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Value analysis, otherwise known as ‘cost engineering’ and ‘value engineering’, is a technique in which a firm’s products, and maybe those of its competitors, are subjected to a critical and systematic examination by a small group of specialists. They can be representing various functions such as design, production, sales and finance.
Value analysis asks of a product the following questions:
§ Does the use of the product contribute value?
§ Is its cost proportionate to its usefulness?
§ Does it need all of its features?
§ Is there anything better for the intended use?
§ Can a usable part be made better at lower cost?
§ Can a standard product be found which will be equally usable?
§ Is it made on appropriate tooling, considering the quantities used?
§ Do material, labour, overheads and profit constitute total cost?
§ Is anyone buying it for less than its stated price?
