What does value analysis refer to?

Value analysis is a systematic approach aimed at improving the value of a product or service by assessing its functions and identifying ways to achieve the same or better functionality at a reduced cost. This process typically involves analyzing existing products to determine whether their functions can be accomplished in a more efficient manner, enhancing product design or materials while maintaining or boosting quality.

By focusing on analyzing existing products, value analysis seeks to eliminate unnecessary costs and maximize value for both the company and its customers. This strategic evaluation leads to innovation and potential cost savings, making it a crucial tool in performance management.

The other options, while potentially valuable in their own contexts, do not align with the core concept of value analysis. New product development relates more to innovation and creation rather than assessment. Improving customer service focuses on enhancing customer interactions rather than product functionality and cost efficiency. Cost management strategies involve broader financial planning and cost reduction measures which can complement value analysis but do not specifically refer to analyzing existing products for value enhancement.