One of the methods for improving any object at all stages of the life cycle is functional cost analysis (FCA).
Functional cost analysis - This is a method of comprehensive technical and economic research of an object with the aim of developing its useful functions with an optimal ratio between their significance for the consumer and the costs of their implementation.
The FSA method is used by industrial companies in the USA, England, France and other countries with developed market economies.
The FSA method was developed in the USA and first used in 1947 by the General Electric company. Engineer Lawrence D. Miles came to the conclusion that reducing production costs must begin with an analysis of the consumer properties of the product and the technical functions of its constituent parts. The focus was on the question of how justified the costs are, taking into account the resulting properties of the product that satisfy certain requests and needs. To obtain the appropriate properties of a product, certain costs are required, so the proportions between the utility of individual properties and the costs incurred are important.
Not all product features are very useful. In this regard, it is necessary to carry out an analysis using the Eisenhower principle according to the ABC scheme (see paragraph 9). It is necessary to highlight the main (A), secondary (B) and unnecessary or redundant functions (C). Funds should be spent on obtaining the main functions, and, to a certain extent, on secondary ones (B). The cost of obtaining unnecessary functions should be avoided.
Eliminating unnecessary functions allows you to reduce costs expenses for production of products while simultaneously reduction or even improvement in quality .
The objects of FSA can be the consumer properties of the product both as a whole and its individual parts (assemblies, groups of parts, individual parts, etc.).
Comprehensive and detailed analysis consumer properties of the product, the technical functions of its constituent parts and the costs associated with them cannot be performed by one specialist. It is recommended to involve specialists from various departments involved in the development, production, marketing and sales of products in conducting FSA. Representatives of design bureaus can offer promising developments taking into account demand. These developments must go through the hands of designers who take into account the aesthetic and ergonomic requirements for the future product. The participation of economists, especially accountants, who know the cost of the product and its components, is necessary. Marketing and sales specialists have information about consumer demand, the whims and fluctuations of fashion, and understand the balance of power of competing firms. Employees of the supply department can provide information about the possibilities of purchasing materials, raw materials, and components for the types of products being developed.
Only a collective, comprehensive consideration of problems of improving quality while reducing cost can guarantee success .
For this purpose, analytical groups of specialists can be formed under the leadership of one of the senior managers. The task of these groups is to study products that are the subject of FSA. Creating an analytical group is the most critical part of the preparatory stage. The size of the group depends on the size of the enterprise, the volume of work to be done and its frequency. Groups can meet once a week or every two weeks and make proposals in a relaxed atmosphere, freely discussing the ideas expressed.
The direct work on conducting FSA is carried out by research groups created by order of the head of the organization from the most qualified specialists. The group should include specialists from various fields, which will allow us to consider the problems comprehensively, comprehensively, in harmonious connection with each other. This is important for a complete and correct assessment of the functions and costs of the project under study. However, it must be taken into account that numerous the group is uncontrollable.
In Western countries, the number of participants in a research group is 5-8 people. We must proceed from the fact that FSA for an individual object does not apply to global analytical studies.
The head of the organization must set a clear goal for the whole group and clear tasks for each of them member, and also indicate the start and end dates of the bot .
Members of the research team gather for an initial meeting, where they are introduced to the importance and content of the work to be done. The effectiveness of the meeting depends on the behavior of the leader during the issues discussed. The number of meetings held also matters. Each meeting should be well prepared, conducted in a businesslike manner, with specific proposals discussed and actionable recommendations adopted.
External consultants can also be involved in conducting FSA: scientists, university teachers, etc.
The purpose of FSA is to reduce production costs, about conducting work and providing services while simultaneously increasing solving or maintaining the quality of work performed . The purpose of the FSA can be written mathematically:
where PS - the use value of the analyzed object, representing the totality of its use properties;
3 - costs to achieve the necessary consumer properties.
When conducting FSA, it is assumed that the analyzed products are goods, i.e., use value not for the manufacturer, but for the consumer. At the same time, use value is not always assessed by quantitative indicators. In the case of a qualitative and verbal description (assessment of the taste, aesthetic and ergonomic qualities of the product), scoring is used.
The composition and amount of costs are determined based on the costs that form the full cost of production.
FSA consists of several stages:
Preparatory,
Informational,
Analytical,
Implementation.
At the preparatory stage the object of analysis is specified. For example, a product that is produced in mass quantities or that raises complaints about quality may be chosen as the object of research. In the first case, the mass factor operates: even a slight reduction in the cost per unit of production brings significant amounts of savings and additional profit from the sale of products. In the second case, a product is selected that is of low quality or high cost compared to similar domestic or foreign models. Analysis of such a situation is important in the context of expanding foreign economic relations, when the competitiveness of products intended for export is of great importance.
FSA is most appropriate for products under development that have not yet been put into production. There is time to make changes to the product design or production technology before equipment is installed and contracts for the supply of raw materials, materials, components and tools are concluded.
The object of research is selected based on a discussion of the proposed options with the involvement of specialists in specific fields. After selecting a research object, a working group from the specialists most competent in conducting FSA for this object. The head of the company issues a corresponding order about this. The order establishes the deadlines for completing analytical work at individual stages and the responsibility of each participant for a specific area of work, and determines the remuneration for completing the work.
Information stage involves collecting information about the object being studied: purpose; technical capabilities; quality; cost price.
All information is entered into special cards or into computer memory: the functions of the individual parts that make up the product, the material from which they are made, and their cost are listed in detail. At the same time, for comparison, the cost of processing the part externally or the cost of exactly the same purchased part is shown.
All services and departments of the enterprise provide the FSA group with the required information about the product, as well as proposals for improving the quality of the product and reducing the costs of its production. Great importance is attached to consumer assessments (quality, reliability, compliance with the requirements of fashion, aesthetics, ergonomics, etc.).
For clarity, it is useful to present the product disassembled to members of the research group and demonstrate it on a special stand. The parts must be arranged in the same order in which they are assembled into the finished product. It is useful to familiarize yourself with similar products from competitors.
Analytical stage involves studying the functions of the product and the costs of providing them. The following range of issues is considered.
What is the product?
What are its functions?
What functions are necessary and useful, and what functions are unnecessary and increase costs?
What is the real cost of the product?
What should the product become?
What would its new value be?
The service (technical and operational, aesthetic, ergonomic) functions of the product as a whole and the technical functions of individual parts (parts, groups of parts, assemblies) are described in detail. Functions are divided into basic (A), secondary (B) and unnecessary (C) (see paragraph 9).
By cutting off unnecessary functions, they simultaneously cut off unnecessary costs. The analysis can be carried out using the scheme shown in table. 10.1.
Table 10.1
Distribution of service functions according to the ABC principle
Such a diagram should not be excessively large so that clarity is not lost.
At the same time, you can build another scheme that links the costs of producing parts according to individual costing items. Then it is advisable to move on to assessing the weight of functions and the costs of providing them. The assessment is carried out to determine the possibility of reducing costs in the following areas.
How does this part affect the cost of the product as a whole?
Are its costs commensurate with its usefulness?
Does this part need all of its characteristics?
Is it possible to produce a similar part in a cheaper way?
5. Can a similar part be purchased externally at a lower price?
6. Can some of its functions be transferred to other parts?
Regarding the fourth point, clarifying questions can be highlighted: is it possible to replace some materials with others, cheaper ones; is it advisable to change supplier in order to have materials at a lower price; Is it possible to use fundamentally new materials?
Questions related to processing involve the following clarifying aspects: the possibility of replacing equipment; changes in operations; refusal of some operations, etc.
At this stage, the share of individual functions in the total set of consumer properties of the product is determined and compared with the share of costs for obtaining each function.
The share of individual functions in the total set of consumer properties of a product is called co factor of importance or significance . The functions are listed in order of decreasing importance and decreasing specific weight in the total set of consumer properties of the product.
When determining importance coefficients, the parameters that are most important to the consumer can be taken into account (Table 10.2).
The ratio of the share of a parameter (function) in costs to the significance or importance of the parameter (function) is called cost ratio for individual functions .
In the example table. 10.2 the most important parameter (function) is the first. Comparing the corresponding costs with the importance coefficient, we obtain a cost coefficient of 1.6 (0.80 / 0.50). This suggests that the cost of obtaining a parameter (function) is not commensurate with its importance.
Table 10.2
Comparison of significance coefficients and cost coefficients
In the theory and practice of FSA, a justified ratio between costs and function should be equal to or close to 1. If the cost ratio is less than 1, the ratio is considered more favorable. If the coefficient exceeds 1, it is recommended to take measures to reduce the cost of obtaining the parameter (function).
According to parameters 2, 3, and 4 we have:
K 2 = 0.33; K 3 = 0.33; K 4 = 1.
To determine the significance of parameters (functions), ranking and the method of expert assessments can be used.
Based on the research, several solution options are proposed, each of which has certain advantages and provides a certain economic effect. These advantages may turn out to be unequal: with a significant increase in the quality of the product according to one of the options, costs increase, and with the other, costs decrease, but the quality remains at the same level. There is a third option, in which the quality improves slightly and the cost is reduced, but less than with the second option. Which option should be preferred?
Choosing an option is one of the most important decisions. Therefore, at the stage of analytical work, it is necessary to carry out economic calculations and determine the impact of a particular decision on the cost and profitability of the product.
After selection optimal option it is protected at the level of the company's management. Moreover, each activity related to the development of new products is characterized by both general and specific implementation work.
Research stage involves evaluating ideas and solution options developed at previous stages in order to eliminate disproportions between functions and costs.
Implementation stage is final, when the results of the recommendation stage are taken into account and the selected option for improving technology is implemented.
Functional costing analysis (also sometimes called activity-based costing) is a cost accounting model (Figure 1). It is designed to categorize all expenses based on the time spent on activities that involve producing goods and providing services to consumers.
In traditional cost accounting models, indirect costs (overhead) are allocated proportionally to production volumes. Because of this, costs for products that are produced in large quantities tend to be overstated, and for goods and services produced in small quantities, they are underestimated. Unlike traditional cost accounting methods, when using the functional cost analysis (FCA) model, real costs associated with goods, consumers or services are determined, for which indirect costs are distributed among types of products not on the basis of volume, but on the basis of the required or actually completed types activities.
Instead of using arbitrarily assigned percentages, which is often found in traditional methods cost accounting, FSA focuses on identifying cause-and-effect relationships in order to objectively distribute costs on their basis. After the costs certain species activities are determined, the costs for each type are distributed across all products - depending on the extent to which this type of activity was used in the production of a specific product or in the provision of a specific service. With this approach, FSA often helps identify areas with high overhead costs per unit of product and thereby try to find ways to reduce them or charge larger amounts for products that are expensive to produce.
