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    Final Examination: Value Analysis

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    amy lizbeth rico
    Value analysis is a technique to reduce costs without reducing functionality. It examines the functions of a product or process and finds alternative ways to achieve the same functions at a lower cost. The steps involve identifying the functions, examining alternative approaches, and selecting the lowest cost option that maintains performance. An example would be analyzing a utility process and finding a lower cost material or component that provides the same function. Value analysis critically reviews all cost contributors to determine if each cost truly adds value and function. The goal is to deliver required functions at the lowest possible cost through techniques like substitution of lower cost materials or redesigning components. Other similar techniques used in industry include PROFIT, FIRST, FAST, FACTS, and VM/VI.

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    Final Examination: Value Analysis

    Uploaded by

    amy lizbeth rico
    70 views1 page
    Value analysis is a technique to reduce costs without reducing functionality. It examines the functions of a product or process and finds alternative ways to achieve the same functions at a lower cost. The steps involve identifying the functions, examining alternative approaches, and selecting the lowest cost option that maintains performance. An example would be analyzing a utility process and finding a lower cost material or component that provides the same function. Value analysis critically reviews all cost contributors to determine if each cost truly adds value and function. The goal is to deliver required functions at the lowest possible cost through techniques like substitution of lower cost materials or redesigning components. Other similar techniques used in industry include PROFIT, FIRST, FAST, FACTS, and VM/VI.

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    Value analysis is a technique to reduce costs without reducing functionality. It examines the functions of a product or process and finds alternative ways to achieve the same functions at a lower cost. The steps involve identifying the functions, examining alternative approaches, and selecting the lowest cost option that maintains performance. An example would be analyzing a utility process and finding a lower cost material or component that provides the same function. Value analysis critically reviews all cost contributors to determine if each cost truly adds value and function. The goal is to deliver required functions at the lowest possible cost through techniques like substitution of lower cost materials or redesigning components. Other similar techniques used in industry include PROFIT, FIRST, FAST, FACTS, and VM/VI.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    70 views1 page

    Final Examination: Value Analysis

    Uploaded by

    amy lizbeth rico
    Value analysis is a technique to reduce costs without reducing functionality. It examines the functions of a product or process and finds alternative ways to achieve the same functions at a lower cost. The steps involve identifying the functions, examining alternative approaches, and selecting the lowest cost option that maintains performance. An example would be analyzing a utility process and finding a lower cost material or component that provides the same function. Value analysis critically reviews all cost contributors to determine if each cost truly adds value and function. The goal is to deliver required functions at the lowest possible cost through techniques like substitution of lower cost materials or redesigning components. Other similar techniques used in industry include PROFIT, FIRST, FAST, FACTS, and VM/VI.

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    FINAL EXAMINATION

    1. Illustrate and briefly discuss the steps to be done during


    value analysis to minimize cost and to optimize the use of
    resources in modification of a utility or process. Your
    objectives are to reduce cost and maintain or increase
    efficiency. You may cite an example of a utility which you are
    familiar with so you can explain well.
    VALUE ANALYSIS
    Value analysis is synonymous with cost reduction and is a powerful
    practical cost reduction technique available to the purchase executive.
    Since it attacks the basic design of the product, value analysis is more
    effective than the basic design of the product; value analysis is more
    effective than other cost control techniques. It is concerned with
    ascertaining whether the material purchased is good value for the money,
    for the required purpose. Value analysis is an organized creative approach
    aimed at identifying unnecessary costs and eliminating the same from the
    system without affecting the functional utility/guarantee/safety
    performance. The essence of value analysis is to identify the function of
    the product, to examine alternative ways by which the function can be
    accomplished and finally choosing that, which involves the least cost.
    Value analysis correlates the cost of purchasing a product or services with
    its end use. It attempts to examine critically the make-up of every item,
    which contributes towards the cost of the product and whether this cost
    contributes towards the cost of the product and whether this cost
    contributes to the function appropriately. It is an approach of providing the
    required function of the product at the desired time and place at the
    lowest cost. This approach is concerned with right quality, design,
    specification, standards, methods of manufacture, etc., and involves the
    substitution of material or component at a lesser price or better quality.
    Several other techniques closely resembling value analysis are also used
    in the industry with the different names, and these are: PROFIT (Product
    return opportunities by function investigation techniques), FIRST
    (functional idea system techniques), FAST (functional analysis system
    techniques), FACTS (functional analysis of components of total system),
    VM/VI (value management and value improvement).

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