This document discusses value analysis (VA), which is a systematic process for improving value through cost reduction and identification of unnecessary costs. It was developed in the US after World War II to analyze the functions of systems, materials, and processes. The VA process examines design, functions, and costs to identify ways to reduce costs without compromising quality or usefulness. It uses a 7-step approach including selection, analysis, innovation, evaluation, and implementation. VA focuses on understanding customer needs and eliminating unnecessary functions to improve value and profitability.

1. Jereena Manalaysay-Cruz
MaEd – Social Studies

2. Noun
1. the regard that something is held to deserve;
the importance, worth, or usefulness of
something.
2. a person’s principles or standards of behavior;
one’s judgment of what is important in life

3. Verb
1. estimate the monetary worth of (something)
2. consider (someone or something) to be
important or beneficial; have a high opinion
of

4. •It was developed in
the US after the
Second World War
in 1947 by Lawrence
Miles, Jerry Leftow
and Harry Erlicher at
General Electric.

5. •Value analysis is the
study of the relationship
of design, function and
cost of any material or
service with an object of
reducing its cost through
modification of design or
material specifications,
manufacture by more
efficient process.

6. •It is an approach
to improving the
value of an item
or process by
understanding its
constituent
components and
their associated
costs.

7. •VA process is based on the application of a
systematic workplan that may be divided into 7
steps:
1. Selection and orientation
2. Analysis
3. Recording ideas
4. Innovation and creativity
5. Evaluation
6. Recommendation
7. Implementation and monitoring

8. •This is done to select the critical
areas where a potential for
cost-reduction is expected.
•In this stage, Pareto’s ABC
analysis is commonly used.
•The general scope, restrictions
and aims of the study is
defined.

9. •This is usually done to examine
the data presented during VA
meetings.
•The minutes of each
brainstorming session should
always be recorded.
•Tests for value should be
applied.

10. •The minutes of VA meetings
should be properly recorded
and widely disseminated
among team members for
clarifications and queries.
•It also includes the agenda for
the next VA session.

11. •VA meetings should be
regularly scheduled to discuss
the ideas analyzed and newly-
obtained information from
team members.
•Practical measures for cost-
reduction and value increase
are considered during this
stage.

12. •Investigate suggestions for
reducing costs and to make
them practical and
acceptable to client
management.
•Obtain definite prices and costs
in order to estimate cost
reductions accurately.

13. •Recommend cost reductions to
client management.
•Present the recommendations
in a comprehensive report.
•Recommend a member to act
as an implementation
consultant for VA
recommendations.

14. •Implement the
recommendations accepted
by the company management.
Monitor the results as suggested
in VA report.
•Jot down the feedback of the
management upon
completion of VA assignment.

15. A high customer orientation, focusing on those
aspects of the product/service that better
satisfy customer needs.
Allows enormous cost reductions by eliminating
functions that do not satisfy customer
requirements/needs.
VA improves profitability of products.

16. New ideas that arise from the
creativity/innovation phase, may add radical
changes.
VA provides a process to systematically
improve the existing goods and services. It
builds value into a product or service.
VA process is used to offer a higher performing
product or service to a customer at a minimal
cost.

17. VA process often allows to root out practices
that have grown out of date and can be
replaced with more modern approaches.
VA can uncover design flaws that not only
operate inefficiently but also create problems.

18. Collect, determine and examine all costs
involved – only when one is cost conscious, will
it be possible to determine the value of the
thing being assessed.
It is possible that two different VA consultants
may give different sets of recommendations still
both be correct.

19. Thank You!