Value Engineering is a systematic method to improve the "Value" of goods and services by using an examination of function. Value, as defined, is the ratio of Function to Cost. Value can therefore be increased by either improving the Function or reducing the cost. It is a primary tenet of Value Engineering that basic functions be preserved and not be reduced as a consequence of pursuing Value improvements. Value Engineering is a body of knowledge as a technique in which the value of a system's outputs is optimized by crafting a mix of performance (Function) and costs. In most cases this practice identifies and removes unnecessary expenditures, thereby increasing the value for the manufacturer and/or their customers. Value Engineering uses rational logic (a unique "how" - "why" questioning technique) and the analysis of Function to identify relationships that increase Value. It is considered a quantitative method similar to the Scientific Method, which focuses on Hypothesis - Conclusion to test relationships, and Operations Research, which uses model building to identify predictive relationships.

VALUE ANALYSIS -- The Job Plan

Value Engineering is often done by systematically following a multi-stage Job Plan. IT IS a 8-step procedure , called the Value Analysis Job Plan. Others have varied the Job Plan to fit their constraints. One modern version has the following eight steps: PREPARATION

INFORMATION

ANALYSIS

CREATION

EVALUATION

DEVELOPMENT

PRESENTATION

FOLLOW-UP

Four