MADERA, KRISTINE O.

TALAN, ALYZZA P.
• During World War II, General Electric Company (GE) faced the
problem of scarcity of critical materials to fulfill the demand of
the war equipment. To overcome that problem, GE had to use
substitute materials for those in shortage. In 1947, Lawrence
D. Miles, a staff engineer at GE developed a number of ideas
and techniques to select alternative materials that could be
used internationally. In 1954, the U.S. Navy Bureau of Ships
used the Value Analysis process to cost improvement during
design.
 Function
VALUE 
Cost
• The systematic application of recognized
techniques which:
1. Identify the function of a product or service,
2. Establish a value for that function, and
3. Provide the necessary function reliably at the
least overall cost.
• VE is a technique directed toward analyzing the
functions of an item or process to determine the
“best value”
• It is also referred to as “value management” or
“value methodology” (VM), “value planning” and
“value analysis” (VA).
• Selection
• Information
• Analysis
• Teamwork
• Procedure
• Attitudes
SELECTION

• VE need not to be applied to everything.

INFORMATION

• Collation of important facts.

ANALYSIS

• The analysis of information takes to forms in VE: Cost

Analysis and Functional Analysis

– Cost Analysis. The individual costs of the component parts

of the subject are tabulated to an appropriate degree of
detail.
– Functional Analysis. Requires accurate definition of the
functions performed by the subject under investigation.
TEAMWORK

• Combining skills improves results.

PROCEDURE/ METHODOLOGY

• Common procedure saves time.

ATTITUDE

• This is the last of the essential elements but is not the

least important.
• Information Phase
• Function Phase
• Creative Phase
• Evaluation Phase
• Development Phase
• Presentation Phase
INFORMATION PHASE
All the pertinent aspects of the project were
studied and the whole information regarding every
element on construction are clearly collected
FUNCTION PHASE
Identifying the functions of the product or project

TWO TYPES OF FUNCTION

1. Primary Function – cannot be compromised
2. Secondary Function – optional and provide
convenience or dependability to the user
WHAT IS THE FUNCTION OF A PENCIL?
CREATIVE PHASE
Generating alternative solutions which
accomplish the intended functions but add value
EVALUATION PHASE
Reduce the ideas to a short list that can be
implemented
DEVELOPMENT PHASE
Develop the alternatives into viable, actionable
plans
PRESENTATION PHASE

• Present results of study to the owner

• Oral presentation
• Written report
• Answer questions
• Discover oversights
VALUE ENGINEERING METHODOLOGY
• Simplification of methods and procedures resulting in
less recurrent costs and a more efficient process.
• The functionality of the project is often improved as well
as producing tremendous savings, both initial and
life-cycle cost
THANK YOU

References: Mike Pearsall,

P. Eng
Miss Apurva