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Value engineering confusion


Value engineered ?
Value engineered ?

Space control to Major John

(Apologies to David Bowie)


“As I hurtled through space, one thought kept crossing my mind... every part of this capsule was supplied by the lowest bidder”.


John Glenn, U.S. astronaut







Don't buy product, buy function.


I'm amazed how often the concept of value engineering is misunderstood, confusing cost with value and focusing solely on bottom line capital costs. Value engineering is still mistakenly likened to the traditional quantity surveying practice, euphemistically referred to as 'cost reconciliation', or in other words, 'We've overspent, so what can we cut out to get back on budget?'

Recently, social media highlighted the misunderstandings surrounding value engineering. So, let’s go back to first principles.

  • Value engineering is a function-based exercise that grew out the need to find alternative ways to provide a required function, for example a washing machine that washes clothes, but with limited resources following WW2.

  • The basic premise is; we’ve identified the primary and support functions of a new project – how do we provide these?

I remember woodwork classes at school when I tried to produce toast racks, pipe racks, book ends, etc. I always had problems in trying to adjust tools like a plane, for smoothing wood and ended up taking large chunks out of my coursework projects and me. One day, an individual at Stanley, the tool manufacturer, posed the question: What is the primary function of a wood plane? Are hardwood handles, brass adjustment levers and wheels, along with a blade that requires frequent sharpening on an oil stone, really necessary and give value for money?

By concentrating on functionality, the Stanley Surform plane was created, costing significantly less than traditional smoothing planes. Additionally, it requires no adjustments or maintenance.The bottom line is the Holy Grail of VE;


Surform retained a plane's primary function at a reduced cost and increased bang for buck!


Duncan Cartlidge FRICS





 
 
 

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