Examples of the Value Analysis (2024)

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When to use it | How to understand it | Example | How to use it | Practical variations

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Example

A product manager at a company that produced nails had received several requests from customers for a nail that could not work loose. Identifying this 'improved nail' as a possible new product line, he decided to do a Value Analysis to help identify costs and values.

Working with a major customer in the building industry, he first identified the basic function and measure of an ideal nail as holding two 1cm battens together, such that when the battens were twisted, the wood would break before the nails moved.

With an engineering team, this was broken down into secondary functions, which were evaluated and related to components and costs asbelow . During this process, the concept of how the nail gripped the wood was discussed. They brainstormed alternative ways of gripping wood, and an engineer, who was also an amateur fisherman, came up with the idea of putting barbs on the nails.

The initial prototype was partially successful, but did become a little loose after a period. Spiral barbs helped, and straight barbs on the top of the nail resulted in the nail being locked in place by the final hammer blow.

The solution was produced as a specialist nail, and sold well at twice the price of a normal nail, more than covering the increased production costs.

Examples of the Value Analysis (1)

Fig. 1. Example Value Analysis

Other examples

  • An engineer in a motor manufacturer does a Value Analysis on the motor casing and the process used to build it. He finds three different sizes of nuts and bolts used, with significant time taken to insert and tighten them. A redesign of the casing changes this to use one size of bolt with threaded bolt holes, which removes the need for nuts. The result is a savings in both material costs and assembly time.
  • A marketing manager for a washing-up liquid analyzed the liquid bottle and its use. She discovered that the bottle became slippery when liquid dribbled down the side of the bottle. The shape of the bottle and the spout were both changed to improve grip and reduce dribble. Without any additional advertising, sales of the product subsequently went up by 2%.
  • A receptionist, aiming to improve the process of welcoming guests, first determines the basic functions of relaxing guests and finding the objective of their visit. She then identifies her process for achieving these and brainstorms possible improvements. By experimenting with several approaches over two months, she finds the manner and questioning technique that best achieves her objective.

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Examples of the Value Analysis (2024)

FAQs

Examples of the Value Analysis? ›

Value analysis example

How do you write a value analysis? ›

5 Value Analysis Steps
  1. Gather information. During this step, the main aim of your team is to understand the purpose of a project. ...
  2. Determine and analyze the function of a project. ...
  3. Generate new ideas for improvement. ...
  4. Evaluate these ideas and develop them. ...
  5. Present improvements.

What are the types of value analysis? ›

In the field of value investigation, value refers to economic value, which itself can be sub-divided into four types as cost value, exchange value, use value and esteem value. ADVERTIsem*nTS: “Cost Value” is the measure of sum of all costs incurred in producing the product.

What is an example of earned value analysis? ›

Eearned Value = Percent complete (actual) x Task Budget.

For example, if the actual percent complete is 50% and the task budget is $10,000 then the earned value of the project is $5,000, 50% of the budget provided for this project.

What are the 6 steps of value analysis? ›

The 6 stages of the Value Engineering process
  • Step 1: Information gathering. The Value Engineering process starts by examining every part of your product's lifecycle to identify its cost elements. ...
  • Step 2: Creative thinking. ...
  • Step 3: Evaluation. ...
  • Step 4: Development. ...
  • Step 5: Presentation. ...
  • Step 6: Implementation.
Jun 22, 2023

What is an example of value analysis? ›

Value analysis example

This analysis includes the manufacturing process cost and proposes ways to increase value or function at the existing cost or remove cost while preserving function and quality. Optimizing a plastic bottle closure design is an is an example of VA.

What is the values analysis approach? ›

The analysis approach to values education was developed mainly by social science educators. The approach emphasizes rational thinking and reasoning. The purpose of the analysis approach is to help students use logical thinking and the procedures of scientific investigation in dealing with values issues.

What is the primary focus of value analysis? ›

The goal of value analysis is often to review an existing set of costs and benefits with the intention of enhancing its value. While value engineering occurs earlier to prevent value loss, value analysis occurs after-the-fact and may be used to remediate product deficiencies.

What is value analysis also known as? ›

Value Analysis (VA), also known as Value Engineering (VE) and Value Management(VM), is a systematic and function-based approach to improving the value of products, projects, or processes.

When to apply value analysis? ›

Value Analysis can be used at any time during the development or review of a project, product, or process. Studying a project early in its development provides the greatest opportunity for change, however, the details, and costs of the solution may not yet be well defined.

What is an example of a planned value analysis? ›

In the simplest example, you may have a project that takes one year and has a budget of $200,000. At the three-month mark, you expect to have completed 25% of the work and spent $50,000: (Expected Completion Percentage/100) x Project Budget = Planned Value (PV) (25/100) x $200,000 = $50,000.

What is the 50 50 rule in project management? ›

With the 50/50 rule, managers assess 50% of a project's value at the start and 50% when it's complete. So, for example, if a project team is working on a fence that goes around an entire property, they can use their progress on the first portion of the fence to expect their total time and spend.

What is cost and earned value analysis? ›

Earned Value is also called Budgeted Cost of Work Performed (BCWP). Planned Value (PV) is determined by the cost and schedule baseline. Actual Cost (AC) is determined by the actual cost incurred on the project. Earned Value (EV) tells you, in physical terms, what the project accomplished.

What are the different types of value in value analysis? ›

Four kinds of value: esteem, exchange, cost and use values (Folders #: 317-321).

What does value analysis seek? ›

Value analysis helps businesses identify the core function of a specific product or service. Value analysis is quite thorough, with managers often seeking to explain the functions of all items and resources.

What are the aims of value analysis? ›

Value Analysis is a standardized, multi-skilled team approach which aims at identifying the lowest cost way and ensuring the highest worth to accomplish the functions of a product, process or service.

What is a short note on test for value analysis? ›

Brief Note on Value Analysis

It involves a systematic review of the design and production of a product to identify areas for improvement and cost savings, and can be applied to both existing and new products. The goal is to provide the same or better performance at a lower cost.

How do you write a good analysis? ›

How to write an analysis
  1. Choose your argument. The first step is to determine the argument you are making. ...
  2. Define your thesis. Once you have your argument, you can begin crafting your thesis statement. ...
  3. Write the introduction. ...
  4. Write the body paragraphs. ...
  5. Add a conclusion.

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