1. VALUE ANALYSIS IT IS A SYSTEMATIC PROCEDURE FOR THE EFFICIENT IDENTIFICATION OF UNNECESSARY COSTS (Costs which provides neither quality, nor life, nor appearance nor customer features). IT PROVIDES THE DESIRED FUNCTION AT THE LOWEST COST

2. TYPES OF VALUES USE VALUE IS THE PRICE THE PURCHASER WILL OFFER TO ENSURE THAT THE PURPOSE OR FUNCTION IS ACHIVED ESTEEM VALUE THE PRICE WHICH IS OFFERED FOR THE OWNERSHIP( ATTRACTIVENESS) EXCHANGE VALUE = USE VALUE + ESTEEM VALUE COST VALUE IS THE SUMOF ALLTHE COSTS (LABOUR, MATERIAL AND OTHER COSTS) INCURRED IN PROVIDING THE PRODUCT OR SERVICE

3. STEPS OF VALUE ANALYSIS 1. SELECT THE PRODUCT TO BE ANALYSED 2. RECORD THE NUMBER OF PARTS

4. PRODUCT FUNCTION Mirror Reflect Light Brake Arrest Motion Light Bulb Emit Light Lighter Provide Ignition Coffee Cup Hold Liquid 3. IDENTIFY THE FUNCTION OF EACH PART

5. VALUE TESTS 1. IS IT POSSIBLE TO ELIMINATE THE PART? 2. CAN YOU PURCHASE IT AT ALOWER COST? 3. DOES IT NEED ALL ITS FEATURES? 4. IS THERE ANY ALTERNATE MATERIAL? 5. CAN TWO PARTS BE COMBINED? 6. CAN A STANDARD PART BE USED?

6. STEPS (Contd) 4. NOTE THE COST OF EACH PART 5. FIND OUT ALTERNATIVES FOR EACH PART WHICH WILL PROVIDE THE SAME FUNCTION WITH LESS COST

7. VALUE ENGINEERING VALUE ENGINEERING IS THE APPLICATION OF VALUE ANALYSIS TECHNIQUES AT THE DESIGN STAGE OF THE PRODUCT OR SERVICE