Value Engineering
Value Engineering is "the systematic application of recognized techniques by a multi-disciplined team which identifies the function of a product or service; establishes a worth for that function; generates alternatives through the use of creative thinking; and provides the needed functions reliably at the lowest overall cost."
Value Engineering Design is a systematic methodology used to identify and eliminate unnecessary development costs and reduce lead time, while maintaining or improving the function and quality of the product.
A key component of the Value Engineering process is its use of a carefully crafted and thoroughly tested job plan. Adherence to the job plan focuses on a specific decision process, that which contains the right emphasis, timing, and elements to secure a high quality product. The job plan and its sub-elements highlight the issues involved, essential needs, criteria, problems, objectives, and concerns.
Paybacks of Value Engineering:
- Cost reduction by eliminating functions that do not satisfy customer needs which helps to expand market share
- High customer oriented approach which develops products to better satisfy customer requirements.
- Creativity phase helps to fundamentally change the product design.
- Increased profitability of the product.
- Time saving through optimized project and process planning
- Improved understanding of the project and validation of cost.
- Improved quality and concern resolution approach
- Time saving through optimized project and process planning
- Improvement in corporate culture through enhanced creativity and the introduction of new ideas and approaches
