What is VE?Value Engineering and its Benefits

What is Value EngineeringValue Engineering is a function oriented, systematic team approach and study to provide value in a product, system or service. Often, this improvement is focused on cost reduction; however other important areas such as customer perceived quality and performance are also of paramount importance in the value equation.Value engineering techniques can be applied to any product process procedure system or service in any kind of business or economic activity including health care, governance, construction, industry and in the service sector.Value Engineering focuses on those value characteristics which are deemed most important from the customer point of view.Value Engineering is a powerful methodology for solving problems and/or reducing costs while maintaining or improving performance and quality requirements.Value Engineering can achieve impressive savings, much greater than what is possible through conventional cost reduction exercise even when cost reduction is the objective of the task.What are the benefits of Value Engineering Value Engineering helps your organization in Lowering O & M costs Improving quality management Improving resource efficiency Simplifying procedures Minimizing paperwork Lowering staff costs Increasing procedural efficiency Optimizing construction expenditures Developing value attitudes in staff Competing more successfully in marketplaceValue Engineering helps you to learn how to: Improve your career skills Separate "Symptoms" from "problems" Solve "root cause" problems and capture opportunities Become more competitive by improving "benchmarking" process Take command of a powerful problem solving methodology to use in any situationHow Value Engineering AppliedThe technique of Value Engineering is governed by a structured decision making process to assess the value of procedures or services. Whenever unsatisfactory value is found, a Value Management Job plan can be followed. This procedure involves the following 8 phases :1. Orientation 2. Information 3. Function 4. Creativity 5. Evaluation 6. Recommendation 7. Implementation 8. AuditWhere can I find more about Value Engineering ?The best and most convenient way to learn the technique of Value Engineering and its application, is by becoming a member of Indian Value Engineering Society (INVEST).INVEST is a professional society established in October, 1977 and dedicated to the advancement of Value Engineering through education. This provides a better understanding of the principles, methods and concepts of value technology. INVEST has members in virtually every state in India. It maintains a network of chapters throughout the country and provides its members with additional educational opportunities at the local level.INVEST is affiliated to the Society of American value Engineers (SAVE).Valueengineeringis used to increase the value of products. Value is a ratio of function to cost. The value of a product can be increased by reducing its cost or increasing the function. Valueengineeringis an organized technique to reduce the cost of a product without compromising with its quality, reliability, performance, appearance, safety, utility etc. The possible functions by which the cost of a product can be reduced are1. Modification in design of product2. By adopting the most efficient manufacturing process3. By changing the source of supply of material4. Possible elimination or addition in the related systemThe aim of valueengineeringis to systematic identification and elimination of unnecessary costs. It is applied for existing products rather than new products.Objectives of valueengineering/value analysis:Increased profits With the cost reduction of a product, the profits of an organization increased. This results in time reduction. It also ensures greater returns on invested capital. The competitive position of company alsoimproves. Improved product Design With the modification in design, the customer will get a new and more acceptable product. Efficiency It increases the efficiency of employees as it motivates them to come forward with their creative ideas. It also makes contributions to improvehuman factors such as creativity, team work and positive attitude among employees. The team approach alsoimprovesthedecision making.Time consideration A product has value for the customer if it is available to him on time. So time element has great importance in value engineering. It may have no value if it arrives later.Improvement in quality This results in improvement in quality, reliability, performance and maintainability of a product.Steps for value analysis:1. Establish the objectives Example - cost reduction, function improvement2. Orientation/preparation Make a team for design, marketing, purchasing etc and fix a proper schedule.3. Information gathering Information of cost, physical parameters, schedule etc4. Analysis5. Innovation/Creativity A brainstorming session can be held to explore all possible alternatives.6. Option evaluation Evaluate all possible solutions andselectthe best alternative.7. Implementation and monitoring Make a plan for implementation of change.Value Engineering (VE) is a systematic process using a team from a variety of disciplines to improve the value of a project through the analysis of its functions. The VE process incorporates, to the extent possible, the values of design; construction; maintenance; contractor; state, local and federal approval agencies; other stakeholders; and the public.

The primary objective of a Value Engineering study is value improvement. The value improvements might relate to scope definition, functional design, constructibility, coordination (both internal and external), or the schedule for project development. Other possible value improvements are reduced environmental impacts, reduced public (traffic) inconvenience, or reduced project cost.

Value Engineering can be applied during any stage of a projects development, although the greatest benefits and resource savings are typically achieved early in development during the planning or scoping phases.

Value Engineering (VE) is a proven, effective tool for both continuous improvement and design enhancement. VE optimizes the allocation of limited funds without reducing the quality of a project.Value Engineering Objectives Build consensus with our partners to encourage positive impacts on project delivery. Innovative cost avoidance ideas become standard on future projects. Reduce life cycle cost of items to lower future maintenance costs