Value Engineering Concept

1. VALUE
ENGINEERING
By
Sumit Dubey

2. CONCEPT OFVALUE ENGINEERING
 It is an approach for improvement in the
performance of the products, systems
or procedures and reduction or elimination of
cost, without affecting the function.
 It allows the creative generation of solutions
to specific functionality problems, without
reducing the scope of process.

3. When is
VE
used?
To determine the
best design
alternative.
Reduction of cost
of project
Improve quality ,
customer
satisfaction
Improvement of
organizational
performance
Identification of
problem &
recommendation
of solution.

4. VALUE ENGINEERING JOB PLAN
Information
Phase
Functional
analysis
Phase
Creative
Phase
Evaluation
Phase
Investigatio
n Phase
Recommend
ation Phase

5. Information Phase

6. Information Phase contd.
What do you need to know about the problem
that you don’t know now?
What facts are known?
What are the requirements of the
system?
Are these facts, opinions, assumptions, or
prejudices?
Where or how can information be obtained?

7. Functional Analysis Phase:
Function Analysis is the key to understanding the
problem.
Start with defining the mission of the product,
process, service, or organization.
Then, brainstorm all possible functions necessary
to accomplish the mission.

8. Creation Phase
 Creativity is the art
of bringing something
new into existence

9. Creativity and Innovation
Relationship
 You must blast before you can create. Blow
apart the misconceptions, skeptics.
 Blow-up the preconceived ideas and
common theories of how things should be
done. Rather, focus on possibilities.

10. CreativityTechniques
Visualiz
ation
Listing
Brainst
orming

11. Which ideas are best?
Evaluation Phase

12. Investigation Phase
 It is virtual extinction of
the previous phase.
ideas accepted are here
converted into
acceptable and
workable solution to
perform the desired
function at the least
cost.

13. Recommendation Phase
 It is the ultimate phase of VE

14. Output Of VE study
VETeam
VE Report:
•Identifies basic, secondary
and unnecessary functions
in the project.
•Recommends most
efficient way to achieve
project’s function.
VE final Report
Which
recommendations
will be implemented
ImplementedAgency
Value manager
Executive Review
Board
DesignTeam
Finalizes
design,
Incorporating
Recommendati
on
Accepted by IA

15. Benefits of VE
 A Reduction in cost of existing products or system.
 Prevention of unnecessary cost in new product
 Improve ability to manage projects, solve
problems, innovate, and communicate.
 Risk reduction,
 Schedule improvements

16. Conclusion
 Thus it is conclude thatVE is a powerful
design methodology that harnesses
existing organizational creativity and
knowledge resulting in superior innovative
products with unique customer benefits