This Instruction provides general information on value analysis, a technique used to evaluate and lower the cost of an item by reviewing the design and function of the item. This information applies to all parts of Procurement.
Value analysis is also a subject covered in many business administration texts.
D. Background Value analysis is synonymous with value engineering. The analysis examines all costs associated with an item to determine if the purchaser is receiving all and only the needed functions at the lowest cost. The costs involved can include those for parts, labor, styling, or services. By purchasing the capabilities needed, the purchaser can benefit significantly. Procedure A. Definitions 1.