Client Projects

Success Stories

Automotive client. They had begun a new product and not performed a value planning session during the planning phase, because "they didn't have time." Result, they were losing 5% on each product sold, and wanted to increase sales by 30% (and thought they could). Raising the price was not an option (due to competition.) They needed a profit to match the sales increase. We were able to give them a 12% profit immediately, with more to come. This way, they would not "sell them selves out of business." Unfortunately, due to machining costs, we had to leave much opportunity behind. If we had been able to do a value planning session before equipment purchases, we estimate that we could have generated an additional 10% profit for each unit.

The best case in government was just before contract award study. We were able to reduce costs 95% and avoid many serious risks.

This study was initially requested as a result of a plant addition (construction with a small amount of manufacturing modification). Not only did we reduce the cost of the construction 13%, we found that the process generated a waste product that was worth a growth from a base of $5 Billion in new profits each year. It took a $0.5 Million study to prove it (with a danger it would not), but now the company sells what it once paid to discard.

We examined one contract and found that a previous value study specified an approach that would generate the contractor $500,000 in a VECP request. Result, the government reduced their cost on a $4.3 million contract to $3.5. The contractor made money and freed their staff earlier so they could make money on other contracts, while pocketing 55% of the savings.