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Ch1- VE: Beginnings and growth and Ch2-Understanding the value concept Celestine Aguwa, PhD 1
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Ch1- VE: Beginnings and Growth Celestine Aguwa, PhD 2 Value Engineering Roots Value engineering is a discipline, the roots of which began during the era of World War II Primary materials, goods, and services were very scarce during the war, requiring alternative substitutions on a massive scale
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Ch1- VE: Beginnings and Growth Celestine Aguwa, PhD 3 Value Engineering Roots, cont. Surprisingly, the alternatives often performed as well as the original means, sometimes at a lower cost, almost by accident Lawrence D. Miles, staff engineer at General Electric company, was assigned the task of developing a method to make this phenomenon happen on purpose Miles developed a method based on function analysis, which he first labeled “ value analysis
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Ch1- VE: Beginnings and Growth Celestine Aguwa, PhD 4 VE Growth Value analysis seminars around the interest of industry and government and favorable articles in the national media, such as the World Street Journal and the Reader’s Digest spurred widespread interest The Navy Bureau of Ships, recognizing the merit of the concept, established a program to reduce shipbuilding costs using the Miles value concepts In the mid-1950s, the value methodology became more commonly known as “ value engineering
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Ch1- VE: Beginnings and Growth Celestine Aguwa, PhD 5 VE Growth, cont. Lawrence D. Miles is globally recognized as the father of Value Engineering, the originator and early developer of the value methodology The society of American Value Engineers (SAVE) was formed as a professional technical society in 1959, to consolidate and promote the growth of the profession Today the society is called SAVE International and is currently headquartered in Dayton, Ohio
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Ch1- VE: Beginnings and Growth Celestine Aguwa, PhD 6 Major Definitions Value is determined by the lowest cost to provide the required function or service as the needed time and place with the essential quality Value engineering is the systematic building of value into a product, system, or service while still in the conceptual design or planning stages, using the functional approach unique to VE methodology Value analysis is the systematic review of an existing product, system, or service to improve value using the functional approach unique to VE methodology
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Ch1- VE: Beginnings and Growth Celestine Aguwa, PhD 7 Value Engineering Approach VE uses a systematic, creative approach to achieve the required function at the lowest cost VE permits value to remain in a product while taking out unnecessary cost The terms value engineering and value analysis are often used interchangeably for practical purposes Function is the heart of value engineering VE differs from other value seeking or cost improvement approaches in that VE focuses on the function required by an item; conventional approaches zero in on the item itself
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Ch1- VE: Beginnings and Growth
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