Function cost analysis


Function cost analysis is a method of technical and economic research of the systems for purpose to optimize a parity between system's consumer functions or properties and expenses to achieve those functions or properties.

History

This methodology for continuous perfection of production, industrial technologies, organizational structures was developed by Juryj Sobolev in 1948 at the "Perm telephone factory".
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, most full satisfying to principles of standards of series ISO 9000.

Basic ideas

The goal of FCA is achievement of the highest consumer satisfaction of production at simultaneous decrease in all kinds of industrial expenses. Classical FCA has three English synonyms - Value Engineering, Value Management, Value Analysis. It is not necessary to confuse method FСА as it takes place at some authors, to method Activity-based costing

Basic terms