Value engineering and Analysis

Module V
By
Dr Shola Usharani
 Definitions & Importance
• Value Engineering
– It is concerned about new products
– It is crucial activity during product development stage
– Its intention is reducing costs and improving function
– Many factors influence : tooling, plant and equipment,
labour and skills ,training costs, materials, shipping,
installation, maintenance and recycle costs.
– Definition:
• value engineering is a systematic approach aimed at achieving the
desired functions of a product at minimum overall cost, without
affecting the quality, reliability, performance and safety.
• It is neither high valued suggestion program nor a means of
cheapening an item, process, or procedure. It does, however, seek
to eliminate unnecessary costs.
 Principles of VE
• Value Engineering determines the basic function of an
item.
• Value Engineering evaluating high cost areas and
systematically reducing those costs.
• Value Engineering analyzes a problem area and developing
alternative ways of resolving the problem.
• Value Engineering selects the best possible alternative to
perform the basic function at the lowest cost.
• Value Engineering presents and promotes a proposal.
• Value Engineering also simplifies, resulting in increased
reliability and ease of maintenance.
• Value Engineering extends financial, manpower, and
material resources.
 Value Analysis
• Value Analysis (VA) is concerned
with existing products. It involves a current product
being analyzed and evaluated by a team, to reduce
costs, improve product function or both.
• Value Analysis exercises use a plan which step-by-step,
methodically evaluates the product in a range of areas.
– These include costs, function, alternative components and
design aspects such as ease of manufacture and assembly.
• A significant part of VA is a technique called Functional
Analysis, where the product is broken down and
reviewed as a number of assemblies. Each assembly
will be analyzed with its assigned cost.
• As with VE, VA is a group activity that involves
brainstorming improvements and alternatives to
improve the value of the product, particular to the
customer.
 Phases or Steps in Value Engineering
• Creative: The Creative (also referred to as Speculation) Phase
follows Investigation and is where the power and the benefits of
the VE study technique are manifested. The team applies
brainstorming techniques to develop viable alternatives to the way
the project is currently designed. Brainstorming forces people to be
creative.
• The team uses the generic format of the function to speculate on all
possible solutions to the problem presented in that functional
statement.
• The value study team applies creativity to the functional
statements selected from the previously conducted cost/worth
estimates.
– Based on the project experiences
• This VE study generate a large list of potential solutions to the
problem described by the two-word function
– Write problem of analysis
– Defines the objectives
• Evaluation: During the Evaluation Phase, the
advantages and disadvantages of each
alternative are listed. Each advantage and
disadvantage is described in general terms.
• The team can perform a weighted matrix
analysis to determine which alternative is best
based upon the relative importance of each of
the desirable criteria which must be addressed.
• Conducting this analysis satisfies the VE
objective--to achieve the best blend of
performance, cost, and schedule.
• Development: Once the team selects the best
alternatives, that are developed through
sketches, cost estimates, validation of test data,
and other technical work to determine if any
assumptions made during the study are in fact
considered.
• The Development Phase is the final step before
presenting the team's recommendations to the
agency's management.
• The study team formulates an implementation
plan which describes the process that the
agency must follow to implement any
recommendations.
• Presentation: The final product of a VE study is the formal VE
Report and the presentation of the team's recommendations.
• In this phase, the VE team presents their findings to the project
decision makers, and strives to convince them that their ideas
should be implemented.
• This formal presentation should be brief but thorough, with
sufficient time allocated for discussion and responding to
questions. When making the presentation, the study team should
exercise care when presenting estimated cost savings or, in some
cases, increased costs associated with recommendations.
Overstating or double counting savings should be avoided.
• The study team to provide progress updates to the appropriate
project management staff as a VE report.
– The VE Report serves as a step-by-step record of the work
accomplished during the preceding phases.
– The report provides documentation to support the team's
recommendations, tracks the team's deliberations and considerations,
and aids in implementation of the recommendations. It can also be a
useful reference tool for future projects and VE studies that must
address similar topics.
