Lawrence D. Miles’ value analysis procedure begins with four clearly defined terms: life cycle, function, cost, and value.
• Life cycle - the anticipated duration for which the item must carry out its purpose.
• Function - the successful performance of an item over its life cycle.
• Cost - the initial monetary outlay, supplemented by the anticipated funds required for maintenance and repair and any financial effects the item may have on other components.
• Value - the relationship between function and cost, expressed as a simple formula (f/c).
The FIVE phases of value methodology
Information: Gathering data
Speculation/Creative: Generating ideas
Evaluation: Analyzing and judging ideas
Development: Expanding and investigating promising ideas
Presentation: Offering ideas to decision makers