The Value Engineering Approach ( or simple VE ) is a type of thaumaturgy! The “magic” acts which we have seen performed on phase over the old ages are non achieved through black magic or miracles. Alternatively. these Acts of the Apostless are based on the application of a systematic. planned attack to obtain a coveted consequence. In the instance of the prestidigitator. the coveted consequence is semblance. or the apparent achievement of the impossible. the consequences of which are diverting and non-productive.

The Value Engineering Approach is similarly neither black magic nor miracle. It. like the magician’s attack. involves the application of a systematic. planned process to obtain a coveted consequence. It is their coveted effects. nevertheless. that the two attacks differ. The coveted consequence of the Value Engineering Approach is positive: its consequence is “the same or better public presentation at lower sum costs. ”

Value Analysis to Value Management

The basicss of the Systematic Approach were conceived and brought together in 1947. in the General Electric Company ( GE ) . The attack was so called value analysis and was applied within the buying country of the industry.

As more was learned about the Systematic Approach. it was realized that it had a broader application. This broader application was in the technology and fabrication. countries that besides generated and influenced the costs of a physical merchandise.

With turning usage and continual polish and development. it has evolved to the point where it has been found to be applicable to all concern countries. to anything that affects a product’s sum cost.

Aim of Value Engineering

The aim of Value Engineering is to supply a agency of entire cost control anyplace within a product’s life rhythm. It stresses merely the decrease or riddance of cost. This is done while keeping the needed quality and dependability of the merchandise to which the systematic attack is applied.

An implied aim is non to degrade or degrade the merchandise.

Definition of Value Engineering

“Value Engineering is the systematic application of recognized techniques which identify the map of a merchandise or service. set up a pecuniary value for that map. and supply the necessary map at the lowest overall cost. ” – Society of American Value Engineers

Note: The footings value analysis. value control. value confidence. value direction. and all other similar footings are considered to be synonymous. They are so considered because they apply the same basic methodological analysis and techniques and have the same basic aim. Purpose of Value Engineering

The application of the engineering of this systematic attack provides a agency of insulating the necessary from the unneeded. This is accomplished in the countries of both map and cost. The intent of the Value Engineering Systematic Approach is good served when the user is able to specify and segregate the necessary from the unneeded and thereby develop alternate agencies of carry throughing the necessary at a lower entire cost.

Cost

As can be determined from the treatments of the intent and the aims of this Systematic Approach. one of its major focal points is entire cost.

Entire Cost: The amount of all attempts and outgos made in the development. production and application of the merchandises.

Entire cost as defined contains three basic countries of cost which must be analyzed and related to each other at all times ; i. e. . development cost. production cost. and application cost. Get downing with the latter. the manufacturer of the point must invariably measure effects on quality. dependability and maintainability. because any consequence on any of these will hold a distinguishable consequence on the user’s sum cost.

The attempts and outgos made in the development cost’s country besides have a revealing consequence on the item’s sum cost. Because they must be spread over every point produced. they further affect the item’s production and application costs.

The concluding country of the entire cost that is to be considered is the production cost. This country of the entire cost must be given the greatest consideration because it usually contains the greatest sum of unneeded cost.

The country of production cost can be broken down into three distinguishable countries of cost: stuff. labour and operating expense. Most cost decrease or cost control attempts are directed at the decrease of the labour content of the production cost. On the other manus. the Value Engineering Systematic Approach directs its primary attempts at the stuff content of the merchandise cost. It is of import to observe that this does non intend merely the physical stuff but that it besides considers the map or maps to be performed by the stuff and the consequence that these maps have on all other cost factors.

Unnecessary Costss

Unnecessary costs are those costs which do non meaningfully lend to the merchandise to which they accrue. They. nevertheless. are best understood if their causes are established. interpreted. and analyzed. The grounds for unneeded costs can be grouped into three basic classs: mental conditioning. mental barriers. and defective communications.

