Consulting services to aid in supplier development.

VALUE  ANALYSIS / VALUE  ENGINEERING  CONSULTING

DRM Associates

DRM Associates
Consulting Services
Product Development Forum
NPD Body of Knowledge

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:

  1. 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.
  2. 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.
  3. Supplier Cost Reduction - We can facilitate supplier value analysis projects and help establish a supplier's internal cost improvement or value engineering program.
  4. 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.
  5. 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.
  6. 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.
  7. 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