A large number of companies have implemented systems aimed at the systematic reduction of costs. Although there is no uniform approach to reducing them, these programs have been generously self-financing due to the effects they had on quality, productivity, and waste disposal.
Among the different systems developed we have Value Analysis, a methodology created by Lawrence Miles for its initial application at General Electric. This system originally used by GE was quickly adopted and adapted to its own needs by various companies in Japan, and today it is again an object of interest by Western companies.
Value analyzes can be divided into six phases, which are:
1. Identification
2. Information
3. Speculation
4. Evaluation
5. Planning and application
6. Registration and monitoring
ID
Identification is the process by which opportunities for possible cost reductions are located, determining which of them has the greatest potential. People tend to get used to their surroundings, and therefore it is difficult to detect opportunities for the unprepared mind. Developing the capacity for observation and perception is the best antidote to complacency, generally manifested by the phrase "it has always been done this way".
The best way to attack complacency and to examine and reexamine processes, activities, products, services, and organizational structure is to systematically ask the question why?
Recognizing opportunities to reduce costs requires the knowledge that only an operations management specialist or an industrial engineer possess for their training and experience. The knowledge to which we refer are all those related to the specific ways of generating goods and services, identifying and analyzing the various types of costs and waste that participate in the processes.
It is always feasible to find less expensive means to perform the same functions, for which it is essential to know the clearest and simplest definition of the functions that must be performed.
information
We must deal with facts and not conjectures. Most people tend to talk about generalities, but in order to achieve the objectives pursued by the value analysis, very precise information is required, in order to be able to answer questions such as: What material is being used? What heat treatment has been given? What tolerances have been specified? What tolerances are really necessary? Why? Searching for the right information can create problems, as people don't like to be asked questions. But concrete facts must be known, as said before, and to achieve them, people must be questioned about them. Part of a value analyst's job is to extract these facts without irritating the sources of information that must remain available for future changes.For this, it is necessary to cultivate good human relations. Doing so involves knowledge of psychology and organizational behavior.
This phase is not complete until a sufficient amount of information has been obtained to allow us to go to the next stage of analysis in order to achieve solutions, called speculation.
Speculation
Once the task, activity, process or component to be attacked has been identified, and the data necessary for its analysis has been accumulated, the search for solutions is carried out. This phase requires maximum creativity both individually and collectively. At this stage, both brainstorming and synectics, the KJ method, morphological analysis, creative problem solving, lateral thinking, neuro-linguistic programming, and the recognition and destruction of barriers to learning are very useful. creativity.
Among the barriers to creativity we have:
- The rules not given. What happens to most people is implicitly imposing more rules on them than are actually made explicit. Sources of negative interference include excessive familiarity with the problem. Although knowledge of the environment is essential to solve most of the issues arising from the performance of a process or function, it backfires when it comes to finding a new path. This is one of the reasons attributed to the success of the consultants, not because they know more about a certain topic, but because they are able to see the problem with new eyes. Fear of ridicule. There is a strong emotional impediment due to fear of ridicule. Anticipating possible negative comments, imagining lack of support, or even feeling ashamed of a novel proposal,they are powerful impediments to developing creativity. Think that the ridiculous is subject to social conventions and that it is precisely the geniuses who manage to break these molds. Conflicts. The conflicts that creative ideas generate, whether large or small-scale, are perhaps the greatest impediments to creative development.
In order to overcome these barriers, motivation, training, and correct change management are essential, through which awareness of the need for change is achieved, and obstacles to creativity and the evolution of change are destroyed.
Evaluation
Of the many ideas generated in the previous stage, many are worthless and should therefore be discarded, if not definitively, at least under the current circumstances. For ideas that are valid we must ask ourselves how is it possible to apply this idea? During the development of this stage it will become much more necessary to know about the properties of the materials or about the generation processes of the products or services.
By reviewing the ideas in light of this new information, the list will narrow down to the best two or three opportunities.
At this point we will have to ensure that these two or three ideas can not only fulfill the desired functions but will also be acceptable to our goal. That is, assuming that each of the latest ideas is to be applied, what problems can be expected?
Planning and implementation
The planning and subsequent implementation of the solution that was arrived at through the analysis of value for a cost problem, are identical to those necessary to make a change in a method, in a process, or in a part, by any another reason. People must be persuaded that what they are doing is both right and beneficial.
Registration and monitoring
If cost and value are to improve over time, accurate statistics should be kept for the purpose of monitoring the results obtained. The data must be recorded, compared, graphed, and constantly analyzed, comparing them both with the objectives and with the benchmarks of the best companies or competitors in the market.
Conclusions
A famous sentence says that "lean production allows you to generate very well with a dollar, which costs a bungler two or more." This statement is feasible thanks to the implementation of methods such as value analysis. The importance of this methodology lies both in its direct effects and in its use in both process reengineering and continuous improvement systems.
Bibliography
Management Accounting - Robert Anthony and James Reece - Irwin Publishing - 1979
Dr. Mauricio Lefcovich.
Consultant in Operations Management and Business Strategy. Specialist in Quality, Productivity, Continuous Improvement, Cost Reduction and Consumer Satisfaction.
