Value analysis and value engineering (VAVE) is a systematic process to analyze products and services to reduce costs while maintaining or improving performance. It originated from General Electric during World War II and focuses on analyzing a product's functions. The value of a product is defined as its functionality divided by its cost. VAVE can be applied across industries to solve problems, expand markets, and reduce costs as part of a long-term business strategy. To learn VAVE, one should receive training, use analysis tools, and practice with experienced practitioners to generate ideas for cost savings and value improvements.
9. Value is increased by increasing performance if the customer needs, wants, and is willing to pay for more performance What is Value? [Definition] A product or service is generally considered to have good value if that product or service has appropriate performance and cost Value is always increased by decreasing costs (while, of course, maintaining performance). V=F/C
11. What is Function? The basic purpose of each expenditure, whether it be for hardware, the work of a group of men, a procedure, or whatever, is to accomplish a function. It is necessary to establish the language of function and stay within this language. V=F/C
13. What is VA/VE? Synonymous with the terms value management and value analysis, value engineering is a professionally applied, function-oriented, systematic team approach used to analyze and improve value in a product, facility design, system or service-a powerful methodology for solving problems and/or reducing costs while improving performance/quality requirements. By enhancing value characteristics, Value Engineering increases customer satisfaction and adds value to your investment. Value Engineering can be applied to any business or economic sector, including industry, government, construction and service. Using Value Engineering is a very successful long-term business strategy.“ Lawrence D. Miles
14. What is VAVE? Term: VA= VE= Value Management Process: Function-oriented & Systematic approach to analysis product Purpose: Solving problems and/or reducing costs /improving value Field: industry, government, construction and service View: Successful long-term business strategy
15. What is different VAandVE? VA VE Existing product or service Manufacture, After sales Process innovation Unnecessary cost, Improvement performance New product or service Prototyping, Design or Per-manufacture Function breakthrough Increase Value
29. Cost Reduction Approach VE 40% VA 20% Others 10% IE 10% Purchase10% QC 10% Data from Semi-conduct Company
30. Benefit Expand Market and Jobs Elimination of Human Toil Adequate Defense for Lower Cost Opportunity Effect of Design Time Shortage Lack of Measurement in Value Work Human Factors
38. Lesson Review What is VAVE VAVE History VAVE formula and definition What is value and function What is different between VA and VE VAVE system methodology Why do we need VAVE VAVE Expands Markets VAVE Reduce Cost Others How do we start to learn VAVE？ How to learn and get trained VAVE? Practices and relative people Cooper Way Opportunity field Thank You
Editor's Notes
1)介绍Max Value2)一种评估方式（VAVE的内容）Unnecessary cost occupied of 25%~75% =>Bench Mark by cost model简化版3)Important Value4）介绍Healthy Business;国内的企业的现状This best value is determined by two considerations: performance and cost.价值曲线Over year, recently healthy business
1）Function定义2)如何定义这些功能是有一套系统化的方法的，Identify, Clarify, and Name FunctionsIs that exactly what it does for the customer?Is that exactly what the customer wants it to do?Is that exactly what the customer believes he's paying for?Quantify Functions When PracticableUnify the Function and Its SpecificationsAnalyze Aesthetic FunctionsClassify Functions As Either Basic or Secondary
