case study in value engineering

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Real-world examples of value analysis and value engineering.

Adam Kimmel

January 4, 2024

Value analysis (VA) and value engineering (VE) are powerful tools to improve profitability and sustainability that maintain VA/VE cornerstones of function and quality while reducing cost. The concepts are distinct, but even seasoned engineers often use the terms “VA” and “VE” interchangeably. While the phrases are similar and often used together to describe the philosophy, VA and VE have differences that attack different points in a product’s lifecycle. This article explores these differences and provides value analysis and value engineering examples.

What is the difference between value analysis (VA) and value engineering (VE)?

The primary difference between VA and VE is the product lifecycle phase during which the engineering team performs the assessment. For example, value engineering applies to the initial design phase, where a component model may contain features the designer used to illustrate to function crudely. Conversely, value analysis refers to an existing product with at least one complete design and production cycle for insights into potential value improvement opportunities.

Both approaches have their place: 

• VE can improve the profitability of an initial launch that can carry sunk non-recurring engineering (NRE) costs and non-depreciated capital
• VA considers real-world feedback as to which product features the market cares about, which ones complicate manufacturing, and which reduce operating efficiency.

But to understand the difference between VA and VE, it is helpful to leverage examples of each during the product lifecycle.

Value analysis example

Value analysis improves the value ratio (function/cost) by [objectively] analyzing all components of the product cost through a Pareto chart. This analysis includes the manufacturing process cost and proposes ways to increase value or function at the existing cost or remove cost while preserving function and quality.

Optimizing a plastic bottle closure design is an is an example of VA. A commercially-available bottle may have a delivery nozzle that threads onto the bottle and a separate sealing cap that attaches to the nozzle, protecting it from the air that could evaporate the product’s fluid. The cost Pareto may show that the sealing cap is significant to the overall product cost, leading the engineering team to design an integrated sealing cap-nozzle that provides both functions in one component.

This solution would likely require additional tooling for the new shape. Still, it would reduce a significant amount of material by removing a component (also a sustainability win) and the assembly time to place and install the cap. In addition, this design change would reduce manufacturing tolerance stack-ups that could reduce scrap rate or introduce an additional leak path.

Value engineering example

In contrast to the VA approach, which looks at the existing product cost structure, VE targets areas in the initial design that may carry excessive costs into a product launch. The term “cost-avoidance” (instead of cost reduction) refers to the applying a value-based approach at this phase.

Assembling two mature piece parts is an example of VE. A customer may ask the manufacturer to construct the joint between two system components. The initial design may amount to a bolt-on solution accomplished by extending mating flanges to the existing components to attach the parts.

Engineers could run this step through a VE analysis before launch to consider redesigning a more integrated joint, using less material, and potentially recommending a different manufacturing technique to incorporate joints into a single component.

Value analysis and value engineering case study

JCI’s Applied HVAC Equipment division previously used organization-based tools like Sharepoint and emailed static files for VA/VE projects, taking weeks to deliver the ideas. This process is similar to many companies and industries conducting these analyses routinely. As an industry leader, JCI wanted to step up its collaboration by implementing CoLab .

The initial implementation enrolled eight users in a single location; this access has since extended to more than 180 in 4 countries. JCI uses CoLab to cover VE processes like drawing reviews to achieve cost avoidance, and it employs the software for manufacturing process steps and existing products for VA. In addition, they now use CoLab for virtual real-time VA/VE events, pacing the market for efficient collaboration in value engineering and analysis.

VA/VE is not just about cost reduction. Engineers can improve a product’s function or quality profile or enhance profitability to uncover funding for capital or other investment projects. Whether the team is analyzing an initial design to optimize the year-one profitability or collaborating on a production part, it is essential to engage the team efficiently to empower them to generate high-quality ideas quickly.

Applying the principles of VA/VE within CoLab, a platform that smoothly facilitated virtual participation (quadrupling engagement and doubling actionable ideas all tracked within the 3D model), enabled JCI to deliver 8-figure targets in consecutive years.

Visit CoLab's VA/VE page to test drive CoLab software with a guided VA/VE virtual workshop.

How to bring your suppliers into design conversations, how can colab surface design issues that could have been prevented.

