A Vital Area For Value Analysis Application.
Great Value Analysis Opportunities In Manufacturing
The recent economic downturn has affected most of the manufacturing based communities of nations and rendered the manufacturing industry vulnerable in terms of workers loosing their jobs with no hope of securing a comparable replacement jobs in the short term.
The application of value analysis strategies yields increase in financial revenue and employee retention. Therefore, this time around, companies must do more research, train their employees in the appropriate disciplines of value analysis and must incorporate this vital tool in their companies revenue generation and employee retention policies.
Lesson: Why Value Analysis Is Essential
The United States and Europe.have been hit hard. For example, General Motors, an original equipment manufacturer (OEM), former fortune 500 company who was once the biggest private sector employer in the world has gone into bankruptcy after laying off thousands of employees.
This happened despite government bail outs. Many other manufacturing companies like Daimler Chrysler have filed for bankruptcy and layed off thousands of people as well. Tier one and two automotive parts suppliers have all experienced lost of revenue and human capital.
Value Analysis Strategies:
Value analysis strategies as a major policy of a manufacturing company can stem the tide of human capital loss as well as increase the revenue of a company. Employee retention, a buy product will result.
Automotive parts suppliers who have also been affected by the economic downturn could see sales surge shortly as consumers hold on to their cars longer than they would normally during economic boom and good times.
Get Cost Reduction Insight
Value Analysis, a cost reduction strategy can help your institution mitigate cost overruns and save money.