ABSTRACT
All cost is for function. The team may need to group the items into a single function, rather than studying parts and pieces of the cost estimate. Identify all major functions and separate functions as needed to gain a better understanding of the project Separate functions into basic (must have) and secondary (desire, nice to have, may not need)
Given that Value=Function/Cost Three value types include:
1. Esteem 2. Use 3. Exchange
Value index (VI)=cost/worth or some instruct that worth/cost may be used. As long as a ratio is used to determine if there is opportunity for improvement A VI equal to 1.0 indicates that there is good value already (cost=worth). Therefore, the item may not need a value improvement study. Worth is the least cost to perform the required function.
