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 basic steps in the VALUE ANALYSIS Job Plan are:

Information gathering - This asks what the requirements are for the object. Function

analysis, an important technique in value engineering, is usually done in this initial stage.

It tries to determine what functions