There are many Value Analysis and Supply Chain Leaders who believe that an advanced and robust Value Analysis and Cost Optimization Program must have layers upon layers of sophistication built into it. I am not of that opinion, nor should you be. Why? Because in all simplicity, Value Analysis – whether it be for a new product request or cost optimization project – does not need to be difficult. I would highly recommend that you stick to the basics with your program and you will be surprised by the results you will get.
1. Be Clear with Your Definition of Value Analysis for Your Program – Value Analysis is the study of function and the search for lower cost alternatives. This goes back to the origins of Value Analysis and Value Engineering – it is no different today than it was back then. It is no different in healthcare clinical environments – it is still the study of function. The moment you understand this simple functional analysis, you can move away from the subjective term “quality”, as my quality will be different from your quality, etc. If your organization’s definition of Value Analysis is so sophisticated that once you state it everyone looks at you like you have two heads, then you need to rethink your definition of VA and perhaps go back to basics. Remember, many organizations don’t have any training for their VA team members and thus just flow from their own definition of value analysis which could work against them.
2. Set Your Systems Up So That Everything Comes to You Instead of Having to Chase It – If the majority of your Value Analysis time and effort is spent chasing data, evidence, analysis, or other reports for your end customers, then you may want to take a step back and figure out how to reduce or eliminate this from happening in the future. Remember, you are a facilitator of new product requests, recall management, and cost optimization projects but you should not be hamstrung by having to perform all the data collection for every single project.
For example, incomplete data elements on new product requests happen from time to time, but when your end customers know that you will fill out their holes in the new product request every time – they stop bothering to do it. Remember, you are not the subject matter expert with these new product requests – your requesters are and thus they should completely fill out the new product request data and associated materials on submission. All else should be returned back to them as incomplete and they should know this up front for any future submissions.
3. Don’t Be Afraid to Ask the Most Important Questions – Sometimes we get caught up in the value analysis process churn and often overlook or forget to ask the most important questions of our customers, or worse, neglect to ask them out of fear. One question that always comes to mind is, “Do we need this new product at all?” That may seem like a daunting question to ask a Surgeon or Nurse Leader, but it needs to be asked – and often. This is just smart Value Analysis. Let your end customers justify the need for this new or replacement product with functional terminology.
Another good example is asking exactly what the difference is functionally from this requested new product and the current incumbent product. You would be surprised that this is not asked as often as it should be in VA environments. Remember, your power is in questions with VA.
4. Find a Mentor Who You Respect and Want to Emulate Their Best Practices and Processes – Why reinvent the wheel or try being the Lone Ranger with building a better Value Analysis Program? Find a group of mentors who can share their best practices and processes that they followed to build superior VA Programs for their organizations. There is no need to go down the school of hard knocks when someone has already done that years ago and can help you not only avoid the pitfalls but fast-track you to success quickly.
Because we often get caught up in the day-to-day operations of our VA Program, we don’t take those important steps back to look at our Program objectively – let alone develop ways to make it better, quicker, and easier for ourselves. This alone is something that you need to do often which will greatly benefit you and your organization’s Value Analysis Program for the short and long term.
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