Introduction Of Value Analysis
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WHAT IS VALUE ANALYSIS This report provides a management overview of a ‘process’ known as Value Analysis. Value Analysis (VA) is considered to be a process, as opposed to a simple technique, because it is both an organized approach to improving the profitability of product applications and it utilizes many different techniques in order to achieve this objective. The techniques that support VA activities include ‘common’ techniques used for all value analysis exercises and some that are appropriate under certain conditions (appropriate for the product under consideration), . The VA approach is almost universal and can be used to analyze existing products or services offered by manufacturing companies and service providers alike. For new products, the Value Engineering (VE) approach, which applies the same principles and many of the VA techniques to pre-manufacturing stages such as concept development, design and prototyping. At the very heart of the VA process review is a concern to identify and eliminate product and service features that add no true value to the customer or the product but incur cost to the process of manufacturing or provision of the service. As such, the VA process is used to offer a higher performing product or service to the customer at a minimal cost as opposed to substituting an existing product with an inferior solution. This basic principle, of offering value at the lowest optimal cost of production, is never compromised. It is the principle that guides all actions within the VA process and allows any improvement ideas to be translated into commercial gains for the company and its customers. The VA process is therefore one of the key features of a business that understands and seeks to achieve Total Quality Management (TQM) in all that it does to satisfy customers. For many of the worlds leading companies, including names like Hewlett Packard, Sony, Panasonic, Toyota, Nissan, and Ford, the VA process of design review has provided major business returns. The key to realizing these returns is knowledge, of the customer requirements, the costs of the product, and an in-depth knowledge of manufacturing process and the costs associated with failures due to poor or inadequate product design. All these inputs to the VA process are vital if decisions regarding product and process re-design are to yield lower costs and enhanced customer value.