Function analysis is an essential component of the value analysis / value engineering / (VA/VE) process used by companies around the world to help streamline manufacturing costs while maintaining and adding value to their suite of products. This blog post explores the steps an OEM can take to analyse their product’s functionality to increase profitability without reducing required quality and performance.
What is function analysis?
Function analysis (FA) is a technique designed to understand what a product must do (its basic function) and what else it might do (its secondary functions) to add value for its users.
When these basic and secondary functions are understood - rather than the set of features that are typically used to deliver them - the business can decide the best way to design and manufacture a product that answers user requirements in the most profitable way.
But performing function analysis is hard
For complex electronics products with multiple components, determining functions and deciding the best way to value engineer changes, can be hard. As value engineering pioneer Larry Miles said back in the 1970s:
"Defining functions is so difficult and requires such powers of concentration that most people give up and go back to the same old ways.”
To help with this, this blog post takes a step back and explores the basics of FA and the steps you need in place to apply it to your products.
Example of function analysis: The pencil
The classic example used to illustrate how FA works is the simple pencil.
The exercise begins by identifying the basic function of the pencil, expressed as a simple noun-verb combination (i.e. what it does and to what).
In this case, the pencil’s fundamental purpose is to mark surfaces.
This essential function of ‘marking surfaces’ is non-negotiable. Every pencil, regardless of its design, must fulfil this basic purpose.
Analysing secondary functions
While the pencil's primary function is fixed, the secondary functions provide opportunities for innovation and cost optimisation. These might include:
- Carrying an eraser
- Supporting the graphite
- Displaying a painted logo
Opportunities for innovation and improvement
Unlike the basic function, secondary functions can be modified, enhanced, or eliminated based on their value to the customer and the overall profitability of the product. For example:
1. Optimising costs:
- You could source cheaper graphite to reduce production costs without compromising quality.
- Implement modular manufacturing for components like erasers and ferrules, simplifying assembly processes.
2. Innovative features:
- Create a retractable pencil design to offer recurring revenue through lead refills, combining functionality with convenience.
- Add ergonomic grips or customisable designs to appeal to niche markets like artists or students.
3. Eliminating redundancies:
If painted logos don’t resonate with customers or add significant value, consider reducing or eliminating this feature.
Key principles of Function Analysis
The basic function of the pencil—marking surfaces—must remain intact. However, secondary functions are opportunities to explore cost-effective changes, add features that enhance customer experience, or streamline production to boost profitability.
But it's not about pencils!
With this in mind, shift your thinking to your own products.
By understanding both the primary and secondary functions of the products and components you sell, your company can help drive innovation while maintaining their core value to consumers.
In other words, FA is the basis of a great value engineering project.
What can function analysis do for an OEM?
- Identify the way an existing product is used and valued in the marketplace - so its functions can be improved
- Understand how existing designs and manufacturing processes can better address the needs of the product/user
- Problem-solve manufacturing or cost challenges
How can you identify the functions of a product?
The pencil example is pretty simple, but the more complex a product becomes, the more help you might need in working out the customer problems its solves and suggest new ways to deliver on those solutions.
There are several techniques you can use to identify product functions:
- Brainstorming
- Environmental analysis
- Process mapping
- Movements and effort analysis
These can all be bought together in your FA process to reimagine how to deliver required product functions in the most efficient ways for your customers and your business.
Enhancing value engineering with function analysis: A comprehensive 9-step guide
1. Assemble the right team
Form a multidisciplinary team, ensuring representatives from all key departments such as design, production, marketing, procurement, and quality assurance. A diverse team enables holistic insights and fosters innovative solutions.
2. Gather relevant data
Collect both internal (design documents, cost data, production workflows) and external information (new technologies, competitor benchmarks, market trends). Ensure access to complete and up-to-date data to support informed decisions.
3. Define product/process functions
Clearly articulate the functions of your product using verb-noun combinations (e.g. the pencil’s basic function is to "mark surfaces"). Start with this primary function, ensuring it defines the core purpose, and proceed to secondary functions, capturing auxiliary roles. Use precise, quantifiable descriptions to maintain focus and clarity.
4. Create a function diagram
Map out the functions and their interrelationships visually, highlighting their importance to the product and their contribution to the final objective. Consider the cost associated with each function and use the diagram as a framework for exploring improvements.
5. Employ the SCAMPER checklist to critically assess each function:
- Substitute: Can components or materials be replaced with alternatives?
- Combine: Can functions or parts be integrated for efficiency?
- Adapt: Can the function be enhanced to better serve market demands?
- Modify: Could adjusting size, shape, or weight add value?
- Put to other use: Can the function or product serve a new purpose or industry?
- Eliminate: Is this function unnecessary or overly complex?
- Reengineer/Rearrange: Can the process be reversed, swapped, or rearranged for efficiency?
6. Balance the benefits
Encourage the team to evaluate value against customer experience, functionality, and cost.
7. Encourage innovative suggestions
Foster a collaborative environment where team members can propose ideas to improve functionality, reduce costs, or enhance performance. You can also use FA to explore alternative manufacturing methods, new technologies, or entirely new products.
8. Decide on actionable changes
Finalise decisions on which functions to retain, eliminate, or modify based on the analysis. Prioritise actions that align with strategic goals, and outline a clear implementation plan, ensuring that changes are practical and measurable.
9. Review outcomes and optimise
Evaluate the results of the changes. Have the objectives been met? Collect feedback on the process and its impact on the product's performance, cost, and market reception. Use insights to refine future analyses and incorporate lessons learned into continuous improvement practices
Conclusion
Creativity in the value engineering process is often held back by ‘fixed thinking’. These are the preconceptions and prejudices about how a product is used and valued in the market place that stop you making changes that could increase profitability while adding value for your customers.
Contrary to popular myth, value engineering is not cost-cutting disguised as value-adding. The value engineering objective is to answer identified customer needs with the greatest possible efficiency. And that all starts with the quality of your Function Analysis.
If your manufacturing partner isn’t able to support you with this kind of lateral and creative thinking, it may be time to look elsewhere!
