Value Engineering

A focus on the qualitative improvements of the product (more than of the production process) is implemented in the value engineering analysis (in other words: function-to-cost analysis, FCA). An ideality factor is calculated for each element of the system (a product, process or company). An ideality factor is a ratio between the efforts spent to fulfill useful functions and the cost of the element. The least ideal parts are reduced, whereas the most ideal ones are doubled.

First, the system is split to separate elements and functions performed by each elements are analyzed. The functional input can be preliminarily assessed using a six-grade scale:

  1. Harmful elements (elements with harmful functions or functions, which are secondary for elements 2)
  2. Irrelevant elements (elements with supplementary functions for 3 and 4 or compensating functions for elements 3, 4 or 5)
  3. Elements with a limited usefulness (having functions with compensate for harm caused by the entire system, as well as supplementary functions for 4 and 5)
  4. Useful elements (having several supplementary functions for 6 and 5)
  5. Very useful elements (directly linked to additional useful functions of the system)
  6. The most useful elements (directly linked to the main useful function of the system)

The cost (a contribution to the gross production cost) is also preliminarily assessed using a six-grade scale:

  1. Elements with no cost (which cost nothing)
  2. Very low-cost elements
  3. Low cost elements
  4. Moderate cost elements
  5. Costly elements
  6. Very costly elements