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VALUE ANALYSIS, INCORPORATED |
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A VAI International Company |
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-Established in 1958- |
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Specializing in Value Management for |
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Consumer, Industrial and Technology Companies |
The origin of Value Management- Several decades ago, General Electric launched a massive redesign effort to offset losses caused by rapidly rising material costs. A young engineer named Larry Miles was chosen to lead this corporate initiative for two reasons. First, he was an exceptional team leader and secondly, he had developed an effective problem solving methodology called “Function Analysis”.
Through “Function Analysis”, Larry's teams accurately identified opportunities for change that would have otherwise gone undetected. Rather than focusing on parts, they targeted functions for creativity, developing designs that significantly reduced cost and improved quality. Divisional initiatives soon followed using the methodology which was renamed "Value Analysis".
The demand for Value Analysis programs continued to grow, exceeding Larry’s resources. Recognizing an opportunity, a key member of Larry’s staff received approval to establish Value Analysis programs for outside organizations. The year was 1958 and the name of the company was Value Analysis, Incorporated (VAI).
Since it’s founding, VAI expanded the applications to include manufacturing processes, administrative procedures and supply chain activities. Today, VAI is serving industrial clients around the world with associate offices in Germany, Russia, India, Hungary and South Korea. These initiatives have been renamed VALUE MANAGEMENT.
Recent history- Since 1983, over 40% of the fortune 500 companies have disappeared from the list. The rapid decline of previously successful, old-line companies is attributed to several factors.
Some were late to respond to the serious international challenges originating from Western Europe and the Far East.
Others failed to recognize the impact of new technology that would quickly replace traditional products and services.
The introduction of off shore labor drastically changed the playing field for American manufactures.
Customer loyalty waned in favor of the hunt for better value purchases.
As competitive pressures continued to intensify through out the 1980’s and 90’s, companies in all sectors of the economy began to search for initiatives that would help them meet the challenges for survival. Responding to the situation, business gurus and academics scrambled to develop a wide variety of improvement programs that were quickly embraced. As multiple initiatives were introduced they were often referred to as “the flavor of the month” programs.
Value Management stronger than ever- Through the bombardment of new initiatives, Value Management continued its growth in the United States and in over 46 countries around the world. Pro-active management and internal study teams commissioned to develop recommendations for change, once again proved to be a winning combination.
The reasons why are listed below-
Studies are carefully chosen to address key issues targeted by executive management.
Initiatives have great flexibility as studies may include all facets of business operations.
Team focus and unity is enhanced as members learn and apply the function-based methodology.
Creative thinking is clearly directed to areas of greatest opportunity.
Potential recommendations are meticulously scrutinized to insure all parameters of value have been considered.
Final team reports and recommendations are submitted to all members of the executive staff for approval.
Recommendations include detailed concept descriptions and all supporting documentation.
Approvals to proceed with implementation are the responsibility of the executive staff.
Final implementation plans are developed and sanctioned by the implementing departments.
Implementation progress is tracked and monitored by executive management.
Audits are performed to verify impact of the changes.
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THE PROFILE OF THE SUCCESSFUL COMPANY in today's environment IS ONE THAT EMPOWERS FRONT LINE EMPLOYEES TO ACT, DECIDE AND IMPLEMENT THE CONTINUOUS IMPROVEMENT CHANGES FAST ENOUGH TO STAY AHEAD OF COMPETITORS.