Strategic
Value Analysis®
in Healthcare
A Firm You Know and Trust with Over 20 Years of Quality Results in the Healthcare Supply Chain
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 eNewsletter- April 25, 2007
Robert T. Yokl
President & Chief Value Strategist
Greetings!
Stop Saving The Hard Way!
In my 28 year career as a supply chain consultant/trainer I have found that there is a “hard” way and an “easy” way to save money. I prefer the easy way myself and I suppose you do too!
The easy way to save money is: (1) automate all of your supply chain functions and activities, so that they can be data mined for golden nuggets, (2) collect competitive intelligence that will show you where your savings reside, and (3) organize your department heads and managers in teams to make the savings happen.
The hard way to save money is: (1) trying to use your MMIS system to target your savings, (2) guessing where your savings reside, and (3) doing all the heavy lifting yourself.
Since all supply chain professionals’ time and resources are strictly limited, why not try the easy way to save money. Believe it or not, it is actually faster, better and more effective than doing it the hard way.
Your Partner in Supply Chain Savings,
Robert T. Yokl
President & Chief Value Strategist
P.S. If you are looking for an easy way to save money, why not consider our “no cost – no obligation” Supply Savings Scorecard to show you the way?
Click here to view the scorecard
How To Get Better Performance And Results From Your Value Analysis Team(s)
“Activity Doesn’t Equate To Better Performance, But Results Do!”
I have read hundreds of value analysis minutes over the years that show a lot of activity, but very little results (i.e. savings and quality improvements). That’s because these value team’s performance are measured on their activity -- not on their results.
If you are looking for better performance and results from your value team(s) you need to start by establishing big meaty annual and quarterly savings for your team(s). Otherwise, how would you know if they are performing poorly, about average or superior?
You can ascertain your savings goals in one of two ways. The first is to set an arbitrary savings goal of 5% of your total supply spend, which is hard to defend and explain. The second, and much, much better way, is to benchmark your total supply spend in order to uncover specific targeted savings opportunities that you can supported, clarified and detailed.
If you decide to opt for the second way (targeted savings) it will enable you to refine your performance measurements right down to project level. You will then be able to determine the exact savings per project, savings per quarter and savings per year with specific time lines for completing each project.
This exercise might seem like a lot a work to you, but the fact of the matter is that activity without precise quantifiable results is the real time waster. The reason is because your value team(s) members are investing their precious time in your value team(s) work, but they aren’t seeing the results of this investment.
Wouldn’t it be a better way if your value team members spent the same amount of time on your value team work, but received a bigger return on their investment? This can only happen when you “don’t equate activity with better performance, but only connect it with results”.
Are new strategies, tactics, tools, and techniques required to dig deeper and broader for supply chain savings?
Supply
Six
Sigma
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