Value Engineering - Theory & Concepts - Construction Methods And Project Management Function Cost Trainer

A systematic and organized approach to providing the necessary functions in a project at the lowest cost.

Function, Cost, and Value Index Trainer

The core principle of Value Engineering is to maximize the Value Index by optimizing the ratio of $\text{Function}$ to $\text{Cost}$ . Adjust the sliders to see how improving function or reducing cost impacts the overall value.

Parameters

Function Score (

\text{F}

)100

A relative measure of performance, quality, or utility.

Cost (

\text{C}

)$500,000

The life-cycle cost required to achieve the function.

The Value Equation

\text{Value} = \frac{\text{Function}}{\text{Cost}}

\text{Value} = \frac{100}{500000} = 2.00e-4

Value Index (Scaled per $1k)

0.200

Higher values indicate a better return on investment for the required function.

Project Lifecycle - Theory & Concepts Contracts and Specifications - Theory & Concepts Project Planning and Scheduling - Theory & Concepts Cost Estimating - Theory & Concepts

Function, Cost, and Value Index Trainer

Parameters

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