The steps in value analysis are as follows:

1. Selection of Product:

High volume product will give maximum returns (benefits) from value analysis. The factors influencing the selection of the product are:

a) Market research estimated product life.

b) Expected variation in labour and material cost throughout the expected life of the product.

c) Changes in trading conditions.

d) Time and cost to modify tooling, carry out fields tests.

e) Cost effect of increased inventory, interchangeability and spares.

f) Overall cost to make the change and likely savings.

2. Information Gathering:

All the relevant information is to be collected before the team meets for the session. People will be very much tempted to make decision on mere opinion, if all the facts are not available. This goes against the very basis of value analysis.

The following information will be needed:

• All drawings and specification.

• All cost details.

• Machining and assembly details.

• Features preferred by customers.

• Supply details.

• Failure details and service records.

• Quantities involved.

• All manufacturing details.

• Any other relevant information pertaining to the product.

3. Definition and Analysis of Functions:

Function is that which a product does in order to work or sell.

The expression of all functions must be accomplished in just two words, a VERB and NOUN.

The two words definition of functions helps to state with clarity the function performed by a product or part. This helps to break the problems into simplest elements. Faulty communication and misunderstanding is reduced by defining the function in two words.

Example:

The functional approach is applied to the whole product, subassemblies and then individual components. Any deviation from this sequence leads to the analysis of only part of the function. The analysis of subassembly may lead to the elimination or combination elsewhere.

In the function phase, first step is to identify the functions and their levels as basic and secondary. Second step is to allocate proper cost to the selected functions.