Value Analysis (VA) / Value Engineering (VE) / Value Methodology (VM) is systematic method to improve the "value" of products, processes, services and systems by using an examination of function. Value, as defined, is the ratio of function to cost. Value can therefore be increased by either improving the function or reducing the cost. It is a primary tenet of value engineering that basic functions be preserved and not be reduced as a consequence of pursuing value improvements.
Why do VA / VE / VM
The reasoning behind VA / VE / VM can be explained follows:
If marketers expect a product to become practically or stylistically obsolete within a specific length of time, they can design it to only last for that specific lifetime. The products could be built with higher-grade components, but with VA / VE / VM they are not because this would impose an unnecessary cost on the manufacturer, and to a limited extent also an increased cost on the purchaser. VA / VE / VM will reduce these costs. A company will typically use the least expensive components that satisfy the product's lifetime projections.
Who Should VA / VE / VM
Each Individual involved in Designing, Manufacturing, Distributing & Selling the Product.
A Good Value Engineering program will focus the attention of each employee on one objective:
Performance at Lower Cost
The Value Engineering goals depend on Team Work with each individual doing his part and the Management just focusing on the direction of their efforts.
Areas for VA / VE / VM applications
Studies conducted elsewhere in India and abroad have shown that VE has wide applicability and a high potential for bringing about substantial savings. There are many areas where the VE methodology has been applied. To name a few: