Value Analysis

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Value analysis.

This seeks to change the formulation of the product in such a way as to improve the performance, or at the least to hold it constant, while reducing the cost The intrinsic worth of each component part of a product and the function it has to perform is questioned and analysed. Typically, most products are made of some materials that are scarce or costly. The replacement of these materials by a lower grade or cheaper alternative may horrify the engineers or production executives, but if it does not affect the performance of the product in relation to the customer's expectations, then the company has little cause to worry about the change.

The value analysis technique has been developed to great lengths in the past few years, encouraged by pressures on company profit margins. A little care needs to be exercised over its continuous application since, though one small modification may not be felt, the cumulative effect of a series of modifications may be detectable within the product performance.

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