Learn about Functional Analysis, a technique used to reduce the cost of products. Learn what a functional analysis is, why it works, and how to do it. From Ahead Consulting - http://www.aheadconsulting.com/functional_analysis.htm

1. Functional Analysis Ahead Consulting – www.aheadconsulting.com – (562) 277 5608

2. Definition Function Analysis is the process of associating cost with each function of the product, as well as analyzing the value of each of those functions to the final customer.

3. Why do a Functional Analysis? Functional Analysis is a cost reduction technique used to shift the focus from the cost of each component to the cost and the value of each function of the product. It leads to a better product with a higher value to the customer while reducing its cost.

4. What is a function? A function answers the question: “What is the task to be done?“ Even though a product would seem to have one main function, it can be broken down into several basic functions required to achieve the main function. For example, a coffee machine has the following functions: store water, heat water, brew coffee, store coffee, and keep coffee warm.

5. Example Extract from - cost reduction analysis software This cost vs value chart highlights the functions that offer a low value to the customer but are expensive to produce (Function 4) Such functions need to be looked at and a lower cost solution should be offered or they sould be eliminated as it won’t affect the customer much. Functions that have a high value and a high cost should be looked at differently. The cost reduced function must achieve the same performances as it greatly impacts the customer.

6. Performance Requirements Once the functions have been sorted as “reduce cost”, “eliminate”, or “develop”, the next step is to look into performances requirements for each of them. List specific performance requirements and their numerical values. Example: a coffee maker Review each requirement and identify any actual performance that is higher than what is required to ensure the proper satisfaction level to the customer. For example, the “Store water” function of the coffee maker is over designed as it can store 100oz of water when only 88oz are needed to satisfy the customer.

7. For more information on “Functional Analysis” and other Cost Reduction techniques, visit www.aheadconsulting.com Use to generate your Functional Analyses