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History / Background: Value engineering is referred to in 1940 when General Electric Co. experienced a shortage of raw materials, parts, and skilled labor. To maintain continuity in the production process, Lawrence Miles, Harry Erlicher, Jerry Leftow, and other engineers sourced acceptable substitutes that would reduce the production costs without compromising the functionality of the products. This technique was eventually named “value analysis” and enables companies to reduce production costs, improve products, and improve performance. Combining the two concepts formed what is now called VA/VE Following steps to be followed to ensure a good quality product is developed using value engineering. 1. Planning and documentation: All stages of the product life cycle are to be planned / adequate documentation is to be prepared throughout the product life cycle and all minor activities and work breakdown structures are to be planned to ensure robust project management 2. Data / Information collection: This is a very crucial step where all relevant information/data about the product is to be collected: · Expected product specification · Material used · Material Vendors available in the market · Material durability · Functionality expected · Product design · Manufacturing Process Options · Cost associated · Expert opinion ( Involving customers, vendors, and cross-functional stakeholders during product and process designs) · Project Timeline Expectations 3. Supplier selection and management: Robust procurement process, supplier qualification, supplier selection criteria, Master service agreement, and Statement of work, service level agreements, reverse SLAs to be properly defined and documented 4. Manufacturing processes: manufacturing processes, assembly, location of manufacturing, machinery and production equipment, skilled labor, waste management, and sustainability aspects to be adequately defined and executed 5. Testing and production trials: Rigorous testing and validation are very critical – stress testing, HVPT (High volume production trial), temperature variation testing, and product changeover testing to be adequately planned and executed 6. Risk Management: Performing Risk analysis ( E.g. FMEA Failure Mode Effect Analysis / other methodology) to understand the risks associated/capturing environmental risks / capturing risks on the go ( Risks found during production trials and initial sustenance period). Planning risk elimination/mitigation plan to ensure risks remain within acceptable levels 7. Continuous improvement framework: During the complete product life cycle, structured analysis for improvement to be conducted and all opportunities of product optimization to be adequately captured and implemented 8. Government Authorities regulations and Safety measures: Government Authorities norms to be properly evaluated and additionally mandatory/optional best-in-class safety measures to be implemented ( e.g. OHSAS 18001) 9. Life cycle management: Product life cycle from the time the product idea has come to mind till the time the product dies from the market. All stages to be adequately studied and precautionary measures are to be taken to ensure optimum profitability and enhanced customer experience References Various articles and write-ups on the web on VE Miles, L. D. (1972). Techniques of Value Analysis and Engineering. McGraw-Hill. Kelly, F. P., & Maleyeff, J. (2004). Value Planning: The New Approach to Building Value Every Day. Productivity Press. Hansen, R. C., & Mowen, M. M. (2000). Cost Management: Accounting and Control. South-Western College Pub.