Business Success Through VA/VE
Transcript of Business Success Through VA/VE
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Business Success ThroughValue Analysis/Value Engineering
By: Gordon S. Johnson, CVSPresident, Promus Value Consulting LLC
“Cut the Cost – Keep the Value”
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Principles of VA/VE
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VA/VE Application Strategy
What are the main benefits of VA/VE?Functional
◦Reduce System Costs up to 25% or more◦Enhance Product/Process Performance
and Function◦Improve Profitability◦More Resilience in Volatile
Markets/Budgets◦Gain a Real Competitive Advantage
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VA/VE Application Strategy
What are additional benefits of VA/VE?Relational
◦Promote Teamwork◦Improve understanding/communications
Developmental◦Expand knowledge (cross-functional)◦Learn new tools & disciplines to apply
broadly
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What is Value?Value is the reliable performance of that
which a product or process must do at the least possible cost.
“Value”, for the purpose of VA/VE, is
(Value = Function/Cost) The techniques and tools of VA/VE are oriented toward analyzing and improving this ratio (i.e.; getting the most functionality for the least cost).
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What is Value?
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Improving ValueValue = Function/Cost (V=F/C) can
be enhanced in several manners… = F / ↓C - Maintain Function while reducing Cost ↑F / = C - Increase Function while maintaining
Cost ↑F / ↓C - Increase Function while reducing Cost
↑F / ↑ C - Increase Function proportionally greater than Cost
↓ F / ↓C - Reduce Cost proportionally greater than Function
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Characteristics of VA/VEFocus on improving overall value
Team–centered (cross-functional)
Knowledge-based
Data-driven
Includes function to cost analysis
Structured, progressive methodology (Job
Plan)
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VA/VE Process
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VA/VE Process
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WORKSHOP
Information Phase• Define objectives/goals &
analyze current state.
Pre-Workshop Stage• Plan/Organize people and data
in preparation for workshop.
Function Phase• ID and qualify functions of a
system and correlate cost.
Creative Phase • Brainstorm alternatives.
Evaluation Phase • Prioritize ideas.
Development Phase• Work ideas into proposals,
correlate function/cost.
Presentation Phase • Present projects to implement.
Post-Workshop Stage•Project Development and Implementation
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Keys to Success / Conclusions
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Keys to SuccessProject “sponsored” by ManagementPreparation adequate & timelyCore Team full participationWorkplan followed
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Value Analysis / Value Engineering (VA/VE),can be an effective and powerful part of a robust business strategy.
Function Analysis is the pivotal mechanism of VA/VE and the distinction between value improvement and “cost-cutting”.
Value is a quantifiable property that can be measured, analyzed and managed.
ANYONE CAN DO IT!
Conclusions
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The Promus AdvantageThe Right Services… Promus has a multi-tier portfolio of services to meet
almost any situation and need;◦ Current Product/System - Value Analysis (VA); near-term needs.◦ New Product/System – Value Engineering (VE); early development.◦ Business Strategy – Value Management (VM); integrated VA/VE
discipline.◦ Analyze Present State – Function Analysis; qualify an existing system.◦ Small Scope/Fast Response – Cost Control; structured cost savings
alternatives.◦ Training – Develop in-house expertise to maximize VA/VE benefit long-
term. Certified Module I Course offered, various levels available. Promus Value Consulting can application-engineer VA/VE
to your project/product design, manufacturing, procedures or business operations. All at very competitive rates.
With ever increasing pressures on time, efficiency, costs and quality, the complete solution Promus provides is essential.
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The Promus AdvantageCapable Leadership… The President and Operating Manager of Promus Value
Consulting, Gordon S. Johnson, brings over 20 years of design engineering and VA/VE education and experience to your service.
He is a Mechanical Engineer with vast automotive design & manufacturing, commercial vehicle and construction industry experience at several major global corporations.
Experience includes VA/VE facilitation, management and leadership, product development, project management and team supervision.
Mr. Johnson is a Certified Value Specialist, expertly trained and authorized by SAVE International (www.value-eng.org).
Promus has a resource network of highly capable VA/VE professionals to respond to client needs as requirements demand.
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Contact us
Promus Value Consulting LLC39111 West Six Mile RoadLivonia, MI 48152Phone: 734-558-3036Email: [email protected]: www.promusvalue.com
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