Embed Size (px)
DESCRIPTION
va
Citation preview
11/8/2015 value analysis
http://eu.wiley.com/legacy/wileychi/innovate/website/pages/atoz/valueanalysis.htm 1/7
start what how tools faq contact extra
a b c d e f g h i j k l m n o p q r s t u v w x y z 123 categories
Value analysisAn approach to improving the value of an item or process by understanding its constituentcomponents and their associated costs. It then seeks to find improvements to the components by eitherreducing their cost or increasing the value of the functions.
Recent discussion has begun to use the term 'value management' to describe a broad approachincluding tools of value analysis.
more information and resources underpinning this approach »
Why is it used?
To determine and improve the value of a product or process by first understanding the functions of theitem and their value, then its constituent components and their associated costs, in order to reducetheir costs or increase the functions value.
When is it used?
Value Analysis should be used:
For analysing a product or process, to determine the real value of each component,When looking for cost savings, to determine components that may be optimised,Only when the item to be analysed can be broken down into subcomponents and realistic costsand values allocated to these.
How it works — detailed review
To understand Value Analysis it is necessary to understand some key concepts:
Value:the ratio between a function for customer satisfaction and the cost of that function.
Function:the effect produced by a product or by one of its elements, in order to satisfy customer needs.
Value analysis:Methodology to increase the value of an object. The object to be analysed could be an existingor a new product or process, and it is usually accomplished by a team following a workplan.
Need:something that is necessary or desired by the customer.
Figure 1Basic rationale used in Value Analysis
11/8/2015 value analysis
http://eu.wiley.com/legacy/wileychi/innovate/website/pages/atoz/valueanalysis.htm 2/7
Functions may be broken down into a hierarchy, starting with a basic function, for which the customerbelieves they are paying, and then followed by secondary functions, which support that basic function.
The purpose of functions may be aesthetic or use, and basic functions may be either or both of these.For example, a coat may have a use function of making you warm and an aesthetic function of'looking attractive'.
The product or process may be broken down into components, which can be associated with thefunctions they support. The value of the product or process may be then increased by improving orreplacing individual components. This also applies at the whole item being analysed, which may becompletely replaced with a more functional or lower cost solution.
Although this is a simplesounding Tool, it can be quite difficult in practice, as it requires both deepanalysis of the product or process to be improved, and also an innovative approach to findingalternatives.
Figure 2Function/component hierarchy
The Value Analysis process
Value Analysis is based on the application of a systematic workplan that may be divided in six steps,as shown in figure 3.
Figure 3Steps involved in the application of Value Analysis
11/8/2015 value analysis
http://eu.wiley.com/legacy/wileychi/innovate/website/pages/atoz/valueanalysis.htm 3/7
1: orientation/preparation
Identify what is to be analysed. This will typically be one of:
A manufactured item. This can be anything from a screw to an engine, although a morecomplex item is likely to result in a more complex and timeconsuming analysis.A process or service. Again, all levels can be analysed, from a hand assembly process to acomplete customer service organisation.
2: information
Identify and prioritise the customers of the item from step 1. This may include external customers,such as 'auto suppliers' and internal customers, such as 'finance manager'.
Note that external customers are usually more important than internal customers, and that senioritydoes not necessarily equate with priority. A customer's preference for a product feature should bemore important than the opinion of a senior designer.
3: analysis
In this phase the functions of the product are analysed by Functional Analysis, which is aimed atidentifying functions given by a product or part of it. Functions have an importance (weight) and acost. These costs are quantified and this leads to a list of functions ordered by their importance andvalue. This means that there is an analysis of how each function satisfies customer needs, and then, ananalysis of what the cost of those functions is.
This phase of Value Analysis may be considered as the key one of the whole methodology as itrepresents the translation of needs to functions (see the specific technique).
