Value Methodology

Abstract

This chapter will explore the main ideas of the basics of Value Methodology and Trimming (Kaufman 1998; Miles 1989; Appendix A). VM is a professionally applied, function-oriented, systematic team approach used to analyze and improve value in a product, facility design, system, or service. It is a robust methodology for solving problems and reducing costs while improving performance/quality requirements. VM can be applied to any business or economic sector, including industry, government, construction, and service. Using VM is a phenomenally successful long-term business strategy (SAVE International https://www.value-eng.org/). VM is a system created to prevent unnecessary costs during the product/process design and find and remove unnecessary costs during product manufacturing in the most profitable manner (The Lawrence D. Miles Value Foundation https://www.valuefoundation.org/). VM is defined as an organized effort directed at analyzing the functions of systems, equipment, facilities, services, and supplies to achieve the essential functions at the lowest life cycle cost consistent with required performance, quality, reliability, and safety. VM is a proven tool to reduce costs and increase the value of products and operations. The VM's goal is to improve the value as determined by the buyer, not merely to reduce costs. VM is a set of disciplined thinking techniques focused on improving problem-solving, creativity, and decision-making by understanding and increasing products or services' value. The primary and most effective VM technique is Functional Analysis. Fundamental principles of VM include: Value is increased by increasing quality and functionality or by lowering costs and problems, or both; Every product (or system) has both necessary and unnecessary costs—the ideal goal is to remove unnecessary costs while preserving or increasing the functionality; Every part of a product has a measurable contribution (positive or negative) to the system’s ultimate function; The more abstractly we can define the function of what we are trying to carry out, the more opportunities we will have for divergent, innovative thinking. Trimming is a method for improving systems is based on the elimination of components and the redistribution of their useful (secondary) function between remaining components.