The approach to cost reduction that studies whether components can be redesigned or standardized or made by cheaper methods of production without adversely impacting product performance is termed as ________.
A) maintenance, repair, and operating (MRO)
B) product value analysis (PVA)
C) vendor managed inventories (VMI)
D) supplier performance management (SPM)
E) supplier added value effort (SAVE)

Question

Quizplus · Accepted Answer

This approach is called Product Value Analysis (PVA), which aims to reduce costs by analyzing the value of the product and assessing if any components can be redesigned, standardized or made using cheaper methods without affecting product performance. The other options are not relevant to this concept.

The Approach to Cost Reduction That Studies Whether Components Can