Practical sheet | REF: FIC0254 V1

Value-based management

Author: Olaf DE HEMMER

Publication date: September 10, 2011 | Lire en français

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3. "What does it cost? analyze costs

In an MV project, as in any value analysis aimed at reducing the costs or resources implemented in a solution to meet needs, we look to see whether the elements generating costs are indeed directly involved in meeting the expected performance: if not, we try to eliminate them; if so, to find alternatives.

The procedure for establishing the cost structure of the solution under study, allocating component costs to the relevant functions and calculating the sum of costs for each function is presented in the value analysis sheet.

Since an MV project often targets one or more processes, we will most often carry out an "internal process functional analysis", as described in the sheet on value analysis ( cf . Functional analysis: describing a need to define a solution

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