Value engineering and value analysis are systematic methods aimed at enhancing the value of products, services, and processes by improving performance, quality, and cost-efficiency. Developed during WWII, these techniques help identify unnecessary costs while ensuring product integrity, leading to significant cost savings and improved profitability in industries such as automotive and construction. Collaboration, customer focus, data-driven decision-making, and continuous improvement are essential best practices for implementing these approaches.

1. VALUE ENGINEERING
AND VALUE ANALYSIS
SERVICES

2. INTRODUCTION TO VALUE ENGINEERING AND VALUE ANALYSIS
What is Value Engineering and Value Analysis?
Value Engineering and Value Analysis are systematic approaches to improving the value of
products, services, and processes. They involve analyzing the function of a product or service
and identifying ways to improve its performance, quality, and reliability while reducing its
cost.
History of Value Engineering and Value Analysis
Value Engineering was developed by Lawrence Miles, an engineer at General Electric, during
World War II. It was used to reduce the cost of military equipment without sacrificing
performance. Value Analysis was later developed as a complementary approach to Value
Engineering, focusing on the analysis of existing products and services to improve their value.
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3. VALUE ENGINEERING AND VALUE ANALYSIS TECHNIQUES
Function Analysis
Function analysis is a technique used to identify the primary function of a product or
service. It involves breaking down a product or service into its individual components
and analyzing each component's function. This technique helps to identify areas where
costs can be reduced or eliminated without affecting the product's primary function.
Value analysis is a technique used to analyze a product or service's components to
determine if they are necessary and if they can be replaced with less expensive alternatives.
The goal is to identify areas where costs can be reduced without compromising the
product's quality or function.
Value Analysis
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4. VALUE ENGINEERING AND VALUE ANALYSIS IN PRODUCT DEVELOPMENT
Value Engineering (VE) and Value Analysis (VA) are systematic approaches to improve the
value of a product by analyzing its functions, materials, and costs. In product development,
VE and VA can be used to identify cost-saving opportunities, improve product performance,
and enhance customer satisfaction.
VE AND VA TECHNIQUES IN PRODUCT DEVELOPMENT
• Function Analysis System Technique (FAST) - a
graphical tool to identify and analyze the
functions of a product and their relationships.
• Value Tree Analysis (VTA) - a hierarchical decision-
making tool to evaluate the value of a product
based on customer needs and requirements.
• Cost Analysis and Value Engineering (CAVE) - a
cost-benefit analysis tool to determine the cost-
effectiveness of different design alternatives.
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5. COST REDUCTION THROUGH VALUE ENGINEERING AND VALUE ANALYSIS
Value engineering and value analysis are methods used to optimize the value of a product or service
by analyzing its functions and reducing unnecessary costs. By applying these techniques, companies
can identify areas where they can reduce costs without affecting the quality or performance of the
product. This can lead to significant cost savings and increased profitability.
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Value Engineering and Value Analysis Techniques
• Function Analysis System Technique (FAST) • Quality Function Deployment (QFD)
• Design for Manufacture and Assembly (DFMA)
Value Engineering and Value Analysis in Product Development
Value engineering and value analysis can be applied throughout the product development process to
ensure that costs are minimized while maintaining or improving the quality of the product. By
identifying unnecessary costs early in the process, companies can avoid expensive redesigns and
retooling later on.

6. VALUE ENGINEERING AND VALUE ANALYSIS CASE STUDIES
Case Study 1: Automotive
Industry
Case Study 2: Construction
Industry
A major automotive company
implemented value engineering and
analysis techniques to reduce the
cost of manufacturing their vehicles.
By analyzing the design and
production process, they were able
to identify areas where cost savings
could be achieved without
compromising quality. This resulted
in significant cost savings for the
company and increased
profitability.
A construction company used value
engineering and analysis techniques
to reduce the cost of building a new
office complex. By analyzing the
design and construction process,
they were able to identify areas
where cost savings could be
achieved without compromising
safety or quality. This resulted in
significant cost savings for the
company and allowed them to
complete the project on time and
within budget.
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7. BEST PRACTICES FOR VALUE ENGINEERING AND VALUE ANALYSIS
Collaboration is Key
Value engineering and value analysis are team-
based approaches that require collaboration
from all stakeholders. It is essential to involve all
departments and functions in the process to
ensure that all perspectives are considered.
Focus on Customer Needs
The primary goal of value engineering and value
analysis is to enhance customer satisfaction by
providing better value. Therefore, it is crucial to
focus on the customer's needs and expectations
while developing a product or service.
Data-Driven Decision Making
Value engineering and value analysis rely on data
and facts to make informed decisions. It is
essential to gather and analyze data from various
sources to identify areas of improvement and
cost-saving opportunities.
Continuous Improvement
Value engineering and value analysis are iterative
processes that require continuous improvement.
It is crucial to review and evaluate the results
regularly to ensure that the product or service is
meeting the customer's needs and expectations
while providing better value.
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