THE METHOD:

 

Value analysis

 
In the United States, in 1947, an engineer developed a group-method for technical development,  and called it "value analysis". In the fifties the Pentagon has ordered that the procedure shall be completed for each order above 100.000 USD. The method was called in Japan as "economy bomb" (and they really know what is a bomb!) and they used it for developing of new products in 85% and for existing products in 55%.
The method: functions of new products are built up on the basis of customer needs. Ideas for solutions for each function are colledted by brainstorming and from these a variation is created which can ensure fulfilling all the necessary functions on the required level and at the same time, at the lowest possible cost.
The value analysis is teamwork and members of the team encompass the product from each side, i.e. starting at the purchasing, and proceeding through design, production and sale, including calculation as well.
Value analysis is not only a method but rather a way of looking at things. The following advise is included in the basic principles:

"Apply the criterion:     SPEND YOUR MONEY AS IT WERE YOUR OWN!"

Accordingly, members of teams have been encouraged since 1947 to feel themsefves owners and to think as if they spent their onwn money.

By using value analysis one can achieve about 20% savings at existing products in Hungary as well. During development of new products savings can not be calculated because it is possible if we also developed the product in the traditional manner. By applying the most convenient investment and development for the market needs, the costs are essentially lower than in the case of modification and changes of the existing technologies.

It is well known that we like products created by ourselves as our own children and, like careful parents, we want to work on their success - in this case on putting the products onto the market. This personal motivation can not be substituted either by a perfect organization or by the best manager.

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