When applying the FSA model, the following basic assumption is made: costs arise not from products or consumers as such, but from the performance of the activities that were required to produce goods or provide services. Since to create different products needed different types activities, each of which also requires different resource support, when distributing total costs for individual types of goods and services, it is necessary to correctly use weighting coefficients.
When making decisions, knowing the real costs helps:
- establish economic break-even points;
- identify those consumers who bring profit and those on whom the company incurs losses (i.e., assess the “customer value”);
- identify opportunities for improvement;
- compare investment alternatives.
When to use the model
FSA can be useful when a company's overhead costs are high and when multiple product and customer combinations increase job complexity and increase material handling costs. This method of cost accounting allows you to transfer indirect costs to the category of direct costs. As a more accurate cost management system, FSA identifies opportunities to increase efficiency and improve business process outcomes, aided by knowledge of the true costs associated with producing goods and providing services.
There are other models similar to FSA. This is, in particular, the model total cost ownership (total cost of ownership, TCO) and cost model throughout the product life cycle. When applying TCO, the total investment costs are calculated, including one-time purchases, recurring costs and operating expenses. This concept is very widely used in projects related to information technology, where it is difficult to numerically imagine their benefits, and therefore the main emphasis in this case is on minimizing project costs. Life cycle cost analysis allows you to determine the total costs over the entire life of the product (from its development to disposal).
How to use the model
FSA in its simplified form consists of five steps.
- Identify accounting objects and non-core activities and the resources needed to perform them.
- Determine the costs per non-core activity.
- Establish cost drivers for each resource.
- Calculate the total indirect costs associated with the product by accounting object.
- Divide the total costs into parts equal to the indirect costs allocated to individual accounting items.
Goods, consumers, and services can be selected as the accounting object. And the type of activity can be everything that a company does while running its business: receives raw materials, carries out loading operations, packs goods, makes calls, gives explanations, makes sales and purchases, promotes its products, makes calculations and calculations, places orders, receives orders, etc. A non-core activity is understood as one whose costs cannot be directly attributed to accounting objects. Resources can be machines and equipment, computers, people, and any other capacity or assets that can be (at least partially) attributed to a specific activity.
conclusions
FSA allows you to segment costs based on real profitability, which helps to more accurately assess customer value. As such, the application of this model is the first step towards the use of process-oriented management or, as it is also called, activity-based management. FSA does not evaluate the efficiency or productivity of activities, although knowledge of these indicators can be very important for business improvement. It should also be noted that FSA is carried out on the assumption that it is possible to identify unique accounting objects, types of activities and resources. But ultimately, the accuracy of the results of this analysis depends on the accuracy of the original data on which it was conducted.
FUNCTIONAL COST ANALYSIS1
General information
Functional cost analysis is a method of technical and economicengineering
analysis,
directed
on
increasing (preserving) the functional usefulness of an object
while minimizing the costs of its creation and operation.
The subject of FSA is the function of the object being studied.
FSA is a universal, highly effective
method for optimizing parameters and other design,
technological, organizational, aesthetic, economic
characteristics of the product according to the accepted criterion (criteria). IN
quality
main
criteria
stands
determined
in a special way the ratio of consumer properties to
unit of cost.
2
FSA principles
1) functional approach, which involves considerationeach object and its components as an implementation option (or
planned for implementation) complex of functions required
consumer, and on this basis finding the most effective
ways to carry out these functions;
2) an integrated approach, which means considering the object from
in terms of design, production, transportation,
operation, disposal (life cycle);
3)system approach, which means considering the object as
system, divided into subsystems, and functions - as
system-wide and intra-system, internal connections of an object, like
direct and reverse;
4) the principle of hierarchy, suggesting gradual
detailing the analyzed functions and costs for individual
components of the object of the 1st, 2nd, nth order;
3
FSA principles
5)principlecollective
scientific and technical
creativity, suggesting widespread use in FSA
methods
collective
creativity,
special
techniques,
activation of creative thinking;
6) the principle of coordination, meaning the correspondence of phased
goals and objectives of the FSA to the main stages of research, pre-production,
quality management;
7)principle
strictly
regulated
the sequence of individual stages and
substages of the FSA, creating conditions for their formalization and
partial automation;
8) the principle of continuous economic assessment of all
technical, organizational, management proposals;
4
FSA principles
9)principlespecial
informational
And
organizational support, which involves the creation
special services of the FSA, additional information
provision;
10) the principle of diversity of methods used in
conducting FSA (FAST method, brainstorming, morphological
analysis, trend, prioritization method, points method, method
expert assessments, “black box” method, interconnection method
functions – Koenig graph, etc.).
5
FSA methods
FAST method - method of systematic analysisfunctions; helps to organize functions and build
function diagrams (such as a network diagram), allows
check the correctness of the wording and classification
functions using a logical test system.
Brainstorming is a method of activating creativity
thinking, is used to obtain a large amount
original ideas in a short period of time.
The brainstorming procedure is carried out according to special
rules, the duration of one session is 40-60 minutes.
Used to solve problems of various levels
structuring.
6
FSA methods
TRIZ – solution theory inventive problems.Used when searching for original technical solutions,
orienting developers to get as close as possible to
ideal end result.
Provides heuristic search algorithmization
decisions, various characteristics products. Costs for
the production of a new product is determined by substitution
values of the parameters of the designed product into the formula
mathematical model.
7
Functional analysis
Functional analysis is the basis of the methodologyFSA.
It is a tool for identifying
necessary
consumer
properties
object
And
possibilities for its improvement.
