value analysis


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value analysis

or

value engineering

the evaluation and review of a product's DESIGN, with the aim of reducing its material or manufacturing cost without impairing its function or performance. By examining all a product's components and their manufacture it may be possible to identify cheaper raw materials to replace expensive ones, or opportunities to reduce the degree of precision with which components are made. See CONCURRENT ENGINEERING, LEAN MANUFACTURING.
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CIMA's official definition is that value analysis is a "systematic interdisciplinary examination of factors affecting the cost of a product or service, in order to devise means of achieving the specified purpose most economically at the required standard of quality and reliability".
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Value analysis is a methodology that concentrates on optimization of product value.
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Gerry Marsh is the founder and a principal of Ernst & Young's High-Tech Analyst Group, a management consulting firm specializing in shareholder value analysis.
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By leveraging a combination of supply chain and clinical outcome data and by enabling collaboration, Premier members can address the inefficiencies in their current value analysis process to leverage alliance-wide knowledge in ways not possible in the past.
Premier Healthcare Alliance, 26 Member Hospitals Make 2010 InformationWeek 500 List
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When hospitals are challenged to take costs out of the system, a streamlined value analysis process is crucial to balancing clinical attributes, quality outcomes and appropriate usage with the best financial scenario specific to an organization," said Bill Marquardt, Premier vice president of product development and adoption.
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The Premier healthcare alliance has introduced a new value analysis solution to help hospitals effectively evaluate product and treatment options to improve quality and safety while reducing costs.
Premier Healthcare Alliance Launches Value Analysis Solution to Help Hospitals Better Connect Staff, Achieve Quality Improvements and Cost Savings

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