Question

What is value engineering? Are there different forms of value engineering? Describe these different types of value engineering.

Answer 1

Value engineering refers to a method to improve the existing value of and product either by increasing its functional value , usage value,exchange value or reducing cost value . Value engineering critically examines the contribution made to product value by each feature of a design. It then looks to deliver the same contribution at lower cost.

Different types of value are recognised by the approach of value analysis are

• Use value relates to the attributes of a product which enable it to perform its function.It incorporates work done, functions performed or service rendered and effi­ciency /effectiveness of the product.
• Cost value is the total cost of producing the product.
• Esteem value is the additional premium price which a product can attract because of its intrinsic attractiveness to purchasers.It incorporates  the qualities and appearance of the product which attracts persons and creates a desire in them to posses the product
• Exchange value is the sum of the attributes which enable the product to be exchanged or sold.

  It incorporates the properties or qualities which will remain attractive enough to other people to permit market resale in the future.

  Maximum value is obtained when essential function is achieved for minimum cost.

By engineering or redefining these values the company could opt for value engineering .