Value engineering is a technique that seeks the best balance between cost, reliability, and performance. It follows an 8-step job plan: orientation, information gathering, functional analysis, creative phase, evaluation, development, presentation, and implementation. The purpose is to reduce costs while maintaining or improving quality, reliability, customer satisfaction, and organizational performance. Early changes in a design are less expensive than later ones. Value engineering principles include using a systematic method and multi-functional teams to evaluate simplified product performance and value.

1. Value Engineering
Created by:
Abhinandan kumar
Dept- ME_A
Semester- 6th
Roll. No- 12
Reg. D181923083
Shree Ramkrishna institute of Science &
Technology

2. What is Value?
 Value is the lowest price you must pay to provide a reliable function or service (L. D.
Miles)
• “The ratio of Function to Cost”
Value =
Worth
=
Function(Utility)
Cost Cost
Value Engineering (VE, or Value Analysis) is a management
technique that seeks the best functional balance between cost ,
reliability and performance of a product, project, process or
service

3. The Job Plan
Value engineering is often done by systematically
following a multi-stage job plan. Larry Miles' original
system was a six-step procedure which he called the
"value analysis job plan."
The modern version has the following eight steps:
Identify issues, Prioritize Issues, Drafts scopes and objective,
Establish evaluation factors, Determine Study Team, Collect
Data, Prepare for value study
Further familiarization of the project by the team; all team
members participate in determine the true needs of the
project.
Areas of high cost or low worth are identified.
Functional analysis outlines the basic function of a product
using a verb and a noun such as ‘boil water’ as in the case
of our kettle
1.
Orientation
2.
Information
3.
Functional

4. The Job Plan
This step requires a certain amount of creative thinking by the team.
A technique that is useful for this type of analysis is brainstorming.
This stage is concerned with developing alternative.
In this phase of the workshop, the VA team judges the ideas developed
during the creative phase.
The VA team ranks the ideas.
Ideas found to be irrelevant or not worthy of additional study are disregarded.
Those ideas that represent the greatest potential for cost savings
The team develops the selected ideas into alternatives (or proposals)
with a sufficient level of documentation to allow decision makers to
determine if the alternative should be implemented.
The presentation phase is actually presenting the best alternative (or
alternatives) to those who have the authority to implement the proposed
solutions that are acceptable.
1. Develop an implementation plan
2. Execute the plan
3.Monitor the plan to completion
Objective: During the implementation and follow-up phase, management
must assure that approved recommendations are converted into actions.
4.
Creative
5.
Evaluation
6.
Development
7.
Presentation
8.
Implementation
& follows up

5. Purpose
1. Determine the best design alternatives
2. Reduce cost
3. Improve quality
4. Increase reliability and availability
5. Enhance customer satisfaction
6. Improve organizational performance
7. Identify problems
8. Develop recommended solutions

6. Potential Saving From VE
Early changes are naturally less expensive than later ones,
as shown in the diagram below.

7. Principles
Value Engineering principles:
1
2
3
Systematic method for evaluating product
performance and value
The use of multi-functional teams
Focus on a simplified product

8. Case Study
The steps used for this purpose are as follows:
1. Product selection plan
2. Gather information of product
3. Functional analysis
4. Creativity Worksheet
5. Evaluation sheet
6. Cost analysis
7. Result

9. Conclusion
Three goals that we're looking at value engineering:
1.
2.
3.
Identify additional functions that aren’t
attractive to customers.
Add attractive functions for customers.
Saving because of the elimination of
redundant functions.