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Value Engineering (VE) is a proven technique to reduce the cost of a product while maintaining or increasing its function. Value is defined as the ratio of Function to Cost. VE provides a disciplined methodology to systematically examine each and every product component and each and every manufacturing process in terms of their function and cost. The term “Function” is broadly defined in VE. Besides physical function, it includes ease of use, reliability, precision, accuracy, durability, etc. A simplified quadrature classification of the value matrix is shown. Each component and process can be mapped on to this matrix.
Efforts are first focused on the Low Function/High Cost items. These are great candidates for outright elimination or substitution by other equivalent lower-cost components. For the High Function/Low Cost items, efforts are focused on increasing functionality if so desirable. For the High Function/High Cost items, efforts are focused on increasing functionality and reducing cost. For the Low Function/Low Cost items, efforts are focused on elimination or substitution.