PAGE
UNDER CONSTRUCTION
Any service
that your company offers can be improved by using Value Analysis
and Problems
and Solutions Analysis.
Value analysis
of a service:
1. gives
insight into whether the costs to provide the service are matched
to what your customer wants
2. gives
a new perspective to improve your service in ways that directly
relate to what
your customer wants
3. allows
creativity to be applied to improve areas that the customer
cares about most
Steps
for Value Analysis
1.
Describe the service as it exists today.
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- enter
descriptive information and link any related documents
or pictures to the services record in Refocus(pop up
window)Pictures and documents such as Word, Excel, PowerPoint,
Visio, Diagrams, etc. can be liked to the product for
easy viewing and editing.
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2.
Enter the costs that go into providing the service.
3.
List the ‘Value Elements’ or ‘Benefits’
that the service provides to the
customer.
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(pop
up window) The ‘Value Elements’ or ‘Functions’
are what the service does for the customer.
(Function
screen list showing only list of functions for modem 28.8)
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4.
Survey the customers of the product so they can rank the ‘Value
Elements’
in importance to them.
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The
‘Value Elements’ are ranked by the customers to
show which ones are most important to them in terms of the
‘Value’ they receive from them.
This
screen shows a simple ranking from most important (1)
to least important ( ).to the customer.
(function
list screen showing functions and customer rank)
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5.
Allocate costs to the value elements.
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Next,
we go back to the service cost list and use the ‘cost
allocater’ to determine how much each ‘Value Element’
costs to provide. We go through the cost list and ‘allocate’
a percent of each cost out to the ‘Value Elements’
that the service provides. The result is a list showing
how much it costs to provide each ‘Value Element’
or ‘Benefit’ to the customer
(pop
up window) This screen shows the ‘Value Elements’
that the service provides, and how much of the service
cost goes to each ‘Value Element’.
(Value
Element list with the costs only, from modem 28.8)
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6.
Identify cost - value element mismatches.
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Now
we can compare how much it costs to provide each ‘Value
Element’ to how much value the customer says they receive
from each ‘Value Element’ that the service provides
them.
We
can identify ‘Value Elements’ that exhibit ‘value
cost mismatches’.
- High
cost to provide and low value to the customer
- Low
cost to provide but high value to the customer
- The
highest cost ‘Value Elements’ usually have
unnecessary costs that can be reduced
(pop
up window) Comparing the cost of ‘Value Elements’
to the ‘Value Ranking’ from the customer shows
us where to target improvement in the service.
(function
list showing cost and customer ranking. Add graphic that
points out the high cost, low value function, the low
value, high cost function and the two top cost functions.)
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7.
Identify costs to reduce and determine implementation
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Now
we know which value elements should be changed because their
cost does not match the value the customer believes they
get from them. We can easily track back to the product costs
to identify which costs should be reduced. We can also investigate
new ways to provide the targeted ‘Value Elements’
that will meet customer needs better while often costing
less.
- Brainstorm
solutions for each target ‘Value Element’
- Describe
and rank the solutions
- Choose
best solutions to implement
- Implement
solutions
(pop
up window) The following screen shows a ranked list of
‘solutions’ for a targeted ‘Value Element’.
Problems
and Solutions
analysis can be used interchangeably and in combination
with Value Analysis during improvement projects.
The
Virtual
Guide on line help and tutorial
system walks you through this process in much more detail
and has several examples and tutorials.
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