Value Engineering: Value engineering is a structured technique commonly used in project management. Value engineering is often referred to as “VE.” Value engineering is an organized attempt to optimize the overall value of the project in project management endeavors. Often, creative strategies will be employed in an attempt to achieve the lowest life cycle cost available for the project. This means the project manager and those working on the project at hand must consider all costs associated with the project, from the initial design of the product or service through its eventual disposal. They must then consider any cost-saving alternatives to be employed at any given phase of the project. Value engineering includes taking an in-depth look at the functions of any equipment, facilities, services, systems, and materials used in the project. This part of project management requires an analysis to be performed on each of these components. When analyzing these components, managers will be looking for ways to improve cost effectiveness while not negatively affecting the quality, reliability, performance, or reputation of the product or service. Some methods used in value engineering include reducing production time, reducing expenses, increasing earnings, expanding market share, using existing resources more efficiently, and improving product quality.
This term is defined in the 3rd and the 4th edition of the PMBOK.