Definition of Functional Analysis
A cost reduction analysis aims to reduce the manufacturing cost of the product with no compromise on the quality and value of a product. The cost is the amount that is incurred to manufacture the product for customers. It includes material, labor, overhead cost, packaging, printing, shipping, and advertising, etc. Value is the product worth in the customer’s eye.
While doing this analysis, the main goals are to review manufacturing material and product design and made necessary design alterations that cut off the production cost which does not reduce the value of the product in the customer’s eye.