Cost Value Analysis - Exercises

Basic Data Setup

Prepare for Cost Value Analysis in Manufacturing Standards

Purpose: The purpose of this exercise is to show you how to set up the basic data required for cost value analysis.

Windows:
Manufacturing Standard Basic Data/Value Analysis Function
Product Structure

  1. Open Manufacturing Standard Basic Data window and go to Value Analysis Function tab.
  2. Populate the window and see the value analysis functions already defined.
  3. Open the Product Structure window. Query for a record in your site. 
  4. Go to Product Structure tab. Assign a value analysis function to your part structure using the List of Values.
  5. Select one of the value analysis function types listed in the table below.
Value Analysis Function Type Description
Main This is the most essential function of the part.
Partial When combined with other functions, this function comprises the main function of the part.
Support The part could work without this function.

Prepare for Cost Value Analysis in Basic Data for Costing

Purpose: The purpose of this exercise is to show you how to prepare for cost value analysis. 

Windows:
Costing Basic Data/CVA Importance
Costing Basic Data/Customer Requirement/Product Feature

  1. Open Costing Basic Data window. Go to CVA Importance tab.
  2. Enter CVA importance as a ranking table with the lowest to the highest score for the lowest to the highest importance.
  3. Go to Customer Requirement/Product Feature tab. Populate the window to see the available customer requirements. If you want, you can create a new record for your own. 

Cost Value Analysis

Purpose: The purpose of this exercise is to show you how to assign a product feature and function ranking to a part and analyze value index chart.

Windows:
Cost Value Analysis

Customer Feature

  1. Open Cost Value Analysis window. Query for the manufactured part used in the previous part of the exercise.
  2. Make sure window header displays cost set as 2 (Estimated Material Coat) and Level Cost and Total Cost fields have values.
  3. Go to Product Feature tab. Create a new record.
  4. Go to the column Customer Requirement. Assign a customer requirement to the parent part using the list of values.
  5. Go to the Customer Importance column. Rank this customer importance for the part using the list of values.
  6. If possible, assign importance for competitors' opinions as well as your own for the fields of Our Importance and Comp Importance. The percentage of total importance is calculated. Information about the remaining values to assess helps you complete the analysis.
  7. Save the information.
  8. If you want to add more customer requirements, repeat steps 3 to 7.

Feature to Function Ranking and Value Index Chart

  1. Go to Feature to Function Ranking tab.
  2. Select one customer feature that was assigned to the parent part, assign a relevant child part (or parts) that carries functions that could be related to the customer feature.
  3. Select a correlation index indicating whether that customer requirement relative to the child part is strong, moderate, or weak.
  4. Go to Assessed Value field. Assign a fraction of the ratio to each child part based on the correlation index until the field Remaining to assess gets zero. Save the information.
  5. Select all other customer features and follow the steps 2 to 4.
  6. Go to the Value Index tab and view the analysis.
  7. Go to Value Index Chart tab. Enter the number of parts to view in the field Show number of parts.
  8. Select a value for the field Q Value (Quota); e.g., 20%, 15%, 10% or 5%. 
  9. Click Refresh to view the chart. Differ most and differ least help you to focus on specific parts. 
  10. Click on a dot to view information about the part.
  11. Change Q Value and Refresh. Observe the changes in the chart and details in the Implied Action column in Value Index tab.