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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 E-Zine- August 10, 2006
Robert T. Yokl
President & Chief Value Strategist
Greetings!
What’s Your Role In Driving Out All Waste And Inefficiency In Your Value Chain?
From my viewpoint supply chain professionals have done a good job of rooting out most price and standardization issues in their value chains, but have done an inadequate job of uncovering and eliminating waste and inefficiency.
Imagine a business that provides their customers with a great price, but their product, service or technology is flawed with defects (the things customers don’t want) and wastes their customer’s precious time because they are required to work around these inadequacies.
How long do you think this company would be in business?
We have the same challenges with the healthcare supply chain, since we are a multi-million dollar business that hasn’t driven out all waste and inefficiency in our value chain. In fact, one CFO told me that his operating room budget alone ranks as the third largest business in his community.
Isn’t it time supply chain professionals see it as their role to drive out this unwanted and unnecessary waste and inefficiency since this represents 67% of your new savings opportunities?
With this topic in mind, I have outlined in my article today five ways you really need to know about in which you can learn how to recognize waste and inefficiency in your value chain.
Your Partner in Supply Chain Savings,
Robert T. Yokl
President & Chief Value Strategist
P.S. We Are Making the Planning Easy for You (and no cost too) If you haven't already signed up for our No Cost Tele-Seminar for this month (August), we will help you plan your next generation of supply savings strategies, tools and methods. Learn more here!
Are new strategies, tactics, tools, and techniques required to dig deeper and broader for supply chain savings?
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5 Ways To Learn How To Recognize Waste And Inefficiency In Your Value Chain
“One Of The Big Challenges For Value Analysis Practitioners Is Developing The Ability To Recognize Waste And Inefficiency In Their Value Chain”
How much time have you really spent lately understanding your customer’s needs, wants, likes, dislikes or requirements in their products, services and technologies (PS&T)?
By truly understanding these satisfiers and dissatisfiers you will find your customers don’t need everything they have now. They are actually wasting many of the commodities they are purchasing and could utilize them more efficiently. To assist you with this quest for excellence here are 5 ways to learn how to recognize this waste and inefficiency in your value chain:
WASTE #1: Valueless Excesses
You always need to be on the lookout for PS&Ts that exceed their requirements, which I call “value excesses”, like pacemakers that are feature rich but aren’t medically indicated.
Waste #2: Valueless Overloads
Any inventory (especially in your operating room) that exceeds what is needed to meet, your customers exact requirements is a “value overload”. Loading up on costly PS&Ts just because you can just doesn’t make financial sense.
Waste #3: Valueless Movements
Too much physical movements of products or information unnecessarily adds time and cost to your value chain that needs to be slashed, trimmed or eliminated altogether. The best way to do this is through the skillful application of technology to your supply chain.
Waste#4: Valueless Motions
Too many key strokes, too many tasks, too many handoffs will require too many motions for your staff or your customers. I see this often with material management systems that aren’t user friendly, but instead require too many key strokes to get the job done. Beware of these “motion traps” that could be causing you and your customers hundreds of hours a year in unnecessary steps.
Waste#5: Valueless Waiting
Any delay in performing, receiving or delivering of PS&T is a valueless exercise. Some people call this “idle time” which not only is a big time waster, but adds no value whatsoever to your processes. These time wasters need to be ruthlessly removed from your supply chain.
When I speak about these 5 ways to recognize waste and inefficiency in your value chain I can talk about them from experience, since as a manager and consultant I have personally and repeatedly seen and eliminated these valueless, time wasting, budget bloating, customer dissatisfies and defects. It’s now time for you too to recognize these and other barriers and roadblocks that are holding back your quest for perfection in your value chain.
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