During the identify specifications stage of the organizational decision process products and their component parts may be critically evaluated by both the firm and its suppliers with respect to function and design in order to improve quality and, at the same time, lower production and parts/ material costs. this process is known as:

Value Analysis.

Explanation:

Value analysis may be defined as a systematic method that are used to improve the goods or product of services used by the examination. The value analysis can be increased by reducing the cost.

The value analysis includes organizational decision process products. Both the firm an the suppliers will evaluate the product to increase the benefit. The function of the products are removed and its cost has been deduced by the value analysis. The products can be lowered in the case to reduce the material costs.

Thus, the correct answer is value analysis.