Whenimplementing value analysis or value engineering, which of the following acronyms reminds both buyer and supplier of ideas on removal, substitution and design-out of cost elements?
Correct Answer: B
Ray Carter coined the mnemonic STOPS WASTE to remind buyers of 10 cost-reduction ideas they can ask for themselves and their suppliers in any situation when considering a key purchase input. Stop Waste by: Standardisation - is there a standard specification? Transportation - is the inbound transport classification appropriate Over-engineered - is the specification too tight? Packaging - can packaging be reduced or eliminated? Substitutes - is there a cheaper substitute material Weight - is there opportunity to reduce weight of the product? Any unnecessary processing - is there any unnecessary design or feature? Supplier's input - are suppliers able to assist with the cost reduction To make - is it more economical to make or buy? Eliminate - if no one uses the feature, can it be eliminated? SAMOA is a useful acronym for checking and testing the information gathered from the Internet: Source Audience Methodology Objectivity Accuracy OWN-IT is acronym for 5 steps in the process of collecting and analysing the data andinformation needed in any field: Outline Wide search Narrow search Increase your stockpile of information Transform your stockpile into new knowledge A SMART goal is used to help guide goal setting. SMART is an acronym that stands for Specific,Measurable, Achievable, Realistic, and Time-bound.
