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CandleFocus Glossary Editor
Value Engineering: The Systematic Approach To Maximizing Function While Minimizing Cost
Value engineering is a systematic, organized and creative approach to providing necessary functions in a project or service at the least possible cost. By analyzing and evaluating underperforming areas, value engineering helps to optimize the cost and efficiency of the project or service. It is a process that promotes the substitution of materials or methods with less expensive alternatives, without sacrificing the desired level of quality and performance.
Value engineering bridges the gap between management and engineering by combining cost-efficiency and improved design and measures to create a comprehensive package for project success. It is aligned with Six Sigma and cost analysis philosophies, emphasizing continuous improvement and cost consciousness among project stakeholders.
Fundamentally, the goal of value engineering is to strive for the least cost, while still providing the necessary functions and performance. The formula for value is often defined as function divided by cost, with the ultimate objective being to maximize function while minimizing cost.
Value engineering is separated into six steps or phases, starting with idea generation and ending with change implementation:
1. Information Phase: This is the preliminary phase which consists of information collection and analysis of the project. This helps to identify opportunities in which value engineering can help boost the value of a project or service.
2. Function Analysis Phase: In this phase, a thorough analysis is conducted to assess the importance of each function. This helps to determine which functions are essential and which are optional.
3. Brainstorming Phase: This phase is a creative process in which stakeholders and team members come up with alternate solutions to existing problems. The idea generation process leads to the identification of different options for each function, which can lead to alternate cost and performance solutions.
4. Evaluating and Assessing Alternatives: In this phase, the alternatives generated in the brainstorming phase are evaluated and assessed in terms of cost, performance, and other relevant factors.
5. Development of Alternatives : Once the evaluation of alternatives is complete, the most cost-effective solution is developed and documented. It is important to keep the required functionality and performance criteria in mind.
6. Change Implementation: This is the final phase of the value engineering process, which entails implementing the change that has been agreed upon. This may involve modifying the design, selecting an alternate material, or implementing an alternate production process.
Overall, value engineering is a highly effective approach that helps organizations to optimize project performance and cost. Although complex and time-consuming, it is ultimately worth the effort if cost savings can be achieved without compromising on the quality and performance of the product or service.
Value engineering is a systematic, organized and creative approach to providing necessary functions in a project or service at the least possible cost. By analyzing and evaluating underperforming areas, value engineering helps to optimize the cost and efficiency of the project or service. It is a process that promotes the substitution of materials or methods with less expensive alternatives, without sacrificing the desired level of quality and performance.
Value engineering bridges the gap between management and engineering by combining cost-efficiency and improved design and measures to create a comprehensive package for project success. It is aligned with Six Sigma and cost analysis philosophies, emphasizing continuous improvement and cost consciousness among project stakeholders.
Fundamentally, the goal of value engineering is to strive for the least cost, while still providing the necessary functions and performance. The formula for value is often defined as function divided by cost, with the ultimate objective being to maximize function while minimizing cost.
Value engineering is separated into six steps or phases, starting with idea generation and ending with change implementation:
1. Information Phase: This is the preliminary phase which consists of information collection and analysis of the project. This helps to identify opportunities in which value engineering can help boost the value of a project or service.
2. Function Analysis Phase: In this phase, a thorough analysis is conducted to assess the importance of each function. This helps to determine which functions are essential and which are optional.
3. Brainstorming Phase: This phase is a creative process in which stakeholders and team members come up with alternate solutions to existing problems. The idea generation process leads to the identification of different options for each function, which can lead to alternate cost and performance solutions.
4. Evaluating and Assessing Alternatives: In this phase, the alternatives generated in the brainstorming phase are evaluated and assessed in terms of cost, performance, and other relevant factors.
5. Development of Alternatives : Once the evaluation of alternatives is complete, the most cost-effective solution is developed and documented. It is important to keep the required functionality and performance criteria in mind.
6. Change Implementation: This is the final phase of the value engineering process, which entails implementing the change that has been agreed upon. This may involve modifying the design, selecting an alternate material, or implementing an alternate production process.
Overall, value engineering is a highly effective approach that helps organizations to optimize project performance and cost. Although complex and time-consuming, it is ultimately worth the effort if cost savings can be achieved without compromising on the quality and performance of the product or service.