What is value analysis and how is it typically conducted?

What will be an ideal response?

Answer: Value analysis (VA) is a process that involves examining all elements of a component, an assembly, an end product, or a service to make sure it fulfills its intended function at the lowest total cost. The primary objective of value analysis is to increase the value of an item or a service at the lowest cost without sacrificing quality. In equation form, value is the relationship between the function of a product or service and its cost:
There are many variations of function and cost that will increase the value of a product or service. The most obvious ways to increase value include increasing the functionality or use of a product or service while holding cost constant, reducing cost while not reducing functionality, and increasing functionality more than cost (e.g., offering a five-year warranty versus a two-year warranty with no price increase raises the value of a product to the customer).
A common approach for implementing value analysis is to create a VA team composed of professionals with knowledge about a product or service. Many functional groups can contribute to the value analysis team, including engineering, marketing, purchasing, production, and key suppliers. Value analysis teams ask a number of questions to determine if opportunities exist for item, product, or service improvement. Some typical questions include the following:
Is the cost of the final product proportionate to its usefulness?
Does the product need all its features or internal parts?
Is there a better production method to produce the item or product?
Can a lower-cost standard part replace a customized part?
Are we using the proper tooling, considering the quantities required?
Will another dependable supplier provide material, components, or subassemblies for less?
Are there equally effective but lower-cost materials available?
Are packaging cost reductions possible?
Is the item properly classified for shipping purposes to receive the lowest transportation rates?
Are design or quality specifications too tight, given customer requirements?
If we are making an item now, can we buy it for less (and vice versa)?