Basic
what exactly is value analysis
A systematic process of examining a product or service to improve its value by reviewing its functions and costs.
A bakery buys fancy boxes that most customers throw away. What should it consider?
Improving the packaging by using simpler, less expensive boxes for everyday orders.
Name one way a business can reduce electricity costs.
Use energy-efficient equipment, switch off unused appliances or improve energy management.
What is one example of a cost that can create customer value?
Quality ingredients, reliable delivery, useful packaging or good customer service.
What is the difference between value analysis and cost optimization?
Value analysis examines functions and costs to improve value; cost optimization focuses on managing costs while maintaining needed performance.
What is cost optimization
Finding ways to manage and reduce costs while maintaining the required quality and performance.
A company pays for software nobody uses. What should it do?
Review and cancel unnecessary subscriptions.
What is one benefit of bulk purchasing?
It may reduce the cost per unit and lower ordering costs.
Why should a business avoid cutting costs that customers value highly?
It could lower quality or service, causing dissatisfaction and loss of customers.
A product's cost falls, but customer complaints rise. What should management investigate?
Whether the cost reductions affected product quality, service or another feature customers value.
What does customer satisfaction mean?
How well a product or service meets or exceeds customer expectations
A restaurant considers replacing fresh ingredients with cheaper ones. What should it check first?
Whether the cheaper ingredients will affect product quality and customer satisfaction.
What is a disadvantage of buying too much inventory?
It ties up money, takes up storage space and may lead to spoilage or obsolescence
What is a trade-off in cost optimization?
A choice where reducing one cost may involve giving up some benefit or accepting another cost.
Why is the cheapest supplier not always the best choice?
Lower prices may come with poorer quality, unreliable delivery or higher costs elsewhere.
What is a function in value analysis?
The purpose or job that a product, service or process is meant to perform.
A business leaves lights on in empty rooms. Name one cost-saving improvement
Switch off unused lights or install energy-efficient lighting.
What is a budget used for?
Planning and controlling expected income and expenditure.
A shop cuts its opening hours to save wages. Name one possible customer impact.
Customers may have fewer convenient opportunities to shop.
Give one way to protect profit margins during inflation without simply raising prices.
Reduce waste, improve efficiency, negotiate supplier terms or optimize processes
What is the main goal of value analysis?
To achieve the required function and quality at the lowest overall cost without losing customer value.
A business wants to cut staff training to save money. What is one possible risk?
Lower employee skills, more mistakes, reduced productivity or poorer customer service.
During inflation, why might a business review its suppliers?
To compare prices, terms and quality and find ways to manage rising input costs.
How can a business find out which product features customers value?
Use surveys, feedback, interviews, reviews or sales data.
A business wants to remove a product feature to save money. What should it do before deciding?
Assess the feature's purpose, customer importance, cost and impact of removing it.