 |
Lawrence D. Miles Value Foundation | ||||||
|
|||||||
| time of the merits and accomplishments others
have earned by adopting VM in their organizations. These can be yours as
well.
Profit is the Bottom Line. VM results drive directly to the Bottom Line, with performances that generally exceed Return on Investment (ROI) of 10:1. VA/VE should be encompassed within a Value Management organization. This organization should function with a Value Policy that has a charter indicating top management commitment and support.
Function Analysis involves relating cost to Function which serves to enhance the productivity of a multidisciplined team by focusing their effort through generation of "Creative Discontent" by the team members. |
Creative Discontent provides the engine for
enhanced brainstorming and breaking of paradigms The most significant effect
of function analysis is the enhancement of a structured problem solving
effort by providing a methods for clearly identifying the problem. As is
clearly recognized, if the problem is defined, the solution is more easily
obtained.
The net result of application of VM has been the improvement in the Bottom Line. VM through the use of function analysis has an almost unique capability to identify unnecessary costs. The elimination of unnecessary costs without affecting the necessary functions, allows for simplification of end products, be they construction projects, manufactured items, or other products, processes or procedures. Benefits in the form of product simplification and cost reduction can be passed on as price reduction, improved competitive position, better reliability and/or better warrantee performance. Value Management, the management of a VM activity yielding benefits in retaining competitive advantage, increasing profitability and visible improvements to the Bottom Line, is a mature activity that you need for your organization to meet the needs of today's business environment. If your organization |
has not yet been involved in VM, now is the
time to begin a management commitment to the excellence that can be your
result.
Integrated Product and Process Development (IPPD) and Total Quality Management (TQM) have become the way of life in business and government. These are the responsibility of upper management as had been made clear. However, what has not been clear is how to implement elements of these programs particularly in the area of cost management. VM is the management tool that almost uniquely solves the problem. |
