To thrive in today's competitive markets, organizations are looking for smart ways of doing business and work. They cannot afford extensive time delays and increased costs. Value Engineering (VE) is a methodology developed to assist individuals as well as enterprises that will allow them to make changes to augment their processes or services. Several establishments discovered that the methods being followed in the past were insufficient and, therefore, it was essential for them to bring changes to their working style. Using the VE practices, small changes along with hard work and common sense can improve things for organization.
CONCEPT OF VALUE ENGINEERING
Larry Miles, a procurement engineer for General Electric, introduced the VE methodology during World War II. The problem he was facing was that he was not able to obtain material to manufacture the turbo-supercharger for the B-17 and P-47 airplanes. He developed a technique which did not solve the problem of procuring the material, but addressed the functionality of each material. The group determined the functionality of every component in the turbo-supercharger. Then they established the more economical constituents to attain the desired function.
VE can be defined as a systematized or methodical tactic, focused on analyzing the functionality of systems, apparatus, amenities, services and supplies with the objective of realizing their necessary functionality at the lowermost life-cycle cost, without affecting requisite capability, consistency, eminence and safety. Since more than seven decades, many organizations have been using, analyzing and refining the VE procedures. The basic aspect of VE is that it makes you acquire the ability to think in different ways. The basic features of VE are shown in Fig. 13.1.
Value is the goal, not the cost. Sometimes the highest price items have the best value. Delivering value to the customer is the aim of the organization. Some people think that making things better means reducing the cost of the product and, in that process, sometimes the functionality of the item is reduced, which reduces the value. However, this is incorrect. VE is not against reducing cost, but not at the cost of reducing the functionality or value of the product. VE also emphasizes on cost reduction, but without reducing the functionality.
Generally, VE is achieved with the help of multidisciplinary teams. Earlier, organizations succeeded by giving a problem or a question to an individual.