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VM and other Methodologies > Target Costing
Author : Will Willson
Description :
Author : Angela Serra
Description : The paper reviews how the TRIZ methodology has been applied to specific case study (Low Pressure Turbine Rotor and Exhaust Diffuser), finding productivity opportunities, followed by a discussion of the DTC strategies that commonly used in GE Oil & Gas and pros/cons of using this tools for specific problem solving. The comparison involved Should Cost, VaVe, 3P and TRIZ. The purpose of the project carried out was to find design to cost opportunities on Gas Turbines. The aim was to improve product efficiency, reliability and availability, while minimizing impact on product cost and simplifying production process.
Author : Dr. Jan Alpenburg, Dr. Paul Scarbrough
Description : This research study describes how Target Costing (TC), which is strongly associated with the Value methodology, was attempted as an addition into a traditional Stage-Gate (SG; Cooper, 1990) product development process. A case study was undertaken with the Construction Equipment Group, a manufacturer of heavy construction articulated haulers in Sweden and their attempts to implement target costing. Value Engineering use is limited to target costing during the concept phase and was found to be ineffective in application. The study also found conflict between the Stage-Gate method and TC that is consistent with criticisms of SG raised by Sethi and Iqbal (2008). This includes limitations to learning due to truncation of sub-projects without the iterations in TC.  Aspects of Target Costing that are in conflict with SG-type design processes are identified, in particular, the lack of effective use of Value Engineering and Quality Function Deployment.
Title : Target Costing and VE (PDF | 2008 | MEMBER-ONLY | #254)
Author : Steve Taylor
Description :
Author : Dr. Paul Scarbrough, Goodman School of Business, Brock University
Description :

Activity Based Costing is a powerful tool that focuses on the management of activities as a route to improve both performance and the value received by customers. Value Analysis is a technique that helps identify and clarify user needs and develop alternative ways to meet those needs. It is the use of Function Analysis that makes Value Analysis unique from other problem solving techniques. Combining Activity Based Costing with Function Analysis significantly improves the chances of a successful outcome with ABC.

 
What is an Activity? There is nothing in traditional accounting that addresses this question, yet failure to effectively identify activities is one of the main contributors to ABC problems. The Value methodology is the most powerful tool we have to define Activities precisely—because an Activity is, in essence, a function.
 
Additionally, the Value methodology assists in focusing ABC on the specific Activities needed to solve business problems.  It is often assumed that activities are obvious and do not need special effort to identify, however, many Activities identified by the ABC implementation are not focused on solving business problems. Although they may be real Activities, they are not controllable in the decision horizon, and so, of no use to measure separately. The Value methodology is the only tool that gives control over these two underlying issues in ABC.
 
In this session I will provide a roadmap to integrating the Value methodology into your ABC plans.
Author : Shamsi Shishevan MA, PMP, RMP The Team Focus Group, Inc. and Martyn R. Phillips, CVS (L), CVM, FICE, FCIWEM, FHKIVM, P.Eng, PVM
Description :

It is generally recognized that managing a project ought to be conducted by a series of well-­‐established and defined processes. Despite application of project management systems, even with due consideration of managing risks, projects still go awry and value is lost. For example scope increases, cost overruns, schedule delays and general stakeholder dissatisfaction are indicative of lost value.

 
Typically value management (VM), is applied as an intervention for improvement or rescue of a project. Although it is a very powerful methodology to tackle every task, but it is most efficient when applied as an integral part of project initiation & continuing development.
 
Initiating the program/project with strategic function analysis and establishment of agreed value drivers (with performance measurement) establishes an appropriate guidance framework to attain optimum results. Integrating value management and risk management enables stakeholders to check the ongoing “health” of a project and it’s ability to adapt to internal and external factors, which may have adverse impact on projects’ outcomes.
 
In a nutshell, the VM approach is more effective when fully integrated with the project management life cycle such that:
(i) a combined value and risk approach for proactive application between specified milestones is incorporated within the original project plan
(ii) program/project functions and value metrics are established and referenced from the outset, for the duration of the project life
(iii) a higher level, value assurance approach is used to guide an organization's programs and projects from an executive perspective.

See also: Shishevan_Phillips_Integrated_VM_Greater_Performance_Gains.pdf

Author : Paola Mainardi
Description :
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