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”

Copyright 2008 G.S. Johnson - Proprietary Information

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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


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


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.


http://www.value-eng.org/

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Contact us

Promus Value Consulting LLC39111 West Six Mile RoadLivonia, MI 48152Phone: 734-558-3036Email: [email protected]: www.promusvalue.com


mailto:[email protected]

business success through va/ve

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