Value Engineering is all about getting the right material for the right job, as well as ensuring correct balance between cost, quality, appearance and functionality. In other words getting the optimum total cost of ownership (TCO).
Typically our clients find they are:
- worried that, in an attempt to minimise cost, they may be undermining the value of their brand
- frustrated because the needs of marketing versus procurement seem to be pulling in opposite directions
- concerned that they are over specifying (and therefore over spending) and failing to meet commercial objectives
At Wyeth, we have seen plenty of examples where one of the key fundamentals is ignored leading to the failure to give optimum value; perhaps by the design and specification being too costly, or of too poor quality or just plain wrong for the function for which it was selected. Getting the specification right means benefits throughout the lifetime of the item giving the required functionality, at the right cost – both initially and in terms of maintenance required over the long term.
There’s no doubt that getting the balance right is a dilemma. On the one hand, building to ‘motorway’ specifications is sure to save on ongoing maintenance but is going to cost a lot more up front. You need to ask yourself what is the right commercial balance when considered over 10, 15, 25 or 30 years?