Function Analysis: A Key Methodology For Strategic Roadmapping

摘要

Whirlpool Corporation is the global leader of the appliance industry, which today is in a highly competitive environment. Like all competitors, Whirlpool is challenged by various headwinds in terms of raw material prices, general economic risks and weak demands in some key markets. This is resulting in reduced operating margins and reduced free cash flow. Whirlpool has chosen the Design for Value (DFV) methodology, which utilizes Value Engineering (VE) principles, to drive product cost leadership and to create value for its customers. The DFV methodology is integrated in their overall global product development process for both existing products and new product introductions. By applying Value Analysis (VA)/VE successfully in many projects in various stages, a key learning was that the methodology should be applied as early as possible in the projects. Whirlpool decided to do some experiments applying the methodology even before a project kick off as a strategic cross functional activity and to evaluate key product attributes with function analysis. Whirlpool accomplished this by forming strategic cross functional planning teams to discuss product needs based on front end consumer research and utilize necessary product evolutions, technology development needs, resources etc. based on Value Engineering principles. By applying this process to product ranges across several price points, it is possible to evaluate product roadmap transitions from one status to another in a planned process where potential cost impact and other critical parameters may also be linked in a structured way. In addition, other projects which could benefit from this process are identified. This paper describes, using a case study, how Whirlpool is applying Value Engineering principles to strategic roadmaps in order to improve the baseline for strategic planning by developing a more robust input for project teams at project kick off.