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Reducing Process Costs with Lean, Six Sigma, and Value Engineering Techniques by Jon M. Quigley, Kim H. Pries

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List of Figures
Figure 1.1 Cost opportunities are available throughout the product life cycle;
however, these opportunities become more important in later stages of the life
cycle. 3
Figure 1.2 Opportunities for cost and value improvement range from the
process to the product. 5
Figure 1.3 Using the rules of the system against the system is unethical and
undesirable. 6
Figure 1.4 Recycling is not just a green proposition but a value and cost
consideration as well. 8
Figure 1.5 There are abundant value improvements even in an ofce or
administrative environment. 10
Figure 1.6 We can select the right equipment for our company that maximizes
our value proposition. 12
Figure 1.7 We can conserve energy by having conference room lights turn on
and off automatically. 13
Figure 1.8 Our processes and work instructions can inuence our value
proposition. 14
Figure 1.9 Recycling can be a sustainable source of savings as well as
promoting good citizenship. 15
Figure 1.10 We can provide better customer value even with something as
simple as a pizza box. 16
Figure 1.11 Cost saving and value improvement are important for all businesses. 17
Figure 2.1 Laboratory equipment can be internally developed products and
they can often be purchased used. 25
xxviii Reducing Process Costs with Lean, Six Sigma, and Value Engineering Techniques
Figure 2.2 Sophisticated test equipment such as this EMC transient generation
equipment improves product quality. 25
Figure 2.3 Poor quality can be very toxic to an organization and we lose prot
and often customers. 26
Figure 2.4 Ease of access of the tools we need for the job helps reduce waste in
time. 27
Figure 2.5 Ease of use of production equipment conserves time—the tools need
not be exciting or sleek to perform the function. 28
Figure 2.6 We can reuse parts of an existing design to create new products
while minimizing the development and tooling costs. 29
Figure 2.7 The obvious solution to meet a customer demand may not be the
most cost-effective solution. 31
Figure 2.8 An instrument cluster can be a complex product and may present
many opportunities for cost savings. 32
Figure 2.9 In most cases, buying is better than making. 35
Figure 2.10 As we lower the price of the product to our customer, the
demanded volume may increase. 36
Figure 2.11 Breakeven occurs when we have no prot or loss for the
investment. 38
Figure 2.12 The payback period is a simple way of calculating when a project
becomes protable. 40
Figure 2.13 We can use conicting ideas and concepts to produce an even
better solution. 44
Figure 2.14 Decision-making tools, such as the Pugh matrix, help us to
determine the best solution from a range of options we generate. 45
List of Figures xxix
Figure 2.15 The icosahedron is a regular polyhedron having 20 faces of
equilateral triangles that we can use as a communications model. 50
Figure 3.1 We must constantly consider how to improve, which often requires
stretching goals and objectives. 59
Figure 3.2 Sometimes we cost ourselves more when we remove tools that
came with the larger product. 60
Figure 3.3 Look for entire clusters of components, which can be replaced or
removed. 61
Figure 3.4 Proprietary connectors can be costly. 62
Figure 3.5 Sometimes the drawing will give us clues for cost savings. 63
Figure 3.6 Wire harnesses can be complicated, especially in heavy vehicles,
and there can be considerable weight added to the vehicle. 64
Figure 4.1 Rather than waste the reaction chamber heat, we use the residual
heat from the main tank to heat the input pipes for a biodiesel manufacturer. 77
Figure 4.2 Illustration of a teardown structure. 78
Figure 4.3 Standardizing parts can help improve throughput and reduce
inventory. 79
Figure 4.4 Programing a variety of controllers becomes easier with tools
specically set up using similar parts. 80
Figure 4.5 Ultimately, the value proposition is decided by the customer. 81
Figure 4.6 Any product is open to improvement and we can often stimulate
ideas simply by comparing different versions of the same product. 82
Figure 4.7 A parts list can help us nd substitution parts to improve the value
proposition. 84

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