Value Engineering

Definition: Value Engineering is a function-oriented method by Miles and Erlicher ('47) to analyze and improve the value of a product, facility design, system or service. It is a powerful method for problem solving and/or reducing costs while improving performance/quality requirements. Value, as defined, is the ratio of Function to Cost, and can therefore be increased by either improving the function or by reducing the cost.
VE takes place in 4 man steps:
1. Information Phase - Gathering information
2. Speculative Phase - What are alternate ways of meeting requirements?
3. Analytical Phase - Compare alternatives
4. Proposal Phase - Presentation
Also called Value Control, Value Analysis.

More on value engineering.
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