Value analysis and value engineering: the essentials of collaboration to improve the value equation

Handled poorly, rationalising the design of goods or services to extract greater value or lower costs has the potential to sour internal and external relationships.

To prevent relationships from deteriorating ensure that you include everyone who can make a meaningful contribution to a value analysis (VA) and value engineering (VE) project, Grant Wall of Grayle Consulting told SmartProcurement.

VA is a structured process that is used to either identify and eliminate or modify product features that add little or no functional value to the product or service offered (as viewed from a customer perspective), but do add cost, or offer product functionality or services that meet market requirements or expectations at a lower cost.
 

VA is not just a cost cutting exercise: the process strives to positively influence and, if possible, optimise the so-called value equation.
 

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