• Close Out/Implementation: Although it may
not be practicable to implement each and
every recommendation proposed, the project
decision makers must take the appropriate
action to ensure that a fair and serious
consideration of the proposed
recommendations occurs.
• It involves determining the actual amount of
savings generated by the VE analysis based on
the amount of recommendations and
outcome of the project.
Importance of Value Engineering in IoT
solution
• data science is almost unbounded
– the potential to improve healthcare, public safety,
transportation, education, environment,
manufacturing, communities and the overall quality of
life
• the potential of data science to power your
business models;
• How do I achieve that
– Data Science Value Engineering through IoT
Frameworks
– Cost estimation process through models
 List of IoT Framework
• KAA IoT. Kaa IoT is one of the most effective and rich
Open Source Internet of Things Cloud Platforms, where
anyone can freely implement their smart product
concepts. ...
• Cisco IoT Cloud Connect. ...
• ZETTA IoT. ...
• Salesforce IoT. ...
• DeviceHive IoT. ...
• Oracle IoT. ...
• SAP IoT. ...
• Microsoft Azure IoT
 Summary of Value Engineering
Framework
• The Value Engineering Framework starts with the identification of a
key business initiative that not only determines the sources of
value, but also provides the framework for a laser-focus on
delivering business value and relevance.
• A diverse set of stakeholders is beneficial because it provides
more perspectives on the key decisions upon which the data
science effort needs to focus.
• The heart of the Data Science Value Engineering Framework is the
collaboration with the different stakeholders to identify, validate,
value and prioritize the key decisions (use cases) that they need to
make in support of the targeted business initiative.
• After gaining a thorough understanding of the top priority decisions
(use cases) the analytics, data, architecture and technology
conversations now have a frame within which to work (by
understanding what’s important AND what’s not important).
IoT Data Science Value Engineering
Data Science Value Engineering (Case
study on Crop Management System)
• Step 1: Identify a Key Business Initiative
• Understand and research thoroughly including the
business, customer, environmental and operational
benefits, and the metrics and Key Performance
Indicators against the process for progress and success
• business initiatives
– Reduce inventory costs
– Reduce unplanned operational downtime
– Improve customer retention
– Improve yield or crop
– Improve supply chain reliability and quality
• Step 2 : Identify Key Business Stakeholders
• business stakeholders who either impact or are
impacted by the targeted business initiative
• plan to address or support the targeted business
initiative.
– Involved with 4 to 5 organizations
– Uses some business tools like Personas to help to
understand with the stakeholders with respect to their
work objectives, work environment, key decisions,
questions.
• Step 3: Identify, Validate, Value and Prioritize
the Decisions
• to drive facilitated collaboration across the
different stakeholders to identify, validate, value
and prioritize the decisions that these
stakeholders need to make in support of the
targeted business initiative
• Uses prioritization matrix tool across the
different stakeholders to make the prioritized
decisions
• Step 4: Identify Supporting Predictions
• Identify the predictions that each stakeholder
needs to make in support of those decisions.
– Questions will be asked with stakeholders to make key
decisions
• those questions converted into predictions

Crop Management
• Step 5: Identify Potential Data Sources and Instrumentation Strategy
• work with the business stakeholders to identify what data might you need to
make those predictions. what data might you need to make that
prediction?” to the prediction statement.
– What will revenues and profits likely be next year…and what data might you
need to make that prediction?
• The data source suggestions might include commodity price history, economic conditions,
trade tariffs, fertilizer and pesticide prices, weather conditions, fuel prices and more.
– How much fertilizer will I likely need next planting season…and what data might
you need to make that prediction?
• The data source suggestions might include pesticide and herbicide usage history, weather
conditions, crops to be planted, pest forecasts, soil conditions, and more.
• get a matrix of data sources mapped to each key decision (use case) that we
can use to prioritize our data and instrumentation (IoT sensor) strategy
• Identify Supporting Architecture and
Technologies
• Finally, apply a Big Data and IoT architecture
and technologies upon which the IoT solution
is built that delivers the business value.