The cost of production is, ultimately, the cost
functions. If some functions are not used, then the costs
they become useless.
The principle of the functional approach, which is
the basis of the FSA is a complete understanding, precise definition And
function analysis.
8
Functional analysis
Functional analysis includes:identification and formulation of functions for certain
rules
their classification,
building functional models,
determination of costs,
establishment
consumer,
values
functions
selection of functions for research.
9
With
taking into account
opinions
Functional analysis
Despite the huge variety of product types,the number of functions they perform is many times smaller.
For example, a grain harvester has about 30 thousand parts,
and the number of functions they perform is two orders of magnitude less.
Evaluation of functions comes down to two indicators -
usefulness and aesthetics. Functional analysis comes from
from what useful functions in the analyzed object
always accompanied by neutral (auxiliary) and
harmful (useless) functions.
10
Most important rule– function formulation
should be sufficiently general, not limited to
specific subject.
For example, a chair, stool, armchair, bench has one
the general useful function is to “maintain weight.”
Functions are formulated taking into account the purpose of the object.
For example, an incandescent electric lamp
table lamp, in addition to the useful function of “emitting
light" also performs harmful function"to radiate heat."
When using the same lamp in an incubator, the function
“to emit heat” will be useful, and “to emit light” will be neutral.
11
Principles and rules for formulating functions
To formulate a function, you need to choose a verb,describing an action.
In the function formulation
characteristics of the object.
Not
must
enter
For example, the function of a bicycle frame is to “hold
details”, and not “to ensure structural rigidity”, because
rigidity is already a characteristic. Better wording
functions to give in a nutshell – verb in the infinitive
form and a noun in the accusative case.
The function of an electric wire is to “carry current”
car - “to move a load.” Should not be consumed
particle "not".
12
13
Classification of functions and their ranking
The main function is a useful function that reflectsthe purpose of the object (the purpose of its creation). For example, a chair
should “support weight”, a screwdriver – “transmit torque
moment". Other functions of these objects may be
classified as minor.
Example. The main function of glasses is to “focus light”.
An additional function is to “protect the eye” from contact with
particles. This function does not affect the main one, but creates
additional consumer properties.
14
Classification of functions and their ranking
The main function ensures the execution of the main one.There may be several main functions. Main functions
ensure performance.
The main functions are:
- reception;
- input (matter, energy, information);
- transmissions;
- transformations;
- storage;
- issuance.
15
Classification of functions and their ranking
Helper functions are functions thatsupport the main one. If the main function could be
implemented without any functionality from the original
list of the main ones, then this function is not the main one, but
auxiliary.
The following auxiliary functions are distinguished:
- connecting;
- insulating;
- fixing;
- guide;
- guaranteeing.
16
Classification of functions and their ranking
Bydegrees
usefulness
differentiate
useful,
neutral (useless) and harmful functions.
Neutral
function
Not
influences
on
change
consumer properties.
17
Types of functions
- main function - reflects the action aimed atimplementation
goals
object
(systems),
For
direct satisfaction of specific ends
needs;
- main function - action, without which the object cannot
can provide the required consumer properties,
the existence of a main function;
- auxiliary function - action caused by
character, design features
object caused by a specific embodiment of the main
functions. It helps perform basic functions
or complements them.
18
Function classification
19FSA stages
20FSA stages
Preliminary stage. At the preliminary stagean FSA group is created, an object for analysis is selected,
the problem is formulated.
Information stage. In general, this is
formation of an information bank about details such as
designs, materials and their costs, patent
research, analysis of modern technologies.
Analytical stage. At this stage, identification is carried out
functions and their classification, compiling matrices
relationships, identification functional significance, choice
elements for improvement.
21
FSA stages
In addition to the relationship matrices, you can use the modelfunctions in the form of a graph
F0 – main function; F1 – F8 – basic functions; f11 - f81 – auxiliary
functions; numbers in squares indicate functional blocks (elements
designs).
22
Near
With functions you can enter significance in % and other information.
FSA stages
Creative stage. At this stage, options are developedconstructive solution, the best choice is made
a number of criteria. Technologies are treated similarly. At
When choosing options, economic calculations are made.
The significance of each main function is calculated according to
formula that takes into account the ratio of the number of bonds Si
basic
functions
(through
auxiliary)
With
functional blocks, in relation to the sum ΣSi of all
connections. For example, in Fig. at the main function F1 through
auxiliary functions have three connections, but function F2 has only one.
23
FSA stages
Relative costs Ci for functional blocks(elements) can be determined approximately from the assumption
that they are proportional to the sums of the values of the main
functions that these blocks perform.
Based on the obtained relative costs for the elements of the object, you can
construct a Pareto chart and determine those elements, the relative costs of
which in total will be given approximately 80%. Working to improve these
24
elements
should be a priority.
FSA stages
Recommendation stage. At this stage it is finaljustifies the choice of the option to be chosen
for further refinement. An implementation plan is being developed
project.
Implementation stage. At the implementation stage, a group is formed
implementation.
Compiled
schedule
implementation.
Requests for resources are made. A working one is being developed
documentation. Incentive measures are being developed. After
completion
implementation
carry out
audit,
determine
project efficiency.
25
FSA example
Let's look at examples of functional analysis using the examplemanual meat grinder. First it is advisable to build
component object model. It is given for a meat grinder
in Fig.
The model shows the levels: A – object of analysis and
external elements associated with it; B – elements of the upper
hierarchical level of the object.
26
FSA example
Based on the model, a relationship matrix is constructedfunctions and elements (Table 9.1).
