Value Engineering is a well-organized approach to a project that provides the necessary functions while reducing the minimum cost. It involves consideration of materials and methods that can provide an alternative to the expensive ones without compromising the product’s quality and functionality. Value engineering, aka value analysis, is focused on the functions of a product rather than focusing on the appearance and other physical attributes.
Value engineering contains two important components – function and cost.
Value = Fucntion/Cost.
The function is a measure of the project’s performing capabilities, whether it is a product or a service. The cost measures the resources required to achieve the function while satisfying the functional specifications.
The companies invest in value engineering to solve the most important factor in producing their product or service, which is cost. It helps a company improve cost-effectiveness in all areas of business, from improving the product functions to increasing the product’s value for a customer. There are many challenges in value engineering to improve a project. To overcome these challenges, here are the four key ways to make a value-engineered project succeed.
Separate functions from features
The most elemental purpose of a product is to perform one or more major functions. A company should be able to identify the functions of a product and separate it from the features. The features are the ease with which a consumer can access the functions of a product. While features can add ease in the usage of the product, it can also add up negative costs for a company. Features should not be confused with a product’s functions and should be eliminated if they are adding unnecessary expenses.
Find a good value engineer
A good value engineer should be a good communicator and should believe in thorough functional distillation. The engineer should be able to create a well-defined problem statement to reach better solutions. The knowledge and experience in research, organization, and preparation of a project are necessary for a VE to provide the best solutions.
Acquire multi-disciplinary support
A good value engineering project requires the contribution of the entire organization. It also requires active sponsorship and corporate engagement to understand the life cycle costs that are related to the performance, reliability, quality, safety, and availability of resources for the project. A team needs to be assembled that consists of all the sectors of an organization that are connected with the project.
The more ideas the team can come up with, the better it will be to find the right solutions for the business. The team should have options for their project so that there is no need for a compromise on value engineering. The team that can represent every functional area of the business should have the right materials and information to generate as many ideas as they can to yield better value-engineered results.