Function Cost Analysis

Function Cost Analysis is an add-on module that allows you to simulate, analyze and optimize the relationship between the functionalities of a project and the corresponding costs.

Components that exist in the product are assigned functions. They enable you to determine costs of each function.

Function cost analysis tasks

Function cost analysis provides a value analysis of the benefits of a product. Each benefit can be formulated using functions. The tool analyzes:

• which functions the product or process being analyzed is intended to support
• whether every function that covers an object is desired or necessary
• whether these functions could be realized more economically and efficiently using other solutions
• what price a customer is prepared to pay for the functions.

The functions analysis tool is not only used for existing products in order to enhance their value and/or to reduce costs but also with products that are still in the developmental stage (value parameters).

The key benchmark for any decisions made with the help of the functional analysis tool is the concept of value, which is generally defined as the relationship between benefits and costs, which is always > 1:

In FACTON, the cost of a function is measured in terms of the costs of a calculation element.

FACTON presents the functions in a hierarchical structure using a function tree.

The following terms are used to describe the functions in this hierarchy:

• Basic functions:

  A basic function combines the overall effect of all its dependent functions. Basic functions are located at the top of the hierarchy.

• Partial functions:

  A basic function can consist of several partial functions.

• Elementary functions:

  An elementary function cannot be sub-divided any further. It represents the lowest form of function in a hierarchy.

Functions are ranked using classes that reflect their importance from the user's point of view:

• Main functions:

  Each product has at least one main function. The main functions are the most important functions of a product. They chiefly include functions required to use the product or requested by the customer.

• Additional functions:

  These are functions that the product offers but are not absolutely required.

Main and additional functions are independent of one another. The class is freely definable.

Functions in FACTON can be further divided according to the type of function:

• Usage functions:

  These functions are required in order to actually use the product. They are characterized by having an effect that can be measured objectively.

• Prestige functions:

  These functions are characterized by their subjective value, which is solely a matter of personal perception and appreciation. They are frequently designed to enhance the prestige of a product.

The objective

The objective of the functional cost analysis tool is to eliminate undesirable functions, i.e. functions that offer the least benefit, yet incur the most costs.

Candidates for elimination can be identified by comparing the value indexes of the individual functions. All functions located below the red line in the diagram below should be reviewed.