Engineering Economy

CHAPTER 13

Value Engineering

13.1 WHAT IS VALUE ENGINEERING OR VALUE ANALYSIS?

The concept of value engineering (VE) or value analysis (VA) is a management technique that seeks the best functional balance between cost, reliability and performance of a product, project, process or service. In other words, the VE or VA is considered to be a process, as opposed to a simple technique, because it is an organized approach to improving the profitability of product applications and it also utilizes many different techniques in order to achieve this objective. The VE or VA approach is almost universal and can be used to analyse existing products or services offered by manufacturing companies and service providers alike. The VE or VA approach applies ...