Scope: Explaining the true value of a product for the customer and end user is becoming more and more of a challenge as the "race to the lowest price" becomes the leading topic during decision making. This article will outline what we feel is the true meaning of "value" and why ASI focuses on this detail.
Design Initiation. Typical designs start with the RFQ Process initiated by the customer or a customer inquiry about improving a current product or researching the availability of a product against their program schedule. Normally, this is "closed agenda" dialog....meaning the customer is fearful of giving any information that might impact the cost of the gear drive assembly they wish to purchase. They will start with a drawing or description and reference to yearly volume and release quantities.
Value Begins. At this point, at the RFQ Process or initial customer dialog, ASI or any manufacturer, must start asking questions that would allow them to investigate the customer's real need and product performance goal. It is essential that a manufacturer understand completely the reasoning behind the customer's inquiry for product. These Value Questions or topics are as follows: Are there any logistics issues? Are there any quality issues? Is the current product performing as required? Has changes or conditions in the customer's market facilitated a change or new product? As these questions are asked and discussed, the full picture usually comes to light.....resulting in what the customer really needs.
Value The Facts. Now that all of the facts are known, the manufacturer can start the design process correctly....fully informed as to what the customer really needs. This is the first point of value. The manufacturer now knows that the customer really needs a product that is more durable, or higher in performance, or smaller/larger in size, desiring of a shorter lead-time or better delivery performance, or more competitive price, or wants a major problem solved, or all of the above. Too many times manufacturers think they know what the customer wants based on drawings alone. We must ask the Value Questions!
Value Impact. Not all of the above issues have an impact on or raise the sell price of a product designed by ASI. But, the majority does affect the initial cost of a product. The answers to the above issues and questions do provide the foundation for understanding the customer and our ability to present true value added solutions that will lower the total cost of their product once their manufacturing cycle and after the sale support efforts take effect. In example, how much impact do the following issues have on the "total cost" of a product? Warranty Claims, late deliveries, poor performance, customer complaints, increased after the sale support. All of these areas have dollar signs attached to them that could be diminished if the product would perform and last as advertised or correctly designed!
Value Decision Time. As we face the challenges of this new "Global Economy" we must ensure that all designs and products manufactured meet the expectations of our customers and end users. To that end, I ask our customers and business associates to determine the Value of the following areas that have been improved when using correctly designed gear drives and motor assemblies:
- Custom Designs that Eliminate Parts/Hardware Costs
- Improved Performance and Industry Reputation
- Consistent Production Rates
- Lower Warranty Claims
- Lower Scrap Rates in Final Assembly
- Reduction in After the Sales Support
- Longer Product Life Cycles
Value Conclusion. Properly designed, value added gear drives and motor assemblies cut cost and improve the performance of the products/vehicles they were designed for. These values can be calculated and referenced during the decision process........eliminating the "race to the bottom" obstacle in the way of future growth for any company!
ASI is a committed value producer of product and the more in-depth and comprehensive is our mutual dialog regarding the issues above, the more enhanced the value of our customer's product can be to their customer!