Next is to identify what can best perform that function. In this way, Value Engineering identifies the cost and worth of a function for informed decision-making. It is the analysis of the functions of a program, project, system, product, item of equipment, building, facility, service, or supply to improve performance, reliability, quality, safety, and life-cycle cost. Note the broad range of analysis. And, notice that the emphasis is not on cost-reduction.
Cost is a measure of resource expenditure.
It's usually good to spend just what you must for what you need but oftentimes we spend more and wonder why we did. We use the Value Engineering Job Plan, a systematic approach in five phases that analyzes a project in terms of its functions. Speculation Phase in which we identify what else can do what must be done. Free use of imagination with no judgment is essential 3. Analysis Phase where we rank alternative solutions in terms of quality with realistic judgment 4.