what is value engineering in project management

Value Engineering: Value engineering is a structured technique commonly used inproject

management. ... Some methods used in value engineering include reducing production time,
reducing expenses, increasing earnings, expanding market share, using existing resources
more efficiently, and improving product quality.

Value Engineering: Value engineering is a structured technique commonly used

in project management. Value engineering is often referred to as “VE.” Value
engineering is an organized attempt to optimize the overall value of the project
in project management endeavors. Often, creative strategies will be employed
in an attempt to achieve the lowest life cycle cost available for the project. This
means the project manager and those working on the project at hand must
consider all costs associated with the project, from the initial design of the
product or service through its eventual disposal. They must then consider any
cost-saving alternatives to be employed at any given phase of the project.
Value engineering includes taking an in-depth look at the functions of any
equipment, facilities, services, systems, and materials used in the project. This
part of project management requires an analysis to be performed on each of
these components. When analyzing these components, managers will be
looking for ways to improve cost effectiveness while not negatively affecting
the quality, reliability, performance, or reputation of the product or service. Some
methods used in value engineering include reducing production time, reducing
expenses, increasing earnings, expanding market share, using
existing resources more efficiently, and improving product quality.
what is value engineering and its purposes

Value engineering is the review of new or existing products during the design phase to reduce
costs and increase functionality in order to increase the value of theproduct. The value of an
item is defined as the most cost-effective way of producing an item without taking away from its
purpose.

Value engineering can be defined as an organized effort directed at analyzing designed

building features, systems, equipment, and material selections for thepurpose of achieving
essential functions at the lowest life cycle cost consistent with required performance, quality,
reliability, and safety.

Value engineering example

Value engineering is a systematic and organized approach to providing the

necessary functions in a project at the lowest cost. Value engineering promotes
the substitution of materials and methods with less expensive alternatives,
without sacrificing functionality. It is focused solely on the functions of various
components and materials, rather than their physical attributes. Value
engineering is also called value analysis.

KEY TAKEAWAYS

 Value engineering is a systematic and organized approach to providing the

necessary functions in a project at the lowest cost.
 Value engineering promotes the substitution of materials and methods with
less expensive alternatives, without sacrificing functionality.
 It is focused solely on the functions of various components and materials,
rather than their physical attributes.

what is value engineering and its benefits

Value engineering provides the maximum opportunity to improve the public investment
by quality enhancement or life-cycle cost saving. ... The goal is to improve the
value and quality of the project, and hopefully reduce the time to complete the project.

Advantages Of Value Engineering. The following are the advantages of value

engineering: * Value engineering helps achieve an improved product design and
quality. * Value engineering suggests eliminating the unnecessary functions in the
organization that increase costs and have complex ties.

 Advantages Of Value Engineering

 The following are the advantages of value engineering:

* Value engineering helps achieve an improved product design and quality.

* Value engineering suggests eliminating the unnecessary functions in the organization

that increase costs and have complex ties.

* Value engineering enhances the customers' satisfaction and sales by determining the
exact need and expectation of customers.

* Value engineering emphasizes on seeking the alternatives for achieving the function
and on applying the best alternative among the various courses of actions available.

* Value engineering provides competitive advantages to the firm in the areas of product
quality, costs and customer's satisfaction.

* Value engineering focuses on standardization of the parts and components by

identifying the possibility of using the same component or function in different products
 of the company. This brings economy in the cost of manufacturing the parts and
components.

What is value engineering and its analysis

Value Engineering Analysis
x
Value engineering analysis is a systematic process which organizations use

every time they want to conduct a study of the product’s function. The method

seeks to know if the function of the product provides the value that the

organization intends to give to its consumers. The objective of this method is

to improve the value of the end product. This is a very effective method in

improving the quality prerequisites and performance while at the same time

minimizing costs and giving a solution to the problem.

A value of a product is the proportion of purpose to expenditure. Having this

relation, the use of VEA will give solutions that will improve the product or

minimize expenditure. It is also advised that organizations should establish

and continue expenditure-effective value engineering analysis and processes.

