
54 • Value Analysis and Engineering Reengineered
improving operational performance. It is a useful project identication
and selection method. It can help you decide whether you want to priori-
tize on “low-hanging fruits” to provide small or early wins for immedi-
ate impact or use Pareto Analysis (the 80/20 rule) to focus on high-value
targets.
Today, the CFO and senior management are valuing procurement or
SCM unidimensionally, based on the amount of money the function can
save because they understand that procurement is about saving, not spend-
ing. e spend analysis data in Figure 7.3 will help to answer questions
like: What are you buying? ...