> Practice Areas > Value
Engineering / Value Analysis
VALUE ENGINEERING / VALUE
To stay competitive, you have to focus on costs. Value Engineering
is a proven way to significantly reduce costs – particularly
the material costs that are often embedded in product design.
At TCA, we’ve developed a function-oriented, systematic team approach to Value Engineering. The result is improved
value in your product, process, system, service, and organization
— and the results often provide payback of more than 10:1.
Since 1984, we have worked with organizations to enhance
performance and accelerate growth. Our Value Engineering Services
are just one more way we’re helping to build and strengthen
some of America’s best companies.
Companies from a wide cross-section of industries have used Value
Engineering to reduce costs for many applications, including:
- • Existing product designs
• New product development
• Process improvement
• Project cost control
• Administrative organization
• Information systems
What Is Value Engineering?
Value Engineering is all about reducing costs, improving design,
and enhancing quality. The bulk of the cost of a manufactured product
is not in labor or overhead – it’s in the material.
And because design features drive material costs, a comprehensive
cost reduction effort must attack the material cost embedded in
the product design. This is the domain of Value Engineering.
Material: The Bulk of Manufactured Product Cost
Lean and Six Sigma address labor and variable overhead –
but they have little or no impact on the single largest cost: material!
However, most companies do not have in-house Value Engineering
capabilities. And unlike other continuous improvement tools, Value
Engineering is too difficult for non-specialists to learn
TCA Can Help
TCA’s certified value specialists have years of technical experience
to help you match functions with customer
requirements, reduce costs, increase profits, improve design, enhance
quality, and expand market share. Together, we’ll give your
company a competitive advantage.
A Proven Approach Delivers Results
At TCA, we use 3 toolkits when implementing the Value Engineering
process to identify and target areas to reduce costs:
• 6-Step Value Engineering Job Plan
This methodology, established by the Society of American Value
Engineers, is applied systematically by our certified value specialists
to every project – ensuring that fact finding and creative
efforts result in dramatic cost reductions. We identify all major
cost reduction opportunities for aggressive implementation.
• Function Analysis Systems Technique (FAST) Model
Using the FAST model, we identify the functions performed by various
components in a product or system, calculate the cost of performing
each function, and seek lower cost alternatives. Experienced TCA
engineers work collaboratively with your team to perform a comprehensive
FAST analysis and generate a wide range of cost reduction ideas.
• Function/Cost Diagrams
This diagram identifies major cost reduction opportunities so it's easy to see
where the remaining effort must be focused. We test the technical
and economic feasibility of the team’s ideas through detailed
design and prototyping, “selling” the best ideas and
managing a full range of cost reduction activities.
TCA EXTREME LEAN™ EXPERTS
We've provided management consulting, technical assistance, and
training programs to business and industry since 1984—helping companies set new directions centered in
World Class/Lean technologies.
Our clients are applying Extreme Lean™ capabilities to
increase profits, grow market share, and solidify long-term relationships
with key customers.
Whatever combination of Lean, Six Sigma, Value Engineering,
or Information Technology tools your company needs, TCA is skilled
in leading teams to achieve creative, cost-effective