Capacity Planning – Meaning, Classification and its Goals
February 12, 2025
The fall of Wal-Mart Wal-Mart has been a global retailing behemoth. The rise of Wal-Mart is an amazing story, but it seems like the fall will be equally spectacular. Just a few decades, after Sam Walton from Bentonville Arkansas, started building the world’s largest retail empire. The same empire is today facing an existential crisis. […]
Measurement Systems analysis is an integral part of the Six Sigma project. No matter what project is being conducted under the Six Sigma methodology, this part of the process can never be omitted out and the successful results still be obtained. Below is an explanation about what makes Measurement Systems Analysis such an integral part […]
There has been considerable debate in the industry in the past as to whether Six Sigma projects are worth all the hoopla that has been surrounding it. For decades before this debate, Six Sigma was followed in a cult-like manner and organizations would never question the financial viability of the projects undertaken. However given the […]
Is Demonetization an Example of Radical Disruption? The Indian Economy and Body Polity was treated to a Shock Exercise when the Indian Prime Minister, Narendra Modi, decided to demonetize 80% of the total currency in circulation at a stroke of a sudden announcement and in a most unilateral and arbitrary manner. This policy announcement that […]
All Manufacturing and Marketing Companies hold Finished Goods inventories in various locations and all through FG Supply Chain. While finished Goods move through the supply chain from the point of manufacturing until it reaches the end customer, depending upon the sales and delivery model, the inventories may be owned and held by the company or […]
All organizations strive to create value for their customers. This value creates mind space for product and services. Value analysis, therefore, is a scientific method to increase this value.
Value is a perception hence every customer will have their own perceptions on how they define value. However, overall at the highest level, value is quality, performance, style, design relative to product cost.
Increasing value necessarily does not mean decrease in all-inclusive cost of production but providing something extra for which a premium can be charged.
The objective and benefits of value analysis can be summarized as below:
Activities for value analysis are separated into following activities:
The process of value analysis is carried out by value analysis team. So it becomes paramount that team selection for value analysis also follows a structured process.
Value analysis team consists of trained and qualified team members who have background and knowledge about the project. Team leader is selected by the project manager. Team size for value analysis is 5 to 8.
Value analysis process can be divided into three phases of mainly - pre-analysis, analysis and post analysis.
Function analysis is required to transform the project elements from design of product towards function of product. The main categories are Basic, Secondary, Required Secondary Aesthetic, Unwanted, Higher Order and Assumed.
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