VA/VE Function Analysis

VA/VE function analysis is a problem-solving methodology that uses two distinct processes to optimise the value of a product or service. VA stands for Value Analysis. VE stands for Value Engineering. The difference between them is the point when they are applied in the production process.

Value Engineering is applied during product development. It is conducted before any significant financial investments. Value Analysis happens after product development. It focuses on existing products or services.

Both practices share the same goal: improving value. Value is defined, in this context, as the ratio of function to cost. VA/VE provides significant benefits, including:

• Reducing costs, but not quality.
• Increasing revenues and profits.
• Increasing the value to the customer.
• Attracting more customers.

What is Function Analysis?

Function Analysis forms a significant part of the VA process. Basically, it is a process to identify and understand the needs of a product or service. It asks two basic questions: 1) What does it do? and 2) What does it need to do?

During Function Analysis, a product is broken down. Its functions are listed. The analysis aims to find out the importance customers place on each function. There are several methods used to identify functions:

• Brainstorming
• Environmental analysis
• Process mapping
• Movements and effort analysis

Function Analysis can be defined an analysis of the relationship between product functions, their perceived value to the customer and their cost.

What stages does it follow?

Function Analysis needs to follow a systemic approach to be effective. A popular model identifies nine stages:

1. Choose the object of analysis (product or service).
2. Assemble a Function Analysis team. The people on the team should come from different departments.
3. Gather information. Include information from both inside and outside the organisation.
4. Define the functions of the object. The main stage. The various functions of the product should be defined in terms of a verb and a noun (e.g. “put colour”). Functions should be classified as basic or secondary in terms of their importance.
5. Draw a functional family tree. Arrange functions in a logical diagram.
6. Evaluate the functions. Estimate the relative value of each function to a total target cost. Work from the customers’ point of view.
7. Suggest alternatives and compare with the target cost.
8. Choose which alternatives to implement.
9. Review the results. An immediate review will prevent over-optimistic assessments and provide feedback to improve future function analyses.

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