27
Example of FSA design
As an example, consider the option of conducting FSA forsimple designs.
1. Preparatory stage. We created a group on FSA.
Selected a product produced by the company as a commodity
consumer goods - “Pants hanger”. Design
shown schematically in Fig.
An object
consists of
from
the following parts: 1 –
hook; 2 – body; 3 –
guide;
4
–
pin; 5 – spring
(inside the clothespin).
28
Example of FSA design
2. Information stage. The group reviewed availabledesigns, technologies for their manufacture. Comparison
showed that similar products or at cost
exceed the manufactured product, or do not provide
sufficient reliability of fastening.
It was decided to conduct a functional analysis and
build matrices of relationships between functions and elements.
The main function is to hang the trousers (carefully
folded).
To execute the main function you need to execute
the following functions:
- cover the trousers;
- create effort;
29
- hang up your trousers.
Example of FSA design
3. Analytical stage. Matrix of relationships between the mainfunctions and elements of the hanger, taking into account the cost
manufacturing parts, analyzing the significance and importance
functions are given in table.
30
Example of FSA design
4. Creative stage. From the table 9.5 follows conclusions.1. It turned out great large coefficientΣР for simple
products.
2. The main contribution comes from: part No. 3 (P = 3.0) and part No.
2 (P=1.0), which perform auxiliary functions.
3. We must try to change the design so that
decrease
quantity
details,
performing
secondary functions.
31
Example of FSA design
On at this stage used TRIZ and brainstorming techniquesassault.
The design has two clothespins, the distance between
which is regulated. - Maybe make one big one
clothespin, then you won't need a guide?
The clothespin consists of two stamped halves with
stiffeners having a common axis and a spring between
them. - Maybe make one big clothespin,
made of bent elastic material, then the axes are not
necessary, and let’s get rid of a total of six parts?
The contact of the clothespin with the trousers occurs along the line. –
Maybe make one long clothespin from two elastic ones
wire, then the contact with the trousers will be along a narrow line,
32
specific
Will the pressure be greater and the fastening more reliable?
Example of FSA design
If the clothespin is made of two wires, then the end of the wiresYou can fasten it and bend it - you get a hook.
You cannot rely only on the elasticity of the wires - not
the clamping force is sufficient. We need to come up with a simple device,
which would compress the wires and release them.
As a result of further considerations, it was proposed
design option shown in Fig.
New hanger option for
trousers consists of two parts:
1 – frame; 2 – slider.
33
Example of FSA design
5. Research stage. For new designit is also necessary to create a function correspondence matrix and
elements (Table 9) and analyze the results.
34
Example of FSA design
6. Recommendation stage. After a fundamental choiceoption, it is necessary to develop its parameters for
manufacturing: select wire diameter, main dimensions
designs, choose the type of coating, consider options
design, etc. It is necessary to prepare for the implementation of the project
design and technological documentation.
The design and technology departments submit applications for
purchase of materials. Technological department designers
develop equipment for frame bending and stamping
slider.
A project implementation schedule and deadlines are being developed
production of a pilot batch.
35
Example of FSA design
7. Implementation stage. After making a pilot batchproducts make amendments to the design of devices, in
technological
modes,
economists
count
actual
cost price
products
And
expected
economic effect when releasing a certain batch.
After economic calculations, a decision is made on
production of new products.
36
Example of FSA of business processes
Example 1. The company sellsdomestic market of cosmetics, perfumery and household
chemistry
1. We identified the main business processes:
- activity planning;
- supplying the company with goods;
- sales of goods through trading divisions
companies;
- execution of financial transactions;
- analysis of the company's activities.
37
Example of FSA of business processes
As a result of functional cost modelinga diagram of monthly labor costs by function was constructed
(rice.).
38
Example of FSA of business processes
To complete the analysis in the organizationlabor costs by department
more
appreciated
From Fig. 9.7 it follows that it is necessary to distribute functions for more
uniform loading of departments. To complete the picture, managers
it would be necessary to indicate the load share of the main functions.
39
Example of FSA of business processes
The company also estimated the cost of implementationcore functions, support and business processes and
carried out redistribution processes
It can be seen that after analysis and
transformations
costs have increased
on core and business processes, and decreased
expenses for auxiliary
processes that increased
efficiency
activities.
40
Application of FSA in an organization
To complete the documents, the visitor had to go through fouroffice: No. 1 – appointment with a technical specialist, taking 1 5 minutes;
No. 2 – the employee made entries in the journal for 10 minutes; No. 3 – economist
performed calculations within 10 minutes; No. 4 – the employee accepted payment for
transactions in the amount of 100 rubles, made notes and issued a receipt, all this in
for 5 minutes
The process diagram is shown in Fig.
41
Application of FSA in an organization
Total: each stream serves 15 people per day, 30 people in total.The amount of daily payment for all visitors is 30 x 100 = 3000 rubles.
The daily salary of all specialists was 450x4 = 1800 rubles.
The daily profit from the FSA was 1200 rubles.
FSA method
The essence of the method is element-by-element development of the design. Yu. M. Sobolev proposed to consider each design element separately, dividing the elements according to the principle of functioning into main and auxiliary ones. From the analysis it became clear where the unnecessary costs were “hidden”. Sobolev applied his method to a microtelephone mounting unit and managed to reduce the list of parts used by 70%.
