Value Engineering is a creative, organized approach whose objective is to optimize cost and / or performance of a facility or system. Through a system of investigation, unnecessary expenditures are avoided re-sulting in improved value and economy. The VE approach is directed toward analysis of functions. It is concerned with elimination or modification of anything that adds cost to an item without contributing to its required functions. During this process all expenditures relating to design, construction, maintenance, operation, replacement, etc, are considered.
Through the use of creative techniques and the latest technical information regarding new materials and meth - ods, alternate solutions are developed for the specific func – tion. In contrast to cost cutting by simply making smaller quantities or using less or cheaper materials, VE analyzes a function or method by asking such questions as:
What is it15 to 25 percent, and very often more, of costs can be removed.?
What does it do?
What must it do?
What does it cost?
What other material or method could be used to do the same job?
What would the alternate material or method cost?
Value analysis/engineering has for its purpose the effi - cient identification and removal of unnecessary costs, i.e. costs which provide neither quality, use, life, appearance, nor customer required features.
Value analysis is not a substitute for conventional cost reduction work methods. Rather, it is a potent and completely different procedure for accomplishing far greater results. It improves the effectiveness of work that has been conventionally performed over the years, by filling in blind spots. Once a high cost area has been isolated, quite commonly