Function cost analysis (FСА) (sometimes called function value analysis (FVA)) is a

method Method (, methodos, from μετά/meta "in pursuit or quest of" + ὁδός/hodos "a method, system; a way or manner" of doing, saying, etc.), literally means a pursuit of knowledge, investigation, mode of prosecuting such inquiry, or system. In re ...

of technical and economic research of the

systems A system is a group of interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environment, is described by its boundaries, structure and purpose and is exp ...

for purpose to optimize a parity between

system A system is a group of interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its open system (systems theory), environment, is described by its boundaries, str ...

's (as product or

service Service may refer to: Activities * Administrative service, a required part of the workload of university faculty * Civil service, the body of employees of a government * Community service, volunteer service for the benefit of a community or a ...

) consumer functions or properties (also known as value) and expenses to achieve those functions or properties.

History

This

methodology In its most common sense, methodology is the study of research methods. However, the term can also refer to the methods themselves or to the philosophical discussion of associated background assumptions. A method is a structured procedure for bri ...

for continuous perfection of production, industrial technologies,

organizational structure An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims. Organizational structure affects organizational action and provides the found ...

s was developed by Juryj Sobolev (Соболев, Юрий Михайлович) (

Russia Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...

) in 1948 at the "Perm telephone factory" (Almost at the same time as L. D. Miles ). * 1948 Juryj Sobolev (Соболев, Юрий Михайлович) (

) - the first success in application of a method analysis at the "Perm telephone factory" ( Perm, Russia). * 1949 - the first application for the

invention An invention is a unique or novelty (patent), novel machine, device, Method_(patent), method, composition, idea, or process. An invention may be an improvement upon a machine, product, or process for increasing efficiency or lowering cost. It m ...

as result of use of the new method. 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

quality management Total quality management, Total Quality management (TQM), ensures that an organization, product, or service consistently performs as intended, as opposed to Quality Management, which focuses on work process and procedure standards. It has four mai ...

, most full satisfying to principles of standards of series

ISO 9000 The ISO 9000 family is a set of international standards for Quality (business), quality management systems. It was developed in March 1987 by International Organization for Standardization. The goal of these standards is to help organizations en ...

Basic ideas

* Interest of

consumer A consumer is a person or a group who intends to order, or use purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. ...

not in products itself, but the advantage which it will receive from its usage. * The

aspires to reduce his expenses (

cost Cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it i ...

price A price is the (usually not negative) quantity of payment or compensation expected, required, or given by one party to another in return for goods or services. In some situations, especially when the product is a service rather than a ph ...

function Function or functionality may refer to: Computing * Function key, a type of key on computer keyboards * Function model, a structured representation of processes in a system * Function object or functor or functionoid, a concept of object-orie ...

s). *

Function Function or functionality may refer to: Computing * Function key, a type of key on computer keyboards * Function model, a structured representation of processes in a system * Function object or functor or functionoid, a concept of object-orie ...

s 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

quality Quality may refer to: Concepts *Quality (business), the ''non-inferiority'' or ''superiority'' of something *Quality (philosophy), an attribute or a property *Quality (physics), in response theory *Energy quality, used in various science discipli ...

and the

is the optimal for the consumer.

Method

The goal of FCA is achievement of the highest consumer satisfaction of production at simultaneous decrease in all kinds of industrial expenses (production

s). Classical FCA has three English synonyms -

Value Engineering Value engineering (VE) is a systematic analysis of the functions of various components and materials to lower the cost of goods, products and services with a tolerable loss of performance or functionality. Value, as defined, is the ratio of func ...

, Value Management, Value Analysis. It is not necessary to confuse method FСА as it takes place at some authors, to method

Activity-based costing Activity-based costing (ABC) is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. Therefore, this model assigns more ind ...

(ABC)

Basic terms

* 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. * FCA object - subjected to the analysis of the HARDWARE or its elements. *

subsystem A system is a group of interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environment, is described by its boundaries, structure and purpose and is exp ...

- the system which is a part analyzed HARDWARE. * supersystem - the system including analyzed HARDWARE. * Consumer property - ability of the HARDWARE to satisfy any need of the person (or

society A society () is a group of individuals involved in persistent social interaction or a large social group sharing the same spatial or social territory, typically subject to the same political authority and dominant cultural expectations. ...

) or other HARDWARE. * Expenses for maintenance and achieve consumer properties - the cumulative resulted

charge Charge or charged may refer to: Arts, entertainment, and media Films * ''Charge, Zero Emissions/Maximum Speed'', a 2011 documentary Music * ''Charge'' (David Ford album) * ''Charge'' (Machel Montano album) * '' Charge!!'', an album by The Aqu ...

s on technical system at all stages of its life cycle. * The cost analysis - definition of expenses for performance of functions and them Customer relationship management {{Econ-stub