Application of Functional Cost Analysis in Hr Management

Abstract

Many users think that functional cost analysis (FCA) is quite diffi cult to understand. Perhaps this is due to the fact that there is too little information explaining what it actually is. The aim of this work is the essence of functional-cost analysis, ease-of-use. FCA is a method for a systematic study of functions, the functionality of various objects and their costs. Advantage of FSA is the presence of a fairly simple computational and graphical methods to give a dual quantitative assessment of the identifi ed causal relationships. This advantage puts the FSA in a number of the most eff ective methods of the analysis which are not only technical, but also socio-economic systems, structures, methods of organizing and planning production management and scientific research. However, the work of the FSA is carried out in isolation from the economic calculations of the enterprises and unions. Therefore, the economic standards of existing production are not covered by the functional approach, based on substantive economic analysis, planning from the achieved level. Value analysis management system allows to perform the following activities: definition and implementation total cost analysis of business processes at the enterprise (marketing, production of goods and provision of services, marketing, quality management, warranty maintenance, etc.); functional analysis associated with the establishment and justification carried out by structural subdivisions of an enterprise functions in order to ensure production of high quality products and services; definition and analysis of basic, additional and unnecessary cost functional; comparative analysis of options for reducing costs in production, marketing and management by streamlining the functions of the structural divisions of the enterprise; analysis of integrated improved results of the company.