Updated on February 5, 2025

Function-cost analysis

Overview

The term of function-cost analysis is sometimes used as a synonym for function analysis. Technically, it should be considered as function analysis supplemented with cost analysis performed in its final stage.

The analysis is usually performed if cost reduction is a goal of the project. It helps identify function disadvantages and cost disadvantages that are later used as building blocks for CECA. It also aids in making decisions about which components should be considered for trimming.

Function-cost analysis is usually presented by adding a column to the function model table. If the project involves developing an innovation strategy, its results can also be illustrated in the form of a function-cost diagram.

The tool should not be confused with value analysis. Value analysis involves mathematically calculating value of components based on the function-cost diagram illustrating results of function-cost analysis.

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