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DRM Associates can facilitate value
analysis, value engineering, and cost reduction projects. Our consultants have extensive experience
performing this type of work for major firms. Our services include:
- Value Analysis/Value Engineering
Workshops - We can conduct certified and results-oriented
workshops that will lead to significant cost reduction and/or enhanced
features for the customer that will result in improved levels of
profitability. Workshop duration runs from a minimum of three days to
two weeks. All workshops require proper project and team member
selection and a pre-workshop meeting with all team
members.
- Value Analysis Facilitation - We can facilitate value analysis / value
engineering efforts to improve value and reduce costs. Value analysis
asks the question, "What does it do?" When we think about what a
product, process or service does, rather than what it is, we begin to
unravel self-imposed constraints on our thinking. Our approach
to value analysis uses multi-disciplined client teams that are
carefully shaped and nurtured by our experienced facilitators. Our
approach is also based on the use of a job plan which defines the
methodology and is the step-by-step process that when used properly
leads to the powerful results. The steps of the job plan are:
Information Phase; Function Analysis Phase; Creative Phase; Evaluation Phase; Development Phase; Presentation Phase;
Implementation Phase and Reporting and Follow-up Phase.
- Supplier Cost Reduction - We
can facilitate supplier value analysis projects and help
establish a supplier's internal cost improvement or value
engineering program.
- Lean Manufacturing - If you would like to see
productivity improvements of over 20%, floorspace savings of up to 40%,
lead-time reductions over 40% and inventory savings over 30%, then the
use of lean and synchronous concepts is for you. Our unique ability to
blend value analysis with lean manufacturing into a single seamless
approach has helped other organizations achieve the type of results
noted above. Our consultants can walk your factory floor and in a short
time can identify the best opportunities to apply lean manufacturing.
Selecting the best process upfront and a well thought out successful launch
will assure on-going use of this excellent and important discipline.
We use a software tool, Proplanner with our lean manufacturing activities.
Proplanner looks at material flow from the entire manufacturing facility down to the
work and flow of an individual operator. The Flow Path Calcuator
(FPC) is an application used by industrial and manufacturing engineers
to evaluate material flow in industrial facilities in order to identify and
reduce the waste associated with material handling operations. Workplace Planner (WP) analyzes minute
worker details with coded standard data. Using tact time analysis,
the most effective and efficient labor movements and value-added line
balancing can be determined.
- Material Flow Analysis - For any
manufacturing facility to operate effectively and efficiently a streamlined
material flow is essential. The cost of material movement goes way beyond
the actual handling cost. Our consultants will analyze the material movement from your
receiving dock to the shipping dock. If your part database includes part
numbers, current usage, using locations, storage location, standard pack
quantity, receiving dock location, and shipping dock location, we
can use that information to generate current material flow
patterns. However, if your facility lacks this essential information, we
will come in and help you collect it. We will offer solutions to improve
material flow that will decrease your cost, inventory and operating
expenses.
- Target Costing - When done properly, target costing is extremely
effective, but it is a challenging journey for a corporation to
undertake. It will require a long-term commitment from the very top
leadership of the company. Nothing less than that will work and failure
will result. Japanese corporations have been engaged in target costing
for over 30 years. Western world corporations need to play catch-up in
this battle for global survival and success. The most time consuming,
but critical aspect to target costing is the creation of cost tables or
cost models. Tremendous resources are required to do this properly. The
formation of a Cost Planning Department is also essential. We can
assist your corporation to learn
more about this discipline, establish the tools and data, create
the organization and process as well as help apply target costing. We
bring a valuable software tool, CostVision, with our target costing
and value engineering activities. CostVision offers the most comprehensive design for
cost solution on the market today. Cost2Target's comprehensive database based on
customer's data, or CostVision's proprietary costing data, combined with parametric and
process routing costing algorthims rapidly produces accurate and effective cost
models early in the product development process. CostVision has created a consistent analytic
framework for product costing that can
be used by all participants in the development process, from designers
to project cost accountants and purchasing agents. With Cost2Target, any company
can rapidly implement a product costing strategy that enhances critical departmental interaction in
the costing process.
- Indirect Labor Analysis - Our consultants have worked in this often
overlooked expense area of indirect labor. Indirect labor includes
skilled trades, material handling personnel, quality inspectors and
people responsible for housekeeping. Indirect labor can also apply to
the salary workforce in your office, whether clerical or executive. We
can even help with a new organization structure. Even if your firm
currently out-sources any of this activity, you need to be assured that
the fees you are paying are competitive. Our consultants will perform an
assessment of your operations and make recommendations that we will
support through the implementation process. We can also look at how
costs are allocated and suggest improvements to prevent distortions in
cost allocation and help implement activity-based costing (ABC).
For further information, please contact:
Kenneth Crow
DRM Associates
2613 Via Olivera
Palos Verdes , CA 90274-2809, USA
Telephone: (310) 377-5569
Fax: (310) 377-1315
Email: kcrow@aol.com
Copyright DRM
Associates and Advanced Value Group LLC ©
2004
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