Question

In value engineering ‘worth’ is value of:
1. Product
2. System
3. Service 
4. Function
5.

Answer 1

Correct Answer - Option 4 : Function

Concept:

Value analysis/engineering

• Value analysis aims at a systematic identification and elimination of unnecessary costs.
• Value analysis examines the design, method of manufacturing, the material used, function and cost of each and every component in order to produce it economically without decreasing its utility, function or reliability.

Value

• Value is the price we pay for a product, process, material or service required to perform a specific function with the required quality and reliability.
• Value can be defined as the combination of the quality, efficiency, price and service which ensures the ultimate economy and satisfaction of the purchaser

Worth

• In the value methodology, worth is defined as the lowest overall cost to perform a function without regard to criteria or codes'.
• Comparing function cost to function worth is the primary technique to help study teams identify areas of the greatest potential value improvement
• The very act of establishing the worth of a function will often create obvious choices for improvement. Another step is to create the Value Index.
• This index reflects the basic value theory that value is the relationship between cost and worth.
• The formula is: Value = Worth /Cost