Evaluate Cost Value Relation

Explanation

Use this function to Evaluate Child Part Costs and their relative importance. The Value Index Chart gives an opportunity to evaluate the Cost/Importance relation for the structure. In the tab Feature to Function Ranking, you assess the importance grade for each feature to relevant child parts, until the Remaining to assess field is zero.

Now, it is possible to view the Value Index Chart, where you can choose between different Q Values (optimal value = 0). The optimal value describes the situation where the ratio deviation between cost and importance is as close to one (1) as possible. If this quota (Value Index) is greater than one, it implies that Importance is greater than Cost. The other way around (the quota is less than one), means that Cost is greater than Importance, and a cost reduction might be required.

Prerequisites

Total costs must have been calculated.

System Effects

There are no systems effects.

Window

Cost Value Analysis

Related Window Descriptions

Cost Value Analysis

Procedure

1. Assign functional description for Value Analysis Function ID and Type in Part’s Structure (Add Value Analysis Function ID and Description in  Manufacturing Standard Basic Data/ Value Analysis Function tab).
2. Assign Customer Requirements to Parent Part number.
3. Assign Rank interval.
4. Rank each Customer Requirement relation to Parent Part. Calculation will give Customer Requirement Ratio.
5. Relate each Customer Requirement to a Child part by giving correlation index(Strong, Moderate or Weak)
6. Distribute Customer Requirement Ratio according to correlation index to Child Part. The total of all added ratio gives Relative Importance.
7. Evaluate Value Index Chart.
8. Proceed with definition of Action Plan how to adjust cost or value discrepancies.