Maximizing Value through Managed Relationships PPT

This PPT slide, part of the 80-slide Value Managed Relationships Analysis PowerPoint presentation, presents a framework for understanding Value Managed Relationships (VMR) and their potential to enhance value through vertical integration. It outlines 3 primary sources of value: Volume/Scale Economies, Value Engineering and Quality Improvement, and System Cost Reduction. Each category is accompanied by specific examples of how value can be derived, along with estimated contributions to total value creation.

In the Volume/Scale Economies section, the focus is on improved quality stemming from reduced variability, better communication, and longer commitments that facilitate extended run lengths. These factors contribute to purchasing economies, suggesting that larger scale operations can yield significant benefits. The estimated contribution to total value created from this source is around 25%.

The Value Engineering and Quality Improvement section emphasizes the importance of technology and capability sharing. This collaboration aims to produce the lowest cost while ensuring the highest value product. It also highlights joint efforts in identifying potential areas for material substitution, reduction, and standardization. This category is projected to account for 50% of total value creation, indicating its critical role in the overall strategy.

Lastly, the System Cost Reduction section addresses the elimination of redundant processes and cross-company logistics. By identifying duplicate functions across various operational areas, organizations can streamline processes and improve efficiency. This segment also estimates a contribution of 25% to total value creation.

Overall, the slide encapsulates how a strong VMR can significantly enhance operational efficiency and value, allowing organizations to focus their resources more effectively on their core business.

This slide is part of the Value Managed Relationships Analysis PowerPoint presentation.

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