How can value engineering methods improve sustainability in engineering management?

1 What is value engineering?

VE is based on the principle that value is the ratio of function to cost. Function is what the product, process, or system does to meet the needs and expectations of the customer or stakeholder. Cost is the total expenditure of resources, such as materials, energy, labor, and time. VE aims to increase value by maximizing function and minimizing cost, without compromising quality, safety, or reliability.

2 How can VE improve sustainability?

Sustainability is the ability to meet the present needs without compromising the future needs of the environment, society, and economy. Through Value Engineering (VE), we can improve sustainability by identifying and eliminating unnecessary or redundant functions that consume resources and generate waste, finding alternative solutions that provide the same or better function with less resources and lower environmental impact, enhancing the life cycle performance and durability of the product, process, or system, reducing the need for maintenance, repair, or replacement, and incorporating environmental and social criteria into the value analysis such as energy efficiency, carbon footprint, recyclability, and social responsibility.

3 What are the steps of VE?

VE follows a structured process that involves six steps. Information gathering and analysis is the first step, where relevant data about the product, process, or system, such as specifications, functions, costs, performance, and customer feedback is collected. The second step involves using a function analysis system technique (FAST) diagram to define and classify the functions of the product, process, or system. Brainstorming, morphological analysis, or other creative techniques are then used to generate and evaluate alternative ideas to improve the value of the product, process, or system. A matrix or a weighted scoring method is used in the fourth step to select the best ideas based on their feasibility, effectiveness, and compatibility with the value objectives. The fifth step involves developing a detailed plan to implement the selected ideas and estimating the benefits, costs, and risks of the plan. Finally, the plan is presented to the decision-makers, customers, and stakeholders with feedback being solicited.

4 What are the tools of VE?

VE employs a variety of tools to support the value analysis and improvement process. A function-cost matrix displays the cost breakdown of each function, helping to recognize high-cost and low-value functions. Additionally, a Pareto chart, which is a bar graph that illustrates the frequency or magnitude of different factors, can be used to prioritize the most important ones. Furthermore, a value index, which is a numerical indicator that measures the value of a product, process, or system by dividing the function score by the cost score, can be employed. Quality Function Deployment (QFD) is also used; it is a matrix that translates customer needs and expectations into design requirements and specifications to ensure alignment with value objectives and customer satisfaction. Lastly, Life Cycle Assessment (LCA) is a method that evaluates the environmental impact of a product, process, or system from cradle to grave and helps identify hotspots and opportunities for improvement.

5 How to apply VE in engineering management?

As an engineering manager, you can apply VE methods and tools to improve sustainability in your projects and operations by establishing a clear and measurable value objective and a sustainability goal for your product, process, or system. You should form a multidisciplinary VE team that includes engineers, designers, customers, suppliers, and other stakeholders. Then, conduct a VE study at the appropriate stage of the product, process, or system development or operation. After implementing the VE plan, it is important to monitor the results and feedback, making adjustments as needed. Finally, communicate and document the VE process and outcomes while sharing best practices and lessons learned.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?