Function cost is a tool used in value studies to help illustrate the relationships between project elements. Interactions between elements and their perceived value are examined and then used to provide insight into cost.
Through a function cost analysis each project component (function) is identified and assigned an estimated cost. Then, these figures are compared to their perceived value. The exercise yields determinations about value mismatches, shedding light on problem areas. The primary objective of this concept is to achieve the highest user satisfaction while decreasing function costs. This powerful tool is the keystone of effective value planning.
The concept of function cost is widely recognized in theory, but lacks an abundance of documented practical examples. In this presentation, five case studies are drawn from various infrastructure design projects. A series of function cost analyses were incorporated in these projects during the planning phase, and invaluable insight was realized as a result.
The following case studies were conducted:
Case Study 1 - Value is achieved through function cost increases.
Case Study 2 - Value is achieved though reducing cost via selection of an alternate.
Case Study 3 - Value is increased through comprehensive understanding of function cost through the eyes of the client.
Case Study 4 - The perception of cost allocation is explored, with reallocation of the proper function cost elements.
Case Study 5 - Simple solution leads to decreased cost and increased value.
This presentation will walk attendees through the processes of an actual function cost exercise. The information shared here will provide an understanding of how the delicate balance between cost and user satisfaction can be managed. A variety of graphical exhibits will be presented that help explain the importance of this tool and its impact on the engineering industry.
This presentation shows how to use the Value Analysis process to identify the needed skills on a VA or VE workshop team.
Function Analysis is a powerful tool with many uses. It is the perfect approach to identify needs and expectations and prioritize them. We don’t call it “Needs analysis” for nothing. It allows a team to identify what they want to do so a design team can identify the best solution at the best cost, creating value to stakeholders: client (user and buyer), production or construction or programming, sales and marketing