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 Most would agree that the fundamental purpose of management is to make the product or service more valuable. However, when management teams are consistently distracted by the immediate needs of running the business, how can they focus on what’s required to build incremental value into their companies? Analyzing, planning, and managing value growth is an involved process and it requires intense focus on the functions and resources that drive the value creating potential of an organization. SVS’s Value Analysis focuses the attention and expertise of cross-functional teams on creating and developing “best value” recommendations. These value improvement initiatives in turn help to focus organizational resources on maximizing the impact and minimizing the cost of performing key value-creating functions.
The SVS Value Methodology is built around answering the underlying question of function analysis, i.e., “What does the system or project do?” Our methodology further addresses the value formula of how much a function costs versus what it is worth. Our capable facilitation of the process, supported by our network of subject matter experts, has consistently proven to increase worth and lower cost, i.e., improve value.
- The cost analysis identifies efficiencies that will lower cost wherever possible while maintaining the required performance, historically producing an average of 20% cost reduction in both development and operations.
- SVS’s worth analysis determines innovative and creative ways of improving the functional worth of a product, service, or project, resulting in unique opportunities for value creation, often measured in terms of an order of magnitude improvement, with lower risk of implementation.
Key to the SVS Value Methodology is the leveraging of the intellectual capital of cross-functional multi-disciplinary teams. Each team is custom built to address the needs of the project or organization's problem. This collective group wisdom builds ideas, analysis, and plans that go beyond the realm of expert advice. We subscribe to the familiar notion that two (or more) minds are better than one. Our core team resources cover the range of functional capabilities needed to develop a comprehensive set of analyses and recommendations.
In the early 1940s, while the U.S. was engaged and invested in a global war of unprecedented scale, its industrial machinery and homeland economy were being stretched to the point of having to define new ways of doing with less. Critical resources, e.g., steel, rubber, and raw materials were rationed and dedicated to the war effort. As a result, there was a severe shortage of manufactured goods available to the American public; building tanks took priority over building cars. These times brought out the ingenuity of such clever people as the engineer at General Electric, who searched for answers to questions like: “How can I perform the function of a rubber band, when I don’t have the rubber for the band?” It was in response to these kinds of questions that the Value Methodology was conceived and developed by GE, and has become part of our productive industrial culture for the past 65 years.
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