4. Value Method Job Plan

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   8. Verification Phase

      Learning from feedback is an important element of decision-making and is included in the Value Method through the final phase, verification. Two elements are involved: feedback (receiving and review of the what was implemented of the value study results) and verifying (that the expected benefits were attained).

      1. Feedback

         As discussed previously, the decision-maker(s) were requested for feedback during the Presentation Phase and prompted again during implementation. Proper verification is necessary even if the value study was done by an individual and the decision was by that individual. Good decision-making still requires that a person look at the end product received. Only by this means can problems, mistakes, or other faults be identified and lessons be learned. Written documentation is required much as the study documentation was required. Again, five years from the time the decision was made, we are unlikely to remember the study and its lessons unless we write them down. As stated previously, just the act of documenting helps us remember the lesson so we can learn from it.

         Feedback is given in a form that can be used. The techniques used by Value Method professionals was described in the Presentation Phase. Using this data, statistics to determine the value study effectiveness can be generated and examined.The results are used to determine overall effectiveness of the Value Method activity and identify potential process improvements. Overall organizational performance is dependent on the efficiency of the value studies performed, management support, personnel support, and many other features. Results of Value Method efforts should be examined to improve the results and provide ever increasing benefits to the customer and ourselves.

         Some typical statistics or computations that can be used to examine the feedback are:

         • Compute the return on investment by dividing the worth reported by the study cost. A value of at least one should have been attained with an average value of twenty to one for every ten studies performed.
         • Review the number of proposals in relation to: a) the FAST diagram that was generated (with the potential value mismatches removed), b) Pareto's rule, and c) the "rule of three" for efficiency (at least one proposal each for each value mismatch, and for each item over 40-percent: one new concept, and one improvement concept).
         • Compute the percentage of worth improvement returned. It should equal or exceed the cost of the study and the average should exceed 4-percent for every ten studies.
           
           
      2. Verify

         Enacted value study proposal results should be examined to avoid misunderstandings of the actual value of the study results and over-reporting of its benefits. Perfectly implemented study results with huge benefits do not mean much if an actual benefit was not present. Thus, examination of the feedback should be made to ensure that we are not being told what we want to hear, rather than what we need to know.

         Feedback can be verified as applicable and appropriate by visiting the site, purchasing and sampling the product, talking with users or others involved, examining budget versus expenditure records, etcetera. The results can be reviewed statistically if it is determined that this would assist in understanding.

      3. Review Value Study

         Once the value study feedback and verification is complete, the results should be compared to the study. Poor results have been found to be related to short-cutting the Method or other problem. Almost always, the shortcut or other problem was done with good intent. It may have been done to save a little time or because the problem was thought to be "just to simple" to warrant the use of a particular technique or phase. If a problem is noted the value study should be examined to see if some value method required element was not performed. Required element lists are available in printed training manuals listed in the references (e. g., Module I).

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