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Value Analysis: Z. A. Patel

Value analysis is the study of the relationship between design, function, and cost of a material or product. It has the objectives of finding economical ways to make a product, attaining the same performance at lower cost, providing better value, and improving competitive position. The value analysis process has 7 phases - general, information, function, creation, evaluation, investigation, and recommendation. It uses techniques like questioning attitudes, brainstorming, defining functions, developing alternatives, evaluating ideas, and presenting recommendations to find ways to reduce unnecessary costs.

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50 views

Value Analysis: Z. A. Patel

Value analysis is the study of the relationship between design, function, and cost of a material or product. It has the objectives of finding economical ways to make a product, attaining the same performance at lower cost, providing better value, and improving competitive position. The value analysis process has 7 phases - general, information, function, creation, evaluation, investigation, and recommendation. It uses techniques like questioning attitudes, brainstorming, defining functions, developing alternatives, evaluating ideas, and presenting recommendations to find ways to reduce unnecessary costs.

Uploaded by

zakirno19248
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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VALUE ANALYSIS

Z. A. Patel

VALUE
Value = Benefit / Cost Value = Function / Cost
KINDS OF VALUE:
Use value Esteem value Exchange value Cost value

Meaning
Study of relationship between
Design Function Cost
of a material / product

Objectives
To find economical way of making a product / material To attain same performance at a lower cost To provide better value to a product To improve the companys competitive position To remove unnecessary cost

Process
Questioning attitude Also called value analysis job plan 7 steps process
General phase Information phase Function phase Creation phase Evaluation phase Investigation phase Recommendation phase

1. GENERAL PHASE
Very critical in creating the right environment This phase is applicable throughout TECHNIQUES:
Use good human relations assistance in place of resistance Inspire team work personal ego sacrificed Be specific Overcome resistance to change Apply good business judgment no personal likings

2. INFORMATION PHASE
OBJECTIVE to gain understanding about facts; to estimate potential value improvement TECHNIQUES:
Secure facts
Technical specifications like dimension, grades, tolerances, quality etc Environmental specifications severity, test conditions Engineering drawings (design)

Production sample dummy model/working model Production data rate of output, stock level etc Cost data material, labour and overhead costs Work specification layout, standard times Features preferred by competitors Scrap rates etc

Determine cost to focus on potential areas very improvement is max possible

3. FUNCTION PHASE
OBJECTIVE: to define functions that the product performs; to relate these functions to cost TECHNIQUES:
Define function Relative importance of various functions

4. CREATION PHASE
OBJECTIVE: ideas for alternatives to accomplish the functions. TECHNIQUES:
Establish positive thinking Develop creative ideas techniques like brainstorming.

5. EVALUATION PHASE
OBJECTIVE: to select promising ideas for further analysis TECHNIQUES:
Refine and combine ideas Find cost on all ideas Evaluate by comparison

6. INVESTIGATION PHASE
Refine further into workable and acceptable solutions which provides lower cost. Consult specialists, vendors etc

7. RECOMMENDATION PHASE
FINAL VALUE ALTERNATIVE IS SELECTED AND RECOMMENDED FOR IMPLEMENTATION TECHNIQUES:
Present facts verbal or written Motivate positive action

TECHNIQUES OF VALUE ANALYSIS


BRAIN-STORMING PRICE ANALYSIS CHECK LISTS DESIGN ANALYSIS

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