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Value analysis
Is a formalized technique involving a rigorous analysis of products at the design stage or at any time during the saleable lives, to determine their value characteristics? These are the attributes that a customer looks for in a product and include its use value (functional qualities), appeal value (color, style etc.) and second-hand value (e.g. trade-in-price). The object of value analysis is to build into the product the optimum of desired value at minimum cost, by introducing the most up-to-date designs, materials and methods of manufacture. No more value need be built into the product than is desired by the customer. For example, moulded plastic bumper bars are now fitted to many cars, because they are cheaper than and equally as functional as chromium-plated steel ones.
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