Value Methodology Tips
Here some tips about Value Methodology
1 What are Value Methodology, Value Analysis and Value Engineering?
Value Methodology (VM) is a systematic process used by multidisciplinary team to improve the value of a project through the analysis of its functions. The term Value Analysis (VA) is typically used when applying VM process to existing product, project or process while the term Value Engineering (VE) is used when applying VM to new products, construction projects, processes and services.
2 What makes VM unique?
VM is unique compared to other practices, such as Total Quality Management, Lean Manufacturing and Six Sigma, because analyzing functions and providing the highest value to customer in a formal, step-by-step process are the foundation of VM. Function Analysis, the multidisciplinary team approach, and the formal job plan make VM like no other management practice.
3 What is VM for, what is not?
VM is a process to:
* Identify unnecessary cost in a project
* Offer alternatives while assuring that quality, reliability, life cycle cost and other critical factors meet or exceed the customer expectations.
VM is not:
* Cost cutting
* Quality reduction
*A process that can be applied without top management support and the support of all functional disciplines.
4 How VM defines value
The reliable performance which a product or process must do to make it work and sell at the least practical cost.
Value = Functional Performance / Resources used
Function is measured by the performance requirements of the customer and resources are measured in the materials, labour price, time, etc.. required to accomplish the function.
VM focuses on improving value by identifying the most resource-efficient way to reliably accomplish a function that meets the performance expectation of the customer.
5 How do I select projects for a value study
Several factors help the decision maker to determine whether a product, project, or service is a candidate for a value study;
* Products or projects in development phase
* Programs acc.to Pareto's Law of distribution
* Products or projects over budget
* Products or project with conflict
* Products or project based on viability
* Complex products or projects
6 Benefit of value studies
* Identify process improvements
* Review and establish cost targets early
* Stakeholder buy-in on design and cost
7 Whose participate the study
Study is not limited to engineers only, but also to all project managers, team leaders, decision makers and people concerning to save project's cost or enhance quality.