Functional-cost analysis

Functional-value analysis is an excellent opportunity to improve your business and increase profits several times. The fact is that the value of the method in understanding which industries of the enterprise are most costly and whether there is any sense in these costs. The visibility of the method is several times higher than all other analyzes; Its results are expressed in the form of a scheme that can be demonstrated at meetings of the enterprise's asset. This is the main advantage of such an analysis of the work of the enterprise.

The method of functional and cost analysis uses the most profitable and promising enterprises, and this once again confirms its significance and success.

What are the objectives of this analytical approach to work? First of all, the functional-cost analysis is carried out, mainly, in order to find weaknesses in the organization of the enterprise. However, the task before this analysis is more global: this method should improve the quality of the enterprise's products. This is necessary, first of all, for consumers. And the second task is the maximum reduction of the company's expenses for the production of this product itself, in which the organization itself is more interested. However, the solution of the second task will not prevent the consumer: the fact is that if the cost of production decreases, then the final product will be cheaper. And this means that it will be available to the broad masses, and as a result, it is easy to sell. So, functional-value analysis contributes not only to reducing costs, but also to increasing the sales market, which, naturally, will positively affect the prosperity of the enterprise. By the way, this method of analysis was first invented by the designer Sobolev, and now he is successfully used by enterprises around the world.

How to conduct functional and cost analysis? The fact is that there are no special guidelines on this matter. However, there is the experience of numerous enterprises using this method. We propose to consider in more detail the functional-cost analysis on the following example.

First, you need to divide all the information into phases. The first is a functional model of the enterprise. Here the main block of the scheme located in the center will be the main function of the enterprise, for example, "making soft toys", "making fashionable clothes" - try to isolate the main direction of your enterprise - what your firm ultimately delivers to the sales market. From the left edge you need to write down all materials and raw materials. From the right - the tools of production - machines, sewing machines, smelting shops, etc. From above write down two important blocks - the documentation and the production plan. And from below - the resources of the enterprise. So you graphically depicted the main costs, which can not be ruled out, provided that you want the enterprise to fulfill its main function.

Next, we proceed to the second phase, which is called the model of the cost of the enterprise. Functions in this case, as a rule, two. They stand in the center and are inseparable. That is, they complement one another and are presented in a sequential interaction. From function 1 to function 2 there is an arrow that indicates the output of the result. On top of 1 and 2 functions are placed 2 large blocks, which are called resources. To the left of the function 1 mark the raw material, and to the right of the second - the product. From the bottom - also resources. Near the arrows that go from the upper blocks with resources, you need to mark the cost of managing these processes. So the work of the enterprise and the cost of each of the services are visible schematically.

Functionally, the cost analysis, an example of which we have considered, is carried out. It remains only to draw the appropriate conclusions and take them into consideration for further work.