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1984 Copyright by North Carolina State University. Used with permission Background: “In the previous twelve lessons we discussed the concepts and techniques of value engineering. Today we will focus on the application of value engineering. To do this, I’ve asked Mr. Ray Blakely, Mgr of Engineering for Lufkin, to describe a case study involving the application of VE as applied to the manufacturing process. In addition to being the manager of value engineering, Ray was recently recognized by the Society of American Value Engineers in being awarded a Certificate for Certified Value Specialist. It is now my pleasure to turn this segment of the program over to Mr. Ray Blakely.” – Jerry Kaufman [Mr. Blakeley died in 2025.] “Lufkin produces linear measuring instruments, three types: carpenter’s rule, pocket tape, and long tapes up to 300 ft long. Our continuous operations paint steel, print steel, and apply clear protective coating to give it life for the user. These processes run continuously 24 hrs. The machine is 12 lines wide. 110 ft per minute. Our material in coil form comes from a sister plant. 6000 feet per coil. Splices are riveted together so process can stay in operation. A troublesome splice will cause the line to stop. When it stops there is a section of steel not painted, but it occurs 12 lines wide. We scrap out the potential of 12 tape lines. During re-start, the oven temperature control is not sophisticated enough, so we over-cure generating more scrap. This same process happens whether we look at the printing method or the clear coating method. The Works Manager selected this problem saying it contributed $500,000 per year in extra cost to the Lufkin operation. We process one million feet of steel per day to meet our customer needs.” – Raymond Blakely Mr. Blakely then said they established a six person team that followed the VE Job Plan [as Kaufman was known to teach it]. The team included a person from the steel mill. Beginning with the Information Phase, they observed manufacturing operations. The next day they tried to define the problem saying the scrap was excessive. The problem definition became “Reduce the quantity of splices and improve the quality of splices as they are produced in the steel tape line.” There was a myth that the steel mill caused the splices, but an overnight investigation revealed that was untrue. Their own operation was the cause. They sought possible ways to connect the steel, but realized the present method was the most economical. The actual causes were a failure to maintain tooling and a failure to train operators in the proper use of the tooling. This led to four categories of solutions: 1) salvage usable lengths of finished product, 2) match raw material size to required output, 3) signal the output reel person when a splice had occurred, 4) train operators in correct splicing. The total savings was $182K per year. The ROI exceeded 10:1 and improved rapport with the steel mill and engineering. They also reduced 60 tape lines to 34. They recommended that management support use of value engineering and involve those closest to the problem.