Value Engineering is an analytical process for improving the “value” (cost per unit) of a product or services. Value is typically defined as the ratio of cost to value. Value can also be increased by reducing the price or changing the function.
Value Engineering has many applications in different fields of life. In industries, where the purpose of a product is to solve a problem and achieve some type of goal, value engineering plays a critical role. For example, in health care, the design of medical devices is dependent on their ability to deliver a specific function while being less expensive to produce.
There are four main principles that govern the engineering value. They are:
These four components of engineering value are the basic building blocks of all engineering products. The idea is that these elements should have a positive impact on the overall quality of the product.
The importance of these principles cannot be over emphasized because they have a direct relationship with the final result of the product. These principles are what make a product valuable, regardless of how much money it costs to create and develop the product.
The first factor that makes a product valuable is cost effectiveness. If a product has an intrinsic or extrinsic value, the value of a product should be equal to its cost to the customer. This is one of the most important factors in the study of the relationship between value engineering and cost effectiveness.
The second factor that makes a product valuable is the “price to performance” ratio. The cost-to-performance ratio is defined as the ratio of the price paid for a particular product to the value delivered or obtained by a consumer. In other words, the lower the price to performance ratio, the more profitable the product is and the better the value it has on consumers. This is why the cost-to-performance ratio is the basis for the design of many new products.
Finally, the third factor that makes a product valuable is the satisfaction of a customer's satisfaction. In general, the higher the satisfaction, the more value the product has on consumers.
These three key components of value engineering are very important to both a product's production process and its design. Without them, a product may not be able to reach its full potential and consumers may not find it to be beneficial. The higher the level of satisfaction a consumer gets with the product, the higher is the quality of the product and the greater the likelihood that consumers will want to use it again.
To illustrate this concept, consider the example of a product that can be used for a variety of purposes. There is a significant benefit to using this product because it is multifunctional.
A multifunctionality is an attribute of a product that enhances its usefulness. There are a number of uses for a multifunctional product, so it is necessary to design the product in such a way that it fulfills many of these functions at once.
When a product has a multifunctionality, then the production process and its design can . . . . . . work in tandem. If you design a multifunctional product, you have created a product that can satisfy a wide range of customers and fulfill a great deal of purposes.
The design of a multifunctional product depends on the combination of the characteristics of the product's design and manufacturing. In other words, value engineering is a process that is used to design a multifunctional product that satisfies its design and manufacturing requirements. The end result of this process is a product that is multifunctional but also highly useful.