2018 - 2019 Annual Report

2018 - 2019 Annual Report

Note from the President

I am pleased to publish this report surrounding the many contributions and advances that the Lawrence D. Miles Value Foundation (MVF) has completed or worked on this year. As a team of uncompensated volunteers, we continued to devote numerous hours and personal resources for the perpetuation and advancement of the Miles Value Methodology.

Retiring Director Don Parker was appointed Honorary Chairman of the MVF Board of Trustees and has circulated last year’s annual report to the Trustees. As representative of the Trustees, Parker made the suggestion to ensure we include a link on the MVF Website to the University of Wisconsin Lawrence D. Miles Reference Library.

Drew Algase, Jim Bolton, Istvan Tarjani, Dorine Cleton, and I attended the SHVA SAVE Europe Conference in April 2018. Then Steve Kirk, Kathy Bethany, Istvan Tarjani, Dorine Cleton, and I attended the 1st Austrian Value Summit in October 2018. Several MVF Directors also participated in the European conference in Mannheim this year. All the conferences were well attended, informative, and successful.

The MVF Forum at the 2018 SAVE International® Value Summit in Austin, Texas was another big success. The MVF Forum at the 2019 Value Summit at Portland, Oregon will focus on the Creative Phase of the VM job plan and innovation techniques.

Steve Garrett was voted in and joined the MVF Board at the 2018 SAVE International® Value Summit Austin, Texas, and he will be supporting Dr. Kirk’s education activities and initiatives.

Donations to the MVF and revenues from book sales were +$9,298.00 for the reporting year. On behalf of the Board we thank all of those who have donated and for the cooperation of SAVE International® to begin paying revenues from the sales of the Function Analysis Guide.

Thanks to Directors Javier Masini and Jay Mandelbaum for supporting the new MVF Foundation website, which was successfully launched in the Fall 2018. We are leveraging the power of Google and automating certain Foundation Management functions such as a calendar with automatic notification functions to remind Board members of actions due, as well as reminders of Board and Executive Committee meetings. It appears to be working very well.

VM Memory Jogger® 2nd Edition

The 2nd edition of the VM Memory Jogger® was successfully launched last year, but to date, sales have been lack luster. However, GOAL/QPC will be exhibiting at the 2019 SAVE International® Value Summit at Portland, and hopes are that sales will greatly improve.

The VM Memory Jogger® 2nd Edition is available in the original 3.5” x 5.5” “Pocket Guide or Memory Jogger” size, as well as a 5”x7” “Desktop Guide” size. The larger size can be used as text books for university VM curricula or for the Value Methodology Fundamentals 1 and 2 certification courses.

Publishing the VM Memory Jogger® 2nd Editiongoalqpc.com/product/the-value-methodology-memory-jogger-2nd-edition/ was a hallmark accomplishment of the Foundation in 2018.

SAVE International® Value Methodology Body of Knowledge (VMBOK)

Although VMBOK is a SAVE International® project, it is being led by Rob Stewart, SAVE International VP Education, and Miles Value Foundation Director. The Foundation also has other board members participating, including Ginger Adams and Javier Masini, who are heavily involved in supporting this effort.

Lawrence D Miles Value Engineering Reference Library – University of Wisconsin

The Foundation expresses appreciation to Terry Buethling for his continued interface with the University of Wisconsin Library Archives, which hosts the collection of Larry Miles artifacts, as well as other materials donated by numerous other VM practitioners.

The new Library Archivist, Ms. Alex Krensky, is doing a great job continuing to upload digital MVF artifacts, documents, materials, and records to the Library website.

We continue to evaluate the possibility to relocate this collection, and hope to find a university setting with a more active VM educational program that would be willing to shelf selected books in the open. However, until such time, the Archived Reference Center materials can be accessed at the following web address:

On-line Reference Collection can be viewed and accessed at: https://minds.wisconsin.edu/handle/1793/301.

Lawrence D. Miles Value Foundation Miles Value Institute

The Foundation is also pursuing our long standing commitment to establish the Miles Value Institute. However, instead of brick and mortar, we are proposing a Virtual concept as this is the wave of the 21st century. Therefore, to sustain and perpetuate the Miles Legacy, the Foundation calls on all our Board members, officers, and trustees to help us with fund raising so we can allocate resources to make this Value Institute a reality.

