Management of technology

1. S
Value analysis
and
Stage Gate

2. Value analysis
S Value analysis focus on how to accomplish the required functions
at the lowest overall cost by eliminating or minimizing wasted
material, time and product cost, storage cost. This improves
value to customers.
S Value analysis (value engineering, function analysis, value
management) is one an interdisciplinary problem-solving activity to
improve the value functions required to accomplish the goal or
objective of any product, process, service or organization.
S The economic value of something is how much a desired object or
condition is worth relative to other object or condition.
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3. Value Analysis 2
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Value
Analysis,
How???

4. Value analysis
S The value analysis is often expressed by equation:
S Value = benefits/price or
S Value= quality received/expectation
S The value is perceived gain consist of individuals’ emotional,
mental and physical condition with various factors (social,
economic, cultural and environmental)
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5. Key concepts
S Value: The ratio between a function for customer satisfaction and the cost of that
function. It is the least cost that can achieve reliably a function or a service.
Value of a product = Performance of the function / Cost
S Need: Something that is necessary or desired by a customer
Function: The effect produced by a product or by one of its elements, in order to
satisfy customer needs.
Value Analysis: A systematic process that is used to increase the value of an object
that is achieved by providing required functions of a product at lowest overall cost
consistent with achieving the required
quality, performance and market acceptance.
VA team refers to a team/group/committee of cross-functional technicians who follow
a stated workplan to accomplish VA objectives. The object can be a product, a
system, a process, a procedure, a
plan, a machine, equipment, tool , a service or a method of working.
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6. Key concepts
The aim of VE is to obtain target cost without compromising on the quality of a
product by:
S Identifying improved product designs that reduce product’s cost
Eliminating unnecessary functions that increase the product’s costs
S VE requires the use of Functional Analysis (FA). FA is an analysis of the
relationships between product functions, their perceived value to the
customer and their cost of provision. The process involves decomposing
the product into its many elements or attributes.
S For instance, in the case of automobiles, functions might be consist of
style, comfort, operability, reliability, quality and attractiveness etc., etc.

7. Where it is used
S From TM perspective, the benefits of value analysis fall
into three major areas:
S Acquisition
S Identification
S Selection
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8. Steps in value analysis
S Preparation and orientation: the objectives and methods
for product/service are determined and work teams,
responsibilities and time periods are defined.
S Information: data about the customer needs are gathered
and compiled to form the information base.
S Functions: to clarify the functions of products and
services in order to eliminate or reduce the cost of the functions
that are important to the customer
S
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9. S Solutions: products/processes/services are
rethought in order to define alternative solutions.
S Value: the different solutions are assessed in order
to attach values to each solution and improve the
ration of cost to functions.
S Implementation: in this phase resources for the
project are allocated and changes in the
product/process/service are implemented
Steps in value analysis

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12. https://youtu.be/dvdfxr0fMzs

13. S
Stage gate tool
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14. introduction
S Stage gate is a project management technique in which
an initiative or project (e.g., new product development,
software development, process improvement, business
change) is divided into distinct stages or phases,
separated by decision points (known as gates).
S New product idea goes through stages and gates before
any launch is made.
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15. Stage gate
Stage:
S Consists of activities to gather knowledge and obtain information
about the new product idea.
S Each stage is cross functional in nature
Gate
S Critical decision whether to abandon or continue the product
is made.
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17. Elements of stage gate
S Three common elements for stage and gate
S Input – information from the previous stage
S Criteria – esp. the financial attributes
S Output – decision like “go”, “kill”, “recycle “or “hold”
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19. Stage gate for npd
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20. Stage gate for project
management
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21. Stage gate usage
Stage gate tool is critical for:
S Identification
S Protection
S Selection
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22. Benefits of stage gate tool
S Reduce time to market
S Reduce project risk and loss through the evaluation
made after each stage
S Monitor and evaluate IP though all the stages
S Improves resource allocation
S Guide project funding
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23. 5 gates and 5 stages
S Idea screening (gate) – scoping
(stage)
S Second screen (gate) – building
business cases (stage)
S Go to development (gate) –
development (stage)
S Go to testing (gate) –
testing/validation (stage)
S Go to launch (gate) – launch
(stage)
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