Is it worth ? (Value Engineering)
Is it worth about to spend so much effort with Value Engineering in order to engineer the product in way that there is value for own organization and value for the customer ?
The answer is yes and experts[1] of Value Engineering have the same opinion (see references). The effort of course goes up while development but with Value Engineering approach you start with the questions and with a with structure right from the beginning. Transparent working instructions and guidance for the engineering team is a big plus.
The Value Engineering is characterized by:
- “Functional concept (product is break down in functions, “thinking in functions”)[2]
- Value concept (value to the customer, quality, customer buying decision criterias)
- Wholistic view and structured instructions (as central theme)
- Strong involvement of people and their behaviors (asking questions and discussing alternatives / ideas, creation of new ideas and solutions)
- Interdisciplinary team work” (cited with modifications from (Pauwels & VDI, 2011))
The effort, which raises in the beginning impacts to benefits based on the characteristics, listed above. One additional theory which comes from the authors (Marchthaler, et al., 2011) is that one additional advantage while using Value Engineering methodology in the beginning is that planned series introductions can be better kept in time with Value Engineering[3]. Which is illustrated with following picture (Original picture by (Marchthaler, et al., 2011), modified for this work).
Figure 8 Product development effort w/ and w/o Value Engineering, (Marchthaler, et al., 2011), modified
At product development cycles usually the design and testing phase are important phases e.g. in case of a new design or design change. Value Engineering can support all phases of development with its structured and organizational approach especially during the development phases, for example with bringing the testing people together with the marketing and “development” teams. Value engineering requires (by standard EN12973) interdisciplinary teams which are working together throughout the complete phases like illustrated above (marketing process, concept phase, design phase,…).
Regarding the criteria when to apply Value Engineering methodology, there can be found some criteria’s for applying Value Engineering to a product in the literature (Wiest & VDI, 2011) in order to avoid kind of “Alibi-Value Engineering Project”[4].
When it is worth to apply Value Engineering methodology to a product can be decided according to (Wiest & VDI, 2011) if the following questions can be answered with “yes”:
- Is the topic / problem which needs solutions complex (many disciplines for example) that a participation of experts from many disciplines (teamed up in an interdisciplinary team) is mandatory? (modified by source (Wiest & VDI, 2011))
Remark by the author (Wiest & VDI, 2011):
“New developments or the needed changes (need by market / customer) of a product are best qualified for applying Value Engineering methodology.”
Further criteria questions (if yes, criteria for apply Value Engineering fulfilled):
- Does the product have a strategic relevance?
- Is the product or technology challenged with changed or new market requirements?
- Is there a challenge for more cost efficiency with the complete value generation chain? (R&D, logistics, assembly etc.)?
(Modified and added with information by own experience from source (Wiest & VDI, 2011) )
So summarized from the author (Wiest & VDI, 2011): With raising high complexity regarding the solutions which has to be found and with every new development the Value Engineering methodology is recommended to be used, or the first choice. In case there is already a clear solution and low complexity regarding finding solutions, the application of Value Engineering methodology might be like firing with guns to birds. In this case “Alibi-Value Engineering Project”[5] should not be followed and Value Engineering methodology should be used for more complex topics to also keep the acceptance for Value Engineering within the organization.
[1] (Marchthaler, et al., 2011)
[2] (Pauwels & VDI, 2011)
[3] (Marchthaler, et al., 2011)
[4] (Wiest & VDI, 2011)
[5] (Wiest & VDI, 2011)
References:
Marchthaler, J., Wigger, T., Lohe, R. & VDI, 2011. Wertanalyse – das Tool im Value Management. 6.Auflage Hrsg. Düsseldorf: Springer.
Pauwels, M. & VDI, G. P.-. u. P. (., 2011. Wertanalyse – das Tool im Value Management. 6.Auflage Hrsg. Düsseldorf: Springer.
Wiest, R. & VDI, (., 2011. Wertanalayse – Das Tool im Value Management. 6.Auflage Hrsg. Düsseldorf: Springer.