GlossaryKind of term: Manufacturing termValue engineering
What is value engineering?
Value engineering is a structured analysis of what a product or part must do and what each requirement costs, to deliver the same function for less.
In this method, value is the ratio of function to cost, and the analysis runs function by function. The aim is to deliver the required function at lower cost, or more function at the same cost, without giving up quality or reliability. Value analysis is the related term; where people separate them, value engineering applies during development and value analysis to a product already in production.
What does value engineering depend on?
The method follows a set job plan: gather information, name functions as a verb and a noun ('transmit torque', 'locate bearing'), generate alternatives, evaluate them and develop a proposal. For a machined part the requirements under review include material, tolerances, roughness, internal radii, machining directions, finishing and the number of parts in an assembly. A requirement that serves no function is a candidate; the designer judges what the function needs, the maker what a requirement costs. In Europe, value management is described in EN 12973, with its terms in EN 1325.
How does value engineering work in practice?
For a supplier the focus is on requirements that demonstrably drive cost. Ra 0.8 µm where Ra 3.2 µm would do can save a finishing pass or a further operation; a feature in the same machining direction as the rest can save a setup; a larger internal radius can allow a larger cutter and shorten machining time; merging two parts can remove an assembly step and a line in the bill of materials. Whether it pays depends on route, quantity and the machines available. A proposal works requirement by requirement: what is there now, what you propose, what it saves and what it means for the function. If the customer agrees, a new drawing revision follows.
What is value engineering often confused with?
Value engineering is not a plain price cut: the function stays the same, the requirement changes. It also differs from design for cost, which steers the design against a target cost from the start; value engineering is an analysis method applied to a design in development or to an existing product.
How do you see value engineering in Blake?
In Blake the estimated cost is split into lines: material, machining, setup, programming and a subcontracted finish from your own subcontract library. That shows which line a requirement touches. A changed assumption in the estimate is recorded with a reason, and a new drawing revision sits with the part as a revision of its own. More on estimating.
Frequently asked questions
What is value engineering for a supplier?
A way of reviewing a part with the customer for function and cost. You supply what each requirement costs in your route, the customer judges what the function needs. Agreement leads to a new drawing revision.
Which requirements save most in value engineering for machined parts?
Often requirements without a function that need a step of their own: tight tolerances and low roughness, sharp internal corners, features that need an extra setup, and finishes that have to be subcontracted. How much each saves depends on route, quantity and machines.
What is the difference between value engineering and value analysis?
The terms are often used interchangeably. Where people separate them, value engineering applies during development and value analysis to a product already in production. The method is the same: name the functions and weigh the cost of each.