– For example, in an IoT architecture, one will need
to consider the architecture and technology
choices at the edge, platform (sometimes also
referred to as the “Fog”) and at the Enterprise (or
Cloud) levels.
 IoT Data Science Case Studies
• Data Science in Hospitality Industry
– Advancements in AI. Data science, especially in medical imaging, has been helping healthcare
professionals come up with better diagnoses and effective treatments for patients
• Pharmaceutical
– NLP algorithms have been developed for the topics of safety, efficacy, randomized controlled
trials, patient populations, dosing, and devices. data science, they are able to automate the
process of generating insights, save time and provide better insights for evidence-based
decision making
• BioTech
– to discover and deliver newer effective medicines faster using AI to decode the big data to
understand better diseases like cancer, respiratory disease, and heart, kidney, and metabolic
diseases to be effectively treated
• Wearable Technology
– Fitness wearables are convenient to use, assist users in tracking their health, and encourage
them to lead a healthier lifestyle. they help monitor the patient's condition and
communicate in an emergency situation. The regularly used fitness trackers and
smartwatches from renowned companies like Garmin, Apple, FitBit, etc., continuously
collect physiological data of the individuals wearing them. These wearable providers
offer user-friendly dashboards to their customers for analyzing and tracking progress in
their fitness journey

• Travel industry and data science

– Predictive analytics benefits many parameters in the travel industry. These companies can use
recommendation engines with data science to achieve higher personalization and improved
user interactions. They can study and cross-sell products by recommending relevant products
to drive sales and increase revenue. Data science is also employed in analyzing social media
posts for sentiment analysis, bringing invaluable travel-related insights. Whether these views
are positive, negative, or neutral can help these agencies understand the user demographics,
the expected experiences by their target audiences, and so on
• How Qantas uses predictive analytics to mitigate losses
 References
• http://www.advice-manufacturing.com/Value-
Analysis.html
• https://www.electricveda.com/engineering-
design/value-engineering-and-its-importance-
in-engineering-industry.
https://www.fhwa.dot.gov/ve/veproc.cfm
• https://www.datasciencecentral.com/profiles/
blogs/value-engineering-the-secret-sauce-for-
data-science-success
Software development life cycle (SDLC)
IOT SYSTEM FOLLOWS TOP DOWN
APPROACH
 Requirements
• For capturing the information.
• Requirements used for creating architecture and
components.
• Requirements are the information description from the
customers and refining them into specifications that
contains enough information to begin the designing of
system architecture.
• It may be functional or non functional
– Performance, cost, physical size and weight finally
power consumption so on.
• Once the requirements are done need to be validated to
understand what people want to communicate.
Sample requirement form
 Customer Requirements analysis of a
GPS Moving Map(Example)
• Functionality: This system is designed for
highway driving and similar uses, not nautical
or aviation uses that require more specialized
databases and functions. The system should
show major roads and other landmarks
available in standard topographic databases.
 Contd.,
• User interface: The screen should have at least
400x600 pixel resolution. The device should
be controlled by not more than three buttons.
A menu system should pop up on the screen
when buttons are pressed to allow the user to
make selections to control the system.
• Performance: The map should scroll smoothly.
Upon power-up, a display should take no
more than one second to appear, and the
system should be able to verify its position
and display the current map within 15 s.
 Contd.,
• Cost: The selling cost (street price) of the unit
should be no more than $100.
• Physical size and weight: The device should fit
comfortably in the palm of the hand.
• Power consumption: The device should run for
at least eight hours on four AA batteries
 Requirement form
• Name : GPS moving map
• Purpose :Consumer-grade moving map for driving
use
• Inputs : Power button, two control buttons
• Outputs :Back-lit LCD display 400 X 600
• Functions Uses 5-receiver GPS system; three user-
selectable resolutions; always displays current
latitude and longitude, Performance Updates screen
within 0.25 seconds upon movement
• Manufacturing : cost $30
• Power : 100mW
• Physical size and weight No more than 2” 6, ” 12
ounces
 Specifications
• Understanding of system to meet
requirements and overall expectations of
customer.
