One of the top five concerns of cost managers, based on our polls, is that their corporation’s value analysis team(s) are taking too much of their time to get their work done. You tell us that you are already understaffed, overworked, and stressed out with your day-to-day responsibilities, and ask how you can find time for value analysis. Maybe the question should be re-framed as, “How can I utilize my value analysis team(s) to save time for me and my staff?” Let’s look at the facts, as opposed to our current perception of the facts:

FACT #1: Value analysis is a shared responsibility, not a one or two-person show.

Supply chain departments often organize and lead value analysis teams, as well as carry much of the workload. However, the best practice in value analysis is to share all of the responsibility of the VA team with its members. It all begins with delegation of the full workload of the team by the chairperson or team leader to their team members. This strategy alone will reduce your value analysis related workload by 90%.

FACT #2: Value analysis teams need to be a direct extension of your cost management operations, not just a communication vehicle or advisory board.

Too many value analysis teams are utilized by supply chain managers as communication vehicles and advisory boards to inform them of new contracts and other initiatives and are asked for their advice and counsel. This is a passive role. The ideal or active role for these value analysis teams requires you to link them directly to your cost management operations. This can be accomplished by delegating to your value analysis team(s) complete responsibility for:

• Value justifications of all contracts.
• Value justifications of new product, service, and technology introductions.
• Coordination of all savings and cost reduction initiatives.
• Investigations of product, service, or technology failures.

This delegation and linkage of your supply chain operations to your VA teams will effectively reduce your workload 10-fold and improve the quality of your operations.

FACT #3:  Value analysis will give you more time for sourcing, which is really what you do best.

By employing new VA team strategies and tactics effectively, you will have more time for sourcing new vendors to meet your organization’s functional requirements at the lowest possible cost. This is how you can really add value to value analysis.

The saying that “perception is reality” is not always reality, especially when it relates to value analysis. The facts are that you do have time for value analysis if you: (1) delegate many of your cost management responsibilities (not accountability) to your VA team(s), (2) have your VA team(s) become a direct extension of your supply chain operations, and (3) reallocate your time to sourcing, which is really what you do best.