Product Value Management Program Improves Employees’ Product Development Acumen

08/15/2014 3:40 PM

Understanding what customers need – and don’t need – to be successful, and how this impacts Caterpillar profitability, is critical to excellent product development and sustainable product value. The product development value stream touches all parts of the enterprise and each participant has a role to play in managing costs and achieving value balance. Bringing this extended, cross-functional group together to identify opportunities for efficiency can open the door to deeper and more sustainable cost / value management that will benefit our people, customers and shareholders.

The Product Value Management (PVM) program does just that. This Caterpillar Certificate Program, developed with Bradley University, is part of an enterprise-wide effort to improve the product development acumen of our leaders and employees. It brings together leaders from product development, operations, marketing and business resources for interactive exercises, simulations, case studies and discussion to help develop their competencies in the fundamental processes and tools of product value management.

This approach has proved successful – the program has received great feedback from participants so far.

“The most valuable aspect of the PVM program is being able to get the entire value chain in the same room to work towards a common goal,” said one participant. The program has also gained the support of the Executive Office. Group President Rich Lavin said, “As I look at programs that will make tremendous long-term difference to Caterpillar, the Product Value Management Program is at the top of the list.”

The fourth PVM class recently completed an accelerated version of the program. The 35 participants were recognized at a celebration in Decatur on June 26. The fifth PVM class is currently ongoing in South Milwaukee, with additional sessions planned for later this year. For more information about the PVM program, please contact the Executive Development Center.

Hadley Wahlfeld | Communications Representative | Caterpillar Inc