Luiz Felippe Alcantara Systems Engineering Management
March 2, 2015 Dr. Bill Phillips

Value Engineering

Value engineering is a methodology developed by Lawrence Miles for manufactories during World War II, to improve efficiency and decrease cost. Value is defined as a ratio of function and quality over cost, the value can be increased by reducing the cost or improving the function.
In the construction industry the value engineering is common used to bring over budged back to the project budget. However simply reducing cost either quality is not a value engineering is a simple cost cutting. Value engineering is a multi-perspective team approach to study one product or project and improve it by using alternative design, materials and methods and still achieve the essential functions, requirements and purpose.
VE can be applied at any point in a project. However when it is have been used since the begging higher is the return in time and effort invested. There are five main stages in a VE application:
Information – Gather all information important for the project.
Is done at the initial stage and define the owner objectives, what functions or characteristics are important for the project. It will asks what does the project do, what must it do, what should it do, what could it do, what must it not do, and who it will be accomplished?

Creation – The VE team will list all creative ideas
The VE Team thinks of as many ways as possible to provide the necessary function at a lower initial or Life-Cycle Cost which represent improved value to the client. Analysis - All the alternatives are presented by evaluating in how they meet the requirements, and functions and how great the cost savings will be.
Analyses the ideas resulting from the creative session. Ideas found to be impractical or not worthy are discarded. Those ideas that represent a great