Value engineering is a method aimed at improving the value of a product by evaluating its function against its cost, developed during WWII by engineers seeking to address material shortages. The process follows an eight-step job plan, which includes phases such as orientation, information gathering, functional analysis, and implementation. Its primary objectives are to reduce costs, improve quality, enhance customer satisfaction, and provide actionable solutions to identified problems.

2. Value Engineering
Prepared By : Sheraz Ali Jamali

3. Value Engineering:
 It is method of improving value of product that project produces.
 It applies to everything because every project has function.
 Mostly , it takes place after the completion of design process.
 Value is calculated as ratio of function to cost.
 Value = Worth/Cost = Function ( Utility ) / Cost

4. History:
 The concept of value engineering started in 1940 at General Electric
CO.
 This was during second world war , when there was shortage of
materials & skilled labor.
 Therefore Lawrence Miles , Harry Erlicher , Jerry Leftow & other
engineers launched effort to make concept systematic.
 A process which not only reduced cost of production but also
provided better performance is known as value analysis.
 Name was suggested by engineers.

5. Aims/Objectives/Purposes:
 Determine best design alternations.
 Reduce cost.
 Improve quality.
 Increase availability.
 Enhance customer satisfaction.
 Improve organizational performance.
 Identify problems.
 Develop recommend solutions.

6. Job Plan:
 Value engineering is often done by following steps;
 Lawrence Miles original system was based on 6 step procedure ,
which he called value analysis job plan.
 Modern Version has 8 steps.
 These are discussed as;

7. 1. Orientation Phase:
 Identify issues.
 Arrange issues.
 Draft scope & objectives.
 Establish evaluation factor.
 Determine study team.
 Collect data.
 Prepare for value study.

8. 2. Information Phase:
 All team members participate in determining true needs of project.
 Areas of high cost or low worth are identified.
3. Functional Phase:
 Functional analysis outlines the basic function of product using noun
& verb.
 e.g boil water as in case of battle where boil is verb & water is noun.

9. 4. Creative Phase:
 This step requires certain amount of creative thinking by team.
 A technique that is useful for this type of analysis is brainstorming.
 This stage is concerned with developing alternative.
5. Evaluation Phase:
 In this step , value analysis team judge ideas created/developed
during construction phase.
 The value analysis team ranks the ideas.
 Ideas that represent greatest potential for cost saving &
improvements are selected for development where as irrelevant ideas
are disregarded.

10. 6. Development Phase:
 The team develops selected ideas in to proposal with sufficient level
of documentation to allow decision makers to determine if proposal
should be implemented.
7. Presentation Phase:
 This phase is actually presenting best alternative to those who have
authority to implement the proposed solutions that are acceptable.

11. 8. Implementation & Follow Up Phase:
I. Develop an implementation plan.
II. Execute plan.
III. Monitor plan to completion.
 During this phase , management must assure that approved
recommendations are converted in to actions.