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Value engineering application in a high rise building (a case study in Bali)

Putri Arumsari 1 and Ricco Tanachi 1

Published under licence by IOP Publishing Ltd IOP Conference Series: Earth and Environmental Science , Volume 195 , The 2nd International Conference on Eco Engineering Development 2018 (ICEED 2018)5–6 September 2018, Alam Sutera Tangerang, Indonesia Citation Putri Arumsari and Ricco Tanachi 2018 IOP Conf. Ser.: Earth Environ. Sci. 195 012015 DOI 10.1088/1755-1315/195/1/012015

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1 Civil Engineering Department, Faculty of Engineering, Bina Nusantara University Jakarta, Indonesia 11480

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Finding affordable alternatives material to replace the initial design of the architecture work of a commercial high rise building project without reducing the value of the material itself. Then analysing the cost saved from applying the value engineering in the architecture work of a high rise building. Calculation through the value engineering process was conducted. A commercial high rise building in Bali was chosen as a case study to implement the value engineering process in the design stage. The value engineering stages included calculating the cost/worth function, analysing through Function Analysis System Technique (FAST), innovation and creativity stage, evaluation of the life cycle cost, decision analysis and last the decision making. The research found that by applying value engineering through several items of work in a commercial high rise building it could save up to up to 8% of the total cost of the architecture work. The architecture work that was analysed through value engineering were the wall work, the door work, the floor work and the sanitary work. These were found to be the most effecting result from the Pareto calculation. The application of value engineering is this research was only done in one commercial high rise building in Bali. The work analysed was also only the architecture work. Therefore other types of construction project might result in different value of cost saving. This research identifies the cost saved through the application of value engineering in a commercial high rise building in Bali, which emphasizes on high quality materials in the architecture work. This research will contribute to the study literature of value engineering with a case study of commercial high rise building.

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Value-Based Engineering

A guide to building ethical technology for humanity.

• Sarah Spiekermann
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Please login or register with De Gruyter to order this product.

• Language: English
• Publisher: De Gruyter
• Copyright year: 2023
• Audience: Graduate Students, Researchers, Practitioners
• Front matter: 14
• Main content: 183
• Coloured Illustrations: 107
• Keywords: Computer Ethics ; Value-based Design ; Ethical system and software engineering ; Moral machines ; Ethical AI
• Published: March 20, 2023
• ISBN: 9783110793383
• ISBN: 9783110793369

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Achieving success through value engineering: A case study

Research output : Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

In this paper we have discussed the concept of Value Engineering, its job plan and the effective implementation of it through a case study. Efforts have been put into the articulation of the paper to make it coherent which can be easily perceivable. A case study has been discussed in this paper involving a part used in the medical instruments. The material is chosen such that the cost is reduced without affecting the quality of the product. The best feasible solution from the available alternatives is chosen through the feasibility ranking table. Through the application of Value Engineering profits are maximized without hindering the reliability of the product. With the effective utilization of the technique the final outcomes comes out to be a successful showcase of value engineering.

Publication series

• Functional analysis
• Indian national rupee
• Value engineering
• Value index

ASJC Scopus subject areas

• Computer Science (miscellaneous)

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• Value Engineering Engineering 100%
• Medical Instrument Material Science 100%
• Feasible Solution Engineering 25%

T1 - Achieving success through value engineering

T2 - 2012 World Congress on Engineering and Computer Science, WCECS 2012

AU - Sharma, Amit

AU - Belokar, R. M.

N1 - Publisher Copyright: © 2012 Newswood Limited. All rights reserved.

N2 - In this paper we have discussed the concept of Value Engineering, its job plan and the effective implementation of it through a case study. Efforts have been put into the articulation of the paper to make it coherent which can be easily perceivable. A case study has been discussed in this paper involving a part used in the medical instruments. The material is chosen such that the cost is reduced without affecting the quality of the product. The best feasible solution from the available alternatives is chosen through the feasibility ranking table. Through the application of Value Engineering profits are maximized without hindering the reliability of the product. With the effective utilization of the technique the final outcomes comes out to be a successful showcase of value engineering.

AB - In this paper we have discussed the concept of Value Engineering, its job plan and the effective implementation of it through a case study. Efforts have been put into the articulation of the paper to make it coherent which can be easily perceivable. A case study has been discussed in this paper involving a part used in the medical instruments. The material is chosen such that the cost is reduced without affecting the quality of the product. The best feasible solution from the available alternatives is chosen through the feasibility ranking table. Through the application of Value Engineering profits are maximized without hindering the reliability of the product. With the effective utilization of the technique the final outcomes comes out to be a successful showcase of value engineering.

KW - Functional analysis

KW - Indian national rupee

KW - Job plan

KW - Value engineering

KW - Value index

UR - http://www.scopus.com/inward/record.url?scp=85010696903&partnerID=8YFLogxK

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T3 - Lecture Notes in Engineering and Computer Science

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A2 - Douglas, Craig

A2 - Burgstone, Jon

A2 - Grundfest, W. S.

