Value analysis involves identifying product function (s) relating to cost and price analysing the design and construction with an eye for eliminating elements not contributing to function.
Value analysis evaluates a product utility, esteem and market values, each of which are defined below :
Utility value – how useful / functional the product is seen to be.
Esteem value – the value that customer / user gives to product attributes, not directly contributing to utility but more relating to aesthetic and subjective value. Esteem issues and functionality should not be overlooked or compromised.
Market value – what market is prepared to pay for the product.
Market value = Utility value + Esteem value
Objectives of VA
The VA / VE objectives is to find and improve on value mismatches in products, processes and capital projects.
Find important functions – define necessary versus un – necessary functions
Find and improve on low performing functions.
Define and segregate the necessary functions from the unnecessary functions and thereby creatively develop alternative means of accomplishing the necessary functions at lower total (life cycle) cost.