The Significance Of Value Analysis And Value Engineering In United Foam Plc, Ilorin

The term value engineering was adopted by the U.S. Nay Bureau of ships in respect of a program of cost reduction at the design stage aimed at achieving economics without affecting the needed performance, reliability, quality and maintain ability. Although, the term value analysis and value engineering are often used synonymously, they may be defined s follow:
A.    This is a systematic approach aimed an enduring that necessary function are achieved at minimum cost without detriment of quality, reliability performance and delivery. “Value Analysis”
B.    It is the application of value analysis at the pre-production or development stage. The statement may summarize the distinction that value analysis is concerned with “cost correction” and value engineering with cost avoidance. Since value analysis includes value engineering, the former term will be used. The keyword for an understanding of value analysis are “function” and “value”. The function of anything is that which it is designed to do and should normally be capable of being expressed in two words, a verb and a noun; thus the function of a pen is to make mark. “Value Engineering”

The framework above shows the variables involved in this study, which are: value engineering as the predictor variable, profitability as the criterion variable, the proxies for the predictor variable (value engineering) are product design, and function analyses while that of the criterion variable (profitability) are Gross profit margin (GPM) and Earnings per share (EPS).
2.1.1    CONCEPT OF VALUE ANALYSIS
Value Analysis (VA) is considered to be a process, as opposed to a simple technique, because it is both an organized approach to improving the profitability of product applications and it utilized many different techniques in order to achieve this objective. All the inputs to the VA process are vital if decisions regarding product and process redesign are to yield lower costs & enhanced customer value.
2.1.2    CONCEPT OF VALUE ENGINEERING
Value engineering as a concept is a technique that involves the identification of new alternatives to product design at a reduced cost. It is define “as the systematic application of recognized techniques which identify the function of the product or service, establish a monitory value for that function and provide the necessary function reliability at the lowest overall cost,” (Chougule and Kallurkar, 2012).
Value Engineering is a tool whose strength lies in the ability to clearly delineate design alternatives and to suggest choices based on the necessity or desirability of the function, the economic availability achieving that function, and the cost-worth relationships that assures growth and prosperity.” Abdulaziz (2010) opined that “Value Engineering is a management technique for cost control.”
Finally, West Virginia division of highway (2004), assert that “Value engineering is the systematic application of recognized technique by multi- discipline team that identifies the function of a product or service, establishes a worth for that function; generates alternative through the use of creative thinking, and provides the needed functions, reliability at the lowest overall cost.” This approach requires that in the process of minimizing cost, the required quality and performance should not be sacrifice.