Function cost analysis

Function cost analysis (FСА) (sometimes called function value analysis (FVA)) is a method of technical and economic research of the systems for purpose to optimize a parity between system's (as product or service) consumer functions or properties (also known as value) and expenses to achieve those functions or properties.

History

This methodology for continuous perfection of production, industrial technologies, organizational structures was developed by Juryj Sobolev (Соболев, Юрий Михайлович) (Russia) in 1948 at the "Perm telephone factory" (Almost at the same time as L. D. Miles ).

Basic ideas

Method

The goal of FCA is achievement of the highest consumer satisfaction of production at simultaneous decrease in all kinds of industrial expenses (production costs). Classical FCA has three English synonyms - Value Engineering, Value Management, Value Analysis. It is not necessary to confuse method FСА as it takes place at some authors, to method Activity-based costing (ABC)

Basic terms

References

  1. ↑ "Getting value management right". ww3.rics.org. Retrieved 8 October 2025.