What is Value Analysis | Steps In Value Analysis

What is Value analysis :

The customer value the product and pay its cost if it justifies its use and functionality. The Value Engineering or Value Analysis evaluates this value of the product. The analysis is necessary to find out the value of the product. This analysis which attempts to value of the product and reduces the cost is called Value Engineering or Value Analysis.

Value analysis is an ongoing process in which a product is subjected to various techniques designed to determine how much “use” or “value” the product has. The primary goal of value analysis is to offer a superior product at a minimal cost. An emphasis is placed on keeping things that are useful for the customer while removing aspects that add no real or perceived value to the product.

Products and services are assigned value based on their usefulness and the perception that consumers have. While two products may do the same basic task (such as sanitizing a counter), resulting in an equal degree of usefulness, customers may perceive one cleaner as superior for a variety of reasons. Any business which must compete to attract customers must, by necessity, focus on perceived value.

Any hospital in a given region may be able to perform most medical treatments, but a hospital that is known for being cleaner, having a more friendly staff, or is otherwise perceived as somehow “better” will be the preferred location, resulting in more business. Similarly, medical equipment that is perceived as being faster, safer, or more reliable will be purchased more often than slower, less safe, or notably unreliable products.

How it works — detailed review

To understand Value Analysis it is necessary to understand some key concepts:

Value:

the ratio between a function for customer satisfaction and the cost of that function.

Function:

the effect produced by a product or by one of its elements, in order to satisfy customer needs.

Value analysis:

Methodology to increase the value of an object. The object to be analysed could be an existing or a new product or process, and it is usually accomplished by a team following a workplan.

Need: something that is necessary or desired by the customer.

STEPS IN VALUE ANALYSIS

In order to answer the above questions, three basic steps are necessary:

1.Identifying the function:

Any useful product has some primary function which must be identified a bulb to give light, a refrigerator to preserve food, etc. In addition it may have secondary functions such as withstanding shock, etc.

These two must be identified.

2.Evaluation of the function by comparison:

Value being a relative term, the comparison Value analysis is concerned with the costs added due to inefficient or unnecessary specifications and features. It makes its contribution in the last stage of product cycle, namely, the maturity stage. At this stage research and development no longer make positive contributions in terms of improving the efficiency of the functions of the product or adding new functions to it. approach must be used to evaluate functions. The basic question is, Does the function accomplish reliability at the best cost‘ and can be answered only comparison.

3. Develop alternatives:

Realistic situations must be faced, objections should overcome and effective engineering manufacturing and other alternatives must be developed. In order to develop effective alternatives and identify unnecessary cost the following thirteen value analysis principles must be used:

1. Avoid generalities.
2. Get all available costs.
3. Use information only from the best source.
4. Brain-storming sessions.
5. Blast, create and refine: In the blast stage, alternative productive products, materials, processes or ideas are generated. In the create‘ stage the ideas generated in the blast stage are used to generate alternatives which accomplish the function almost totally. In the refining stage the alternatives generated are sifted and refined so as to arrive at the final alternative to be implemented.
6. Identify and overcome road blocks.
7. Use industry specialists to extend specialised knowledge.
8. Key tolerance not to be too light.
9. Utilise the pay for vendors‘ skills techniques.
10. Utilise vendors‘ available functional products.
11. Utilise speciality processes.
12. Utilise applicable standards.
13. Use the criterion Would I spend my money this way?