Evaluate Cost Value Relation

Explanation

Use this function to Evaluate Child Part Costs and their relative importance. The Value Index Chart gives an opportunity to evaluate the Cost/Importance relation for the structure. In the tab Feature to Function Ranking, you assess the importance grade for each feature to relevant child parts, until the Remaining to assess field is zero.

Now, it is possible to view the Value Index Chart, where you can choose between different Q Values (optimal value = 0). The optimal value describes the situation where the ratio deviation between cost and importance is as close to one (1) as possible. If this quota (Value Index) is greater than one, it implies that Importance is greater than Cost. The other way around (the quota is less than one), means that Cost is greater than Importance, and a cost reduction might be required.

Cost Value Analysis (CVA) is a model where costs in a part structure can be analyzed in relation to customer and functional values. Each part of interest in a structure is defined under a top level part (e.g. product) and attached to specific Customer Requirements. The benefit of CVA is that cost reductions can be analyzed and compared to quality and functional aspects.

Prerequisites

Total costs must have been calculated.

System Effects

There are no systems effects.