Value Engineering, or VE, is a systematic and procedural process which can be applied to any system design. In principle it means: “Maximum worth at minimum cost.”
Value engineering goes hand-in-hand with good BOM management, and has a variety of alternative names: value management, value analysis and value planning to name a few. In electrical and mechanical design, it involves looking for alternatives to the suggested components or production methods, to add value to the design without affecting performance or product life cycle.
The core of value analysis lies in a carefully crafted and well tested job plan, focused on creating a high quality product at optimal cost. Value engineering is generally a team-driven effort (although engineers working alone can also reap the benefits), with generally an eight stage job plan. The phases are: selection, information, creativity, analysis, development, presentation, implementation and verification.
An eight-stage value engineering management plan ensures a methodical approach, in which only those concepts with the highest potential for a high value outcome are used. Although the system is designed to overcome human limitations and avoid errors, it’s essential all team members work together, coming to agreed decisions at each stage of the plan before moving on.
Many companies prefer to outsource their VEM to us at Enventure Technologies. We work with specialized, experienced cost reduction consultants to offer value engineering services customized to your needs. The results will be seen in increased profit margins and competitively priced, quality assured products which will appeal to your customers and place you ahead of the competition.