Process improvement has been the focus of organizational development over the last 40 years, with extensive work done within Statistical Process Control, that expanded into Total Quality, that segued into Continuous Improvement, Lean Manufacturing, Theory of Constraints, and Six Sigma programs.
Powerful tools were developed that include:
- Process charting
- Root cause analysis
- Work break down structure
- Quality Function Deployment (House of Quality)
- Process mapping
- Value Stream Mapping
- Pugh Concept Selection
- Benchmarking
- Kazan workshops
After all this does Value Management have anything to add? And when do I use what tool?
The answer lies in understanding that the power of VE resides in the analysis of the design of a thing, whether a project, product, or process. Design controls up to 80% of the resources involved in any endeavor, and the ability to reconfigure that design into something that delivers better value is what VE is all about.
- Gather great minds
- Load the mind
- Create a receptive environment
Key Requirement: Functional Based Innovation
The Functional Innovation model we utilize consists of a multi-disciplinary group of professionals with the appropriate experience (great minds) that immerse themselves in the detail of the project to become fully versed in all aspects (load the mind). The team analyzes the project from a functional perspective, developing a visual logic map to visually represent the project relationships. Each component of a project is defined by a function description leading to the identification of the minimum technical requirements that allow the team to evaluate the worth of functions beyond this minimum level. This functional perspective requires experienced technical leadership to accomplish, and redefines the project in an abstract manner that connects with and challenges the creative faculties (create a receptive environment).
It is this process that can result in breakthrough thinking for your project, product, or process:
- The immersion in all project detail
- The questioning of definitions and approaches
- The abstract functional thinking and visual mapping
- The collaboration of involved professionals
- Under the direction of a technically proficient and skilled facilitator
- In a receptive environment
- With adequate time
VE and the Service Industry
Certainly, the Value Management process can be applied to improving the design of a service that is essentially a process, combining VM with the applicable process tools with great results.
- IT
- Health Care
- Hospitality
- Internal Organization Processes (Accounting/HR/Strategic Planning)
The VM process identifies what is important to the stakeholder and develops high value solutions.
Can I take the VM model and utilize it to improve the service my organization provides to our clients? How would I do that?
Again, the answer lies in understanding that the power of VM resides in the analysis of the design of something, whether a project, product, process, or a service provided to our clients. Design controls up to 80% of the resources involved in any endeavor, and the ability to reconfigure that design into something that delivers a better Value Proposition is what VM is all about.
- Gather great minds
- Load the mind
- Create a receptive environment
Working with the client’s key people, a VM team can develop an early stage design concept to achieve the best balance of qualitative factors, life cycle costs, performance and durability, while meeting all functional requirements.
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- Identify the client’s functional requirements
- Best value design identified early in the process
- Best balance of life cycle costs, performance, and durability
- Meet all the functional requirements
- High VM proposal acceptance
- High quality output for all stakeholders
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Contact us to discuss how VE can help to improve your process.