All Entries in the "Value Analysis" Category
The ABC’s of LifeCycle Cost Management
I learned many years ago that the purchase price of a product, service or technology only amounts to about 1/20th of its lifecycle cost (or cost of ownership over its useful life). This changed my focus from price to lifecycle cost management when deciding to purchase a product, service or technology. This is the only [...]
3 Surefire Ways to Get Your Stalled or Rejected Value Analysis Projects Approved
How many of your value analysis projects are stalled, stuck or worse yet, are in limbo? My guess is that it could be as high as 23% to 35%, at any given time, representing tens of thousands of dollars in savings not being implemented. To avoid this bottleneck, here are three surefire ways to get [...]
Less Is More: This Should Be Your Mantra
I just read that Office Depot cut their supply chain waste by tens of thousands of dollars a year by slashing their packaging waste by switching from corrugated cardboard to paper bags for deliveries to their customers. I call this tactic, “less is more” which should also be your mantra for your value analysis teams, [...]
One Big Fallacy About Value Analysis
One big fallacy about healthcare value analysis is that you need to be an “expert” in the product, service or technology you are investigating or evaluating. Nothing could be further from the truth. In fact, by being an “expert” you bring along your biases, prejudices, and favoritisms that often color your decision making. It’s better to [...]
How To Win Arguments With Value Analysis
We all know how many arguments we have lost in the past on our savings proposals and how frustrating it can be when that happens. We also know that we are on the right side of the argument, but we can’t understand why our customers can’t see what is obvious to us. How can we [...]
How Are You Selecting Your Value Analysis Team Leaders and Members To Ensure Success?
Are you selecting your value analysis team leaders and members by chance, by their title or by their influence in your organization? If you are, and most hospitals, system and IDNs have been doing this for years, then you are missing an opportunity to have the most motivated, disciplined and creative people on your value [...]
LEAN Value Analysis: Going Beyond Price and Standardization
I just read an article from Health Management Technology Magazine by Paul Segovis, Director of Materials Management, Ellis Medicine, Schenectady, New York. This article is a perfect case study for going beyond price and standardization to fixing supply chain processes that were costing Ellis more than $700,000 annually in unnecessary ownership and rental cost. In [...]
How Important is Price in the Value Equation?
Everyone wants to have the best price on everything that they buy, but how important is price in the value equation? The answer is about 38%. Meaning, even if you have the best prices available on the marketplace, 62% of the value of the products, services, and technology that you are buying is related to [...]
The Roles of Supply Chain Managers in Value Analysis
Just the other day, I received an e-mail from a buyer asking what her role should be in her healthcare value analysis teams. This raised my consciousness that this is a topic which isn’t often covered in the leading healthcare supply chain management periodicals, books or blogs. However, these roles are critically important for the [...]
3 Ways to Avoid Playing “Small Ball” With Your Supply Chain Expenses
We are all looking for better ways to ratchet down our supply chain expenses, but often times we miss the obvious because we aren’t looking at the big picture. You can also call this playing “small ball” instead of hitting big league singles, doubles and home runs. Here’s three ways to keep your eye on the ball: [...]
