Kindle Notes & Highlights
Created for one specific purpose–the identification of unnecessary costs–value analysis is a system, a complete set of techniques, properly arranged, for the sole purpose of efficiently identifying unnecessary cost before, during, or after the fact.
It is a disciplined action system, attuned to one specific need: accomplishing the functions that the customer needs and wants, whether these functions are accomplished by hardware, service, a group of people, professional skills, administrative procedures, or other at the lowest cost.
In achieving better value, there are two separate opportunity areas: 1. The identification of costs as unnecessary 2. The decision making which will eliminate the identified unnecessary cost
Value analysis is a problem-solving system implemented by the use of a specific set of techniques, a body of knowledge, and a group of learned skills. It is an organized creative approach that has for its purpose the efficient identification of unnecessary cost, i.e., cost that provides neither quality nor use nor life nor appearance nor customer features.
Quite commonly, 15 to 25 per cent and very often much more of manufacturing costs can be made unnecessary without any reduction in customer values by the use of this problem-solving system in the significant decision areas.
A product or service is generally considered to have good value if that product or service has appropriate performance and cost. Or, by reverse definition, a product is considered not to have good value if it lacks either appropriate performance or cost.
1. Value is always increased by decreasing costs (while, of course, maintaining performance). 2. Value is increased by increasing performance if the customer needs, wants, and is willing to pay for more performance.
This best value is determined by two considerations: performance and cost.
Keeping appropriate performance while securing appropriate cost introduces the value concept.
(Costs are considered “necessary” until another means is known to keep the performance factors without them–then they become “unnecessary.”)
Performance-oriented work is basically centered on using resources to accomplish new functions which are desired or needed by man. Value- oriented work is aimed at accomplishing these preestablished functions using less of the resources of materials and time.
The fighter does not know that his balance is a little off or he would correct it. The champion golfer does not know that his grip is a little too tight. Any system of aid for champions must include means for locating unexpected areas of needed improvement.
Identifying and removing unnecessary cost, and thus improving value, must be done without reducing in the slightest degree quality, safety, life, reliability, dependability, and the features and attractiveness that the customer wants.
The value analysis approach requires, first of all, that valid and complete answers be developed for the following five questions: 1. What is the item or service? 2. What does it cost? 3. What does it do? 4. What else would do the job? 5. What would that alternative cost?
Secondary functions are those functions required to cause or allow the designer’s choice of means for accomplishing the basic functions to do so effectively.
