Introduction And Meaning Of Value Engineering
Value engineering is an effort to lower the cost of products, services, or manufacturing process without losing the value or quality of the products. It is a technique of increasing the quality of products without increasing the costs. It aims to minimize unnecessary costs and wastage to lower the cost of production. It uses modern technologies, simplifies the production process, and enhance the employees performance to improve the quality and volume of output and to reduce the cost. Therefore, value engineering is important for the business firm to earn more profit by selling quality products at lower costs.
Importance Or Objectives Of Value Engineering
Some notable objectives of value engineering can be highlighted as follows:
1. To Improve The Quality Of Products/Services
Value engineering aims to improve the value of products or services without increasing the costs. For this, it optimizes the production process, techniques, and the performance of employees and machines.
2. To Reduce Unwanted Costs
It helps to identify the unnecessary costs and controls them without reducing the quality of work, performance and materials. It promotes proper utilization of available resources to reduce the cost of production.
3. To Maximize Profit
Because of optimized production process, a firm can increase the volume of output that helps to minimize the production costs. So, it helps to increase the profit of the firm.
4. To Increase Customer Satisfaction
Another objective of value engineering is to improve customer satisfaction. Customer can get better quality products at lower price that helps to increase customer satisfaction and loyalty. It also helps to attract new customers and expand market share of the company.
5. To Promote Modernization
Value engineering gives emphasize on latest technologies that help to simplify the operational process. Effective and cheaper modern technologies are use to improve the production efficiency,
6. To Improve The Image And Goodwill
Because of quality products at lower price, it helps to build better consumer experience. It helps to increase customer satisfaction and loyalty. So, it helps to improve the goodwill and image of the firm.
