Published on Nov 30, 2023
Value engineering is a professionally applied, function-oriented, systematic team approach used to analyze and improve value in a product, facility design, system or service-a powerful methodology for solving problems and reducing costs while improving performance/quality requirements
By enhancing value characteristics, Value Engineering increases customer satisfaction and adds value to your investment. Value Engineering can be applied to any business or economic sector, including industry, government, construction and service. Using Value Engineering is a very successful long-term business strategy.Value engineering began at General Electric Co. during World War II. Because of the war, there were shortages of skilled labour, raw materials, and component parts. Lawrence Miles and Harry Erlicher at G.E. looked for acceptable substitutes. They noticed that these substitutions often reduced costs, improved the product, or both. What started out as an accident of necessity was turned into a systematic process. They called their technique “value analysis”.
Value engineering reduces costs by eliminating wasteful practices. This can be done in several areas:
1.Material substitutions -
Unnecessarily expensive inputs can sometimes be replaced by less expensive ones that function just as well. If a product has a life span of ten years, then using a material that lasts thirty years is wasteful. In a perfectly value engineered product, every component of that product will function perfectly until the product is no longer useful, at which time all components will deteriorate.
2.Process efficiency and producibility -
More efficient processes can be used and the product can be redesigned so that it is easier to produce. Reducing unnecessary parts, unnecessary precision, and unnecessary production operations can lower costs and increase manufacturability, reliability, and profits. Process engineering can be used to increase process efficiency.
Subassemblies that are designed and developed once and reused in many slightly different products can reduce a project's engineering and design costs. For example, a typical tape-player has a precision injection-molded tape-deck compartment. This component can be produced, assembled and tested by an independent manufacturer and sold to numerous companies as a subassembly. The tooling and design expense for the tape deck is shared over many products that can look quite different.
4.Market driven product improvements -
A product with more features than customers want is inefficient. Customers will be paying for features that they don’t want to pay for. Value engineering can determine how to produce a product that exactly matches the wants of a major segment of the market. When a customer needs more features, these can be sold as options.
5.Energy efficiency -
Value can be created by making a product or process more energy efficient for the user. This is particularly true in heating and air conditioning systems, transportation vehicles, industrial equipment, and other systems that use much energy.
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