2019 Miles Value Foundation Forum “Creative Phase”

Our MVF forum during the 2018 SAVE International® Summit focused on presentations regarding determination of cost to functions. For the 2019 SAVE International® Value Summit, the MVF Forum will focus on the Creative Phase and Innovation Techniques. Tammy Dow will present on behalf of the Foundation.

As in last year, this year’s Forum will be hosted, moderated, and facilitated by:

  • Moderator: Dr. Stephen J. Kirk, FAIA, FSAVE, CVS-Life, LEED, VP Education, MVF
  • Assistant: Bruce Lenzer, CVS-Life, FSAVE, CQM/OE, CLA, CAQMSA, President, MVF


Tuesday June 11, 15:30 – 17:30 MVF Forum, moderated by Dr. Stephen J. Kirk

  • Overview of the L. D. Miles Value Foundation / Bruce Lenzer
  • Introduce the Creative Phase / Dr. Steve Kirk/Tammy Dow

a. Break up into teams

b. Perform exercise

c. Team reports

MVF 2019 Paper of the Year

Don Parker and Steve Garrett reviewed the numerous papers submitted from the 2018 Summit and will be recognized at the 2019 SAVE International® Summit. The winning paper was “Function Analysis on Gerotor Motor,” authored by Chandran Premkumar, VA/VE Specialist with Danfoss Industries Pvt Ltd, Satish Gundala, VA/VE Consultant. Congratulations to these two gentlemen and a very noteworthy paper deserving this award.

The “function inspired change criteria” and weighting of importance is as follows:

  • Function Analysis, 20%
  • FAST, 20%
  • Function Ideas, 25%
  • Creativity, 15%
  • Change Identified, 10%
  • Magnitude of Savings, 10%

Each elevator independently scored the papers based on this criteria and weighting

SAVE International ® - MVF University Challenge

Dr. Kirk proposed and the MVF has approved to co-sponsor with SAVE. The Foundation will donate $1K award for the University Challenge. This challenge is where a group of University students competed to submit a Value Methodology project for consideration of this scholarship award. Last year the winner was Wayne State University. SAVE will announce this year’s winner at the Summit.

The purpose of this competition is to recognize the student(s) and the university for their value work. SAVE & MVF encourage universities to offer semester courses in value engineering/ analysis/ management, and hope that this competition will bring visibility to the programs within universities.

The winning student or student team will receive up to $3,000 towards travel expenses to the 2019 Value Summit being held June 8-11 in Portland, Oregon. The winner will give a 20 minute presentation at the Summit and be presented with an award.

Three universities submitted:

1. Wayne State University

2. Universidad Panamericana, Guadalajara Campus

3. City University of Hong Kong, China

MVF Website

The Lawrence D. Miles Value Foundation is dedicated to advancing the Value Methodology by implementing initiatives to innovate, educate, and advocate. Its new website is designed around these overarching tenets and has been updated throughout the year to reflect these tenets. The Board will be assigning Directors to do more to maintain and update the site, including the following:

  • Fix the issue with books offered by the MVF or SAVE which are no longer stocked.
  • How does someone buy books or resources we now offer, but don’t currently have a way to fulfill an order? Etc.

MVF added a PayPal mechanism to the website functionality to use PayPal for royalties related to book sales in hard cover, print on demand, and e-book. Headway has been made with our newly established Google publishing account.

MVF E-books

To date the Foundation has had a number of e-book sales. Director Javier Masini and Treasurer Jim Vickers are working out a method to obtain statistics for e-book sales, regardless of which service we are using.

MVF Educational Outreach

Hong Kong Institute of Value Management and City University of Hong Kong, November 30, 2018

Last November, Stephen Kirk, MVF VP Education, presented a one day seminar in Hong Kong, China titled, “Managing Cultural Issues for a VM Workshop.” It covered cultural considerations, influences in VM, and a variety of case studies including a Cherokee school, a shopping center in Spain, a Guggenheim museum in Abu Dhabi, and a commercial office tower in Saudi Arabia. Also discussed was doing business in other cultures.

