Value Engineering alone is no longer enough to stay ahead. While Value Engineering has become standard practice for many, at LeanPie we have a different approach – Value Add. To understand it, we need to take a deeper look at what Value Engineering actually is, and, by extension, the actual idea of ‘value’ itself.
What is Value Engineering?
Value Engineering has always been understood as a systematic method for improving the value of goods. By focusing on the function of any item produced, Value Engineering involves looking at all possible ways to maximize the function of the product at the lowest possible cost.
Understanding the cost
Value Engineering can contribute to cost reduction in manufacturing. But is this the best we can get? Surely there’s more to value than just product, function and cost?
LeanPie’s Value Add approach involves a much wider understanding of what ‘value’ is, involving the optimization of every part of the supply chain, from initial enquiry to final installation.
Why a Value Add approach is better
Creating true value involves so much more than simply achieving the lowest cost possible. In a disrupted supply chain model, full transparency allows clients to truly understand the opportunities to add value, be this in design, manufacturing, global or local sourcing, packaging, transport, delivery, installation or project management.
This approach gives full control back to the client. For example, a Value Engineering approach may see a client manufacturing a product at the lowest possible cost in China. A Value Add approach, however, sees the client able to make informed and flexible choices about supply chain options in China, Mexico the US and Europe, along with open book pricing.
It takes into account not only material specifications but also project timelines, quality control, product life cycle, production methods, freight options and long term sustainability, all in partnership with university qualified engineers to manage the project.
The LeanPie approach to Value Add
A truly optimized supply chain is the best way to understand ‘value’ – and achieve it! Our approach involves a deep analysis of costs and functionality in the wider context of the whole project, not just any one part.
- Value in communication – Understanding the technical requirements is key. LeanPie’s lean and transparent supply chain model puts expert engineers in direct contact with clients, so a full understanding of production and processes is possible.
Knowing the true cost of manufacturing is one thing, passing this knowledge to clients is another. We do both.
- Value in service standard – It’s no use having the cheapest possible production if quality control has gone out of the window! True Value Add involves balancing stringent quality control with an in-depth understanding of the needs of the project, from saving money through to saving time to market.
Close relationships with factories allows LeanPie to continually look at ways to improve value, optimizing everything from sustainability through to delivery options.
- Value in control – It’s not just the lifecycle of one project where a Value Add approach makes a difference. Understanding the future potential to adapt, re-imagine and give a fixture a second (or even third) life puts control back with the client, not the vendor.
LeanPie break the mould, giving our clients access to an online library, where the client has full ownership of technical drawings.
So if Value Engineering is about manufacturing at the lowest possible cost, Value Add is about looking at the bigger picture; it’s lean, transparent and involves looking at every possible opportunity to improve throughout the entire global supply chain, and then proactively passing that knowledge to the client.
So perhaps it’s time to go beyond simply Value Engineering. With the right understanding, transparent costs and processes, and a commitment to quality and consistency, LeanPie are leading the way to Value Added manufacturing and supply chain.
Want to find out more? Get in touch to see where we could add value to your next project.