VALUE ANALYSIS â€“ PHASES
There are various phases through which a product undergoes to complete the value analysis of the same. The objective anyway is ultimately to assess any possible cost reduction. We are giving below sequentially phases through which the analysis is conducted.
Here the product is defined in terms of its functions, in terms of its performance expectations. These functions are co-related with costs and their worth.
Most of the times, an attempt is made to define functions with only two wordsâ€”a verb and a noun. It makes the definition pretty sharp. It introduces an element of rationality into the exercise, by trimming the frills. Some examples will make this approach familiar.
Some Functional Definitions
Tea Cup————————–Hold tea (liquid)
Light bulb————————–Emit light
Gas Lighter————————–Provide ignition.
Fan Regulator————————–Regulate speed.
Match Box————————–Provide ignition.
Another technique which is used under this phase is to evaluate function relationship by ranking in descending order of importance. Simultaneously relative value of their importance is determined.
Paired comparison method is fairly common amongst researchers. It determines numerical value of various functions. Here pairs of functions are compared to know their importance and to assess the degree of variation (major, medium or minor).
Functions are defined for the products as a whole and for all their components. Functions are either basic or secondary. Generally a productâ€™s basic is one, but it may possess several secondary functions. Basic functions can be restated in more ways than one.
A survey in the United States shows that most people use less than 5% of their creative abilities. They say â€œWe have hardly any timeâ€? (to think?).
Most of us want previously tried out materials, designs, processes and procedures. We jump at the first ideas that work and usually do not bother to find out if better methods are possible.
The latest technique is to give a boost to creative ideas by conducting brainstorming sessions of all concerned in the organization. To nurture creativity, positive thinking is established. Creative ideas are also developed by a number of check-lists and idea-stimulators.
Creative ideas generated during the above phase are screened for their feasibility, cost effectiveness and practicability at this stage. For this purpose, ideas are further refined or combined together. Cost of all ideas and savings resulting from their implementation are studied. Decision-matrix can be set-up to evaluate on the basis of various criteria.
It is a virtual extension of the previous phase. Ideas accepted are here converted into acceptable and workable solutions to perform the desired functions at the least cost. It may be necessary to standardize, to consult vendors and specialists, and to use specialty products, processes and procedures.
It is ultimate phase of Value Analysis (VA). Finally selected value alternative here in presented for implementation on acceptance. Acceptance is the key to success of VA. Sometimes, acceptance is a result of presentation, or a combination of both. All the relevant data is kept before management to enable it to take suitable decisions.