Value analysis
Value analysis is the scientific process of identifying and eliminating unnecessary costs to increase or improve the value of the product. Value analysis is a methodology for solving the problem by addressing and eliminating the unnecessary efforts taken.
Value analysis improves productivity and increases the efficiency of production management. Manufacturing organization always implement the value analysis process to reduce the cost and increase the value of the product that meet the customer’s expectations.
Value analysis procedure
Following are the various pages of the value analysis process that the manufacturing organizations To increase the value of the product.
General phase
It is a common principle in any organization that the right and favorable environment can increase the capability of employees to implement creativity
A favorable environment in any organization can provide a platform to increase the creativity of the employees. A favorable environment is responsible for providing employees an opportunity to take the initiative and present their ideas that can be innovative directions to achieve the expected objectives.
This phase involved increasing the interaction with the employees who are interested in taking initiative and presenting their creative ideas regarding continuous improvement. Their creative ideas may belong to identifying and eliminating the unnecessary costs involved in unnecessary activities.
Examples
A favorable environment in manufacturing organizations motivates engineers to utilize individual ideas in the manufacturing system that can reduce costs. Authorities given to the workers or technicians enable them to make decisions regarding the reduction of the cost of unnecessary efforts and hence implement continuous implementation.
Information phase
The name of this phase itself describes what it belongs to. The information page is involved in gathering the necessary information required to determine the unnecessary cost involved in unnecessary activities. This necessary information guides managers in making the right decision regarding eliminating unnecessary activities and hence unnecessary costs. Information regarding the problem can provide the right direction to the managers to increase the value of the product by eliminating unnecessary costs and directing necessary costs to be spent.
This phase collects information regarding the product design, customer satisfaction, customer expectations, and the many facts that are responsible for or contribute to increasing the value of the product. If companies are involved in completing the project, it is essential to gather such information and complete the project with expected or increased value addition in the project that satisfies the customer or client.
Example
Process Quality Control System in Electronics industries analyzes the collected information regarding the errors. The information on each deviation allows the production manager to identify and eliminate unnecessary costs.
Function Phase
The function phase is involved in determining the product’s value identity based on various functions the product can perform. The functions of the products impact significantly on satisfying the expectations of the customers. Crop functions can be detected by comparing the functions of a variety of products with each other. It can also be determined by identifying the important functions out of several functions. As the value analysis involves eliminating unnecessary costs, it always focuses on finding out the unnecessary or less important functions.
The function phase deals with the analysis of the various functions and the cost concerns of those functions. Once the company identifies the required cost for every function which are important, the company can make the decisions regarding the elimination and selection of these functions which are necessary to increase the value of the product.
Examples,
Following are the functions which increase the value of the product.
Entertainment: various products such as LED TV and Music System. Video Games are products with a primary function as entertainment. Entertainment can be made by spending low cost or by spending more cost in the product. The purpose of the function phase is to determine the necessary costs that impact the functions of the product.
Information: blogs, websites, YouTube videos, books, magazines, News channels, and Newspapers are the sources of information. Information is the function of all of these products. Function determines the cost involved in providing the necessary functions in the products that can meet the customer’s expectations.
Safety: this function belongs to the products such as vehicles, electrical instruments Smoke detectors Etcetera are the products whose primary function is providing safety. The company always determines the cost involved in providing the safety that meets the standards and satisfies the customers.
Creation Phase
this speech Deals with the creation of various innovative ideas or ideas that can be implemented to increase the value of the product. Creation is not only involved in creating the ideas that can be suitable for the product but also determines the unnecessary cost speed on various efforts for the production of the product.
Examples
LED TV Is a product that shows innovation in television. LED Technology is an example of creative or innovative ideas that can be used to reduce the cost required to manufacture the television.
The use of a robotic arm and robot technology in manufacturing organizations can reduce the cost required to employ several employees. The robotic arm or a robot technology can introduce human efforts and hence the cost required on several laborers.
Various scientific methods can be implemented in manufacturing organizations to reduce the efforts and costs required to produce the product with accuracy. Different software and equipment are used in manufacturing to increase the accuracy and reduce the cost. Creative ideas or innovative ideas can make possible the continuous improvement in the scientific methods used to reduce the efforts and costs.
Evaluation Phase
This Phase deals with the feasibility study and screening of the ideas to determine whether these ideas are suitable for implementation. The evaluation Phase analyzes the cost-effectiveness, predictability, cost, and other factors to determine whether the creative ideas to be implemented are suitable. The decision to implement any ideas or methods for manufacturing is based on the result of the evaluation phase.
Investigation phase
Once the evaluation and feasibility study are done from the perspective of cost-effectiveness, the idea is then converted into an acceptable and workable solution. This acceptable and workable solution can be effectively and properly implemented to get the expected result. This phase requires convergent thinking that determines the correct solution or option that can be implemented as per the standard set.
This phase can also be known as the Selection phase as it involves selecting the ideas and converting them into acceptable solutions.