Benefits and advantages of value analysis are as follows:
1. It helps to keep management abreast of the latest technology and other developments because value analysis aims at examining new methods and techniques of doing things with a view to reducing the cost and increasing the value of the item.
2. It ensures the fullest possible use of resources because it aims at eliminating all unnecessary costs.
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3. It creates proper atmosphere for increased efficiency because it aims at a continuing search for improvement in efficiency.
4. It is a powerful tool for cost reduction because its basic objective is the identification of unnecessary costs in a product or service and efficiently eliminating them without impairing its quality and efficiency.
5. It induces the creative ability of the staff because it involves a creative approach for finding out unnecessary costs. Creativity develops new ideas which, in turn, make available the least expensive alternative to do the same function.
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6. It is scientific tool for increasing the productivity of a concern because it aims at exploring various alternatives for efficient use of all types of resources in employment and making available goods and services of the kind and quality most wanted by customers, at lower and lowest costs. In this way, the manufacture of most suitable production is facilitated because value analysis aims at giving highest use value and esteem value to customers.
7. It can be applied at all stages from the initial design stage of an item right up to the final stage of its packing and dispatch because it aims at identifying unnecessary costs at all levels with a view to eliminating them systematically.
8. It is helpful in any drive from import substitution because it explores new methods and techniques of manufacturing indigenous goods which may serve the same purpose which imported goods serve. Thus, it is helpful in saving precious foreign exchange.
