According to CreatingMinds, value analysis is used to analyze and understand the detail of specific situations and find a focus on key areas for innovation. Value engineering is a process used to identify specific solutions to detailed problems.Continue Reading
Value analysis is particularly suited to physical and mechanical problems, but it can also be used in other areas. A value analysis can help an organization improve the profitability on their products or find innovative ways to drive down the costs of products and improve the quality. Value analysis and value engineering are also means of strengthening the relationships with key suppliers. According to Aether Consulting, value analysis and value engineering allow companies to view their supply chain from a unique perspective, allowing for cost reduction, improved quality and meaningful supplier relationships.
There are three steps in value analysis: identifying and prioritizing functions, analyzing contributing functions and seeking improvements, respectively. The first step involves creating a list of basic functions and determining the relative importance of each function. The second step involves analyzing contributing functions by measuring the cost of each component and finding the components that are used to provide the key functions. During the last step, the goal of value analysis is to eliminate or reduce the cost of components that add little value and add components that are important to customers.Learn more about Industries