Value Analysis It is important to understand that it is wrong to judge an activity only based on the time needed to deliver it…

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Presentation on theme: "Value Analysis It is important to understand that it is wrong to judge an activity only based on the time needed to deliver it…"— Presentation transcript:

1 Value Analysis It is important to understand that it is wrong to judge an activity only based on the time needed to deliver it…

2 A good example is the case of the IT consultant which has been asked to repair a very complex machine … the computer was worth 12 million $.

3 The consultant, sitting in front of the console, presses a couple of keys, nods, mutters something and turns off the machine. It then takes a small screwdriver and turns a round and a half of a small screw. Turns the computer on again and verifies that everything works as it should.

4 The customer’s CIO is so happy that offers to immediately pay the bill. “How much is it?” asks. “It is a thousand $, please” answers the consultant.

5 “A Thousand $ ?!? A thousand $ for few working minutes? A thousand $ just to turn a screw? I understand the computer is worth 12 million $, but I believe a thousand $ to be really expensive! I will only pay if you send me a bill which details and justifies such a price!”

6 The IT consultant nods and goes away. Next morning the CIO receives the bill, reads it carefully, and pays it immediately without a complain.

7 The bill said: Delivered services: - Turn of a screw $ 1 - Knowledge of which screw needs to be turned $ 999

8 REMEMBER: The individuals’ value is related to what they know, not to what they do.


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