Ever bought something so expensive yet found it useless afterwards? Can you name an item in your household that’s been there for a long time yet you find it hard to discard because of its monetary price? In this time of economic crises, it is sad to realize that most of us are becoming impractical by spending too much on things we thought we need.
Value Engineering might sound new to most of us but in fact, it could be applied in our daily lives. This concept was best explained to us by Dr. Jerson N. Orejudos, our professor, by taking a pencil as an example. Normally, a pencil consists of a lead, a wooden barrel, an eraser and a metal band supporting the eraser. The ultimate function of a pencil is to make marks. Supposing, we remove the eraser and then, the metal band can also be removed. That would probably reduce the cost of manufacturing pencils by 20% and so it follows that its price could also be reduced. In this way, customers are now given a choice: to buy a pencil with an eraser in a higher price or to buy a pencil without an eraser in a lower price. After all, pencils are made to make marks and not to erase marks.
Why do cost overruns exist in a construction project? Could it be that it carries unnecessary components? By reducing unnecessary items, unnecessary costs are also reduced or eliminated. An item is classified as unnecessary if without it, the whole system functions the same or even better. Value Engineering requires common sense, creativity, innovation, and teamwork. Its implementation improves a construction project by minimizing the life cycle cost and reducing maintenance and operation costs without compromising safety, quality and the environment. While focusing on the basic functions, good or better substitutes are being considered. The best alternative is the one that costs less and performs better. That is why Value Engineering is applied at the design stage of a construction project. The concept is easy but the implementation is so difficult. Value Analysts oftentimes becomes a third party between the owner and the designer. Well, it depends on how we see it. Perception and attitude always counts.
It’s Christmas season once again. As we wait for Santa’s gifts, let us invite Jesus with us. Remember, it’s Jesus’ birthday not Santa’s! I bet Baby Jesus prefers a simple and humble celebration. Since we have our bonuses and 13th month pays, it’s high time to shop and buy gifts for our love ones. Its main purpose is to make them happy. Why not apply value engineering then? Would our grandparents be happy if we give them PSP’s? Would our children be happy if we buy them a golf set? It’s like feeding a cat with colorful M&M chocolates!
Let us just think of the word: FUNCTION. It will then relate to the user’s needs, to an item’s worth, cost and value. For me, this is value beyond analysis. Anything less than the necessary functional capability is unacceptable. Anything more is unnecessary and wasteful.
We always ask God to give us our daily bread, not our bread for tomorrow and the next days to come. Isn’t it that anything that is too much nor too less unfavorable? I may sound absurd but this is just an idea worth sharing. The choice is always yours... Feliz Navidad!
References:
Value Engineering Mastermind by Anil Kumar
Value Analysis Module I by Juan de Vincente
Prof. Jerson N.Orejudos, Ph.D.
