Value Engineering | Value Analysis | Value Management | Product and Service Design | Operations Management
Value Engineering or Value analysis or Value Management is the cost reduction technique that is used without diminishing the effectiveness of the product and fulfilling the customer’s satisfaction. It is carried out to eliminate unnecessary features and functions of a product or component of manufacturing. It also deals with products and their quality.
It is a systematic and function-based approach to improve the value of the product. It uses a combination of creative and analytical techniques to identify an alternative way to achieve the set goals. Value analysis considers minimizing cost without diminishing quality, reliability, performance, and appearance. It is a creative approach to reduce unnecessary costs which adds neither quality nor appearance to the product.
By applying the technique of value analysis it helps to create better value for a product or service. It also improves the overall competitive position of the company. It ensures the optimum cost of key elements like labor, materials to contribute equally to production. It identifies and eliminates the unnecessary cost of production.
Value Engineering MCQs
Which of the following is true regarding value engineering?
a. Value engineering occurs only after the product is selected and designed.
b. Value engineering is the same as value analysis.
c. Value engineering is oriented toward improvement of design.
d. Value engineering occurs during production when it is clear the product is a success.
e. Value engineering can save substantial amounts of product cost, but quality suffers.
Manufacturability and value engineering has which of the following benefits?
- Reduced complexity of the product
- reduction of environmental impact
- additional standardization of components
- robust design
- improved job design and safety