Guidelines for mpb
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Key problems addressed through MPB must be linked to improving financial outcomes like increasing revenue, reducing costs and waste, optimizing asset usage, and strengthening the balance sheet and cash flows. When analyzing potential solutions, representatives should use data-driven questions to ensure proposals are fully considered and will provide tangible benefits. Detailed functional analysis can help identify unnecessary secondary tasks to further reduce costs rationally while brainstorming should encourage freely generating many ideas before evaluating them.
Guidelines for mpb
- 1. Guidelines for MPB • Key Problems must have linkage with end results ie – Building revenue base – Eliminating waste, finding better ways of doing things, and reducing costs – Improving asset utilisation, and favourable impact on balance sheet and cash flows – Retaining, developing and acquiring talent
- 2. General Advice • Speak with Data only. Information is Power • Are you sure? • Are you complete? • What does it(these activities) do for us? • Recognise the difference between Cost(what we normally pay) and Worth(what we should pay) • In Value Engineering, carry out detailed Function Analysis(FAST-Function Analysis System Technique)to find unwanted secondary functions for ultimate cost rationalisation.
- 3. General Advice • Mind is like a parachute, it works only when it opens • In Creative phase – Suspend judgment – Quantity breeds Quality – Free Wheel – Cross fertilise – Everything begins with an idea, are you killing an idea.