Value Management and Value Engineering Methodology
Value as a ratio, not a cost
Value management is a structured, team-based method for improving the relationship between function and cost. The classic expression is value = function (or worth) divided by cost. Improving value means delivering the required function at lower cost, or more function for the same cost. Value engineering is the same discipline applied to design or technical decisions; value analysis typically applies to existing products or processes.
The job plan
Know the standard phases: information (understand function and constraints), function analysis (define functions with verb-noun pairs, separate basic from secondary functions), creative/speculation (generate alternatives without judgment), evaluation (screen ideas, weigh against criteria), development (refine proposals into workable recommendations), and presentation/implementation (report and gain acceptance). Function analysis is the heart of the method - candidates must be able to write a verb-noun function such as "transmit load" or "contain fluid" and classify it as basic (must be preserved) or secondary (supporting).
Traps
- Treating value engineering as cost cutting. Cutting cost while destroying a basic function destroys value.
- Skipping the creative phase by judging ideas during generation.
- Confusing value management with a design review - it is a facilitated, function-driven study, ideally early when change is cheapest.
Rule of thumb
Ask "does this change preserve every basic function?" If yes and cost or performance improves, value rises. If a basic function is lost, it is not value improvement regardless of savings.