Value Analysis

The two ways to seek for material cost improvements are:
  - Via optimization of purchase prices. Establishment of purchasing strategies and reconfiguration of the supply base
  - Product redesign through Value Analysis. The cost base on which the purchasing management will act later is compromised in the product design phase

The positioning of each competitor varies according to the changes that affect the market or the actions that each of them can undertake.
 

A project to improve the cost of the product through Value Analysis seeks to obtain proportional reductions in manufacturing costs that can:
  - Improve margin and guarantee profitability
  - Enable rate movements and repositioning

 

Our approach to tackle this type of project is based on:
• Design measures aimed at reducing the cost of the product without putting its final quality at risk


• Prioritize actions on the elements that concentrate the greatest part of the cost and on those with the greatest capacity for action


• Carry out a value analysis, within which the needs of the client to be satisfied and the current degree of satisfaction will be taken into account


• Consider the technical information of the product, the economic information of the associated costs and the technical and economic information of the competition in relation to the problem. It is important to know how the competition solves similar problems


• Define and weigh the functions that are object of improvement of the total functions of the product, differentiating between the key and the secondary ones


• Analyze the cost of current features and set final cost targets


• The search for solutions tries to optimize the cost / benefit ratio, understanding the benefit from the point of view of meeting customer expectations regarding the function


• Creation of mixed Client - Consultant work teams with assigned dedications. The participation of key suppliers and designers is also considered necessary. The role to be covered by each part will be:
    - Client: Knowledge of the product, process, market and costs
    - Suppliers: Knowledge of the manufacturing process in their facilities
    - Designers: Knowledge of aesthetic, technical and market aspects
    - Consultant: Methodological contribution and the process to follow to improve the cost of the product


• Training of the Client's personnel in the process and transfer of know-how to approach the project, leaving the organization with a system to tackle the reduction of product costs. Motivation and involvement of staff

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Experts on Lean thinking for over 25 years

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