2. VALUE ENGINEERING
Value, as defined, is the ratio of function to cost.
Value engineering (VE) is systematic method to
improve the "value" of goods or products and
services by using an examination of function.
3. VALUE ENGINEERING
Value Engineering is an organizational creative
approach for the purpose of identifying of
Unnecessary cost are that which provides neither
quality, nor use, not appearance, not life and
4. VALUE ENGINEERING
It includes –
1. Cost Cutting
2. Design Review
3. Project Elimination
4. Scope Reduction
5. Quality Reduction
6. Detailed Cost Estimating
5. VALUE ENGINEERING
Value is always increased by decreasing costs while
maintaining essential performance.
Value may also be increased if the customer needs,
wants, and is willing to pay for greater performance.
Most people who design a product are quite often
because designer is not sure real needs of user
Over designed product by providing it that features
that are not useful to customer is useless.
7. VALUE ENGINEERING
VE applies to everything because every project or
process has a function
VE can be applied at any point of the design or
VE is a problem solving technique
VE can be used as a technique for developing
8. VALUE ENGINEERING
Value engineering is often done by systematically
following a multi-stage job plan. It has the following
8. Verification phase
9. VALUE ENGINEERING
It is the most important phase of value
engineering that creates that right and successful
In this phase there is interaction of customer
Work done on specifics rather than on
10. VALUE ENGINEERING
To determine user needs
To build team knowledge and understanding of
To completely understand the specific use of
function requirements of the item
To visit the site (preferable)
Process continues throughout remainder of the
11. VALUE ENGINEERING
The evaluation should be done after each idea
Analyzing of each ideas without thinking that idea
would not work, idea not possible and all that.
Identification of barriers and their elimination
12. VALUE ENGINEERING
In this stage value engineers ask; What are the
various alternative ways of meeting
requirements? What else will perform the desired
Brainstorming with positive thinking.
Creative ideas can be developed by number of
13. VALUE ENGINEERING
Study of ideas that results in cost saving
and their implementation.
In this stage all the alternatives are assessed by
evaluating how well they meet the required
functions and how great the cost savings will be.
14. VALUE ENGINEERING
This phase attempts a further development of the
two to four ideas selected earlier.
A real effort to develop the ideas of lowest cost
that do the main function is attempted.
Ask yourself: would I spent my own money on
this solution? If not modify it.
15. VALUE ENGINEERING
In the final stage, the best alternative will be
chosen and presented to the client for final
To present value engineering study proposals to
the decision makers/stake holders
To obtain approval/support
Present final solution in writing in concise format
stating the savings cost and detailed plan for
implementation the idea.
16. VALUE ENGINEERING
Every step of the process is geared towards
obtaining a result that increases the rate on
It is necessary to ensure that the group that
implements the idea inform of savings produced
and other benefits.
17. VALUE ENGINEERING
Value Engineering helps us to learn how to :
Improve our career skills
Separate "Symptoms" from "problems"
Solve "root cause" problems and capture
Become more competitive by improving
Take command of a powerful problem solving
methodology to use in any situation
Reduction in cost of existing products or systems.
Prevention of unnecessary cost in new products .