Function cost analysis

<h2 id="history">History</h2>
<p>This <a href="/facts/Methodology/dk5X9Hxx">methodology</a> for continuous perfection of production, industrial technologies, <a href="/facts/Organizational_structure/cnlCdHsz">organizational structures</a> was developed by Juryj Sobolev (Соболев, Юрий Михайлович) (<a href="/facts/Russia/jfkCwyxn">Russia</a>) in 1948 at the "Perm telephone factory" (Almost at the same time as <a href="/facts/L._D._Miles/ew9npcst">L. D. Miles</a> ).
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<ul><li>1948 Juryj Sobolev (Соболев, Юрий Михайлович) (<a href="/facts/Russia/jfkCwyxn">Russia</a>)  - the first success in application of a method analysis at the "Perm telephone factory" (<a href="/facts/Perm%2c_Russia/wNSSEqLC">Perm</a>, Russia).</li>
<li>1949 - the first application for the <a href="/facts/Invention/P3LdUHBY">invention</a> as result of use of the new method.</li></ul>
<p>Today in economically developed countries practically each enterprise or the company use methodology of the kind of functional-cost analysis as a practice of the <a href="/facts/Quality_management/9TtKGhEz">quality management</a>, most full satisfying to principles of standards of series <a href="/facts/ISO_9000/pdaweJBa">ISO 9000</a>.
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<h2 id="basic-ideas">Basic ideas</h2>
<ul><li>Interest of <a href="/facts/Consumer/dMflnQGX">consumer</a> not in <a href="/facts/Product_(business)/l9P9fUJa">products</a> itself, but the advantage which it will receive from its usage.</li>
<li>The <a href="/facts/Consumer/dMflnQGX">consumer</a> aspires to reduce his expenses (<a href="/facts/Cost/V1GX4vhw">cost</a> or <a href="/facts/Price/yWQ8edfN">price</a> of <a href="/facts/Function_(mathematics)/CdReEKCh">functions</a>).</li>
<li><a href="/facts/Function_(mathematics)/CdReEKCh">Functions</a> needed by consumer can be executed in the various ways, and, hence, with various efficiency and expenses. Among possible alternatives of realization of functions exist such in which the parity of <a href="/facts/Quality_(business)/V3IzcDc3">quality</a> and the <a href="/facts/Price/yWQ8edfN">price</a> is the optimal for the consumer.</li></ul>
<h2 id="method">Method</h2>
<p>The goal of FCA is achievement of the highest consumer satisfaction of production at simultaneous decrease in all kinds of industrial expenses (production <a href="/facts/Cost/V1GX4vhw">costs</a>). Classical FCA has three English synonyms - <a href="/facts/Value_engineering/sd7jPdCt">Value Engineering</a>, Value Management, Value Analysis. It is not necessary to confuse method FСА as it takes place at some authors, to method <a href="/facts/Activity-based_costing/jVh1wQIa">Activity-based costing</a> (ABC)
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<h2 id="basic-terms">Basic terms</h2>
<ul><li>Technical system - the set of material elements (components) intended for satisfaction of any need of the person (society) or technical system of higher hierarchical level, possessing even one property leaving for the sum of properties of elements (components) making it.</li>
<li>FCA object - subjected to the analysis of the HARDWARE or its elements.</li>
<li><a href="/facts/Subsystem/hmqQ4ASX">subsystem</a> - the system which is a part analyzed HARDWARE.</li>
<li>supersystem - the system including analyzed HARDWARE.</li>
<li>Consumer property - ability of the HARDWARE to satisfy any need of the person (or <a href="/facts/Society/PulvrYfa">society</a>) or other HARDWARE.</li>
<li>Expenses for maintenance and achieve consumer properties - the cumulative resulted <a href="/facts/Fee/1khS8UJt">charges</a> on technical system at all stages of its <a href="/facts/Product_lifecycle_(marketing)/TXEYMj1e">life cycle</a>.</li>
<li>The <a href="/facts/Cost_analysis/xjHXgIAF">cost analysis</a> - definition of expenses for performance of functions and them</li></ul>

Function cost analysis open-in-new

Function cost analysis