• Specifies the implementation of particular
functions.
• Tells about what the system does.
 Specification of GPS system
components
• Data received from the GPS satellite
constellation.
• Map data.
• User interface.
• Operations that must be performed to satisfy
customer requests.
• Background actions required to keep the
system running, such as operating the GPS
receiver.
 Architecture
• Implementation of functions
• Plan for overall structure of the system.
• Can be achieved through block diagram→ initial
architecture.
– Block diagram is abstract of the system
• Architecture
• Hardware
• Software
Block Diagram (Moving Map)
Hardware and Software architecture of
moving Map
 Contd.,
• The hardware and software architectures
should meet the constraints of speed, cost,
and so on.
– It would be able to estimate the properties of the
components through the block diagrams, such as
the search and rendering functions in the moving
map system.
 Components
• Hardware components
– Like CPU, memory chips, I/O devices
• Software components
– Databases, tools, compression storage techniques
software functions for meeting the timing
constraints
 System Integration
• Once the components are built putting all
together in a working system.
– Data input module
– Data output module
– Data controlling module
• Includes many tool plugging.
• Bugs during integrations (some may uncover
during module integration) should be fixed.
SDLC Models
 SDLC Models
– Waterfall Model
– V-Shaped Model
– Evolutionary Prototyping Model
– Spiral Method
– Iterative and Incremental Method
– Agile development
 Waterfall Model

• The Waterfall Model is a linear sequential life cycle

flow.
• It was first SDLC Model to be used widely in
Software Engineering to ensure success of the
project
• Progress is seen as flowing steadily downwards
through the phases of software implementation.
• Any phase in the development process begins only
if the previous phase is complete.
• No overlapping among the phases.
The usage
• Projects which not focus on changing the
requirements, the customer has a very clear
documented requirements
• Some situations where the use of Waterfall model is
most appropriate are
– Requirements are very well documented, clear and
fixed.
– Product definition is stable.
– Technology is understood and is not dynamic.
– There are no ambiguous requirements.
– Ample resources with required expertise are available
to support the product.
– The project is short.
 Phases in Waterfall model
• Requirement Gathering and analysis
– requirements of the system to be developed are captured in this phase and documented in a
requirement specification document
• System Design
– The requirement specifications from first phase are studied in this phase and the system design
is prepared
– It helps in specifying hardware and system requirements and helps in defining the overall system
architecture.
• Implementation
– With inputs from the system design, the system is first developed in small programs called units,
which are integrated in the next phase. Each unit is developed and tested for its functionality,
which is referred to as Unit Testing.
• Integration and Testing
– All the units developed in the implementation phase are integrated into a system after testing of
each unit. Post integration the entire system is tested for any faults and failures
• Deployment of system
– Once the functional and non-functional testing is done; the product is deployed in the customer
environment or released into the market.
• Maintenance
– There are some issues which come up in the client environment. To fix those issues, patches are
released. Also to enhance the product some better versions are released. Maintenance is done
to deliver these changes in the customer environment.
 Advantages Disadvantages
• No working software is produced
until late during the life cycle.
• Simple and easy to understand and • High amounts of risk and
use uncertainty.
• Easy to manage due to the rigidity • Not a good model for complex and
of the model. Each phase has object-oriented projects.
specific deliverables and a review • Poor model for long and ongoing
process. projects.
• Phases are processed and • Not suitable for the projects where
completed one at a time. requirements are at a moderate to
• Works well for smaller projects high risk of changing. So, risk and
where requirements are very well uncertainty is high with this
understood. process model.
• Clearly defined stages. • It is difficult to measure progress
• Well understood milestones. within stages.
• Easy to arrange tasks. • Cannot accommodate changing
• Process and results are well requirements.
documented. • Adjusting scope during the life
cycle can end a project.
V-Shaped Model
• It is an extension of the
waterfall model,
• It is also known as
verification and Validation
model.
• Instead of moving down in
a linear way,
• the process steps are bent
upwards after the
implementation and coding
phase, to form the typical V
shape.
