Prioritizing Solutions: Best Practices for the Evaluation Phase in Value Methodology

Value Methodology (VM) is a powerful approach to enhance the value of organizations’ projects, products and services across its diverse sectors. VM assists an organization achieve its objectives through a systematic approach that concentrates on improving function, performance or cost, and thereby, improving value.

The Evaluation Phase is perhaps one of the most pivotal phases of this approach since it aims to determine the feasibility and necessity of the ideas that have been created in the creative phase. Below are the most appropriate tactics to prioritize solutions during the Evaluation Phase.

Evaluation Phase in Value Methodology

The Evaluation Phase is the fourth phase of Value Methodology, following the Information, Function Analysis, and Creative phases. In this phase, all ideas generated previously are analysed, studied and assessed thoroughly to select the most suited to achieve the desired results.

According to SAVE International The key goal of the Evaluation Phase is to determine the viability, effectiveness, and relevance of each idea. 

Why having a systematic structure for the evaluation is very crucial?

It is critical to follow a specific strategy for the Evaluation Phase, so only the most promising concepts are chosen. A criteria should be clearly defined for the process of decision-making to select the best ideas that achieve the desired results. By having a clear mechanism of evaluating ideas, some biases are averted, goals are achieved as planned, and more value is created in the process.

Establishing Clear Criteria for Evaluation

It is imperative to have clear and specific criteria for filtering and comparing potential solutions. This criteria should achieve the objectives of the project, whether it is associated with improving production, cost, efficiency, reliability, safety or durability.

Using a Multidisciplinary Approach in the Evaluation Process

Evaluation guidelines, priorities, and decision-making can be improved significantly by the involvement of a diverse team of experts. This is mainly because having diverse expertise aids in assessing all the aspects of a solution carefully. For example, the technical solution, the market potential and the cost solution can be thoroughly evaluated by experts in each field respectively.

Best Practices for Team Collaboration:

1. Promote a culture of open communication where all the team members can freely express themselves without hesitation or embarrassment.

2. Make sure that each member of the team comprehends the role he or she plays in the course of the evaluation, and the contribution that his or her team offers.

3. Common and intelligible forms of tools and techniques should be utilized in the process with an aim of minimizing time taken to evaluate the business.

Applying Weighted Scoring Method

A weighted scoring system is a useful instrument that allows giving a rather objective assessment of prospective solutions. A different weight is given to different parameters based on their significance, and therefore a final evaluation score will reflect the most suitable solutions.

Steps to Implement a Weighted Scoring System:

• Describe thoroughly all the factors that will be used for the assessment of the solutions.

• Rank criterion based on the overall significance compared to the other criterion and rate it accordingly.

• Assign a score to each solution according to the defined criteria. 
• Calculate total scores by multiplying their values with their respective weight and then add them collectively to calculate the total score for each solution.

Conducting Sensitivity Analysis

Sensitivity analysis is an approach that assess the effects of different conditions on the chosen solutions. It is important in helping one arrive at a selection of solutions that are relatively immune to variation in a significant parameter.

Promoting Mutual Communication and Critique

To have an effective evaluation of solution presented, it is important for the team members to be open in embracing opposing views from other members. Differences help gauge the solution presented from different angles, which contributes significantly to a thorough evaluation process. 

Conclusion

The Evaluation Phase is an important step in the life of Value Methodology concept because it identifies the best of solutions that ought to be implemented, to achieve objectives and improve value.

Thus, following best practices that include clear criteria, multidisciplinary team, weighted score method and open discussions, organizations will be able to improve their decision-making processes and get more benefits from projects. If solutions are prioritized well, then the companies have a greater chance of realizing better results in terms of costs, among other aspects of improving project results.