Concept of Value in Value Engineering

Value engineering is one of method that often used by engineering student, during this the method of value engineering was used for product development, but it can be applied for service development too. Example : service quality improvement in the service company.  

In this case I just wanna share about the concept of value :). The value can be defined as the amount of money received back from a product. In other words, value is the usefulness or benefits that may be provided by a product.
 

In the value engineering can be described types of values ​​that need to be considered in the design, namely:
 

1. Use Value
Value that reflects how much the usefulness of products for appropriate function. Generally depends on the properties and quality of the product.

2.Esteem Value
The value indicates how much the ability of products to satisfy consumers. This ability is determined by the special properties of products such as charm, beauty and prestige of the product.

3. Exchange Value
The value that shows how much consumers' desire for self-sacrifice or to pay for get the such products.

4. Cost Value
The value indicates how much the total cost required to produce a product and fulfill all the desired functions.
 

The concept of value can be described as the ratio between the performance displayed by a product against the costs incurred to get the such products,
 

Value = performance / cost
 

where:
• Performance : Advantages or benefits derived from the functions of a product.
• Cost : The total charges must be spent to get all the desired functions.

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