Table of Contents
The Basis of Value
Increasingly in modern organization, purchasing is expected to contribute to the bottomline through the use of effective, value-added techniques. Organizations realize that if they don't improve their products and services, while reducing costs and adding value, someone else will capture their market share.
The Process of Value Analysis and Value Engineering
Value analysis and value engineering programs are easiest to implement and maintain in organizations where the cost of goods and/or adding value is an issue. Organizations that face intense competition in the marketplace are much more likely to work at adding value and avoiding or eliminating costs. Management participation is crucial to any value management process, and must be sought if outcomes are to be successful.
Value Analysis and Value Engineering at Work
Value analysis and value engineering can be applied to many different areas of manufacture, process, and service. The following are some examples of how this can be accomplished (see also box on page 10).
Lawrence J. Clark, C.P.M.
Lawrence Clark is purchasing manager of Burleigh Instruments, Inc., Fishers, New York, a manufacturer of high technology scientific instrumentation and equipment. Mr. Clark was part of a value analysis team that was cited in Purchasing magazine's VA contest, and which was written about in the December 1993 issue of NAPM Insights. He has been active in NAPM since 1985, serving as a president of NAPM—Rochester, Inc., and treasurer of District VIII. In 1993, Mr. Clark was named "Pro-D Person of the Year" by District VIII for his work in developing and teaching seminars for the purchasing profession. He has also been an instructor for the Rochester, New York Industrial Management Council. Mr. Clark holds an MS degree in education from the State University of New York at Oswego, and taught for several years before entering the purchasing profession.
- Miles, L.D. Techniques of Value Analysis and Value Engineering, McGraw-Hill, 1972
- Mudge, A.E. Value Engineering, A Systematic Approach, McGraw-Hill, 1971
- NAPM Insights, February 1993, "The Evolution of Value Analysis and Value Engineering"
- NAPM Insights, December 1993, "Reaping The Benefits"
- Purchasing, July 17, 1997, "Purchasing Evolves into Supply Management"
- Purchasing, June 20, 1996, "Value Analysis and Value Engineering: For Some More Important Than Ever"
- Purchasing, June 1, 1995, "Where Has VA Gone"
- Purchasing, June 4, 1992, "Taking Out The Cost"
- Purchasing, June 6, 1991, "Value Analysis and Value Engineering Report"
- Supplier Selection & Management Report, Issue 96-4, April 1996, "New Value Analysis and Value Engineering Emphasizes Greater Supplier Involvement"
FOR FURTHER READING
- Brown, J. Value Engineering: A Blueprint, Industrial Press Inc., 1992
- Fowler, T.C. Value Analysis in Design, Van Nostrand Reinhold, 1990
- Proceedings of the Society of American Value Engineers, 1997, "But We Already Do It, and Other Misunderstandings"
- Proceedings of the Society of American Value Engineers, 1992, "The Functional Relationship Between QFD and VE"
- Proceedings of the Society of American Value Engineers, 1987, "Improving Product Development with Value Analysis and Value Engineering/Value Engineering: A Total Management Tool"
- Proceedings of the Society of American Value Engineers, 1984, "Welcome to Value Analysis and Value Engineering"
- Shillito, M. L. and De Marle, D. J. Value, Its Measurement, Design, and Management, John Wiley & Sons Inc., 1992
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