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October-December 1983 October/December 1983 Volume 6 No. 3 The Journal of Value Engineering for the Society of American Value Engineers A A 4 ml TABLE OF CONTENTS 4 IN THIS ISSUE Features Page Shopping for Value in Construction at Robert A. Feger 5 Social Value Analysis Against Unemployment Giacomo d'Ascanio 9 Keynote Address, 1983 SAVE Conference Jack F. Reichert 15 Eastern Shore Revisited Tom King 18 Value Analysis Shared Effort (VASE) / Hospital Council of Western Pennsylvania 24 Regular Departments The Manager Who Understands Value Window of Value 22 Calendar of Events 32 Other Articles Apples to Apples A.E. Mudge, CVS 7 You Hold The Keys A.E. Mudge, CVS 14 The Professional Society vs. The Drinking Glass , A.E. Mudge, CVS 32 A A Publisher Society of American Value Engineers 220 N. Story Rd., Suite 114 Irving, Texas 75061 Phone (214) 253-5171 1983-1984 SAVE National Board President William F. Lenzer Executive Vice President John A. Jonelis Vice President •- Finance B. A. Zolezzi Vice President •- Administration Nathan Borsuk Vice President •- Communications Edward W. Mitchell Vice President -- Professional Development R. Glenn Woodward Immediate Past President John W. Bryant Vice President - International William J. OP de Beeck Vice President - Northwest Region Douglas M. Hood Vice President - Great Plains Region Teresa A. Barlow Vice President - Great Lakes Region Eugene R. Smith Vice President - Northcentral Region John H. Maurer Vice President - Northeast Region Hal Goldman Vice President - Southwest Region Julian J. Pennello Vice President - Southcentral Region Robert C. Pumpelly Vice President - Southeast Region Peter S. Megani Co-Editors Rita Bates - Managing Editor O. James Vogl - Technical Editor Subscriptions Special Note Yearly Rate: $16.50 to SAVE Members (included in Contributions to Value World are welcome; please annual membership dues rate). Non-Members - U.S. send them to Value World Editors, 220 N. Story Rd., $22.00; International $26.00 (includes Air Mail Suite 114, Irving, Texas, 75061. Editorial changes postage). Technical Society and organization bulk and publication of an article or other contribution rates available upon request. Make all checks in any particular issue are at the discretion of the payable to SAVE in U.S. Funds on U.S. Bank. Editorial Staff. All material for Value World must be received on the 15th of the month preceding publication (i.e. November 15th for Jan./March issue). ADVERTISING VALUE WORLD solicits advertising from allied interests to Value Engineering. SIZE RATE Back Cover 3/4 Page $120.00 Inside Front Cover $110.00 Inside Back Cover $100.00 Center Spread $120.00 Full Page $ 80.00 2/3 Page $ 52.80 1/2 Page $ 40.00 1/3 Page $ 26.40 1/4 Page $ 20.00 1/6 Page $ 13.20 Service Directory $ 5.00 l"-One Column Business Card $ 10.00 Value World October/December 1983 HOSTING THE 1984 INTERNATIONAL SAVE CONFERENCE "DISCOVER THE GOLD IN VALUE ENGINEERING" MAY 6 - 9, WOODLAKE INN, SACRAMENTO, CA This conference, open to all, is dedicated to Be an exhibitor - present a paper - or just at­ a philosophy and methodology that improves tend and learn more about value management productivity, reduces costs and strengthens and participate in the 25th Anniversary of the the economy Society. Papers will be published in our "pro­ ceedings", copy furnished to all attendees. Value engineering/Value analysis Conference fees and booth costs will soon be established by the national office (214) Come to our educational conference. At­ 253-5171. tend one of three simultaneous sessions for 3V2 days. Out technical theme: "State of the Let us see what you have, let us hear how Art", which so aptly demonstrates the above you did it. - achieving "function" at the lowest accept­ able cost. Julian J. Perinello Conference Chariman CALL FOR PAPERS 1984 CONFERENCE To present a paper to the SAVE International Con­ typing on the special SAVE paper which will accom­ ference you must have a paper published in the Pro­ pany the edited copy. ceedings. The final typed copy MUST be received by the in­ The first step is to select your subject. Please check dicated date else it can not be given to the printer by his with the Conference Chairman or the Proceedings deadline for having the Proceedings ready for the Con­ Editor to see if your subject is compatible with the Con­ ference. ference theme. Please contact: Jim Vogl, Editor Once the subject has been approved, the Editor will 4909 via el Sereno send you a brochure on how to prepare a paper for the Torrance, CA 90505 SAVE Proceedings. Please follow the directions (213) 378-1803 carefully for if you do not, your paper will be unaccept­ able and we will lose your services as a speaker. or Julian J. Pennello, The brochure will direct you to prepare a draft of Conference Chairman your paper, complete with abstract and biography. 