value engineering (va/ve)

Value Engineering is applied at the concept stage of the product life-cycle i.e. before any investment is made and any tooling is laid down for the product.

While Value Analysis is applied after the product goes into serial production i.e. after the investment is made and tooling has been laid down. 

Therefore, wise companies will try to focus on Value Engineering in order to achieve the highest level of cost saving.

VA/VE is a structured method for improving the “value” of products and services by examining the “function” (purpose). Value is a ratio of function to cost:     V=F/C

Value can be improved either by increasing the function or by reducing the cost.

The best outcome is a balance of customer requirements or functions with the lowest cost to achieve those functions.