Value Analysis (VA)

Effective value analysis greatly improves the grade and degree of purchasing work and efficient execution of certain purchasing activities greatly improve the degree and amount of value analysis accomplishments (Miles).

Information about Value Analysis (VA)

One of the earliest writers on the subject of value analysis was Lawrence D. Miles who, in his book Techniques of Value Analysis and Engineering, described value analysis as "a philosophy implemented by the use of a specific set of techniques, a body of knowledge, and a group of learned skills" and as a "creative approach which has for its purpose the efficient identification of unnecessary cost, i.e. cost which provide neither quality, nor use, nor life, nor appearance, nor customer features" (Miles, 1972).

Miles helped shape the value analysis approach shortly after the Second World War and was driven by the material shortages which were a serious issue for companies engaged in the war effort. During his time at General Electric, Miles was credited with having saved the company around US$200m over 17 years (Khanna, 2008). Since this time value analysis has been adopted by many organisations around the world as a means of reducing costs without comprising on product quality, functionality, performance and aesthetics.

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