Value Engineering

Dictionary Says

Definition of 'Value Engineering'

A systematic and organized approach to provide the necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Also called value analysis.

Investopedia Says

Investopedia explains 'Value Engineering'

The concept of value engineering evolved in the 1940s at General Electric, in the midst of World War II. Due to the war, purchase engineer Lawrence Miles and others sought substitutes for materials and components, since there was a chronic shortage of them. These substitutes were often found to reduce costs and provided equal or better performance.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Project Management

    The planning and ...
  2. Materials Requirement Planning - MRP

    One of the first ...
  3. Bill Of Materials - BOM

    A comprehensive ...
  4. Raw Materials

    A material or ...
  5. Bottom Line

    Refers to a ...
  6. Business Cycle Indicators - BCI

    Composite of ...
  7. Blue Chip Indicator

    A formal gauge ...
  8. Indicator

    Statistics used ...
  9. Fear And Greed Index

    An index ...
  10. Consumer Internet Barometer

    A quarterly ...

Articles Of Interest

  1. Reverse Engineering Return On Equity

    Return on equity is a widely used ratio, but return on net operating assets (RNOA) takes things one step farther.
  2. Evaluate Stock Price With Reverse-Engineering DCF

    This is a more accurate method to use when trying to find a target price for a stock.
  3. You Don't Know Jack Welch

    This engineer climbed the corporate ladder to lead his company into double-digit growth.
  4. The Industry Handbook: Automobiles

    In this feature, we take an in-depth look at the various techniques that determine the value and investment quality of companies from an industry perspective.
  5. Revenue Projections Show Profit Potential

    Examining how a company makes money can offer clues about its earnings potential.
  6. Is Your Stock Headed South?

    Don't let your portfolio go with it! Find out which signs to watch out for.
  7. 3 Industry-Impacting Innovations On The Horizon

    Here are some industry-impacting innovations that could potentially belong in the famed Carousel of Progress.
  8. Trading The Non-Farm Payroll Report

    Discover how to trade the NFP report without getting knocked out by the irrational volatility it can create.
  9. Whisper Numbers: Should You Listen?

    These unofficial forecasts hold the potential for insider insight - and investment risk.
  10. 4 Ways To Predict Market Performance

    There is academic evidence supporting different market views. Learn how and why the market can be predicted.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center