This Presentation Is About Value Engineering & It Covers Following Topics ; 1. Concept Of Value Engineering 2. History Of Value Engineering 3. Aims/Purposes/Objectives Of Value Engineering 4. Steps/Phases/Procedures Of Value Engineering

2. Value Engineering
Prepared By : Sheraz Ali Jamali

3. Value Engineering:
 It is method of improving value of product that project produces.
 It applies to everything because every project has function.
 Mostly , it takes place after the completion of design process.
 Value is calculated as ratio of function to cost.
 Value = Worth/Cost = Function ( Utility ) / Cost

4. History:
 The concept of value engineering started in 1940 at General Electric
CO.
 This was during second world war , when there was shortage of
materials & skilled labor.
 Therefore Lawrence Miles , Harry Erlicher , Jerry Leftow & other
engineers launched effort to make concept systematic.
 A process which not only reduced cost of production but also
provided better performance is known as value analysis.
 Name was suggested by engineers.

5. Aims/Objectives/Purposes:
 Determine best design alternations.
 Reduce cost.
 Improve quality.
 Increase availability.
 Enhance customer satisfaction.
 Improve organizational performance.
 Identify problems.
 Develop recommend solutions.

6. Job Plan:
 Value engineering is often done by following steps;
 Lawrence Miles original system was based on 6 step procedure ,
which he called value analysis job plan.
 Modern Version has 8 steps.
 These are discussed as;

7. 1. Orientation Phase:
 Identify issues.
 Arrange issues.
 Draft scope & objectives.
 Establish evaluation factor.
 Determine study team.
 Collect data.
 Prepare for value study.

8. 2. Information Phase:
 All team members participate in determining true needs of project.
 Areas of high cost or low worth are identified.
3. Functional Phase:
 Functional analysis outlines the basic function of product using noun
& verb.
 e.g boil water as in case of battle where boil is verb & water is noun.

9. 4. Creative Phase:
 This step requires certain amount of creative thinking by team.
 A technique that is useful for this type of analysis is brainstorming.
 This stage is concerned with developing alternative.
5. Evaluation Phase:
 In this step , value analysis team judge ideas created/developed
during construction phase.
 The value analysis team ranks the ideas.
 Ideas that represent greatest potential for cost saving &
improvements are selected for development where as irrelevant ideas
are disregarded.

10. 6. Development Phase:
 The team develops selected ideas in to proposal with sufficient level
of documentation to allow decision makers to determine if proposal
should be implemented.
7. Presentation Phase:
 This phase is actually presenting best alternative to those who have
authority to implement the proposed solutions that are acceptable.

11. 8. Implementation & Follow Up Phase:
I. Develop an implementation plan.
II. Execute plan.
III. Monitor plan to completion.
 During this phase , management must assure that approved
recommendations are converted in to actions.