What is Value Engineering in the Construction Field?

Value analysis is one of the major techniques of cost reduction and prevention. It is a disciplined approach that ensures the necessary functions at minimum cost without compromising quality, reliability performance and appearance.

Value analysis aims to systematically identify and eliminate unnecessary costs,, resulting in the increased use of alternatives, less expensive materials, cheaper design, etc., to provide the same performance, quality and efficiency and decrease overall costs and profits.

“Value analysis is the systematic application of recognized techniques which identify the function of a product, establish a monetary value for the function and provide the necessary function reliably at the lowest overall cost.

Value analysis is also known as value engineering, value assurance and value management

VALUE ANALYSIS VERSUS VALUE ENGINEERING

Value Analysis	Value Engineering
It is the application of a set of techniques to an existing product with a view to improving its value, it is thus a remedial process.	It is the application of exactly the same set of techniques to a new product at the design stage itself. Therefore, it is a preventive process.

AIM OF VALUE ENGINEERING

WHEN TO APPLY VALUE ANALYSIS

• The company’s products are losing in the market and there is a decline in sales.
• The company’s products are priced higher than the competitors.
• When the cost of manufacturing is high.
• Decrease Profitability
• project cost high
• When the company is unable to meet delivery schedules.

USE OF VALUE ANALYSIS

• It reduces the cost of the product.
• Balance the cost and performance.
• Motivate employees to come out with creative ideas.
• It helps to satisfy the customer with the company’s products.
• It prevents the overdesign of components.

Thank you

Also, you can visit my YouTube channel for more information about civil engineering and PEB structure. https://www.youtube.com/@AmitSahCivil