Value analysis is a systematic process for improving the value of products and services by reducing costs or improving their performance. It is a set of techniques, knowledge, and skills used to improve the value of a product by eliminating unnecessary costs or improving its functions without compromising its quality, reliability, and performance. The process involves analyzing existing products and evaluating them to improve their functioning or reduce cost. Value analysis is concerned with existing products and involves a current product being analyzed and evaluated by a team to reduce costs, improve product function, or both. The process is not a wholesale attack on costs, and costs are only reduced when the result will not impact the perceived level of quality experienced by customers or the level of customer satisfaction.
Value analysis includes function analysis, during which a product is broken down into components that are reviewed later. The value analysis team undertakes extensive research, identifies problem areas, devises innovative ways to do away with extra cost, or enhances the product/processes’ functionality at the same cost. The process helps reduce costs, maintain high quality, provide an opportunity to use new technologies, eliminate waste, encourage new ideas, improve brand image, and improve design.
Value analysis is a methodology used to improve product or service designs. The basic premise of it is that every component of a product or service has value and can be improved upon. There are three main types of value analysis: cost analysis, function analysis, and alternative analysis. Cost analysis looks at the cost of a product or service and tries to find ways to reduce it without compromising quality or performance. Function analysis looks at the functions of a product or service and tries to find ways to improve them without increasing costs. Alternative analysis looks at the different components of a product or service and tries to find ways to replace them with less expensive alternatives.
In summary, value analysis is a systematic process that aims to improve the value of a product by eliminating unnecessary costs or improving its functions without compromising its quality, reliability, and performance. It involves analyzing existing products and evaluating them to improve their functioning or reduce cost. The process helps reduce costs, maintain high quality, provide an opportunity to use new technologies, eliminate waste, encourage new ideas, improve brand image, and improve design. There are three main types of value analysis: cost analysis, function analysis, and alternative analysis.
