An Investigation Into the Systematic Use of Value Engineering in the Product Development Process

Joyce de Andrade Ruiz1, Ariovaldo Denis Granja2, Flávio Augusto Picchi3 & Reymard Sávio Sampaio de Melo4

1M.Sc., Construction Management and Technology Research Group (GTE), School of Civil Engineering, Architecture and Urban Design, Department of Architecture and Buildings, State University of Campinas(UNICAMP), joyce.andrade.ruiz@gmail.com
2Asst. Professor, Construction Management and Technology Research Group (GTE), School of Civil Engineering, Architecture and Urban Design, Department of Architecture and Buildings, State University of Campinas(UNICAMP), Avenida Albert Einstein, 951, Caixa Postal 6021, Campinas/SP, CEP 13083-852, Brazil, Tel.: +55 19 3788-2082, FAX + 55 19 3788-2411, adgranja@fec.unicamp.br
3Asst. Professor, Construction Management and Technology Research Group (GTE), School of Civil Engineering, Architecture and Urban Design, Department of Architecture and Buildings, State University of Campinas(UNICAMP); and Director, Lean Institute Brazil, Rua Topázio 911, São Paulo-SP, Brazil, CEP 04105-063, Tel.: +55 11 5571-6887, Fax:+55 11 5571-0804, fpicchi@lean.org.br.
4Ph.D. candidate, Construction Management and Technology Research Group (GTE), School of Civil Engineering, Architecture and Urban Design, Department of Architecture and Buildings, State University of Campinas(UNICAMP), reymardsavio@yahoo.com.br

Abstract

Value Engineering (VE) is a methodical technique which aims to achieve the best functional balance between product cost, reliability and performance, and it is the operational tool that facilitates the achievement of the target cost in a product development process (PDP). VE is aligned with recent philosophies for proactive cost management by analyzing cost parameters and drivers in the early stages of the PDP. A typical VE study accomplishes the decomposition of the product’s functions, and the subsequent evaluation of them, in order to pursuit cost reductions without trading- off the product’s functionality, quality and value delivery to clients/users. This research investigates how to use the VE technique in a construction product in a systemized way. VE tools, such as Function Analysis, FAST Diagram, Mudge Technique and Compare Method were combined and applied in a handicap bathroom, as an example of the detailed application of this technique. By means of the VE exercise, a cost reduction in the order of 12% was achieved, even with the addition of two new items, enhancing value delivery to end users.

Keywords

Value engineering; target costing; product development process; cost management in construction; value delivery

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Reference

Ruiz, J.D.A. , Granja, A.D. , Picchi, F.A. & Melo, R.S.S.D. 2011, 'An Investigation Into the Systematic Use of Value Engineering in the Product Development Process' In:, Rooke, J. & Dave, B., 19th Annual Conference of the International Group for Lean Construction. Lima, Peru, 13-15 Jul 2011.

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