What is Value Engineering
From Wikipedia, the free encyclopedia & SAVE International
 

About VE    How it works    Certification Training    Consultant Salaries

About VE

Value engineering is a systematic method to improve the "value" of goods and services by using an examination of function. Value, as defined, is the ratio of function to cost. Value can therefore be increased by either improving the function or reducing the cost. It is a primary tenet of value engineering that basic functions be preserved and not be reduced as a consequence of pursuing value improvements.

In the United States, value engineering is specifically spelled out in Public Law 104-106, which states “Each executive agency shall establish and maintain cost-effective value engineering procedures and processes."

Value engineering is taught within the project management or industrial engineering body of knowledge as a technique in which the value of a system’s outputs is optimized by crafting a mix of performance (function) and costs. In most cases this practice identifies and removes unnecessary expenditures, thereby increasing the value for the manufacturer and/or their customers (See VE History in Construction - The American Institute of Architects).

VE follows a structured thought process that is based exclusively on "function", i.e. what something "does" not what it is. For example a screw driver that is being used to stir a can of paint has a "function" of mixing the contents of a paint can and not the original connotation of securing a screw into a screw-hole. In value engineering "functions" are always described in a two word abridgment of an active verb and measurable noun (what is being done - the verb - and what it is being done to - the noun) and to do so in the most non-prescriptive way possible. In the screw driver and can of paint example, the most basic function would be "blend liquid" which is less prescriptive than "stir paint" which can be seen to limit the action (by stirring) and to limit the application (only considers paint.) This is the basis of what value engineering refers to as "function analysis"

Value engineering uses rational logic (a unique "how" - "why" questioning technique) and the analysis of function to identify relationships that increase value. It is considered a quantitative method similar to the scientific method, which focuses on hypothesis - conclusion to test relationships, and operations research, which uses model building to identify predictive relationships.

Value engineering (VE) is also referred to as or "value management" or "value methodology" (VM), and "value analysis" (VA). VE is above all a structured problem solving process based on function analysis—understanding something with such clarity that it can be described in two words, the active verb and measurable noun abridgement. For example, the function of a pencil is to "make marks". This then facilitates considering what else can make marks. From a spray can, lipstick, a diamond on glass to a stick in the sand, one can then clearly decide upon which alternative solution is most appropriate.

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How it Works
VE follows this structured thought process to evaluate options:

Gather information
1. What is being done now?
    Who is doing it?
    What could it do?
    What must not to do?

Measure
2. How will the alternatives be measured?
    What are the alternate ways of meeting requirements?
    What else can perform the desired function?

Analyze
3. What must be done?
    What does it cost?

Generate
4. What else will do the job?

Evaluate
5. Which Ideas are the best?

6. Develop and expand ideas What are the impacts? What is the cost? What is the performance?

7. Present ideas Sell alternatives
 

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Certification Training

The Value Engineering Online Certification Course is your 1st step toward obtaining SAVE International's certification as, a Certified Value Specialist (CVS). Click Here

Consultant Salaries/Fee

Salaries/Fee for a value engineering consultant that is, an approved SAVE International Certified Value Specialist (CVS) can range between $125 - $250 per hour

1. Information Source: Yahoo! Search results for "Certified Value Specialist" AND Rates
   School Board of Pinellas County, Florida
       Cost Proposal Tabulation BID #: 07-906-068-RFP Bid Title : Construction ...
       (PDF) Certified Value Specialist. 125.00 (Low bidder)
   http://www.pinellas.k12.fl.us/PURCH/BIDS/Bid_Results/Bidtabs/07-068costspr.pdf

The Value Engineering Law

The Value Engineering Law, now known as Public Law 104-106 (See Public Law) is, in great part credited to, Mr. Alphonse Dell'Isola pioneering of the application in construction, and his expert testimony to several Senate and House Committees.

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