VALUE ENGINEERING

To the Engineers in the house, this one is for you;
In the United States public law, there is a special provision for one of the most innovative concepts of Project Management- Value Engineering. The law expresses that, “Each executive agency shall establish and maintain cost-effective value engineering procedures and processes.
Value engineering, one of the concepts of Project Management is taught in project management body of knowledge as a technique in which the value of a system’s outputs is optimized by crafting a mix of performance (function) and costs. Permit me to make this very simple. What this concept explain is the systemic model of reducing cost of a scope of work or production by totally cutting the cost of waste.
In most cases this practice identifies and removes unnecessary expenditures, thereby increasing the value for the manufacturer and/or their customers. The concept is used for function analysis because it fully helps the project manager to understand the value of a product. Do you know why the cost of things are high? Simply because the cost of production is huge! That connotes that if we can successfully reduce the cost of production, we would have successfully dropped the selling prices of materials. That’s the concepts of value engineering.
To systematically analyze the cost of production and hence, cut the cost of waste. Let me help you understand! Most banks spend a lot annually on ensuring that the floors of the banking halls are well attended to. At the end of the year, each branch spends an average of N150,000 attending to the the floors and you can multiply that by 500 branches. How about if you successfully cut off the factor that causes the dirtiness? Did you notice most banks have successfully stopped using dispensers in the banking halls and have also removed seats from the banks receptions? That’s Value Engineering.
VE follows a structured thought process that is based exclusively on “function”, i.e. what something “does” not what it is. This is the basis of what value engineering refers to as “function analysis”.
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source:PM Hub Nigeria