The goal of FSA is to achieve the highest consumer properties of products while simultaneously reducing all types of production costs. Classic FSA has three synonymous names in English - Value Engineering, Value Management, Value Analysis. The FSA method should not be confused, as is the case with some authors, with the ABC (Activity Based Costing) method.
Today, in economically developed countries, almost every enterprise or company uses the methodology of functional cost analysis as a practical part of the quality management system, which most fully satisfies the principles of the ISO 9000 series standards.
The founders of the FSA idea
Lawrence D. Miles, (USA)- 1947 - organization of a group at General Electric to create a new method.
- 1949 - first publication about the method.
- 1948 - first success in applying the element-by-element analysis method at the Perm Telephone Plant.
- 1949 - the first application for an invention based on a new method.
Basic ideas of the FSA
- The consumer is not interested in the product as such, but in the benefits that he will receive from its use.
- The consumer seeks to reduce his costs.
- Functions of interest to the consumer can be performed different ways, and, consequently, with different efficiency and costs.
- Among the possible alternatives for implementing functions, there are those in which the ratio of quality and price is optimal for the consumer.
Development of FSA in TRIZ
In the process of creating the so-called “Theory for solving inventive problems”, a consistent series of specific procedures were introduced into the FSA, aimed at both a more complete and in-depth study of the relationships between objects and operations in technical system(TC) or technological process, and to narrow the field of search for elements, the change of which will give the greatest technical and economic effect. A significantly new stage, introduced into the methodology during the period of its widespread testing, was the consideration and minimization of cost factors associated with the “improved” TS socio-technical systems.
FSA terms and definitions
Function- manifestation of the properties of a material object, consisting in its action (impact or interaction) on changing the state of other material objects.
Function carrier- a material object that implements the function in question.
Function object- a material object to which the action of the function in question is directed.
Useful feature- a function that determines the consumer properties of an object.
Harmful function- a function that negatively affects the consumer properties of an object.
Neutral function- a function that does not affect changes in the consumer properties of the object.
Main function- a useful function that reflects the purpose of an object (the purpose of its creation).
Additional feature- a useful function that, together with the main function, ensures the manifestation of the consumer properties of an object.
Main function- a function that ensures the execution of the main one.
Auxiliary function of the first rank- a function that ensures the execution of the main one.
Auxiliary function of the second rank- a function that ensures the execution of an auxiliary function of the first rank. Auxiliary functions of the third and other lower ranks are functions that are subordinate to the functions of the previous rank.
Function Rank- the significance of the function, which determines its place in the hierarchy of functions that ensure the execution of the main function.
Function execution level- the quality of its implementation, characterized by the value of the parameters of the function carrier.
Required parameters- parameters corresponding to the real operating conditions of the object.
Actual parameters- parameters inherent in the analyzed object (existing or designed).
Adequate level of function performance- compliance of actual parameters with the required ones.
Excessive level of function execution- excess of actual parameters over required ones.
Insufficient level of function performance- excess of required parameters over actual ones.
FSA object model- a conditional representation of an object in graphic or verbal (verbal) form, reflecting its essential characteristics.
Component model- a model reflecting the composition of an object and the hierarchy (subordination) of its elements.
Structural model- a model reflecting the relationships between the elements of an object.
Functional model- a model that reflects the complex of functions of the object of analysis and its elements.
Functionally ideal model - functional model, reflecting a complex of object functions implemented by a minimum number of material elements.
Undesirable effect- properties.
Technical controversy- unacceptable deterioration of one of the parameters in the analyzed object while improving the other.
Stages of method execution
FSA, based on identifying all the functions of the object under study and correlating them with its elements (parts, assemblies, assembly units), is aimed at minimizing the total cost of performing these functions. To do this, you need to know the functional structure of the object, the cost of individual functions and their significance.
The cost of functions includes the costs of materials, manufacturing, assembly, transportation and subsequent maintenance and disposal, etc. (this circle is determined by the goals of the task and the life cycle). Effective actions are aimed at combining the performance of several functions by one part of the product and at maximizing the implementation of the IFR principle (the function is performed, but its carrier is not present). In practice, this corresponds to the fact that the cost of a new object that combines a number of functions will be less than the total cost of objects that performed these functions separately. It is worth noting that it is more important to look for unnecessary and ineffective parts of the product and discard them, rather than reduce their cost.
To carry out the analysis, it is necessary to know not only the cost of the functions performed by the product under study, but also the cost of performing similar functions by other available parts or assemblies. It is possible to assign costs in the form of comparative estimates - based on the cost of the original function, taken as a unit.
First of all, they minimize the cost of performing the main functions. At the same time, they strive to maintain the quality of the product’s functioning at the same level. However, one should not lose attention to the auxiliary functions, which often decisively determine the demand for the product (for example, visual appeal, ease of use, etc.). This indicates the importance of knowing not only the cost of each function, but also its value (significance).
The cost of a function is affected by:
- cost of implementing the operating principle: energy costs, availability and cost of materials, consequences of side effects etc.;
- structural features: simplicity (manufacturability) of the shapes of parts, their relative arrangement and quantity (diversity), etc.;
- parametric characteristics: material consumption of parts, their dimensions and surface quality, manufacturing and assembly accuracy, etc.
It should be remembered that the solution to the problem using the FSA method is specific and depends on the conditions of production and use of the product under study. For example, the cost of a product is affected by differences in the price of electricity in different areas and the equipment available at a given plant.
FSA can be carried out haphazardly in order to solve some particular problem. For example, consider the roughness of a certain surface. Why is this surface quality needed here? Is it possible to lower it (and, therefore, replace, say, grinding with turning) and what needs to be done or changed for this?
