TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
In order to understand value engineering, one must understand the concept of production. Production is defined as the process by which an item is produced. In manufacturing, different production processes are utilized depending on the end product that will be produced. For example, in making widgets, different processes such as heating and fermentation are utilized depending on what the final product will be used for. Likewise, in Value Engineering, processes other than manufacturing are also utilized depending on the end product that will be produced.
The value engineering concept is actually nothing but a collection of basic principles on how to maximize the output quality from any given input. For example, in value engineering, different methods like quality assessment, pricing, and production monitoring should be employed depending on what the company wants to produce or service. This is called value engineering and it basically gives us the ability to adopt a "box thinking" approach in decision making.
In the world war, the United States did not rely on the value engineering concepts alone. The United States was actually implementing some value engineering concepts in the form of the Marshall Plan, which was designed to help rebuild the German Wehrmacht's war machines. Although this plan was never implemented in the actual World War, it served as a deterrence for the Germans not to digress again.
