Value Analysis – Bringing the Cost down without reducing the Project Scope

value analysis

Value Analysis is a term that is often used in Value Engineering. Value Engineering is defined as,

The modification of designs and systems according to value analysis

The next question would then be – What is Value Analysis? From definition point of view, Value Analysis is,

An activity devoted to optimizing cost performance

In simpler terms, it is an activity that looks into reducing the overall cost of the project without impacting the scope. There are 4 steps to make this happen,

  1. Identify functions
  2. Establish values for those functions
  3. Brainstorm on how to provide the function at lowest overall cost
  4. Quality shouldn’t go down

Don’t forget to watch the video for explanation with examples.

Check out more articles on Cost Management

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