Effective FSA implementation includes the following steps:
- Planning and preparation: the object and goals are clarified (minimizing the cost or improving the quality of the function while maintaining the same cost), a working group is formed.
- Informational: collection of information on the conditions of use and manufacture of the product, requirements for its quality, possible design solutions, and shortcomings.
- Analytical: compilation functional structure, determining the cost and value of individual functions, choosing the direction of work.
- Search: improvement of the solution based on the use of heuristic, mathematical and experimental methods, selection of the best options.
- Recommendatory: drawing up protocols and recommendations for the implementation of proposals.
FSA is widely used to increase the competitiveness of manufactured products, “licking structures”, i.e. such a reduction in the cost of the product and improvement of its design in order to prevent (make it economically infeasible) the production of a product similar in function and quality by competing companies. Thus, in Japan, 100% of exported industrial products are subject to FSA.
Usually, design imperfections and unconscious application of FSA are indicated by rationalization proposals submitted during the production process.
see also
- Design methods
Links
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See what "" is in other dictionaries: functional cost analysis
- FSA A method for determining the cost and other characteristics of products, services and consumers, using as a basis the functions and resources involved in production, marketing, sales, delivery, technical support, provision of services,... ... A comprehensive, systematic study of the activities of an enterprise, based on an interrelated consideration of the functions, properties, qualities of created objects, goods and the costs of providing these functions. Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B ...
Economic dictionary Functional cost analysis - Functional cost analysis: a method of systematic research of objects (products, processes, structures), aimed at optimizing the relationship between the beneficial effect and the total cost of resources for life cycle used as intended...
See what "" is in other dictionaries: Official terminology - 5.27 functional cost analysis: A method of systematic research of objects (products, processes, structures), aimed at optimizing the relationship between the beneficial effect and the total cost of resources during the life cycle of the product used... ...
A comprehensive, systematic study of the activities of an enterprise, based on an interconnected consideration of the functions, properties, qualities of created objects, goods and the costs of providing these functions... encyclopedic Dictionary economics and law
FUNCTIONAL COST ANALYSIS- an approach to reducing production costs, which involves a thorough study of the component parts of the product in order to determine the possibilities of their structural modification, standardization or manufacturing using cheaper and more productive... ... Foreign economic explanatory dictionary
See what "" is in other dictionaries:- a comprehensive, systematic study of the activities of an enterprise, based on an interconnected consideration of the functions, properties, qualities of created objects, goods and costs for providing functions... Dictionary of economic terms
functional-cost analysis (in resource saving)- functional cost analysis A method of systematic research of objects (products, processes, structures), aimed at optimizing the relationship between the beneficial effect and the total cost of resources during the life cycle of the product used for its intended purpose... ... Technical Translator's Guide
16.1. Essence, objectives and scope of application of functional cost analysis.
16.2. Object functions and their classification.
16.3. Principles of functional cost analysis.
16.4. Sequence and methodology for conducting functional cost analysis.
Educational training.
Essence, objectives and scope of application of functional cost analysis
Functional cost analysis- one of the methods of heuristic analysis, the purpose of which is to select the optimal option that ensures that the object under study (product, technological process, form of organization or production management, etc.) fully performs its main functions at minimal cost.
The study of the possibilities of reducing the cost of performed functions led to the name of this type of analysis in domestic science - functional cost analysis (FCA). IN foreign countries Other names are also used: value analysis (or use value), engineering value analysis, value management analysis (value analysis, value engineering, value management).
Functional cost analysis appeared in the 40s of the last century as a result almost simultaneously (but in different countries) research conducted by the Russian designer
Yu.M. Sobolev from the Perm Telephone Plant and American engineer L.D. Miles from General Electric. The first development by Yu.M. Sobolev, designed using the results of FSA, the microtelephone amplification unit made it possible to reduce the number of parts by 70%, material consumption by 42%, labor intensity of production by 69%, and the total cost by 1.7 times.
L.D. Miles in 1946 first formulated the very concept of functional cost analysis, defining it as “an applied philosophy of management, as a system of ways to save costs before, during and after their implementation.” Since then, FSA has been considered one of the most important management innovations of the last hundred years.
The goal of FSA is to achieve optimal utility at the lowest cost. Mathematically, the goal of the FSA can be represented as follows:
where Z is the cost of achieving the necessary consumer properties;
PC is a set of consumer properties of an object.
The peculiarity of the FSA goal is not the improvement of a specific object under study itself, but, first of all, the search alternative options performing its functions and choosing among them the most economical one, ensuring the optimal balance between consumer properties and the costs of their implementation. It is extremely important that FSA allows us to solve, at first glance, two mutually exclusive tasks - reducing costs and improving product quality.
The main objectives of the FSA are:
Increasing the competitiveness of products in the domestic and foreign markets;
Reduced production costs (reduced capacity of main, working capital, energy intensity, labor intensity, increasing the return on fixed assets, material output, etc.);
Improvement of production technology;
Justification of management decisions.
Object functions and their classification
The object of the FSA is the functions and their cost.
Each product or product is produced and exists in order to satisfy certain consumer needs, that is, to perform functions in accordance with its purpose. Functions are understood as consumer properties of the object that is being analyzed.
A detailed study shows that objects and goods perform not one, but many functions. For example, a vase can serve as a container for flowers, as an antique, interior item, or as a family heirloom, while satisfying certain aesthetic needs.
