Value Engineering Flashcards
Organized effort directed ay analyzing designed building features
Value engineering
GSA
General service construction
PBS
Public building service
Is a systematic method to improve the “value” of goods or products and services by using an examination of function.
Value engineering
Is the ratio of function to cost
Product value
Value engineering is also referred to as
Value management or value methodology
Value analysis
GSA generally contracts for two value engineering studies:
- completion of concept design
- completion of design development
Is a style of management particularly dedicated to motivating people, developing skills and promoting synergies
Value management
A method to improve value in existing products
Value analysis
Was used principally to identify and eliminate unnecessary costs
Value analysis
Key principles of value management
- management style
- positive human dynamics
- consideration of external and internal environment
- effective use of method and tools
Encouraging people to work together towards a common solution
Teamwork
Recognizing and giving credit
Satisfaction
Bringing people together by improving communication between them
Communication
Challenging the status quo and bring about beneficial change
Encouraging change
The assumption of ownership of the outcomes of value management activities by those responsible for implementing them
Ownership
Taking account of pre-existing conditions external to the organization
External conditions
Within the organization there will be existing conditions which managers may or may not be able to influence
Internal conditions
The external and internal conditions will indicate the limits of potential outcomes and should be quantified
Degrees of freedom
How is value management applied
- VM throughout the project lifecycle
- cost cutting vs value improvement
- understanding of client needs
- external ‘challenge’
- function analysis
- creativity
Condensing or reduction of a “project” or other creative work into a shorter form
Abridgment
Dedicated to motivating people for the overall performance of the organization
Value management
Steps in value engineering
- Data gathering
- Think creatively
- Evaluate ideas
- Develop and analyze
- Present discoveries
- Implement changes
Is a systematic, organized approach to providing necessary functions in a project at the lowest cost
Value engineering
Refers to the systematic method of improving the value of a product that a project produces
Value engineering
Is defined as the most cot-effective way of producing an item without taking away its purpose
Value
The concept of value engineering evolved in the
1940s General Electric world war II
The specific work it was designed to perform
Function
Types of value
- use value
- cost value
- esteem value
- exchange value
Is the primary type of value and it is determined by the attributes of the good
Use value
Of a product Is the primary purpose of value engineering
Use value
Intrinsic value that often Extends beyond what the product is
Esteem value
Describes the physical benefit of a product
Use value
The last and smallest component of value relates to a product’s ability to be exchanged
Exchange value
Is the technique often used before a product has been fabricated
Value engineering
Is the technique used to analyze an existing product
Value analysis
Difference between value engineering and value analysis
Value engineering- preventing unnecessary costs
Value analytics- eliminating costs
Is the process of designing a product to ensure the value a customer receives is maximized
Value engineering
Value engineering is often broken into 6 stages:
- information gathering
- brainstorming
- evaluating
- developing plans
- presentation
- implementation
