The role of value engineering in reducing costs, an applied study in Babylon Cement Factory

Abstract

The increasing pressure on economic units to improve costs while maintaining quality has led to the emergence of value engineering as a strategic tool. The paper begins by providing an overview of the value engineering process, emphasizing the importance of the multidisciplinary team and their involvement throughout the project life cycle. It sheds light on the origin, concept, objectives, elements and steps of value engineering and the concept, principles and stages of target costing, while this summary examines the impact of value engineering on cost reduction. and demonstrate how value engineering techniques facilitate the identification of value-added components and the elimination of non-value-added components, thereby streamlining operations and optimizing resource use. By scrutinizing functional requirements and alternative design solutions, value engineering helps organizations identify cost saving opportunities without compromising quality or functionality. This summary also addresses the broader implications of value engineering beyond cost reduction. It explores how value engineering can foster innovation and foster a culture of continuous improvement. By encouraging job identification and challenging conventional thinking, value engineering facilitates the discovery of new approaches and cost-effective alternatives. In conclusion, the importance of value engineering as a powerful tool for cost reduction is highlighted, particularly in today's competitive business landscape. It stresses the need for economic units to adopt the principles and approaches of value engineering and to enhance operational efficiency, achieve sustainable cost reduction, and maintain a competitive advantage in the market.