Value Engineering

What Is Value Engineering?

Value engineering is a systematic, organized approach to giving fundamental functions in a project at the most reduced cost. Value engineering advances the substitution of materials and methods with more affordable alternatives, without forfeiting functionality. It is centered exclusively around the functions of different parts and materials, instead of their physical properties. Value engineering is likewise called value analysis.

Understanding Value Engineering

Value engineering is the survey of new or existing products during the design phase to reduce costs and increase functionality to increase the value of the product. The value of a thing is defined as the most cost-compelling approach to delivering a thing without detracting from its purpose. Thusly, lessening costs to the detriment of quality is just a cost-cutting strategy.

With value engineering, cost reduction shouldn't influence the quality of the product being developed or broke down.

The concept of value engineering advanced during the 1940s at General Electric, amidst World War II. Due to the war, purchase engineer Lawrence Miles and others looked for substitutes for materials and parts since there was an ongoing shortage of them. These substitutes were in many cases found to reduce costs and gave equivalent or better performance.

Special Considerations

Miles defined product value as the ratio of two components: function to cost. The function of a thing is the specific work it was designed to perform, and the cost alludes to the cost of the thing during its [life cycle](/product-life-cycle-the board). The ratio of function to cost suggests that the value of a product can be increased by either working on its function or decreasing its cost. In value engineering, the cost connected with production, design, maintenance, and replacement are remembered for the analysis.

For instance, consider another tech product is being designed and is scheduled to have a life cycle of just two years. The product will subsequently be designed with the least costly materials and resources that will serve up to the furthest limit of the product's life cycle, saving the manufacturer and the end-consumer money. This is an instance of further developing value by diminishing costs.

Another manufacturing company could choose to make added value by expanding the function of a product with insignificant cost. In this case, the function of each and every part of the thing will be assessed to foster an itemized analysis of the purpose of the product. Part of the value analysis will require assessing the various alternate ways that the project or product can achieve its function.

The various ways that are listed are reduced to a couple of essential and secondary practical options that might be carried out into the project. For instance, a container of dishwashing liquid that becomes dangerous after a portion of the cleanser has spilled to the sides might be improved by redesigning the state of the jug and the opening spout to further develop hold and limit leakage. This improvement could lead to increased sales without causing extra advertising costs.

Features

• Value engineering advances the substitution of materials and methods with more affordable alternatives, without forfeiting functionality.
• It is centered exclusively around the functions of different parts and materials, instead of their physical properties.
• Value engineering is a systematic and organized approach to giving the fundamental functions in a project at the most minimal cost.