What is value analysis?

What is value analysis?

Value Analysis (VA), also known as Value Engineering (VE) and Value Management (VM), is a systematic and function-based approach to improving the value of products, projects, or processes. Value Analysis uses a combination of creative and analytical techniques to identify alternative ways to achieve objectives.

How do you do value analysis?

Value analysis is an approach to improving the value of a product or process by understanding its constituent components and their associated costs. It then seeks to find improvements to the components by either reducing their cost or increasing the value of the functions.

What are the tools of value analysis?

Value analysis uses nine specific techniques and concepts: which are mentioned below:

• Job Plan.
• Team Dynamics.
• Value Engineering Specialist.
• Computer Cost and Attitude Support.
• Analytical Function Language and FAST.
• Function Cost Analysis.
• Function Attitude Analysis.
• Creating on Function.

What is value analysis in case study?

Value Analysis, created by L.D. Miles is also called as Functional Analysis. Value of a product is defined by the ratio of the functions performed by the product to the cost of that product. It has been proved that Value Engineering capable of reducing costs by 25% to 45% or even more without affecting its quality.

What is the aim of value analysis?

Value Analysis is a standardized, multi-skilled team approach which aims at identifying the lowest cost way and ensuring the highest worth to accomplish the functions of a product, process or service.

What are the steps in value analysis process?

1. Information. In this first phase, the team attempts to understand why the project exists and who or what it is to produce.
2. Function Analysis. This step represents the meat and potatoes of the value analysis.
3. Creative. This phase represents the generation of improvement ideas.
4. Evaluation.
5. Development.
6. Presentation.

What is step in value analysis?

Presentation. This last phase represents the presentation of the alternatives to the stakeholders. Often value engineering represents a change in the normal practices that people are used to, an “out of the box thinking.” Thus the best salesperson on the team is often the best one to do the presentation.

What is a value analysis exercise?

Value Analysis exercises use a plan which step-by-step, methodically evaluates the product in a range of areas. These include costs, function, alternative components and design aspects such as ease of manufacture and assembly. This is assisted by designing and viewing products as assemblies (or modules).

What are the steps of value analysis?

According to the Value Methodology standard, there are 6 phases to a Value Analysis: Information. Function Analysis. Creative.

What is a value technique?

Abstract: Value analysis is an established technique that aims to identify, quantify and rectify weaknesses in products and processes by providing a set of functions at minimum cost. An eight- step process called the `job plan’ implements the theory.

What are the objectives of value analysis?

Value analysis aims to simplify products and process. There by increasing efficiency in managing projects, resolve problems, encourage innovation and improve communication across organization. Value analysis enables people to contribute in the value addition process by continuous focus on product design and services.

What are the principles of value analysis?

The principle behind value analysis is that it is a functionally oriented method for improving product value by relating the various elements of product worth to their corresponding elements of cost. Thus value analysis allows the required functions to be performed at the minimum cost.

Which is an example of a value analysis?

For example, value analysis of a wall clock will involve applying different methods to break down a wall clock’s functions and the cost involved at various stages to bring in those functions. The team will analyze the functions of the wall clock for customers, which will be to see the time and add to the beauty of their homes.

What should be included in a value chain analysis?

To conduct a value chain analysis, businesses need to split the chain into two levels: Supporting activities. A primary activity is anything that directly impacts the input, output or distribution of products or services. These activities include: Inbound/outbound logistics: Receiving, storing and distributing products, goods and services.

What do you mean by basic function in value analysis?

Value analysis defines a “basic function” as anything that makes the product work or sell. A function that is defined as “basic” cannot change. Secondary functions, also called “supporting functions”, described the manner in which the basic function (s) were implemented. Secondary functions could be modified or eliminated to reduce product cost.

How does value analysis support cost reduction activities?

The value analysis technique supported cost reduction activities by relating the cost of components to their function contributions. Value analysis defines a “basic function” as anything that makes the product work or sell.