• 1.

Projects selection, Methods selection, Value standards,

application of value Engineering methodology.
• VA can be applied to any product however certain commercial
attributes will make the VA process more commercially
important and potentially profitable to the business. The
criteria and attributes that can be applied in the product
selection stage include.
• 1. Products with known problems or those that have generated
complaints or costly warranty returns.
• 2. Products with forecast sales volumes that are due rise, grow
or maintain a high leval of sales.
• 3. Products below average margins.
• These products have attracted criticism and
frustration from the customer has formally
complained.
• As such these problems need to be corrected as they
compromise the perceived value of the customer.
• Products with known problems within the factory are
also important, as these products require high levels
of internal rectification before they reach standard
suitable for dispatch to the customer.
 For many businesses, The letter is a key motivation is high
levels of internal corrective actions that consume costs but
generate no true value for the customer or the business
subsidizer good customer performance.
 To illustrate this point, it is common to find many businesses
that invest heavily in rework and final inspection routines to
ensure high levels of customer quality.
 These activities are unnecessary costs that are often traced to
poor design control and review rather than poor equipment
reliability.
 As such, the manufacturing personnel will never be able to
take preventative actions to correct the poor quality problems
and it is these products that offer high potential savings to be
achieve to be achieve by a VA team
• These products are attractive for VA activities as they
represent key products to the business.
• In terms of classification these products are often termed
“runners” as they feature regularly each week in the
production programmers.
• Conversely, infrequent product manufacturing cycles of
products with low annual sales tend to be called ‘Strangers’
• These products do not tend to offer the same ability to make
substantial savings from minor improvements due to the lack
of volume and economics of such volumes.
 Existing high volume products are therefore
attractive, as the volume of sales of that products to
yield very large savings and efficiencies will multiply
a small financial saving per unit.
 The logic here is that the VA systematic approach is
likely to result in the reduction of costs in ‘running’
high volume and high frequency of manufacture
products.
 These products by their nature have left the ‘uplift’
stage of new products but not yet entered the decay
stage of the product lifecycle
 So there are many opportunities make big returns to
the company. Products that are made very
infrequently do not offer this form of saving.
• Products that have poor or negative profit margins would attract the
attention of VA teams, as they do not contribute to the long-term survival
of the business.
• In reality, the selection of the product will be based on criteria that is
specific to the business
• but it is preferable to start with a product that is sold in volume at profit
rather than attempting to correct a product that does not make a profit.
• The latter product is likely to be sold in low volume and would require
better skills than first VA project team have at their disposal.
• Therefore these ‘loss-making’ products are better left until the skill in the
factory have improved. Having selected a product, or product family, the
next stage of implementation is to understand the physical product itself, its
function or value and its costs.
• the purpose of value standard document is to:
1. Define the steps and components that are part of a valid value.
2. Document supporting information that defines a generic
methodology, common terminology, and standard practice to guide
practitioners and managers in effectively applying value methodology
to improve the value of their projects.
3. Guide the practitioner and manager in determining at what point to
value methodology to a project in order to maximize:
- a. The benefits of team innovation skills and
- b. Implementation of alternative(s) that add value to the project.
• Value standard is used by both practitioners
and managers as a guide for applying value
methodology.
• The Value Standard allows for the tailored
application of value methodology and related
practices to suit the intended application.
• The Value Standard has not been prepared as
a legal document.
APPLICATION OF VALUE
ENGINEERING
METHODOLOGY.
• Value methodology can be applied during any stage
of project’s development cycle, although the greatest
benefit and resource savings are typically achieved
early in development during the conceptual stages.
• At this point, the basic information of the project is
established, but major design and development
resources have not yet been committed.
• The reason this is the best time to apply a value
methodology because the manner in which the basic
function of the project is performed has not been
established, and alternative ways may be identified
and considered.
Examples of these applications are:
• construction projects could beenefit by identifying
improvements for various projects phases: concept
development, preliminary design, final design,
procurement and construction.
• Manufactured products, whether consumer,
industrial, or defense, may be studied with a focus on
either the design or manufacturing process of that
product.
• Business systems and processes may also be the
subject of value studies. Many elements of a business
or an organization may be improved through the
application of a value methodology. This may studies
the development of business plans and organizational
studies to improving exiting business processes.
• Service organizations can benefit from the use of
value methodologies. In the past value
methodologies have been used to improve processes
and procedures in the medical industry ( Operating
rooms, emergency rooms, etc.) and the legal system
(police systems).