The purpose of Value Engineering is to secure the right focus in the trade-off between customer value and product costs. Further to identify which features are customer critical, and to deliver these as cost-efficiency as possible. 

  • Value Engineering is often used as the next lever to generate savings in companies who have a relatively high maturity level within sourcing and procurement.
  • Through a simple process the product and related supply chain are being scoped, analysed, value engineered  and implemented.
  • Keywords to successful Value Engineering are:

 ​​​​​​​Overview of cost break down and cost drivers.

 Knowing the voice of the customer, - and customer needs.

 Innovative and empowered cross functional teams.

 Capabilities to go from idea generation to implementation, combined with Top Management support

 Programme management to keep track on progress and performance

  • Using Value Engineering helps companies towards reduced complexity on products, "should be cost" and "fact based" sourcing.  ​​​​​​​ 

Using Value Engineering as a methodology is a powerful tool to generate savings. When having the right category strategies and supplier relationship in place, Value Engineering is a beneficial additional lever, to implement with selected suppliers. Scottnordic has the toolbox ready, to drive hands-on Value Engineering activities.