Value engineering
is an organized creative approach which aims to pinpoint
inessential expenditures precisely. These are the charges whose spending does
enhance none of the qualitative, functional, customer-orientated or apparent
aspects. The methodology of a system value determines the pertinent schemes,
products, components for setting the worth of each one of them. Value
engineering scrutinizes the scheme obligations to determine the realization of
the actual value. Thus it seeks the fruition of the indispensable functions
with the slightest expenses. (Lida Haghnegahdar, and Ezzatollah
Asgharizadeh , 2008)
VE is
an effective technique for reducing costs, increasing productivity, and improving quality. It can be applied to hardware and
software; development, production,
and manufacturing; specifications, standards, contract requirements, and other acquisition program documentation; facilities
design and construction. It may be
successfully introduced at any point in the life-cycle of products, systems, or procedures. VE is a technique directed
toward analyzing the functions of an item or process to
determine "best value," or the best relationship
between worth and cost. In other words, "best value" is represented by an item or process that consistently performs the
required basic function and has the lowest total
cost. In this context, the application of VE in facilities construction
can yield a better value when construction is approached in a manner
that incorporates environmentally-sound and energy-efficient practices and materials.(http://www.whitehouse.gov/omb/rewrite/circulars/a131/a131.html)
Today, VE is not only recognized but also
acclaimed as one of the best Value Improving Practices that management can
employ. Its successful application to strategic planning, quality improvement,
management studies, manufacturing, and construction has demonstrated both its
versatility and its durability as a management practice.
Value Engineering is a systematic and organized
procedural decision-making process. It has been
used in almost any kind of application. It helps people creatively
generate alternatives to secure essential functions at the greatest worth as opposed to costs. This is referred to as value.
It is usually applied in a team setting, but that is not
a requirement. It uses a job plan, is function based, and
requires a product be generated as a result of the study
(success only). It is also known as Value Analysis, Value Management,
Value Planning, and a host of other names. With all its names,
it almost has an identity crisis.)
One of the most unique features of Value
Engineering is its use of functions and a function-logic
process to describe needs, purposes, and ramifications. In addition
to its many other benefits, the use of function-logic removes people from many of their preconceived biases. This, and a
common understanding, are obtained through the
use of two word functions (active verb, measurable-noun descriptors)
and placing those functions in a decision-logic diagram. This powerful
combination helps remove people from the "I want" position to the
basic needs involved. It also helps people see what parts of
their decisions rely on critical features, and where
decisions are requiring substantial support to maintain
them (potential value-mismatches, AKA potential value opportunities. (http://www.vetoday.com/value-engineering.php
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