Mental Conditioning – is a class of unneeded cost that can be subdivided into five basic conditions: • Lack of Information – caused by the nonaccumulation of accurate and elaborate facts sing costs and specifications. It may besides ensue from misunderstanding or misinterpretation of the demands or from inaccurate definition of the job. • Lack of Ideas – caused by deficient usage and application of background cognition. industrial cognition. the accomplishments of company and industrial specializers. criterions. forte merchandises. originative thought. and clip.

• Honest Wrong Beliefs – may ensue from the above conditions every bit good as from the ready credence of sentiment. rumor. half truths. guess and theories for whole facts without justification or confirmation. These beliefs. although honest. are wrong and non in agreement with bing facts. • Impermanent Fortunes – do the continued applications of solutions which are applicable to a impermanent status or set of conditions after that status has disappeared. This improper application of solutions is occasioned by the presence of one or more of the first three conditions.

• Habits and Attitudes – established as a consequence of the credence of the first four conditions. fundamentally because the human person is a animal of wont. The individual’s past experiences. beliefs and traditions cause him to set up a peculiar wont form in what he does and believe. and wonts cause him to work out similar jobs in similar ways. Because of this. a new solution. being different from the normal form. causes the attitude of “resistance to alter. ” It has been said that “Habits take us where we were yesterday. and our attitudes tend to maintain us at that place. ”

Mental Roadblocks – besides identified as the single-solution arrested development. This is kindred to the above habits-and-attitudes status. but it is besides rather different. What happens here is that a job is presented ; the head assimilates that job. finds a solution. and instantly close itself off. When this reaction is carried to its full extent. one reaches the province in which wonts and attitudes play their portion. It has been found that when a similar job occurs. the head goes back through its memory system and seeks out the original solution and applies it to the current job without any alteration or divergence. Hence. the single-solution arrested development.

Faulty Communications – communications. or instead the deficiency thereof. do up the 3rd class of causes of unneeded costs. Furthermore. this class is non simply linear but is a multiplier of the effects of the old two classs.

Each individual’s ability to pass on is undeniably and for good linked to his background. instruction and preparation. These parts of each individual’s personality have the most revealing consequence on his ability to understand the spoken and written word every bit good as his ability to do himself understood.

This mental barrier or single-solution arrested development is best understood through illustration. What do you see in the pulling above? A reasonably miss? An old lady? Actually an old lady and a immature miss are in the image. If you don’t see both. you. like most persons. are capable to the single-solution arrested development or to possible mental barriers. Look at the pulling once more.

The pretty miss is confronting off from you. toward the right background. and she wears a large chapeau and a cosmetic garroter around her cervix. Looking once more. you will see another face. Alternatively of the pretty girl’s mentum. see an old woman’s nose ; alternatively of the girl’s ear. the old woman’s oculus ; a toothless oral cavity for the garroter ; and a protrusion mentum for the shoulder.

When this drawing is viewed by a group. there is a reasonably even distribution of the persons who see one or the other of the adult females in the image. There are. nevertheless. really few who see both adult females. it has farther been found that if the same group is shown the image once more after a period of clip. each of its members sees the same adult female he saw the first clip.

This consequence can most diagrammatically be illustrated by the usage of a simple and cardinal illustration. The magnitude of the multiple-meaning job diagrammatically takes form when the undermentioned word is studied for its significance. The word is cat. This is one of the first words that we learn to read. compose and talk. What does it intend?

It is a simple yet complex word. It is one that has specific definitions every bit good as implied definitions. universal every bit good as local definitions. What does it intend? The followers are some common dictionary definitions.

1. A carnivorous mammal long domesticated and kept by adult male as a pet ( tomcat. alley cat )
2. A individual. as a vindictive adult female. likened to a cat
3. Short for catfish or cat-o’-nine-tails
4. A name for legion games
5. A strong tackle used to lift a ship’s ground tackle
6. A hepcat

In add-on to these six definitions. both specific and slang. there are at least two more utilizations of the word in concern and industry. The word is used in the oil-drilling industry to stipulate a portion of the boring equipment. In the building field. it is used as another name for a bulldozer. Here so is a simple. three-letter word that. when spoken or written. can be used to intend any one of eight different things to the user and can be understood to intend the same thing or any one of seven other things by the hearer or the reader.