Tool 210: Value Analysis

AKA

N/A

Classification

Analyzing/Trending (AT)

Tool description

The value analysis technique analyzes the functionality of a product, states an estimated cost for each function, and demonstrates a function as compared with that of a competitor's. This technique, therefore, forces an assessment of the manufacturing processes, parts and materials, and design features of a product.

Typical application

• To identify needed product improvements.

• To lower product costs.

• To prioritize product redesign activities.

Problem-solving phase

→	Select and define problem or opportunity
→	Identify and analyze causes or potential change
→	Develop and plan possible solutions or change
→	Implement and evaluate solution or change
	Measure and report solution or change results
	Recognize and reward team efforts

Typically used by

	Research/statistics
	Creativity/innovation
	Engineering
	Project management
	Manufacturing
1	Marketing/sales
	Administration/documentation
2	Servicing/support
3	Customer/quality metrics
4	Change management

links to other tools

before

• Linking Diagram

• Factor Analysis

• Customer Needs Table

• Truth Table

• Selection Window

after

• Influence Diagram

• Cost-Benefit Analysis

• Activity Cost Matrix

• Different Point of View

• Idea Advocate

Notes and key points

• The construction of the value analysis table may reflect a different set of factors.

• The primary concern is to determine functions that have a high cost associated with them. These functions often call for a redesign priority.

• Competitors' superior designs must be considered in all redesign efforts.

Step-by-step procedure

• STEP 1 First, a customer satisfaction survey is completed to collect the customers "wants" or expectations. See example Designing a Better Mouse Trap.

• STEP 2 As the second step, design engineering and manufacturing examine a number of competitors' products. The team checks for improved functionality, superior designs, and innovation.

• STEP 3 A value analysis form is used to list the product's functions and subfunctions. Customer "wants" and competitor data are also filled in.

• STEP 4 For every function and subfunction, the estimated cost and percent of total product cost are recorded.

• STEP 5 The last step determines the functions that are strong candidates for redesign on the basis of cost and competitors' superior designs.

• STEP 6 The completed value analysis form is reviewed, dated, and given to the process owners.

Example of tool application

Designing a Better Mousetrap