Key Principles of Value Engineering (Applied by tsi-studios)
Value engineering methodology’s key principles can be listed up as following[1]:
- Interdisciplinary team approach: All disciplines which are involved have to sit together for the functional analysis (and all the steps described in chapter 3) for example
- Functional analysis approach: Analyzing the customer’s needs and translating them in functions is key (“thinking in functions”)[2]
- Value concept: Based on the analysis of the functions, it has to be considered what functions are value for the customer and maybe not. This value concept is key driver of the Value Engineering methodology, and it helps to have the customer requirements always in focus.
- Structured methodic approach: Value Engineering according to the standard EN 12973 helps to keep a structured way in analyzing, finding and evaluating new ideas for further improvements and optimization of a product (or complete new design)
This is because the “Steps” (see Figure 7 Procedure (working instructions) according to DIN EN 12973, (Wiest & VDI, 2011) modified) the Value Engineering standard EN 12973 is describing follows the human thinking logic according to Pauwels (2011):
- “Identify, what is”
- “Describe, how the solution can be realized”
- “Find new ideas”
- “Evaluate and decide”
(Pauwels & VDI, 2011)
A further description of the key priniciples of Value Engineering comes from Prof. Karim (University of Cairo, Egypt): “Value analysis is a systematic and creative method to improve competitiveness. It is aimed at satisfying user needs by means of a specific procedure for invention (or modification) which is functional (the purpose), economic (what it costs), and multidisciplinary (how).” (Karim, 2012)
The functional view mentioned by Karim (2012) will be described on a practical example in chapter 3 as the “Functional Analysis” approach, which is one of the key aspects of Value Engineering methodology. Further, the United States Army Corps defines Value Engineering as „the organized study of functions to satisfy user needs with a quality facility at the lowest life-cycle cost through applied creativity.“[3] (US-Army-Corps, 2013)
The US Army corps also underline the functional analysis as one of key principles of Value Engineering.
Value Engineering describes the organized study of functions in interdisciplinary teams[4] for example, this approach helps that people with different backgrounds like from procurement, sales (customer contact), research and development sits together and discusses the functions of a product which can expressed as “what things must do”[5]:
One important aspect, which is underlined by the United States Army Corps is that like expressed in the introduction of this document:
“It is important to understand that Value Engineering is not merely cost-cutting (reducing costs by simply eliminating features specified in the contract) or cutting corners; (reducing costs by substituting inferior quality). Nor is it a matter of accidentally stumbling on a way to reduce construction costs.”[6]
The generation of ideas to think about how to achieve the same functionality best with using less resources then before is the core idea of Value Engineering, the less resources you need for achieving the same functionality the higher the value for the customer will be (see chapter 2.1 Definition of value).
Also the United States Army Corps defines some questions which I would like to summarize here as a citation because based on the experience from daily work during the Value Engineering program these questions where essential to develop ideas:
- “What is the function of the item?”
- “What does it do? What must it actually do?”
- “What else can be used to achieve the required function?”
- “Are the plans and specifications too confining? How?“
- “Can the item be made larger, lighter, etc.?”
- “Can a different procedure be used instead of that specified?”
- “Have I ever seen anyone do it a different way? Are there other good ways of doing this?”
- “Pretend you are the item or procedure under consideration and ask yourself … „How can I best accomplish what is required of me?“
(Original cite from (US-Army-Corps, 2013))
The generation of ideas can be done e.g. with a brainstorming method in an interdisciplinary team of experts about the product itself, asking for example the questions above from US Army Corps.
The idea generation is a key principle of Value Engineering, the idea generation is a creative phase of Value Engineering and helps also to bring a different view on “what things must do”[7] and this reflects the “creative method”[8] which is always linked to Value Engineering.
[1] (Pauwels & VDI, 2011)
[2] (Ammann & VDI, 2011)
[3] (US-Army-Corps, 2013)
[4] (Pauwels & VDI, 2011) (Marchthaler, et al., 2011)
[5] (Dallas, 2006)
[6] (US-Army-Corps, 2013)
[7] (Dallas, 2006)
[8] (Karim, 2012)
References:
Ammann, J. M. & VDI, G. P.-. u. P., 2011. Wertanalyse – das Tool im Value Management. 6.Auflage Hrsg. Düsseldorf: Springer.
Dallas, M., 2006. Value and Risk Managment – A guide to best practice. s.l.:Wiley-Blackwell.
Friedl, B., 2007. Wertanalyse nach DIN EN 12973 als Instrument des produktorientierten Kostenmanagements,, Kiel: Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel, No. 628.
KanoModel.com, 2016. KanoModel. [Online]
Available at: https://www.kanomodel.com/
[Zugriff am 22 12 2018].
Karim, E., 2012. Value Engineering (Course Notes). [Online]
Available at: https://www.researchgate.net/publication/271909862_VALUE_ENGINEERING_Course_Notes
[Zugriff am 19 December 2018].
Kook, H. E. & Wissmann, L. A., 2007. Value Driven Product Planning & Systems Engineering. Illinios, Windsor Locks : Springer London Limited .
Kostka, C. & Kostka, S., 2017. Der Kontinuierliche Verbesserungsprozess. 7.Auflage Hrsg. München: Carl Hanser Verlag GmbH & Co. KG.
Marchthaler, J., Wigger, T., Lohe, R. & VDI, 2011. Wertanalyse – das Tool im Value Management. 6.Auflage Hrsg. Düsseldorf: Springer.
Mukhopadhyaya, A. K., 2009. Value Engineering Mastermind: From Concept to Value Engineering Certification. New Delhi: SAGE Publications Inc..
Pauwels, M. & VDI, G. P.-. u. P. (., 2011. Wertanalyse – das Tool im Value Management. 6.Auflage Hrsg. Düsseldorf: Springer.
Porter, M. E., 2010. Wettbewerbsvorteile: Spitzenleistung erreichen und behaupten. 7.Auflage Hrsg. Frankfurt, New York: s.n.
US-Army-Corps, 2013. https://www.usace.army.mil/Library/. [Online]
Available at: https://www.publications.usace.army.mil/Portals/76/Publications/EngineerPamphlets/EP_11-1-4.pdf?ver=2013-08-22-090137-173
[Zugriff am 19 December 2018].
Venkataraman, R. R. & Pinto, J. K., 2008. Cost and Value Management in Projects. New Jersey: John Wiley & Sons Inc..
Wiest, R. & VDI, (., 2011. Wertanalayse – Das Tool im Value Management. 6.Auflage Hrsg. Düsseldorf: Springer.