4: innovation/creativity
For this phase it is necessary to use creative techniques that generate alternatives. Starting from theanalysis of functions and costs, there is a search for means that allow elimination, change orimprovement of components and functions.
It is important to look for different ways of satisfying the basic functions, even if it means rejectingthe current approach and starting again with a clean drawing board. This requires the product orprocess to be 'mentally destroyed' and then rebuild a new one.
5: evaluation
11/8/2015 value analysis
http://eu.wiley.com/legacy/wileychi/innovate/website/pages/atoz/valueanalysis.htm 4/7
It represents a confrontation of ideas, a collection of information about the feasibility and cost of thoseideas, and measures the value of the best alternatives.
This analysis or evaluation uses the same techniques of value measurement that have been used inprevious steps. At this point an examination is done about the grade of functional accomplishment andthe economical analysis of those alternatives that offer the higher value. Some of the techniques arewellknown such as Cashflow analysis and breakeven point.
The team involved in Value Analysis needs an objective analysis of the ideas generated through theinnovation phase. The evaluation phase is carried out in two main steps:
A qualitative analysis of value regarding objectives in design, cost, implementation facilities,etc.A quantitative analysis using numerical techniques of value measurement that leads to a fewalternatives of high value that will be analysed in depth.
This process usually involves determining the cost and select those ideas that can be practicallyimplemented. This may include work to develop and refine promising ideas into practical andoptimum solutions.
6: implementation and monitoring
In this phase it is necessary to prepare a report that summarizes the work that has been done, includingconclusions and specific proposals. It will be also necessary to describe actions plans forimplementation, in which project management techniques would be useful.
Finally a plan should be included for monitoring of the actions. This should be based in theaccomplishment of objectives.
The application of Value Analysis only needs to make use of Basic Techniques such as matrixes,pareto chart, pert and gantt diagrams, etc., in most of the Value Analysis steps.
Table 2Specific techniques to be applied in Value Analysis
Value analysis step Specific technique
1 orientation/preparationbasic techniques
2 information
3 analysis functional analysis, basic techniques
4 innovation/creativity
basic techniques5 evaluation
6 implementation and monitoring
Nevertheless, there is one very specific technique worth to be mentioned, such as Functional Analysis,described in a specific section.
Specific technique: functional analysis
This technique requires the following activities:
11/8/2015 value analysis
http://eu.wiley.com/legacy/wileychi/innovate/website/pages/atoz/valueanalysis.htm 5/7
Description of functionsIdentification of functionsDetermine the value of each function
Description of functions
For this purpose it is necessary to use a verb and a substantive composing a simple and short phrasethat identifies the object with its function. As an example, the function identified for a lighter wouldbe:
Lighter ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐> Produce flames
This description of the function would be wrong as it restricts the alternatives to those related toflames, when a more general approach is possible. In this sense a valid definition would be as follows:
Lighter ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐> Provoke combustion
Identification of functions
The most difficult task in Value Analysis is the identification of functions from the knowledge of thecustomer’s needs. The first approach to the identification of functions should be focused onbasic functions. These functions are those things for which the customers believe they are paying.There are usually only one or two basic functions per product or service.
The best way of finding basic functions is usually to ask the customer. Another possible approach is toobserve them in action. Consulting specifications may be appropriate, but is based on the possiblyfalse assumption that these are correct.
It is also important to differentiate between aesthetic functions and use functions. Aesthetic functionsare associated with feelings, but serve no other practical purpose, for example 'elegant shape' orpleasant service manner. Use functions describe how the item is used, for example 'cutting paper' or'smoothing wood'. Basic functions may be aesthetic or use functions.
There are also secondary functions that may support some of the basic functions. For theiridentification, it is important to ask questions such as "How?". For example, where the basic functionof a bottle is to 'contain liquid', a secondary function may be to 'be strong', as this will contributetowards the bottle continuing to contain the liquid, even if it is dropped.
