Lawrence Miles Value Analysis Matrix

3.0 VALUE ANALYSIS

3.1 Introduction

Lawrence Miles conceived of Value Analysis (VA) in the 1945 based on the application of function analysis to the component parts of a product. The technique simultaneously pursues two complimentary objectives:

•Maximizing the utility provided by the product or service

•Minimizing or eliminating waste.

3.2 Definition of Value Analysis

Value Analysis can be defined as a process of systematic review that is applied to existing product designs in order to compare the function of the product required by a customer to meet their requirements at the lowest cost consistent with the specified performance and reliability needed.

3.3 Key Point And Elements of Value Analysis:

a) Value Analysis (and Value Engineering) is a systematic, formal and organized process of

Once this is done, the functions of the product and its items are derived. These functions are classified into "basic" and "secondary" functions. A Cost Function Matrix or Value Analysis Matrix is prepared to identify the cost of providing each function by associating the function with a mechanism or component part of a product. Product functions with a high cost-function ratio are identified as opportunities for further investigation and improvement. Improvement opportunities are then brainstormed, analyzed, and selected.

3.6 Example of Value Analysis

Suppose a housewife is out shopping for vegetables. There are four varieties of tomatoes to choose from, costing Rs.15 ,Rs.20,Rs.25 and Rs.30 respectively. Which will she buy? Quality? All are of good “quality.” price ? Obviously not. Then the vegetable vendor won‟t be able to sell the other three qualities.

3.7 Purpose of value analysis

• Elimination of an item altogether i.e. identifying its unnecessary costs .

• Utilization of standard components of cost reduction.

• Examination of all features of an