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MB0044 | Q4. What is value engineering? Explain its significance.

Q4. What is value engineering? Explain its significance.
Value engineering (VE) is also referred to as "value management" or "value methodology" (VM), and "value analysis" (VA), is a systematic method to improve the "value" of goods or products and services by using an examination of function.

Value, as defined, is the ratio of function (Performance) to cost. Value can therefore be increased by either improving the function or reducing the cost. It is a primary tenet of value engineering that basic functions be preserved and not be reduced as a consequence of pursuing value improvements.

For example, the function of a pencil is to "make marks". This then facilitates considering what else can make marks. From a spray can, lipstick, a diamond on glass to a stick in the sand, one can then clearly decide upon which alternative solution is most appropriate.
The concept of value engineering originated during the
Second World War. It was developed by the General Electric Corporations (GEC). Value Engineering has gained popularity due to its potential for gaining high Returns on Investment (ROI).This methodology is widely used in business re-engineering, government projects, automakers, transportation and distribution, industrial equipment, construction, assembling and machining processes, health care and environmental engineering, and many others. Value engineering process calls for a deep study of a product and the purpose for which it issued, such as, the raw materials used; the processes of transformation; the equipment needed, and many others. It also questions whether what is being used is the most appropriate and economical. This applies to all aspects of the product.

Value Engineering helps your organization in:
•    Lowering O & M costs
•    Improving quality management
•    Improving resource efficiency
•    Simplifying procedures
•    Minimizing paperwork
•    Lowering staff costs
•    Increasing procedural efficiency
•    Optimizing construction expenditures
•    Developing value attitudes in staff
•    Competing more successfully in marketplace

Value Engineering helps you to learn how to:
•    Improve your career skills
•    Separate "Symptoms" from "problems"
•    Solve "root cause" problems and capture opportunities
•    Become more competitive by improving "benchmarking" process
•    Take command of a powerful problem solving methodology to use in any situation

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