A Deeper Look into Value Engineering

Value engineering seeks to manufacture products that perform the same functions yet at a lower cost. Often, this involves sacrificing the appearance or aesthetics of a product in exchange for more efficient functionality. In value engineering, more innovative components or processes replace traditional parts and systems to produce a higher level of efficiency. This design method is also called value analysis since it involves evaluating how a product's usefulness can be improved at a lower cost.

A Deeper Look at Value Engineering When a company undertakes value engineering as its core principle, it will examine how a new or existing product can be produced with fewer resources. This involves redesigning the product to make better use of the unit's various components. As a result, the product can be made for less money, and it will perform the same task to produce better results. Even though the item may not look as pleasing or attractive, making it function more efficiently will still increase its value.

General Electric is credited for introducing this process during the 1940s. Faced with a shortage of materials and resources during World War II, the company had to adopt new ways of manufacturing its products. By substituting components for parts that were cheaper and more readily available, they were able to keep up with consumer demand. The company found that the changes they made to their manufacturing process helped them to make better products for less money.

Function and Cost The basic concept behind value engineering is to measure the cost of a product along with its functionality. A product has the greatest value when it costs less to manufacture and maintain. It also has more value when it performs more or better functions. In designing a product, the manufacturer attempts to use less costly parts that won't adversely affect the product's durability or longevity.

A product that requires frequent repairs and maintenance will cost at least as much as a product that uses more expensive components. In value engineering, the manufacturer tries to find a balance that increases the product's value for the consumer and the manufacturer. This process will lead to higher sales for the business as more consumers recognize the value of innovative new product designs.