The value analysis technique is used to determine the value of a product, process, or idea by evaluating the benefit of its components. Its objective is to identify cost savings or opportunities for value improvement through an analysis of the steps required for execution of process, implementation of an idea, or delivery of a product to customers. In order to support this analysis, a number of questions should be asked regarding each of these steps. These include: Does it contribute value?; Are its costs proportionate to its usefulness?; Does it have functions that can be divided into sub-functions?; Does it have all needed features?; Can it be eliminated?; Is there a substitute for it?; Is its original purpose still relevant?; Is it overcomplicated?; Can savings be achieved without a substantial reduction in its effectiveness?; and Have suggestions from users been sought?
Using ‘Value Analysis’
Step 1: The subject of the value analysis is broken down into its primary components or steps.
Step 2: For each component or step identified, questions aimed at improving value or identifying cost savings are asked. These can include items similar to the sample questions listed above.
Step 3: An examination of the answers obtained in the last step should reveal potential options for improvement.
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