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Did You Know...?
That Value Analysis Was Developed Back In the 1940's After World War II as a Way to Find Lower Cost but Higher Quality Alternative products and methods. This was Due to the Lack of Material Resources At The End of The War.
Savings Beyond Price -Weekly E-Zine- January 11, 2007
Robert T. Yokl
President & Chief Value Strategist
Greetings!
Are You Focusing Your Cost Reduction Efforts On The Right Things?
Over the next three to five years, your savings from GPO contracts, standardization, reverse actions, strategic sourcing and negotiations will be almost invisible. In fact, your supply costs are beginning to rise, because the fat is either already gone or is being squeezed out of your suppliers’ supply/value chains. Your suppliers are hitting the wall on price concessions, and so are you!
Toyota found this truth with their “Construction of Cost Competitiveness For the 21st Century” initiative a few years ago. Toyota thought they had cut their component parts prices to the bone, only to find out to their embarrassment that half their components were still at a higher cost than their direct competitors. Toyota found that their cost problem wasn’t with the price (they were getting rock-bottom prices from their suppliers), but with how their parts were designed. By simplifying, consolidating and re-specifying their parts, Toyota saved one-trillion-yen. or 30% of their procurement costs in the five years through 2004. This is a powerful lesson on how any profit or non-profit corporation can save thousands or even millions by focusing on Savings Beyond Price™
So if you want to continue the pace of your supply chain savings over the next three to five years, you will need to look to value analysis to be the engine of growth for your money-saving machine – not price oriented savings.
Your Partner in Supply Chain Savings,
Robert T. Yokl
President & Chief Value Strategist
P.S. If you would like some assistance in your next generation of savings efforts please consider our F*R*E*E Supply Chain Savings Scorecard to move your supply chain operations from imitation and repetition to renewal.
3 Powerful Project Management Tips For Supply Chain Professionals
“Project and Value Management Should Be Intertwining Techniques That Progression Healthcare Organizations Employ To Make Big Savings Happen”
When I look at how most cost-reduction projects are planned, organized, executed and controlled, I get a BIG headache. This is because most organizations that I visit in my consulting practice aren’t utilizing any project management techniques, such as project charters, work breakdown structures, project scheduling, project postmortems, value analysis, etc., to manage and control their cost reduction projects. These organizations are missing out on masterfully integrating and controlling external and internal resources to produce dazzling savings results. To help you avoid this same mistake, here are three powerful project management tips you need to know:
1. Project Charters
Before you start any project, whether large or small, you need to reduce to writing the project title, project manager, scope, what is to be accomplished, quantify the savings or cost of quality opportunity and the project start and end date.
By doing so, you will give your project manager the guidance they need to start their project as well as have a built in mechanism to gauge the success of the project.
2. Accountability
Always have only one person (your project manager) accountable and answerable for a project. Never have co-project managers sharing the responsibility for a project, because you can’t share accountability. Others can share the workload of a project, but not the responsibility. This policy will assure you that there will be no buck passing or authority issues on your projects.
3. Status Report
Requiring that your project managers report in writing (can be a short and concise statement) the status of their projects every two weeks to your project leader will keep your projects on time, on budget and on track.
These three powerful tips are just a few of the best practices for effective project management that when intertwined with the techniques of value management will dramatically improve your supply chain cost reduction or quality improvement initiatives.
Highly Recommended…
If you would like to know ALL of the powerful strategies, tactics and techniques of supply chain project management (not just three), I suggest that you buy my Strategic Value Analysis® E-Book to learn how SVAH’s award winning Team-Based Project Management™ Model can revolutionize how you manage your cost and quality projects.
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