What is Value Engineering?
Value engineering is a systematic method to improve the “value” of goods and services by using an examination of function. Value, as defined, “is the ratio of function to cost.”
With more metal fabricators offering a wider range of services to their clients, creating a full-service partnership is simpler than ever. A partnership that offers value engineering can be appealing for an organization in search of innovative ways to cut costs, but value engineering offers more than a great way to cut your costs. With value engineering becoming more common in the industry, there is more pressure on fabricators to produce the best outcome for their clients.
Value engineering allows you to keep your costs static while increasing the value of the component.
Benefits of Value Engineering
Value-added Analysis
Value-added analysis is a process in which a product or service is stripped down to its essential benefits. The benefits which contribute to customer appeal or experience are enhanced. Features not directly contributing to enhanced customer experience are reduced or eliminated.
Value-added engineering and analysis can be performed at the outset of a new design or during the life of an existing product. The value team will evaluate what’s truly adding to the end user’s experience and create or revise accordingly.
Customer Perceived Quality
Value engineering focuses on what is most important from the customer’s point of view. The right fabrication partner not only allows you to understand the processes that need to be revised but also allows you to create a product that solves the right problems for your customers. Often times organizations are spending money to create ineffective or inefficient parts, completely unaware that the client experience is lacking or poor.
Value Engineering Applied
There are many ways that value engineering can be applied effectively and each manufacturer follows its own process. The original process followed by General Electric Co. during World War II focuses on analyzing the functions of a project, product, process, system, design, or service for the purpose of achieving the essential functions at the lowest life-cycle cost consistent with required performance, reliability, availability, quality and safety.
Applying a value engineering process to your products will not only add value to your products, but will also endear your customers to you as a trusted vendor and partner. In today’s competitive marketplace, clients are always looking for ways to set themselves apart from their competition. Value Engineering is one of the best ways to accomplish that goal.
If you are in the process of finding the right fabrication partner, focus on partners who offer value engineering. Doing so will allow you to save time and money while better understanding the needs of your customers.
