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Value = Function/Cost
Function: a measure of the
performance capabilities of
the product, service, or
project.
There are two types of function
• PRIMARY FUNCTIONS
• SECONDARY FUNCTIONS
Cost: the resources
required to achieve the
function. This can include
materials, tools, price, time,
or anything that is required
to achieve the functional
specifications.
How it works
Value engineering most often
takes place after a design
(functional or detailed) has
taken place, although the best
time to do it is actually before
design. A value analysis is
undertaken whereby
practitioners or subject matter
experts gather together to
perform the vale methodology.
The standard job plan
consists of 6 phases:
IFORMATION – Gathering
project information and
understanding its primary
goals.
FUNCTION ANALYSIS –
Identifying the functions of the
product or project.
• CREATIVE – Generating
alternative solutions which
accomplish the intended
functions but value.
• EVALUATION – Reduce
the ideas to a short list that
can be implemented.
DEVELOPMENT – Develop
the alternatives into viable,
actionable plans.
PRESENTATION – Present
the results to management
or other stakeholders.
what is value engineering in
project management
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.
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 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.
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.
* 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.