MVF and SAVE International® MOU’s & Agreements

The MVF and SAVE International® drafted and approved a Memorandum of Understanding (MOU) between the two entities. The two organizations recognized a need for this agreement to manage expectations and projects between the two entities. The MOU is expected to live in perpetuity so long as both organizations exist and agree to continue working together cooperatively.

MVF and SAVE International® also approved and signed a Royalty Agreement for the electronic version of Larry Miles’ book “Techniques of Value Analysis & Engineering.” The Royalty Agreement provides $1 revenue to MVF for each new SAVE member annually. The Agreement is for 5 years and extended by mutual agreement.

A draft Revenue Sharing Agreement is in process that recognizes the interest of the Miles Value Foundation relative to MVF materials which will be contributed to the Value Methodology Body of Knowledge. The agreement is under review and is expected to be finalized soon.

MVF Exhibit

MVF will host an Exhibit booth/table at this year’s 2019 Value Summit to provide attendees information on MVF endeavors. Also, in exchange for a minimum donation of $20.00 to the Foundation, Director Istvan Tarjani will once again offer the choice of a 14.8 GB memory stick, or a CD and/or book of the SHVA SAVE-Europe Conference.

MVF Board of Trustees

MVF Trustees shall be eminent and distinguished scholars, managers, and professionals in many fields from both government and industry. In both their public and personal life, they must believe in the importance of value and endorse the objectives of the Foundation. The MVF Board of Trustees is encouraged at any time to make recommendations to the MVF Board of Directors concerning the policy and objectives of the Foundation.

The Foundation wishes to welcome Don Parker, CVS, and Dr. Manabu Sawaguchi, CVS, as our newest Trustees.

Last year Parker retired as a MVF Director, and agreed to serve a 3 year term as Trustee and Honorary Chairman.

Dr. Sawaguchi replaces Dr. Ichiro Ueno, who faithfully served for 29 years from 1986 – 2015 as the SJVE Representative on the Foundation’s Board of Trustees. Dr. Ueno was one of the longest serving Trustees to date.

The MVF Board of Trustees is limited to 15 members, including Honorary Chairman. With Dr. Sawaguchi and Don Parker now part of the Board, we presently have 8 Trustees.


The 2019 Trustees are as follows:

  1. Robert Burton JD
  2. Honorable Leslie Byrne
  3. Dorine Cleton
  4. Dr. Don Gerhardt
  5. James O’Brien
  6. Donald Parker – Honorary Chair
  7. Jim Rains
  8. Dr. Manubu Sawaguchi

MVF Annual Financial Report

The Foundation’s Annual Finance Report is as follows:

MVF Checking Account: $41,435.00

General Account Balance as of December 2018: $34,025.00

Difference +$7,420

Revenues:

  • SAVE royalties and books sales: $7,353.00
  • GOAL QPC royalties: $138.00
  • Amazon online royalties: $24.00

Total Revenue: $7,515.00

  • Donations:

Private & Corporate: + $1,080.00

Memory Sticks +Cash or Square receipts

Accounts Receivable:

On-Line Courses: $703.00

Fidelity Investments: $46,142.00

Book Inventory: $ 4,000.00 (Held by SAVE International for sale)


TOTAL REVENUE ALL SOURCES: +$9,298.00

TOTAL MVF ASSETS 2019: $ 92,280.00

TOTAL MVF ASSETS 2018: $ 82,457.00

NET DIFFERENCE: + $ 9,823.00


Miscellaneous:

Expenses $99 INCOP Statutory Registration

Amazon income: In 2018 we received $91

Google income: In 2018 we had one sale of $5.87.


SUMMARY OF DONATIONS:

Patron members ($1,000 and greater)

None

Sustaining members ($500 - $999)

Bruce & Sara Lenzer

Synergy Value Solutions, LLC

Donor members ($100 - $499)

Hank Ball

Richard Harrington

Benjamin Thompson

Contributing members ($50-$99)

Vijay Saraf

Amec-Foster Wheeler & Partner

Individual members ($1.00 – 49.00)

Shivram Iyer, Malaysia

Jeffery Berowicz, Michigan

Krisnakumar, Niar, UAE

Office of the President, Bruce Lenzer

4913 Purcell Dr. NE, Albuquerque, NM 87111

www.valuefoundation.org

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