Adoption of Value Analysis in Manufacturing

Topics: Process management, Value, Manufacturing Pages: 14 (4011 words) Published: April 2, 2013

Obiero John Abuto (PhD student)

Jaramogi Oginga Odinga University of Science and technology,

School of Business and Legal studies

Increased desire for optimal financial resources utilization, quality service delivery systems, competitive manufacturing process scheduling and value chain addition on the overall supply chain has made organization to reorganize their operations management structure to adopt to these pertinent requirement. Value analysis methodology has become very useful in; process design, construction management and manufacturing as a tool that can optimize projects administration, business and manufacturing processes scheduling facilitation . The benefits of value analysis include decreasing costs, increasing profits, improving quality, improving speed of service delivery and performance, and enhancing customer satisfaction. Various interventions have been sought and implemented by the manufacturing sector in Kenya to improve on production performance and service delivery systems approaches. For example a series of management strategies have been designed and implemented, but still the cost of production and service delivery systems has remained. In the Kenyan context, many products produced by our industries has been very expensive for the internal competition and the global market. This paper makes a critical review on value analysis as a cost reduction strategy methodology that need to be adopted by the Kenyan production sector and service delivery systems for cost reduction efficiency and quality delivery.

Key words: Value analysis, Manufacturing Process design and scheduling.


In an age of increased competition for financial resources, market mix and innovative cost advantage across all industries and levels of government. Value analysis management methodology is viewed as a tool that can be adopted to optimize operation capabilities that can enhance cost reduction without compromising quality in operations, production and service delivery. The benefits of value analysis include decreasing costs, increasing profits, improving quality and performance, and enhancing customer satisfaction (Roy, 2008).

In Kenya, the manufacturing sector has had stiff competition from cheap imported goods and it has become difficult for them to sustain themselves in the liberal economy.It is also evident that most of the products i.e made in Kenya are relatively high in cost. Management gurus asserts that there is nothing that a company can do about the prices of commodities outside there in the market, instead they can do a lot in their oprational systems to improve on their profit margin, acase is the price of sugar or milk, their prices are the same on the super market selves but processed by different companies. With this in mind, value analysis becomes very handy, as acompetive tool that needs seroius thought and adoption by the manufacturing sector in Kenya.

According to Satish(2001), value analysis and value engineering has never been used much in Kenya, as a management systems tool as compared to other imports like; change management, total quality management, downsizing, restructuring, benchmarking, design and systems development and process mapping. Basically it has been practiced scantly only by a few multinationals dealing in the process and manufacturing sector and the construction industry, and it is high time it is adopted highly by all process industries in Kenya as a means to gain competitive advantage globally.

In this paper the assumption is that since the manufacturing industry functioning are similar a cross the globe, the tools used by most of these organizations can be implemented by the manufacturing sector in Kenya too. It should be noted that, the other improvement tools and techniques like, total quality...
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