value analysis it is important to understand that it is wrong to judge an activity only based on the...

Value Analysis

It is important to understand that it is wrong to judge an activity only based on

the time needed to deliver it…

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 $.

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.

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.

“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!”

The IT consultant nods and goes away.

Next morning the CIO receives the bill, reads it carefully, and pays it

immediately without a complain.

The bill said:

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

REMEMBER:

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