In the engineering stages of a project, value engineering is a creative, team-based approach to seeking and selecting the best alternative for achieving a function that will ultimately save the client money. It is a methodical, organized approach to performing necessary functions in a project at the lowest possible cost.
Value engineering encourages the substitution of less expensive materials and methods without sacrificing functionality. It is solely concerned with the functions of various components and materials, rather than their physical characteristics. Value engineering is also referred to as value analysis.
The following are the advantages of value engineering:
(1) Value engineering helps achieve an improved product design and quality. It is a systematic part of the design process where equipment specifications, light fixtures, and other budget priorities are detailed into the construction schedule.
(2) Value engineering suggests eliminating the unnecessary functions in the organization that increase costs and have complex ties. It helps to cut costs, but it takes it one step further to enable the design team to prioritize what’s more important.
(3) Value engineering enhances the customers’ satisfaction and sales by determining the exact need and expectations of customers.
(4) Value engineering emphasizes seeking the alternatives for achieving the function and on applying the best alternative among the various courses of action available. It can be an active part of a creative design process while at the same, ensuring that available funds meet the client’s goal.
(5) Value engineering provides competitive advantages to the firm in the areas of product quality, costs, and customer satisfaction. Reducing labor effort allows lead time reduction. Getting the product to the customer as quickly as possible will help a company win jobs and beat out the competition.
(6) Value engineering focuses on standardization of the parts and components by identifying the possibility of using the same component or function in different products of the company. This brings the economy in the cost of manufacturing the parts and components.
Value Engineering (VE) is a method, not a program. It is a methodical process used by a multidisciplinary team to increase the value of a project by analyzing its functions. A fair return or equivalent in goods, services, or money for something exchanged is defined as value.