The methodology was first introduced by the General Electric Company

during the era of World War II. The situation back then brought shortages of

resources on both factors – manpower and raw materials. General Electric

executives, Jerry Leftow, Harry Erlicher, and Lawrence Miles, introduced a

different process and noticed that the procedure either improved the product

or reduced their expenditures. Later on they called the method “value

analysis”. The technique determines and abolishes unnecessary cost, thereby

enhancing the product value which benefits both the organization and its

consumers.

 Information stage – the phase involves several activities such as

creating the definition of the problem, gathering of information that is
relevant to the problem, apportioning necessary resources and manpower
to conduct the study. This phase answers the questions – What is the
current status of the product? What should the product do? What should
the product not do? Who will conduct the study?
 Speculative stage – this stage aims to create alternative practices of
giving required purpose with minimal cost. Developed by the Function
Analysis Systems Technique also known as FAST, this purposeful study
shows the logical connection amongst the system, the purpose of building,
and the component. Using the FAST table, the VEA group will begin
generating numerous ideas. Brainstorming activity provides several
alternative solutions. The activity optimizes the resolution of product
enhancement problem and choosing the best probable solution to the
problem. The activity answers the questions – What are the possible
alternatives or options that will meet the requirement? How will the
options or alternatives be calculated? What other alternatives can perform
the same purpose?
 Analytic stage – the stage aims to compare cost of different alternatives
and define the ultimate alternative. The LCC, known as the Life Cycle
Costing is commonly used to evaluate the least cost of the last chosen
alternatives. The stage identifies the quality and cost effective alternative.
The phase answers the questions – Which is the best alternative? What
is/are the possible performance and impact to the business of each
alternative? What should be done? How much does it cost? What other will
perform the job?
 Proposal stage – the stage presents the result of the value engineering
analysis study to the client and seeks for their approval. The stage also
establishes the commitment from the project sponsor, designer, and other
executives to be able to implement and monitor the proposed plan.
The purpose of using value engineering analysis should not be limited for

reducing cost alone or for product or process improvement alone. The study
requires the definition of the relation between cost and function, thus the focal

point of the analysis should be on improving both aspects. The success of the

study depends on the capability of all team members to analyze given problem

using available set of data, come up with all possible solutions, weigh all

alternatives, and select the most effective and least expensive alternative.

What is Value Engineering with example?

In value engineering, the cost related to production, design, maintenance, and replacement

are included in the analysis. For example, consider a new tech product is being designed and is

slated to have a life cycle of only two years. ... This is anexample of improving value by

reducing costs.

What Is Value Engineering?

Value engineering is a systematic and organized approach to providing the
necessary functions in a project at the lowest cost. Value engineering promotes
the substitution of materials and methods with less expensive alternatives,
without sacrificing functionality. It is focused solely on the functions of various
components and materials, rather than their physical attributes. Value
engineering is also called value analysis.

KEY TAKEAWAYS

 Value engineering is a systematic and organized approach to providing the

necessary functions in a project at the lowest cost.
 Value engineering promotes the substitution of materials and methods with
less expensive alternatives, without sacrificing functionality.
 It is focused solely on the functions of various components and materials,
rather than their physical attributes.
Understanding Value Engineering
Value engineering is the review of new or existing products during the design
phase to reduce costs and increase functionality in order to increase the value of
the product. The value of an item is defined as the most cost-effective way of
producing an item without taking away from its purpose. Therefore, reducing
costsat the expense of quality will simply be a cost-cutting strategy.

With value engineering, cost reduction should not affect the quality of the product
being developed or analyzed.
The concept of value engineering evolved in the 1940s at General Electric, in the
midst of World War II. Due to the war, purchase engineer Lawrence Miles and
others sought substitutes for materials and components, since there was a
chronic shortage of them. These substitutes were often found to reduce costs
and provided equal or better performance.