Many industrial companies have diverse product portfolios with many permutations. New products andcomponent features are added every year while the old ones remain, resulting in a profusion of potentialValue Engineering projects. Competitive pressures and technological advances force companies tocontinually improve their product designs, but in which ones should companies invest their resources?With design engineering jobs declining, slow R&D investments and ever-increasing demands for designengineering productivity, choosing the right quantity and best quality Value Engineering projects isimperative.Past approaches analyze profitability, revenue, cost or a combination of criteria. These approachestypically aim to cheapen products by reducing cost;they are cost-centric, ignoring value from thecustomer’s perspective.Business schools usetwo-by-two matrices to illustrate complex conceptsin simple terms. Using value-centrictwo-by-two matrices, practitioners will learn a new method ofevaluating large industrial productportfolios to select the best project for a Value Engineering study.
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