Value Analysis: An Applied Concept for Manufacturing and Service Industry
Introduction
All organizations strive to create value for their customers. This value creates mind space for product and services. Value analysis, therefore, is a scientific method to increase this value.
Value is a perception hence every customer will have their own perceptions on how they define value. However, overall at the highest level, value is quality, performance, style, design relative to product cost.
Increasing value necessarily does not mean decrease in all-inclusive cost of production but providing something extra for which a premium can be charged.
The objective and benefits of value analysis can be summarized as below:
Activities for Value Analysis
Activities for value analysis are separated into following activities:
Value Analysis Team
The process of value analysis is carried out by value analysis team. So it becomes paramount that team selection for value analysis also follows a structured process. Value analysis team consists of trained and qualified team members who have background and knowledge about the project. Team leader is selected by the project manager. Team size for value analysis is 5 to 8.
Value Analysis Process
Value analysis process can be divided into three phases of mainly - pre-analysis, analysis and post analysis.
Functional Analysis part of Value Analysis
Function analysis is required to transform the project elements from design of product towards function of product. The main categories are Basic, Secondary, Required Secondary Aesthetic, Unwanted, Higher Order and Assumed.
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