Question

In the value analysis, the value is denoted by
1. ratio of function to cost
2. ratio of cost to function
3. square root of the ratio of cost to function
4. square root of the ratio of function to cost

Answer 1

Correct Answer - Option 1 : ratio of function to cost

Explanation

• The term value in value Engineering defined as the cost of proportionate to the function.

 \(value = \frac{{Function\left( {or~utility} \right)}}{{cost}}\)

• Value of the product can be increased either by increasing it’s a utility with the same cost or decreasing its cost for the same function.
• A function specifies the purpose of the product or what the product does, what is its utility.