A2 - Ao, S. I.

Y2 - 24 October 2012 through 26 October 2012

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AIL is experienced in finding alternative solutions that offer your projects the same functionality and quality at a better value. We call it Value Engineering.

Value Engineering for a better solution Value Engineering is a systematic, organized approach to providing necessary functions in a project on a faster schedule and at the lowest cost. It promotes the substitution of materials and methods with less expensive alternatives without sacrificing functionality. In short, less expensive materials or services or better functions are utilized in projects without sacrificing safety or performance.

The Value Engineering process can be described in these steps:

• Identify the function of a product or service
• Establish a worth for that function
• Generate alternatives that meet the current design codes through creative thinking
• Provide the needed functions reliably at the lowest overall cost
• Prepare a Value Engineered alternative proposal

The Value Engineering proposal will be looking for the optimum blend of scheduling, performance, constructability, environmental awareness, safety and cost savings.

Value Engineering Project Case Studies Value Engineering can be achieved in any number ways.

• It could be the decision to choose a buried metal bridge instead of a concrete structure.
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Debris flow susceptibility mapping in alpine canyon region: a case study of Nujiang Prefecture

• Original Paper
• Published: 12 April 2024
• Volume 83 , article number  169 , ( 2024 )

Cite this article

• Yimin Li 1 , 2 ,
• Wenxue Jiang   ORCID: orcid.org/0009-0005-6211-0015 1 ,
• Xianjie Feng 3 ,
• Shengbin Lv 1 ,
• Wenxuan Yu 3 &
• Enhua Ma 1  

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Accurate debris flow susceptibility mapping (DFSM) plays a crucial role in enabling government authorities to devise rational policies to mitigate the threats posed by debris flows to human life and property. Nujiang Prefecture, located in the alpine canyon region, is prone to frequent debris flows in China. Therefore, this study focuses on Nujiang Prefecture as the research area. Based on the characteristics of debris flow development, the occurrence mechanism, and the actual conditions of the study area, small watersheds are selected as mapping units. Fifteen influencing factors, including elevation, slope, aspect, relief, surface roughness, Melton ratio, NDVI, lithology, distance to faults, rainfall, SPI, TWI, STI, watershed aera, and gully density, are considered in the mapping process. We explored the predictive performance of three single models, namely, the statistical model certainly factor (CF), the machine learning model support vector machines (SVM), and the deep learning model convolutional neural network (CNN). Additionally, we investigated the coupling models CF-LR (statistical model coupled with machine learning model) and CNN-SVM (machine learning model coupled with deep learning model) in the mapping of debris flow sensitivity. The analysis and comparison of model performance were conducted using the area under the receiver operating characteristic curve (AUC) and the mean value (MV) and standard deviation (SD) of debris flow sensitivity values. The results demonstrate that all five models show promising performance in DFSM. Among them, the CNN-SVM coupled model (AUC = 0.933, MV = 0.211, SD = 0.199) outperforms the others, exhibiting the best predictive capability. These findings can serve as valuable references for debris flow prevention and control efforts.

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This research was supported by the Yunnan Provincial Science and Technology Department-Yunnan University Joint Fund Key Projects(Grand no. 2019FY003017), National Natural Science Foundation of China(Grand no. 41161070), and International Laboratory for Remote Sensing of Natural Resources in China, Lao People’s Democratic Republic, Bangladesh, and Myanmar.

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School of Earth Sciences, Yunnan University, Kunming, 650500, China

Yimin Li, Wenxue Jiang, Shengbin Lv & Enhua Ma

Yunnan Colleges and Universities Domestic High Score Satellite Remote Sensing Geological Engineering Research Center, Kunming, 650500, China

Institute of International Rivers and Eco-Security, Yunnan University, Kunming, 650500, China

Xianjie Feng & Wenxuan Yu

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Yimin Li and Wenxue Jiang conceived the idea of this paper. Xianjie Feng, Shengbin Lv, Wenxuan Yu, and Enhua Ma completed the material preparation and model training, and the paper was written by Yimin Li and Wenxue Jiang. All authors commented on the research and agreed to the submission of the final manuscript.

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Li, Y., Jiang, W., Feng, X. et al. Debris flow susceptibility mapping in alpine canyon region: a case study of Nujiang Prefecture. Bull Eng Geol Environ 83 , 169 (2024). https://doi.org/10.1007/s10064-024-03657-2

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Received : 24 September 2023

Accepted : 25 March 2024

Published : 12 April 2024

DOI : https://doi.org/10.1007/s10064-024-03657-2

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