• The major difference
between the V-shaped
model and waterfall model
is the early test planning in
the V-shaped model.
 Understands
V P
requirements from
customer a h
perspective l a
i s
• design the
d e
complete
system a s
• complete t
hardware and i
communication o
setup for the
n
product
• High level • Low level
Design Design
The corresponding testing phase of the development phase is planned
in parallel.
So, there are Verification phases on one side of the ‘V’ and Validation
phases on the other side.
The Coding Phase joins the two sides of the V-Model
 V-Model -The usage
• Software requirements clearly defined and known.
Software development technologies and tools are well-
known.
• The following pointers are some of the most suitable
scenarios to use the V-Model application.
– Requirements are well defined, clearly documented and
fixed.
– Product definition is stable.
– Technology is not dynamic and is well understood by the
project team.
– There are no ambiguous or undefined requirements.
– The project is short.
 Advantages Disadvantages

•Simple and easy to use •Very inflexible, like the waterfall

•Each phase has specific model.
deliverables. •Adjusting scope is difficult and
•Higher chance of success over expensive.
the waterfall model due to the •The software is developed
development of test plans early during the implementation
on during the life cycle. phase, so no early prototypes of
•Works well for where the software are produced.
requirements are easily •The model doesn’t provide a
understood. clear path for problems found
•Verification and validation of during testing phases.
the product in the early stages •Costly and required more time,
of product development. in addition to a detailed plan
 Evolutionary prototyping
• Prototypes that evolve into the final
system through an iterative incorporation
of user feedback.
 Iterative and
Incremental Method
• It is developed to overcome the weaknesses of the waterfall model.
• It starts with an initial planning and ends with deployment with the
cyclic interactions in between.
• The basic idea behind this method is to develop a system through
repeated cycles (iterative) and in smaller portions at a time
(incremental),
• allowing software developers to take advantage of what was
learned during the development of earlier parts or versions of the
system.
• It can consist of mini waterfalls or mini V-Shaped model
• Development begins by specifying and implementing just part of the
software, which is then reviewed to identify further requirements.
This process is then repeated, producing a new version of the
software at the end of each iteration of the model.
• At each iteration, design modifications are made and new functional
capabilities are added.
• "During software development, more than one iteration of the software
development cycle may be in progress at the same time.“
• the whole requirement is divided into various builds. During each
iteration, the development module goes through the requirements,
design, implementation and testing phases. Each subsequent release of
the module adds function to the previous release. The process continues
till the complete system is ready as per the requirement.
 Iterative Model-The Usage
• Requirements of the complete system are clearly defined
and understood.
• Major requirements must be defined; however, some
functionalities or requested enhancements may evolve
with time.
• There is a time to the market constraint.
• A new technology is being used and is being learnt by the
development team while working on the project.
• Resources with needed skill sets are not available and are
planned to be used on contract basis for specific iterations.
• There are some high-risk features and goals which may
change in the future
 Advantages Disadvantages
•Requires heavy documentation.
•Follows a defined set of
•Produces business value early processes.
in the development lifecycle. •Defines increments based on
•Better use of scarce resources function and feature
through proper increment dependencies.
definition. •Requires more customer
•Can accommodate some change involvement than the linear
requests between increments. approaches.
•More focused on customer •Partitioning the functions and
value than the linear features might be problematic.
approaches. •Integration between the
•We can detect project issues iterations can be an issue if it is
and changes earlier. not considered during the
development and project
planning.
Spiral Model
• It is a combination of
iterative development
process model and
sequential linear
development model i.e. the
waterfall model with a very
high emphasis on risk
analysis
• Spiral model is one of the
most important Software
Development Life Cycle
models, which provides
support for Risk Handling.
• The spiral model has four
phases. A software project
repeatedly passes through
these phases in iterations
called Spirals.
• In its diagrammatic representation, it looks like a
spiral with many loops.
• The exact number of loops of the spiral is
unknown and can vary from project to project.
• Each loop of the spiral is called a Phase of the
software development process.
• The exact number of phases needed to develop
the product can be varied by the project manager
depending upon the project risks.
