What is value engineering?
Value engineering (VE), developed at General Electric in the 1940s, is a structured method for improving the value of a product, service or process. Value = Function ÷ Cost: you raise value by improving function, lowering cost, or both.
The value engineering job plan
- Information — understand the item, its costs and requirements.
- Function analysis — define what it must do (verb + noun: “keep food hot”).
- Creative — brainstorm alternative ways to perform each function.
- Evaluation — assess ideas for cost, quality and risk.
- Development — build detailed proposals for the best ideas.
- Presentation & implementation — decide and roll out.
Value engineering example
A caterer's insulated delivery boxes were costly and broke often. Function: “keep meals above 60°C for 45 minutes”. A different liner and lid design met the function, lasted twice as long and cost 30% less.
Common mistakes to avoid
- Confusing VE with cutting features customers value.
- Skipping function analysis.
- Not involving the people who use the product or process.
How DOOfy helps
Value engineering starts with knowing true costs. AIMOS One shows the full cost of products and processes — materials, wastage, labour, energy — so VE teams can see where value is being lost.
Frequently asked questions
What is the value formula?
Value = Function ÷ Cost. Value increases when function improves, cost decreases, or both.
Is value engineering the same as cost cutting?
No. Cost cutting may reduce function; value engineering keeps or improves required functions while reducing cost.