that your company offers can be improved by using Value Analysis
and Solutions Analysis.
of a service:
insight into whether the costs to provide the service are matched
to what your customer wants
a new perspective to improve your service in ways that directly
relate to what
your customer wants
creativity to be applied to improve areas that the customer
cares about most
for Value Analysis
Describe the service as it exists today.
descriptive information and link any related documents
or pictures to the services record in Refocus(pop up
window)Pictures and documents such as Word, Excel, PowerPoint,
Visio, Diagrams, etc. can be liked to the product for
easy viewing and editing.
Enter the costs that go into providing the service.
List the Value Elements or Benefits
that the service provides to the
up window) The Value Elements or Functions
are what the service does for the customer.
screen list showing only list of functions for modem 28.8)
Survey the customers of the product so they can rank the Value
in importance to them.
Value Elements are ranked by the customers to
show which ones are most important to them in terms of the
Value they receive from them.
screen shows a simple ranking from most important (1)
to least important ( ).to the customer.
list screen showing functions and customer rank)
Allocate costs to the value elements.
we go back to the service cost list and use the cost
allocater to determine how much each Value Element
costs to provide. We go through the cost list and allocate
a percent of each cost out to the Value Elements
that the service provides. The result is a list showing
how much it costs to provide each Value Element
or Benefit to the customer
up window) This screen shows the Value Elements
that the service provides, and how much of the service
cost goes to each Value Element.
Element list with the costs only, from modem 28.8)
Identify cost - value element mismatches.
we can compare how much it costs to provide each Value
Element to how much value the customer says they receive
from each Value Element that the service provides
can identify Value Elements that exhibit value
cost to provide and low value to the customer
cost to provide but high value to the customer
highest cost Value Elements usually have
unnecessary costs that can be reduced
up window) Comparing the cost of Value Elements
to the Value Ranking from the customer shows
us where to target improvement in the service.
list showing cost and customer ranking. Add graphic that
points out the high cost, low value function, the low
value, high cost function and the two top cost functions.)
Identify costs to reduce and determine implementation
we know which value elements should be changed because their
cost does not match the value the customer believes they
get from them. We can easily track back to the product costs
to identify which costs should be reduced. We can also investigate
new ways to provide the targeted Value Elements
that will meet customer needs better while often costing
solutions for each target Value Element
and rank the solutions
best solutions to implement
up window) The following screen shows a ranked list of
solutions for a targeted Value Element.
analysis can be used interchangeably and in combination
with Value Analysis during improvement projects.
Guide on line help and tutorial
system walks you through this process in much more detail
and has several examples and tutorials.