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Apply Value Engineering Tools in Joint-Venture Plant in China

Apply Value Engineering Tools in Joint-Venture Plant in China

Apply Value Engineering Tools in Joint-Venture Plant in China

Min Zhan, AVS
Min Zhan, AVS
on behalf of SAVE International

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Launch date: 15 Jan 2015
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Last updated: 05 Aug 2020

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Whirlpool Corporation is the world's leading manufacturer and marketer of major home appliances, with annual sales of approximately $18 billion in 2012, 68,000 employees, and 65 manufacturing and technology research centers around the world. The company sells more than 10 brands to consumers in many countries around the world.

China, one of the emerging economies with rapid economic growth, has a population of 1.35 billion, and with the increased income of its people, there is now more economic ability to purchase newer home appliances to improve their living of standard. At the same time, the Chinese government has launched the Home Appliance Subsidy Policy to inspire the home appliance industry. All of these factors make China among the world’s biggest home appliance market. A global market research company has said that the domestic market for home appliances in China is forecast to grow by about one-fifth to USD105B in 2015.

China is also one of the key markets for Whirlpool where Whirlpool has launched a winning in China policy starting 2011. With just a few years of effort, Whirlpool is now selling washers, refrigerators, air conditioners, water heaters, and small home appliances in the Chinese market. On the other side, the competition in Chinese marketing is intense. There are famous local standing companies such as Haier and Midea which are very popular in both urban and rural areas which are selling most kinds of home appliances in China. The international brands such as Simens, Samsung, and LG are favorites by people living in the big cities with higher income. In the past they marketed and sold lots of relatively high-end products in China, but now they are also extending their product lines for all kinds of consumers.

To gain a marketing share in China, Whirlpool must stay competitive in cost, quality and performance. Whirlpool has decided to apply the Design for Value methodology as well as other good methods, such as Lean Product Development, in the China region to help it win in China.

This paper describes, using a case study, how Whirlpool is applying the Design for Value methodology in our joint venture company, Hisense, to improve cost and quality for a high-end washer product, thus giving the customer better value.


Learn how Whirlpool Corporation applies the Value Methodology in a joint venture to improve cost and quality for upscale washers.
Min Zhan, AVS

Author Information Play Video Bio

Min Zhan, AVS
on behalf of SAVE International

Min Zhan is currently the Design for Value Manager for the China region, starting from February 2013 when this position was created at that time. She is responsible for facilitating all Design for Assembly and Value Engineering Workshops for all categories in the China region, including the joint venture plants.

She is among the first to gain Associate Value Specialist (AVS) Certification in China. She has been working at Whirlpool since 2008 and before that, she worked as a design engineer in one of the major home appliance companies in China. She graduated with a Mechanical Engineering Degree from Northwest Polytechnic University in 2003.

Current Accreditations

This course has been certified by or provided by the following Certified Organization/s:

  • SAVE Certification Board
  • 0.02 Points -
    Exam Attempts: 3
    Exam Pass Rate: 70

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