See also
- Design of Service Operations
Value Analysis and Engineering
Value analysis is a known cost-reduction technique which seeks to cut costs of established products or services without reducing their value.Value engineering applies the same principles and procedures at the design stage
Value analysis involves recommended steps from identifying product function(s) relating to cost and price to analysing the design and construction with an eye for eliminating elements not contributing to function.
Some designers may think VA undermines good design. If the design was sound the start VA is redundant. Yet designs and technology change. Sound, innovative designs age and become uncompetitive - rivals catch up. Remember car windscreens are today glued into place by robots (adhesive technology).
Value analysis evaluates a product's utility, esteem and market values:
Utility
- how useful/functional the product is seen to be
Esteem
- the value that the customer/user gives to product attributes, not directly contributing to utility but more relating to aesthetic and subjective value
Market
- what the market is prepared to pay for the product
Market value = Utility value + Esteem value
A reliable second-hand Mini, costing about £2000, has utility value for inner city commuter travel. Yet many people travel to work in cars costing £14,000 or more. The esteem value is thus £12,000.
Esteem issues and functionality should not be overlooked or compromised. Value analysis (and variety reduction) is always a group task with a core group, say, of 5-6 who can call in other experts. The team must target products, services and admin. procedures offering the largest potential savings. Complex, multi-component products offer more potential.
References
© maintained and developed by C Jarvis for the BOLA Project