Value Analysis—Recent Projects
Delmarva Sash & Door, Entrance Door Production Center
LZA, in association with Project Performance Corporation, conducted a VA study for the Delmarva Sash & Door (DSD) Company, an assembler of wood and metal door products. The goal of the study was to increase production capabilities in DSD's entrance door production center to enhance profitability.
During the function analysis phase, the study team identified and time loaded the various functions performed in the shop to identify current inefficiencies. This led to the realization that excessive
transfer of materials was highly time consuming and costly, while adding no value to the finished product. Applying VA brainstorming and evaluation techniques, the team reorganized the shop and developed a new mode of operation that eliminated many of the material transfers. Having changed the shop, the team assigned worker positions, "balanced the line," and identified supervisory positions.
Additionally, the team identified changes to enhance the quality of life in the plant and improve worker retention. Finally, an implementation plan was formulated for execution of the proposed changes.
Stork Energiesystemen, B.V., Heat Recovery Steam Generator
LZA worked with Stork Energiesystemen, B.V., Holland Heat Recovery Steam Generator (HRSG) group to revitalize its performance. Stork is an old, technically sound boiler manufacturer that was losing projects to competitors and facing a changing marketplace.
Stork's products were used by large utility companies that required big sophisticated heat recovery boilers to optimize output, but much of the new market is for medium to small units in a technologically unsophisticated environment. The market focus has also broadened to include the whole world.
The value management program kicked off with a thorough audit of the current situation, and a draft of recent case histories. Analysis of the data yielded a three-pronged approach to meet Stork's goals:
1. Modify how contracts are secured
2. Modify the design process
3. Improve the product
Applying Function Analysis Systems Technique (FAST) to the processes, the Stork multidisciplinary teams identified unnecessary and redundant functions, and found streamlining alternatives. Key to this effort was the formation of small core teams which would take a project from its identification through turn-over to the purchaser. Simplifications in structure, procurement and design philosophies were also instituted.
The change in organization has so far resulted in two new contracts, plus a more efficient operating unit.