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Cost of product functions using analysis of value

Parv L.

Production Engineering Archives

2016

Vol. 12, No. 3

14--18

The value of use is a specific notion but of a great generality that makes the product be regarded as a complex system that transforms itself in time, thus undergoing evolution. Therefore, the product is important not in itself, but for the sake of the requirements it satisfies and for the functions it provides. In the analysis of value there are connections of a technical nature that implicitly lead to connections of an economic nature. Thus, the method of the ”analysis of value” will actually examine the cost of product functions, the aim of the method being the balance of functions costs on the basis of their importance for the product. Identifying the functions represents one of the important stages of the analysis of value. The difficulty in fixing the functions derives from the fact that there are not any rules clear enough for this activity, but only principles.