• As the project manager dynamically determines
the number of phases, so the project manager has
an important role to develop a product using
spiral model.
 Spiral Model-Design
• Identification
– gathering the business requirements.
– In the subsequent spirals as the product matures,
identification of system requirements, subsystem
requirements and unit requirements are all done in this
phase.
– This phase also includes understanding the system
requirements by continuous communication between
the customer and the system analyst
• Design
– the conceptual design in the baseline spiral and involves
architectural design, logical design of modules, physical
product design and the final design in the subsequent
spirals
• Construct or Build
– the actual software product at every spiral
– In the baseline spiral, when the product is just thought of
and the design is being developed a POC (Proof of
Concept) is developed in this phase to get customer
feedback
– the subsequent spirals with higher clarity on
requirements and design details a working model of the
software called build is produced with a version number.
These builds are sent to the customer for feedback.
• Evaluation and Risk Analysis
– Risk Analysis includes identifying, estimating and
monitoring the technical feasibility and management
risks, such as schedule slippage and cost overrun. After
testing the build, at the end of first iteration, the
customer evaluates the software and provides feedback.
 Spiral Model-The Usage
• The following pointers explain the typical uses of a Spiral
Model
– When there is a budget constraint and risk evaluation is
important.
– For medium to high-risk projects.
– Long-term project commitment because of potential changes to
economic priorities as the requirements change with time.
– Customer is not sure of their requirements which is usually the
case.
– Requirements are complex and need evaluation to get clarity.
– New product line which should be released in phases to get
enough customer feedback.
– Significant changes are expected in the product during the
development cycle.
 Advantages Disadvantages
•Estimates (i.e. budget,
schedule, etc.) become
more realistic as work •High cost and time to
progressed because reach the final product.
important issues are •Needs special skills to
discovered earlier. evaluate the risks and
•Early involvement of assumptions.
developers. •Highly customized
•Manages risks and limiting re-usability
develops the system
into phases.
 Agile Model
• It is based on iterative and incremental development,
• where requirements and solutions evolve through
collaboration between cross-functional teams.
• Agile Methods break the product into small incremental builds.
• These builds are provided in iterations. Each iteration typically
lasts from about one to three weeks.
• Every iteration involves cross functional teams working
simultaneously on various areas like −
– Planning
– Requirements Analysis
– Design
– Coding
– Unit Testing and
– Acceptance Testing.
Graphical illustration of Agile Model
Iterative approach is taken and
working software build is delivered
after each iteration. Each build is
incremental in terms of features; the
final build holds all the features
required by the customer
 Agile-Principles
• Individuals and interactions − In Agile development, self-
organization and motivation are important, as are
interactions like co-location and pair programming.
• Working software − Demo working software is considered
the best means of communication with the customers to
understand their requirements, instead of just depending
on documentation.
• Customer collaboration − As the requirements cannot be
gathered completely in the beginning of the project due to
various factors, continuous customer interaction is very
important to get proper product requirements.
• Responding to change − Agile Development is focused on
quick responses to change and continuous development.
 Advantages Disadvantages

•Decrease the time required

•Scalability.
to avail some system
•The ability and
features.
collaboration of the
•Face to face communication
customer to express user
and continuous inputs from
needs.
customer representative
•Documentation is done at
leaves no space for
later stages.
guesswork.
•Reduce the usability of
•The end result is the high-
components.
quality software in the least
•Needs special skills for the
possible time duration and
team.
satisfied customer.
 References
• https://melsatar.blog/2012/03/15/softwaredevel
opment-life-cycle-models-andmethodologies/
• https://www.geeksforgeeks.org/softwareenginee
ring-spiral-model/
• https://medium.com/@lizparody/waterfall-
vsagile-methodology-in-software-
development1e19ef168cf6
• https://www.tutorialspoint.com/sdlc/sdlc_waterf
all_model.htm
 Project demonstration
• REV 2 : Complete demonstration of Project
(April 3rd week).
• REV 3 : Document submission (April 4th week)