Value

Definition

Value in this context refers to the lowest cost to accomplish a required function consistent with the optimum cost of ownership.

Purpose

Value focuses on achieving the necessary function at the lowest total cost, including initial investment and long-term ownership costs. It emphasizes efficiency and effectiveness in resource utilization.

Examples of Use

• Value Engineering: Identifying alternative materials or methods to reduce costs without compromising functionality.
• Project Budgeting: Allocating funds to achieve the best balance between cost and performance in construction projects.
• Product Design: Developing products that provide maximum utility to customers at the lowest cost.

Related Terms

• Life Cycle Costing: The process of evaluating the total cost of ownership of an asset over its useful life.
• Cost Optimization: The practice of minimizing costs while maintaining or improving quality and performance.
• Efficiency: The ability to achieve desired results with minimum wasted effort or expense.

Notes

Achieving value requires a thorough understanding of both the initial and ongoing costs associated with a function. It involves careful planning, analysis, and continuous improvement.