- Split the product into components and service/system into activities.
- Deﬁne functions of components/activities.
- Divide the total cost of product/service/system into components/activities cost.
- Processes performed to achieve particular function; cost allocated to that function.
- Component provided to achieve particular function; cost allocated to that function.
- Component accomplishes more than one function; allocation should be based on weight, volume, surface area and length.
- Hold each function in isolation of the others to do this.
Anil Kumar, “Value Engineering Mastermind”