This technique plays a crucial role in the improvement
of the company processes. As a matter of fact, it is complementary to
the value analysis which is used to cut the costs of products and processes
without modifying their natural use.
This method can be divided into the following steps:
1. Break down a given product or process into some
functions;
2. Fix the price for each function, according to the parts that they
concern;
3. Classify the functions according to the criteria of customer’s
decreasing interest.
This technique helps to identify anomalies, i.e. expensive functions
that are not really important to the customer and that therefore can
be removed.
Joly (1993) shows the efficiency of Functional Analysis through the
distillation column story which deals with the case of a petrochemical
plant where the chief planner remarked that there was a project whose
costs were higher than its selling price.
Example 1
“Once upon a time a chief planner developed
a project whose costs were higher than its selling price. As soon as
he noticed this, he desperately tried to decrease such costs.
Someone cleverly suggested value analysis to the chief planner.
The project was about the analysis of a petrochemical plant and the
purchase of the necessary equipment, the plant assembly and testing.
Functional analysis allowed to discover a function, i.e. temperature
check on top of the distillation column. This function was not very
important to the customers; nevertheless, it turned out to be much more
expensive than other functions which were useful to them.
Why was it so expensive? Because to fulfil this function, they needed
not only a drill but also the necessary means to check the temperature,
i.e. metal structures, platforms, accident-prevention equipment, ladder,
lights. All this stuff to check the temperature! The function was really
too expensive. What to do then?
...the group asked the process expert if it was necessary to check the
temperature...The expert answered that it was not worth all the trouble;
indeed, nobody was ready to climb up there to check the temperature,
as they could see it on a simple board...
It was a totally unuseful function.
Both the drill and the relevant equipment were then removed from the
project.” (Joly, 1993)