Supply Chain Value Analysis

Abstract

Value analysis is like little Tommy's definition of salt, he said, "Salt is what spoils the potatoes if you leave it out!" Value Analysis is what spoils the Value if you leave it out (Miles, 1954). The value of a product or service is recognized according to the appropriateness level of its performance and cost. It can almost truthfully be said that, by this definition, value can be increased by either increasing the performance/function or decreasing the cost. It is important to create a value culture in organizations, through methods such as Value Analysis (VA).  In this paper we intend to provide a better knowledge of value analysis and suggest possible ways of its application.