All functions in FSA are classified according to the sphere of manifestation, role in meeting needs, in operation, according to the nature of detection, degree of need (Fig. 16.1).
According to the sphere of manifestation and role in meeting consumer needs, external and internal functions are distinguished. External (objective) functions are those that are performed by an object in interaction with the external environment.
Internal functions are those that reflect actions and relationships within an object, determined by the mechanism of its construction and the characteristics of its execution. The consumer primarily does not know and is not interested in them.
Based on their role in satisfying the needs of consumers, external functions are divided into main and secondary, and among internal functions, main (working) and auxiliary.
The main function is an external function that reflects the purpose, essence and purpose of creating an object. The main functions are viable for a long period. Moreover, there can be one of them (in the vast majority of objects) or several (in complex systems).
A secondary function is an external function, characterizing the secondary goals of creating an object, in particular ensuring its aesthetics, ease of use, fashionability, compliance with ergonomic characteristics in order to increase demand.
Rice. 16.1. Main functions of the FSA object
The main (working) function is internal function, which consists in creating necessary conditions to carry out external functions (transfer, transformation, storage, output of results).
An auxiliary function is an internal function that contributes to the implementation of the main functions (connecting, isolating, fixing, guaranteeing, etc.). The number and composition of auxiliary functions depends on design, technological, managerial, and organizational features.
In general, we can say that the main functions are those that correspond to the main purpose of the object; main - those that ensure the implementation of the main ones; auxiliary help and main; superfluous ones are either unnecessary or harmful functions.
If the object under study is not complex, then during the FSA process a smaller number of functions can be identified, for example, main, auxiliary and unnecessary.
Based on the nature of detection, functions are distinguished as nominal - those that are provided and declared for execution (indicated in the documentation, technical passport), actual - those that are actually implemented, and potential - those that can be implemented.
According to the degree of necessity, functions are divided into necessary and unnecessary. Necessary (useful) functions are those that satisfy the needs of consumers and are expressed in the consumer properties of the object. For equipment that is at the design stage, these requirements are specified in the technical specifications.
Superfluous (negative) functions are those that are not needed and that may even harm consumers. Based on this, unnecessary functions are divided into unnecessary and harmful.
Unnecessary functions do not contribute to increased operational efficiency, operation of the facility and improvement of consumer properties, but cause an increase in its cost through unproductive functions and expenses.
Harmful are functions that negatively affect the consumer value and performance of an object, causing it to rise in price.
According to their role during operation, all functions are divided into working and non-working. Workers are functions that realize their properties during operation and direct use of the object.
Non-working (aesthetic) functions are those that satisfy the aesthetic needs of consumers in the form of design - finishing, color scheme, shape, and the like.
In the FSA, groupings of functions according to the Eisenhower principle, called the “ABC principle,” are very common. In accordance with it, all functions are divided:
To the main, basic and useful (A);
Secondary, auxiliary and useful (B);
Secondary, auxiliary and those that do not bring any benefit (C).
The division of functions of FSA objects is carried out using the rules given in the works of M. Karpunin, A.Ya. Kibanova, N.K. Moiseeva. So, rule one: if the main management function cannot be carried out using any specific set of basic functions, then this means that this set does not provide one or more basic management functions.
Rule two: if the main control function can be carried out without any functions included in the initially intended set of main functions, then this indicates that it is not the main one, but an auxiliary one.
For example, among the functions performed by the service department of an enterprise, two are the main ones - receiving orders for service and organizing the installation of equipment at the customer. The other two act as auxiliary functions, namely: studying product quality requirements and organizing training for customer personnel in the operation of equipment, and the like. However, the service department also performs unnecessary functions, duplicating the work of other structural divisions of the enterprise, in particular, it organizes advertising and promotion of goods and services, compiles reports on the number of claims received and satisfied, and also considers claims for delivered products.
In economically developed countries, FSA is used by almost all enterprises. In Japan, FSA began to be actively used immediately after the United States removed this type of analysis as a “top secret” and currently, almost two-thirds of products are covered by economization methods here, and the average annual reduction in their cost is 12%. Currently, the first places in the world in terms of the scale of obtaining and implementing FSA results are occupied by the USA, Japan and Germany.
Functional cost analysis has penetrated into all spheres of human activity, primarily into management, to develop measures to achieve high consumer properties of products while simultaneously reducing all types of production costs. FSA is used to predict the effectiveness of a new facility or something that is being modernized, contributing to the implementation of program-targeted management of scientific and technical development of the economy. This is precisely why it differs from other types of analysis, which study only active objects. FSA is also used to evaluate the mastered production process and operation of an object in order to improve the consumer properties of the latter and reduce associated costs. In this case, the FSA covers the process from creation to operation of the facility. Both creators and consumers of the object participate in such analysis.
Functional cost analysis is also useful for improving technology, organization and production management. For example, research into the costs associated with the automation of individual management functions makes it possible to reduce the total amount of costs through the rational allocation of subsystems that implement these functions.
FSA has also become widespread in the design and modernization of products in mechanical engineering, where products have a complex technical structure, and as quality improves, costs grow progressively.
FSA occupies an important place in carrying out marketing research, since it allows you to determine an objective indicator of competitiveness in the form of the ratio of price and quality of products compared to competitors, helping to increase the reliability of the results obtained.
Functional cost analysis is also an effective tool for improving the management system. It is indispensable in solving optimization issues organizational structure enterprise management apparatus, improving the quality of functions performed by structural divisions, improving personnel, information and technical support of the management system.
