TURNAROUND STRATEGY WITH VALUE MANAGEMENT
The story of a successful turnaround of a company in distress.
Somewhere out there another business day began. The Executive meeting on Monday morning started on a bad note.
Robert the Managing Director was furious: “Productivity is low, moral is rock bottom and the targets promised are not kept. We have to do something” Worried faces with no response reflected the grim reality.
Robert carried on “we have spent 4 million on Business Process Re-Engineering (BPR) and team building sessions, why are we still in this mess?”
Tony who heads Engineering explained, “Rob, remember Head Office initiated the BPR and I told you then that we will suffer the consequences of this Shotgun Approach. Yes we did register a dramatic reduction in operations cost but most of these savings were obtained through downsizing of the organization and by management and staff taking over extra responsibilities. You know that all of us work up to 14 hours every day just to keep the company going. The BPR did not address the real problem, I may even state that the initiative has done us more harm than good.”……………………
Download full Story
TURNAROUND STRATEGY WITH VALUE MANAGEMENT
FREQUENTLY ASKED QUESTIONS (VE/VA/VM)
Frequent asked questions related to Value Engineering, Value Analysis and Value Management
Q What exactly is VE?
A Value Engineering (VE) is a decision thinking/making methodology, with very purposeful, specific steps. It invests time up-front to gather information, set the goal (Objective direction), understand functional needs, then becomes specifically creative to produce a strategy to address the goal.
Q When did this methodology start?
A In 1947, in the General Electric Company, the fundamentals of the Systematic Approach were conceived and brought together. It was developed in a time of material shortages. In the search for item replacement it was seen that you actually do not buy items, you buy their functions (expressed in verb – noun terms). Functions are also opportunity statements, i.e. the item currently performing the functions…………………………..
Download full Story
VE-VA-VM FREQUENTLY ASKED QUESTIONS
VALUE ENGINEERING IN THE AUTOMOTIVE INDUSTRY
The Value Engineering application in the Automotive Industry
The term ‘value’ supersedes, and encompasses, both cost and quality. Unless a company’s product, service or internal process is worth its cost (at the absolute minimum), it does not represent good value and cannot maintain its position in a competitive marketplace.
Given this truth and the huge pressures confronting the Automotive Industry, it provides an excellent arena in which to examine the implications of the Value Method from a cost cutting perspective. Quality is no longer a negotiable requirement, competition is rife, exchange rate fluctuations prolific and inflation well above first world levels.
Yet, OEM cost down pressures remain arduous and with rising labour and materials costs, so the focus on improved efficiencies as a method of cost reduction gains momentum…………………….
Download full Story