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SPANNING THREE DECADES OF VALUE MANAGEMENT LEADERSHIP

August 5, 2001

Team Vs Individual Value Analysis Process

There is much debate over whether VA programs should be a team approach or an individual process.  The noted authors Heinritz and Farrell believe strongly that, " value analysis is not in the main stream of the buying process; it takes time, special attention and special talents to conduct a program, and it is essentially a staff service to the buyer."  Further, they state that, "a purchasing agent (or department head) may undertake the dual role of analyst and buyer, but a full-scale value analysis program is most effective when provision is made...for communication and action with departments (customers) that make the final quality decisions," as a team would.

Authorities on the subject believe that since no one person can know the functions, uses and characteristics of all products, services and processes purchased or utilized in an organization, it makes sense that a team approach would be more effective in the long run than an individual endeavor. It's our opinion, after working with both structures, that a blending of each approach is needed for a VA program to be truly successful. Here's why.  A VA program is a full-time time activity requiring hours of uninterrupted research to insure timely and productive studies; therefore, it doesn't fit into the main stream of the hectic buying process, as Heinritz and Farrell so clearly point out.  On the other hand, while the team approach insures a synergistic process, a team can't coordinate the complex mechanisms of VA due to the participants’ time constraints elsewhere. Now, if we blend these two approaches, a VA Analyst coordinating the VA program with the team managing the VA process, results will be highly organized and systematic, which only can spell success for those who adopt this VA model for their organizations.