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Value analysis

Value analysis examines the functions a product or service must perform and how to provide those functions at appropriate whole-life cost. It challenges unnecessary features, materials or processes while preserving what the customer or stakeholder values. It is not simply selecting the cheapest input or cutting quality. Consider acquisition, operation, maintenance and disposal consequences and distinguish genuine value improvement from transferring cost to another part of the system.

Worked example

A component’s finish can be simplified without affecting required durability or appearance, saving $2 per unit and reducing waste.

Common mistake

A cheaper design is not better value if failure, maintenance or customer dissatisfaction costs rise by more.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA APM Supporting September 2026–June 2027
ACCA MA Direct September 2026–June 2027
FIA FMA Direct September 2026–June 2027