Which of the following statements best describes the benefit of Value Added/Valu

Question

Which of the following statements best describes the benefit of Value Added/Value Engineering?

Select one:

b. Companies can confidently claim they have a product with the highest "value" on the market.

c. Co-development ensures that intellectual property is protected among the manufacturer, suppliers and the customer.

d. By eliminating potential issues in both design and manufacture the cost of the good/service is reduced as well as the time to market.

Feedback

Your answer is incorrect.

The correct answer is: By eliminating potential issues in both design and manufacture the cost of the good/service is reduced as well as the time to market.

Please explain

Explanation / Answer

Value engineering is the engineering process with the focus to create value for end users.

While creating a product and service, organizations often (unknowingly) add features that don’t add any value. This increases cost and time and eventually reduce the profitability. If the organization adopts value engineering methodology, it cuts these unnecessary features and produces goods and services as per the requirement of the market.

Let’s take an example of a cellphone. The current want or need in the market for cellphone is on the camera quality. Everyone speaks about the camera prowess of their phone. At this point the calling facility, battery life, etc. are often neglected by the users. This means that if a cell phone manufacturer focuses on improving quality of camera but ignores the battery, they would still be able to create value in the market. The definition of value is what the customer perceives as important. If a cellphone manufacturer focuses on improving the quality of the battery they may realize that customers do not identify that as a valuable feature. Thus the effort, resource and investment in improving the battery is wasted. Value engineering helps reduce such waste and focus on creating value in the final product/services.

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