This document discusses value analysis, including its history, definitions, methodology, and applications. It began as a technique developed by General Electric during WWII to deal with material shortages by finding substitutes that had better or equal performance at lower cost. Value analysis is defined as identifying unnecessary costs that provide no quality, use, life, appearance or customer value. It aims to increase a product's value by determining its functions and developing alternatives to improve utility in a planned process.

1. Application Number:
Name: Dr. A. Kalyani
Asst. Professor
Siva Sivani Institute of Management
Course Name: Academic Writing
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2. Dr. A. Kalyani
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3. Methodology to increase the value
of an object. The object to be
analysed could be an existing or a
new product or process, and it is
usually accomplished by a team
following a work plan.
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4. History
Lawrence D. Miles
 Shortage of materials during world war II.
 General Electric Company found that many of the
substitutes have better or equal performance at less cost.
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5. In 1961, Lawrence D Miles in his book
'Techniques of Value Analysis Engineering'
defined Value Analysis as "an organized
creative approach which has its purpose,
the efficient identification of unnecessary
cost i.e. cost which provides neither quality
nor use nor life nor appearance nor
customer features."
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7.  Value is the lowest price you must pay to provide a reliable
function or service (L.D. Miles).
 It is the ratio of function to cost
Value = Function
Cost
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8. Function identifies the
characteristics which make the
product/ component/ part/ item/
device work or sell.
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9. 1. Utility Value
2. Esteem Value
3. Cost Value
4. Exchange value
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11. 1. Primary Function
2. Secondary Function
3. Tertiary Function
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12. 1. Company’s products show decline in sales
2. Company’s prices are higher than those of its competitors
3. Raw materials cost has gone up suddenly
4. New designs are being introduced
5. The firm is unable to meet its delivery commitments
6. Rate of return on investment has a falling trend
7. The cost of manufacturing is rising disproportionate to the volume of
production
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13.  Machine tool industries,
 Industries making accessories for
machine tools,
 Auto industries and
 Import substitutes
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14. Identify the product for value analysis
Gather the information related to the product
Determine the various functions of the product
Develop various alternatives to increase product utility
Evaluate and assess various alternatives
Develop a plan for the best alternative
Execute the best alternative
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15. • It is a less expensive technique
•Value Analysis is a much faster cost
reduction technique
• Reduces production costs and adds
value to sales, income of the product
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