READ OUR NEW WHITE PAPER Value Engineering’s Systemic Approach Provides Unique Insight into Manufactured Product Cost Savings authored by Carlos Gontijo, Director, and Denis Messmer, Director, to learn how to understand a product’s value, how to increase that value, and the benefits of a systemic view.
In this day and age when new technology and new products are blanketing the market, reducing cost is a major focus to staying competitive. 70% of product cost is determined during the design phase, yet companies typically direct their cost reduction efforts at the smaller 30% components of cost that can be influenced after a product is in production. Value Analysis/Value Engineering targets the larger slice of the cost pie while actually enhancing value for the customer. Focusing on value to the customer identifies opportunities that may be missed in traditional material cost reduction approaches.
Over the last fifteen years we have developed a modular VA/VE approach by combining and customizing VA/VE tools and philosophies and integrating our knowledge of Lean, Six Sigma, and the Theory of Constraints to meet customer needs. Argo understands how VA/VE can support product development.
Our approach helps clients focus on valuing product for better alignment with business strategy achieving sustainable results by:
- Using focused competitive benchmarking and customer surveys to determine detailed understanding of value proposition and benefit.
- Improving design focus on the product’s required functions
- Reducing cost of assembly and repair
- Simplifying product design needs and characteristics to ease procurement and manufacturability
Our global team of consultants has a depth of technical manufacturing expertise and a proven track record of leading and implementing successful transformations. Our people bring a wide range of professional experience from some of the most operationally excellent companies in the world.
We diagnose areas of waste, variability, and inefficiency in the operating system and then redesign, and implement, not just the new production system, but also the management structure that improves the bottom line and ensures accountability and sustainability. By working hand-in-hand with our client’s employees, we ensure the buy-in from the senior leadership team all the way to the front line employee, leaving behind a new culture, new mindsets and new behaviors.
We look deeply and broadly, not just at operational processes, but also into all functions and dynamics to leverage opportunities for improvement, including R&D, Marketing & Sales, supplier influences, inventory, setup reduction, standard work, back office and interfaces between departments.
By examining products as systems of components and identifying how those components interact to create value, value engineering allows manufacturers to redesign products to reduce cost – an opportunity that might be missed in cost-reduction exercises focusing only on individual components in isolation. Read our white paper Value Engineering’s Systemic Approach Provides Unique Insight into Manufactured Product Cost Savings authored by Carlos Gontijo, Director, and Denis Messmer, Director, to learn how to understand a product’s value, how to increase that value, and the benefits of a systemic view.