CPIM Practice Exam

What does value analysis aim to achieve?

1. Maximize sales revenue

2. Provide functions at the lowest overall cost

3. Enhance market share

4. Increase product features

The correct answer is: Provide functions at the lowest overall cost

Value analysis focuses on improving the value of a product or process by examining its functions and costs. The goal is to provide essential functions at the lowest overall cost without sacrificing quality or performance. This methodology helps organizations identify unnecessary expenditures while optimizing product design, materials, and manufacturing processes. Through value analysis, teams analyze each component's cost relative to the benefit it provides, allowing businesses to streamline operations and reduce overall expenses effectively. This leads to the delivery of a balanced product that meets customer needs while managing costs efficiently, aligning closely with the principles of cost-effectiveness and resource optimization. Other options, while potentially relevant to different business strategies, do not encapsulate the primary aim of value analysis. Maximizing sales revenue, enhancing market share, and increasing product features might contribute to overall business goals but do not focus specifically on the relationship of functions to costs, which is central to the concept of value analysis.