The term `Value' is used in many different ways and is frequently confused with the monetary price or cost of an item. However value is not synonymous with cost. Value maybe perceived as the ratio of the sum of positive and negative aspects of an object. Thus value can be considered as a composite of quality and cost. It is more in terms of worth or utility. Thus a ratio of quality to cost can be treated as the value of a product. If its costs can be reduced for same quality or quality can be improved with same cost, then the value improvement can be said to occur. The term value can be divided into following types: a) Use Value: The properties and qualities which accomplish a useful purpose or service. b) Esteem Value: The properties, features or attractiveness which causes us to want or own it. c) Cost Value: The sum of labour, material and various other costs required to produce it. d) Exchange Value: The properties or qualities which enable us to exchange it for something else we want. Types of Functions
VE discipline deals with the functions of items, products, systems and procedures. It is a functional approach, a customer-oriented approach. Identification of the functions, therefore, constitutes an important aspect of VE. The term `function' is used to mean the purpose or use of a product. Functions can be of two types:
a) Basic functions-the primary purpose of a product.
b) Secondary functions-other purposes not directly accomplishing the primary purpose but supporting it or resulting from a specific design approach. Many a time poor value may result in because the functions have not been precisely understood and redundant or unnecessary functions have been imposed. Value Tests
VE is essentially a questioning attitude looking at the function and costs. L.D. Miles designed a set of value tests to ascertain whether there is a scope for value improvement. If these value tests are honestly applied, there is bound to be room for improvement in most of the products, systems and procedures that we come across. VALUE ENGINEERING JOB PLAN
Value Engineering Process
As mentioned earlier, the major advantage of the approach is that it is a systematic and organised approach that examines all aspects of a problem employing a questioning attitude. Thus a formal approach has to be adopted to go through the VE programme. This formal procedural model of VE process is called VE Job Plan. In the beginning, when Miles proposed VE Job...