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Value engineering
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About Wikipedia Value engineering (VE) is a systematic method to improve the "value" of goods or products
Community portal and services by using an examination of function. Value, as defined, is the ratio of function to
Recent changes cost. Value can therefore be manipulated by either improving the function or reducing the cost.
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It is a primary tenet of value engineering that basic functions be preserved and not be reduced
Tools as a consequence of pursuing value improvements.[1]
The term "value management" is

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sometimes used as a synonym of "value engineering", and both promote the planning and
Related changes delivery of projects with improved performance [2]
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The reasoning behind value engineering is as follows: if marketers expect a product to become
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practically or stylistically obsolete within a specific length of time, they can design it to only last
Permanent link
Page information for that specific lifetime. The products could be built with higher-grade components, but with
Wikidata item value engineering they are not because
this would impose an unnecessary cost on the
Cite this page manufacturer, and to a limited extent also an increased cost on the purchaser. Value

engineering will reduce these costs. A company will typically use the least expensive
In other projects
components that satisfy the product's lifetime projections.
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Due to the very short life spans, however, which is often a result of this "value engineering
Print/export technique", planned obsolescence has become associated with product deterioration and
Create a book inferior quality. Vance Packard
once claimed this practice gave engineering as a whole a bad
Download as PDF name, as it directed creative engineering energies toward short-term market ends.
Printable version Philosophers such as Herbert Marcuse and Jacque Fresco have also criticized the economic
and societal implications of this model.
Value engineering is the structural and analytical
Languages
process that seeks to achieve the value for money.
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Contents [hide]
Español
1 History
Français
한국어 2 Description
日本語 3 Legal terminology
Português 4 See also

Value engineering - Wikipedia.htm[16-07-2019 19:47:38]

Value engineering - Wikipedia

Русский 5 References
中文 6 Further reading
8 more 7 External links
Edit links

History [ edit ]

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,
Jerry
Leftow, 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".

Description [ edit ]

Value engineering is sometimes taught within the project management or industrial engineering
body of knowledge as a technique in which the value of a system’s outputs is optimized
by
crafting a mix of performance (function) and costs. In most cases this practice identifies and
removes unnecessary expenditures, thereby increasing the value for the manufacturer and/or
their customers.

VE follows a structured thought process that is based exclusively

on "function", i.e. what
something "does" not what it is. For example a
screw driver that is being used to stir a can of
paint has a "function"
of mixing the contents of a paint can and not the original connotation of
securing a screw into a screw-hole. In value engineering "functions" are always described in a
two word abridgment consisting of an active verb and measurable noun (what is being done –
the verb – and what it is
being done to – the noun) and to do so in the most non-prescriptive
way
possible. In the screw driver and can of paint example, the most basic function would be
"blend liquid" which is less prescriptive than "stir paint" which can be seen to limit the action (by
stirring) and to limit the application (only considers paint). This is the basis of what value

engineering refers to as "function analysis".[3]

Value engineering uses rational logic (a unique "how" - "why" questioning technique) and the
analysis of function to identify relationships that increase value. It is considered a quantitative

method similar to the scientific method, which focuses on hypothesis-conclusion approaches to
test relationships, and operations research, which uses model building to identify predictive

relationships.

Legal terminology [ edit ]

In the United States, value engineering is specifically mandated for federal agencies by section
4306 of the National Defense Authorization Act for Fiscal Year 1996,[4] which amended the
Office of Federal Procurement Policy Act (41 U.S.C. 401 et seq.):

“Each executive agency shall establish and maintain cost-effective value engineering
procedures and processes".
"As used in this section, the term ‘value engineering’ means an analysis of the functions of a

Value engineering - Wikipedia.htm[16-07-2019 19:47:38]

Value engineering - Wikipedia

program, project, system, product, item of equipment, building, facility, service, or supply of
an executive agency, performed by qualified agency or contractor personnel, directed at
improving performance, reliability, quality, safety, and life cycle costs".

See also [ edit ]

Benefits realisation management

Cost
Cost engineering
Cost overrun
ISO 15686
Muntzing
Overengineering
Value theory

References [ edit ]

1. ^ "Value Methodology Standard" (PDF). Archived from the original (PDF) on 2009-03-19.
Retrieved 2008-12-01.
2. ^ Invernizzi, Diletta Colette; Locatelli, Giorgio; Grönqvist, Marcus; Brookes, Naomi J. (2019-01-
28). "Applying value management when it seems that there is no value to be managed: the case
of nuclear decommissioning" . International Journal of Project Management.
doi:10.1016/j.ijproman.2019.01.004 . ISSN 0263-7863 .
3. ^ The Value Methodology Standard . SAVE International. August 2007.
4. ^ National Defense Authorization Act for Fiscal Year 1996 , Public Law 104-106, accessed 4
March 2016

Further reading [ edit ]

Cooper, R. and Slagmulder, R. (1997): Target Costing and Value Engineering.

"Value Engineering - Concepts, Techniques and Applications by Anil Kumar
Mukhopadhyaya
"Value Engineering Mastermind - From Concept to Value Engineering Certification by Anil
Kumar Mukhopadhyaya"
"Function Analysis System Technique - A Simulating Tool by Anil Kumar Mukhopadhyaya"
Cost Engineering by Anil Kumar Mukhopadhyaya"
"Function Analysis System Technique For Breakthrough Solutions by Anil Kumar
Mukhopadhyaya"
"Value Optimization for Project and Performance Management by Robert B. Stewart, CVS-
Life, FSAVE, PMP"

External links [ edit ]

Lawrence D. Miles Value Foundation

SAVE International - American Value engineering society
wertanalyse.com - Many links regarding VE organizations and publications

Value engineering - Wikipedia.htm[16-07-2019 19:47:38]

Value engineering - Wikipedia

The Canadian Society of Value Analysis - Value Engineering in Canada

Value Engineering’s History in Construction - American Institute of Architects - AIA
The Institute of Value Management, UK
the APTE method

Categories: Industrial engineering Design for X Cost engineering

This page was last edited on 29 May 2019, at 16:27 (UTC).

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Value engineering - Wikipedia.htm[16-07-2019 19:47:38]