Value analysis is a systematic appraisal of the design, quality, and performance of a product to:
A. maintain quality assurance.
B. offer the lowest possible price.
C. to reduce purchasing costs.
Concept of Value Analysis
Value analysis is the cost reduction technique that is used without diminishing the effectiveness of the product and fulfilling the customer’s satisfaction. It is carried out to eliminate unnecessary features and functions of a product or component of manufacturing. It also deals with products and their quality.
It is a systematic and function-based approach to improve the value of the product. It uses a combination of creative and analytical techniques to identify an alternative way to achieve the set goals. Value analysis considers minimizing cost without diminishing quality, reliability, performance, and appearance. It is a creative approach to reduce unnecessary costs which adds neither quality nor appearance to the product.