Importance of Value Analysis in Domestic and International Outlook

Peredy, Zoltán and Chaudhuri, Sujit (2023) Importance of Value Analysis in Domestic and International Outlook. ACTA PERIODICA (EDUTUS), 27. pp. 34-50. ISSN 2063-501X

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Abstract

The value analysis is a well-known and widely used multi-criteria group decision-making procedure that not only looks for the cheapest, or not only the better, but also satisfies the desired and necessary needs at the lowest cost. Covering all important details of the project (product, service, procedure, process), the so-called multidisciplinary team of internal and/or external experts works together with the consultant. Value analysis identifies project functions and focuses on the most impactful intervention points. It then explores alternative solutions and creates optimal solutions for functions to cost-effectively satisfy and/or increase performance. Value analysis is now used by almost every large company in the world and is widespread in all industries. According to expert estimates, around 50,000 value analysis projects are carried out in Europe every year. Based on the provisions of the EN 12.973:2000 Value Management Standard in Hungary, the Public Procurement Act recommends the contracting authority require the tenderer to apply the method. This review paper reviews the process of the formation and development of value analysis, its fields of application in international comparison, the main methodological frameworks, its current challenges, and new opportunities.

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