For this purpose, a fivestep procedure could be used:
1. Intuitive research2. Sequential analysis of functional elements (SAFE)3. Analysis of motion and efforts4. Environmental analysis5. Study of a model product
1: intuitive research
It depends on the previous knowledge about the conditions for the use of the product. It usually allowsthe discovery of half the functions of the product, but it is not sufficient. However, in many occasionsintuitive research is the expression of common sense. Although it depends on the previous knowledgeabout the conditions in which the product will be used, this method leads to a fast advance in theresearch on functions. It may also incur errors, but these will be identified in the next steps ofanalysis.
11/8/2015 value analysis
http://eu.wiley.com/legacy/wileychi/innovate/website/pages/atoz/valueanalysis.htm 6/7
2: sequential analysis of functional elements (SAFE)
It studies the sequences of use of the product and tries to identify the functions involved in them. Asan example, if a customer decides to cut the grass in his garden with his lawnmower, he follows thefollowing sequence of actions:
i. He gets to the location of the lawnmower and takes it. This means that he needs some part ofthe lawnmower to grab it. The function that has been identified is: to allow the person to grabit without difficulty.
ii. The customer has grabbed his lawnmower and takes it to the place where he is going to use it.The function identified is: to be easy to use.
3: analysis of motion and efforts
It leads to the identification of functions that are not immediately identified in the sequence of use ofthe product. Therefore, this step allows us to find those previously mentioned secondary functions.
4: environmental analysis
It identifies those external elements that constitute the environment of the product. Each of theseelements creates or keeps relations with the product. Therefore the product must satisfy thosefunctions that are induced by the environment. In the case of a lawnmower, the elements of theenvironment would be as follows: grass, neighbourhood, animals, energy sources, users, trees, stones,etc. Some of the functions to an specific element like 'trees' could be: not to damage the tree in case ofcollision,; not to damage the lawnmower in case of collision. The second one means that the lawnmower should resist the impact against a tree.
5. study of a model product
When it deals with a new product it refers to a product belonging to the same family as the one understudy. It usually allows to identify functions that have not appeared during the rest of the functionalanalysis process. In case of an existing product, the model is the same product that is intended to beimproved. The process would include an analysis of the functions satisfied by the product, theweighting of its advantages and disadvantages, to distinguish nonuseful functions and to improve theproduct by adding new functions.
Determine the value of each function
This will help to prioritise improvements. Assigning a number to this will enable the relative value ofdifferent functions to be highlighted. Alternatively a simple rating scale may be used, such as from'Very low ' to 'Very High'.
This is not always easy and a degree of estimation is often required. The task can be eased bycomparing functions with one another or with value figures that have been used in the past. Ifpossible, actual customer preferences should be used.
Benefits
Some of the major advantages in using Value Analysis can be summarised in the following ideas:
A high customer orientation, focusing on those aspects of the product/service that bettersatisfy customer needs.
11/8/2015 value analysis
http://eu.wiley.com/legacy/wileychi/innovate/website/pages/atoz/valueanalysis.htm 7/7
Cost reduction by eliminating functions that do not supply specific advantages to satisfycustomer requirements/needs.New ideas that arise from the creativity/innovation phase and may add radical changes andtherefore competitive advantages that will be regarded by the market.A new systematic mentality to be taken into account for next designs of new products or tosystematically improve the existing ones.
Watch out for
The problems that may arise during the application of Value Analyses can be of different nature. Inorder to arrive to a successful completion of the process, one has to bear in mind the following 'rules':
Avoid making generalizations and superficial statements. It is important to be precise at everymoment.Collect, determine and examine all costs involved. Only when one is costs conscious it will bepossible to determine the value of the thing being assessed.Make use of information from the best possible sources.Create, invent, and … refine.Be aware of the barriers and shortcomings that might impact the development, and overcomethem.Make use of functional objects from the company's suppliers. Any major function is providedby a set of secondary ones.And many others in line with the new approaches to product/service development.
