Purchasing a motor vehicle
Purpose: We needed to replace current aging vehicle.
Objective: Obtain reliable, cost effective transport for the family by month end. (We needed to define; Relible & Cost effective)
We gathered information by asking the four process questions,
1. Results to Achieve
2. Results to Prevent,
3. Available Resources
4. Constraints.
Results to Achieve
Cost effective transport within 1 month
Reliability
“Good” value
Able to move three kids
Able to move Wife’s goods (wedding dresses)
Optimise depreciation
Tolerable maintenance & running costs
Maintain resale value.
Results to prevent
Financial overextending
A reactive/emotional purchase
High profile = hijack
High insurance
Huge depreciation.
Available Resources
Some savings
Overdraft facility
Trade in (old vehicle)
Interest rate reducing
Access to finance
Constraints
Cash flow
Low savings
Security situation
Functions from the above information:
A. Ensure reliability
B. Facilitate flexibility
C. Enable comfort
D. Optimise depreciation,
E. Manage costs.
Numerical evaluation
E. Manage Costs scored highest to become the Basic function
B. Facilitate Flexibility – “told us” we needed a Station Wagon
D. Optimise Depreciation – “told us” we needed not to buy a new but a used vehicle.
The other Functions were effect i.e. resulting from the way we addressed Functions B & D
Yes, we bought the used station wagon!
Obviously the motives & reasons for buying a car vary between individuals, however this simple exercise indicates the VM process to be relevant to all situations, just ensure the “right” people are involved, gather the info., de-emotionalise it with Functions & out pops the solution! (Yes, it does take some practice!)