Value engineering

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value engineering

[′val·yü ‚en·jə‚nir·iŋ]
(industrial engineering)
The systematic application of recognized techniques which identify the function of a product or service, and provide the necessary function reliably at lowest overall cost. Also known as value analysis; value control.

Value engineering

An organized activity in which building systems, equipment, design features, and materials are analyzed in order to attain the lowest building life-cycle cost while maintaining the stated functional and performance goals including quality, reliability, and safety.

Value engineering

A thinking system (also called value management or value analysis) used to develop decision criteria when it is important to secure as much as possible of what is wanted from each unit of the resource used. The resource may be money, time, material, labor, space, energy, and so on. The system is unique in that it effectively uses both knowledge and creativity, and provides step-by-step techniques for maximizing the benefits from both. It promotes development of alternatives suitable for the future as well as the present. This is accomplished by identifying and studying each function that is wanted by the customer or user, then applying knowledge and creativity to achieve the desired function. Resources are converted into costs to achieve direct, meaningful comparisons. By using the methods of value engineering, 15 to 40% reduction in the required resources often results.

Value engineering has applications in five broad areas: in design, purchase, and manufacture of products; in administrative groups, private or public, where the task is to achieve accomplishment through people; in all areas of social service work, such as hospitals, insurance services, or colleges; in architectural design and construction; and in development as well as research.

The system is used to improve value in either or both of two situations: (1) The product or service as used or as planned may provide 100% of the functions the user wants, but lower costs may be needed. The system then holds those functions but achieves them at lower cost. (2) The product or service may have deficiencies, that is, it does not perform the desired functions or lacks quality, and so also lacks good value. The system aims at correcting those deficiencies, providing the functions wanted, while at the same time holding the use of resources (costs) at a minimum. See Industrial engineering, Methods engineering, Operations research, Optimization, Process engineering, Production engineering, Production planning

value engineering

valley jack and valley rafter
A discipline of engineering that studies the relative monetary values of various materials and construction techniques, including
References in periodicals archive ?
Under the appraised value methodology, FINRA would require share value to be based on the valuation of the REITS' assets and liabilities.
Lot 02 technical value methodology for carrying out work (operating mode, health and safety, phasage, detailed planning, respect of the ecd~s schedule) 20% -
The premise of this article is the net liquidation value methodology in corridor appraisal results in a market value when there is no current economic demand for the corridor.
Critics have pointed to shortcomings in the embedded value methodology and question whether it is really the true best measure of value.
SFAS 123 encourages employers to adopt its fair value methodology to determine compensation expenses associated with stock-based compensation.
NEW YORK -- Formula Investing announced today the launch of four new separately managed account strategies, consisting of international companies for both individual and institutional investors, based on Joel Greenblatt's fundamentally-based quantitative value methodology of selecting stocks.
Technical value methodology (project management, phasing, deadlines .
Bronx Lebanon utilized Eclipsys' speed to value methodology to deploy Sunrise Ambulatory Care.
Technical value methodology presented to meet administrative and animation needs 20% -
Haddad analyzed the use of "trigger levels" with respect to relevant proxies, sometimes referred to as benchmarks, which are often used by funds as an input to help determine when to utilize a fair value methodology.
In addition, it brings the methodology used for calculating the market-related value of our UK plan assets into line with the fair value methodology already used to value our US plan assets.
By implementing Borland's ALM solution and Pillar Technology Group's Speed to Value methodology, Cintas has been able to transform new IT project development into a strategic asset for their business.