What’s Value Engineering?
The Value Methodology (VM) is a systematic and structured approach for improving projects, products and processes. VM, which is also known as value engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, and business and administrative processes.
VM helps achieve an optimum balance between function, performance, quality, safety and cost. The proper balance results in the maximum value for the project.
Value is the reliable performance of functions to meet customer needs at the lowest overall cost and it can be calculated like this:
Value = Function/Cost
The function is what the product or service is supposed to do.
Cost is the expenditure needed to create it.
The VM follows SAVE International®’s standard job plan, which consists of six phases:
1- Information: Gather information to better understand the project.
2- Function Analysis: Analyze the project to understand and clarify the required functions.
3- Creative: Generate ideas on all the possible ways to accomplish the required functions.
4- Evaluation: Synthesize ideas and concepts and select those that are feasible for development into specific value improvements.
5- Development: Select and prepare the ‘best alternative(s) for improving value.
6- Presentation: Present the value recommendation to the project stakeholders.
The best results are achieved by a multi-disciplined team with experience and expertise relevant to the project being studied. A Certified Value Specialist® (CVS) usually leads the team to ensure the VM is properly followed.