1509 Mission Ave. These should be sent to the Editor for editing as soon as Carmichael, CA 95608 possible. The edited paper will be returned to you for (916) 440-3476/2640 Value World October/December 1983 3 Carlos Fallon, CVS THE MANAGER WHO UNDERSTANDS VALUE Once value work is understood, the I asked him, "How in the world do you During World War I, the British wanted to use manager must supervise the fieldwork keep that white woolen tunic so clean?" the power of the Royal Navy to bombard the necessary to define the function—not a German-held coast of Belgium. Problem was "Do I have to be scientific about this simple mathematical function but the broad doing that the offshore waters of Belgium were too function of value analysis, the function that cleaning problem?" he protested. shallow, but the Royal Navy thrives on pro­ pinpoints information on what to do. This in­ blems. They built monitors. That is how I was "Please," I begged. "The spotless white rescued by a monitor of the Brazilian Navy. formation is sometimes on the way. tunic of Austro-Hungarian officers are a mystery to all of us. How do you keep them HOW BRAZIL CAME ABOUT WHAT IS GROUP DYNAMICS? clean?" Late in the XVth Century, Spain and Portugal The term is an abbreviation for a natural implemented a papal dividing line with the After clearing his throat, he told us. "The tendancy among members of a group to sup­ Treaty of Tordesillas. The treaty recognized Por­ secret is in the cleaning fluid," he explained port each other. Zebras, gazelles, impalas all tugal's African colonies but also gave Portugal a as he sat down, "We owe is to Dr. Nikolaus move around in groups. If one fails to see, toe-hold on the coast of South America. hear, or smell an ememy, another in the group Otto, Gottlieb Daimler, his daughter will. Group action is not limited to the higher Mercedes, and Carl Benz. They discovered a At the independence from Europe, each animals. We are all familiar with bee-hives, waste product of petroleum refining. Spanish colony became a separate nation but the Brazilians united into an American Empire. anthills and wasp nests. Trouble with their "A waste product! . .?" I cut in. means of transmitting information is that it is Their pioneers, the bandeirantes (flag bearers) slow. It has to wait a generastion at every step. THE OBJECTIVE OF followed all rivers upstream. They gained control Human communication is faster, particularly THE FUNCTION and jurisdiction over the meeting places of the great rivers that flow into the mighty Amazon. within a group. It is true. Gasoline was a waste product The magic of our language is that it has a from petroleum. It was refined to separate the The Brazilians are good value engineers too. past and a future range while other living oil from the tar. One of the products of this We have had them at our international con­ creatures communicate only in the present. separation was gasoline. Too dangerous for il­ ferences. There is more than just speaking. The gesture lumination and cooking, it was sold only as a EFFECTIVENESS OF of a clenched fist into an open palm is more cleaning fluid. GROUP DYNAMICS than face-to-face communication, so is poun­ Like the rest of us, the Brazilians suffered a I had thought that Professor Kurt Lewin's skill ding the table. Understanding the operating shortage of fuel during the Near East oil em­ in analyzing the activity of groups was unique. functions of value analysis calls for all aspects bargo. The obvious function could be Produce Then I discovered the value task groups of Larry of communication. Fuel, but they looked at the objective of the Miles. Neither oceans, nor cultural barriers can function to produce fuel on the surface of Brazil. The people who make a product or render a nullify people's need to work together. Once in a service know a lot about what they are doing. Solving problems and unravelling mysteries while someone arises who finds a way to make Much of the success of value work results does have value. The mystery of the spotless this work truly fruitful. Such Is the method from the vertical communication between the white tunic of Czarist Russians and Austro- developed by Lawrence D. Miles. Larry's executives responsible for making a product Hungarians led us to the humble origin of management techniques enhance the best or rendering a service and the persons who ac­ gasoline. Another mystery is how, at the height characteristics of human groups. tually do the manual or machine work. of the Spanish Empire, little Portugal, though There is no room for the them-mnd-us hostility Then, there is the horizontal communica­ barely a corner of the Iberian Peninsula, gave in value improvement.
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