1. Value analysis was created back in the 1940s during World War II. Raw materials were scarce, yet we had millions of soldiers and allies counting on us to produce the products we needed to sustain the war effort.
2. Value analysis was created by a Value Engineer at General Electric named Larry Miles. Larry is universally known as the Father of Value Analysis and his namesake foundation still does great work today.
3. Value analysis is all about product function. Larry Miles realized that products are to provide a function to the purchaser and quickly focused his value analysis efforts on the study of function as the foundation for value analysis.
4. Value analysis began in healthcare in the early 1980s. DRG reimbursement came into effect, and hospitals now had to become more cost effective. Value analysis was looked at to help stem the tide of expensive products. Innovative Materials Managers started value analysis committees for this purpose.
5. Value analysis and value engineering are universally utilized in many industries, from major construction projects such as bridges and buildings to the manufacturing of goods and services. Major companies such as Toyota, NASA, GE, U.S. Corps of Engineers, and Siemens utilized value analysis.
6. Value analysis prescribes many methods to understand the products, services, and technologies your organization needs. Benchmarking, SWOT analysis, Pareto analysis, and risk management are major components of the functional method of a value analysis study.
7. Value analysis is one of the most misinterpreted terms in business today. Because of the synergy between the two words value and analysis, VA is defined and redefined every day in every industry to mean something different to the person defining the term. Why not look to the origins of VA instead of trying to redefine the meaning of VA?
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