Finished Goods Inventory
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 […]
The Apple “Credit Card”
Apple Inc. which is the most valuable company in the world is known for selling high tech products. Over the years, Apple products have become a cult following, and many consumers blindly purchase whatever new products the company introduces. This time Apple has surprised its investors and customers. All analysts were expecting the company to […]
Companys approach to Inventory Health
Inventory means an item of value and asset in the books of the Company. This is the most important category of item that needs to be focused upon by the management for in its management lies the business efficiency as well as profits. Inventory holding is a must for any business organization that is into […]
Comparison of Six Sigma and Total Quality Management
Both Six Sigma and Total Quality Management are effective tools for quality management but a thin line of difference does exist between them. Although the methodologies and procedures involved in both the two appear quite similar but there are certain major differences. Six-Sigma is a relatively newer concept than Total Quality Management but not exactly […]
Recording the Inputs (Xs) at Actionable Level
The 5 why method or the Root Cause analysis method that has been described in the Tools section plays an important role in determining that the X’s are recorded at actionable level. In this implementation of the 5 why tool, there is a slight variation from the standard methodology and hence it has been explained […]
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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