1. Identifying the function: Any useful product has some primary function which must be identified—a bulb to give light, a refrigerator to preserve food, etc. In addition it may have secondary functions such as withstanding shock, etc. These two must be identified.
2. Evaluation of the function by comparison: Value being a relative term, the comparison approach must be used to evaluate functions. The basic question is, ‗Does the function accomplish reliability at the best cost‘ and can be answered only comparison.
3. Develop alternatives: Realistic situations must be faced, objections should overcome and effective engineering manufacturing and other alternatives must be developed. In order to develop effective alternatives and identify unnecessary cost the following thirteen value analysis principles must be used:
- Avoid generalities.
- Get all available costs.
- Use information only from the best source.
- Brain-storming sessions.
- Blast, create and refine: In the blast stage, alternative productive products, materials, processes or ideas are generated. In the ‗create‘ stage the ideas generated in the blast stage are used to generate alternatives which accomplish the function almost totally. In the refining stage the alternatives generated are sifted and refined so as to arrive at the final alternative to be implemented.
- Identify and overcome road blocks.
- Use industry specialists to extend specialised knowledge.
- Key tolerance not to be too light
- Utilise the pay for vendors‘ skills techniques.
- Utilise vendors‘ available functional products.
- Utilise speciality processes.
- Utilise applicable standards.
- Use the criterion ‗Would I spend my money this way