Comprehensive and Detailed Explanation (from CIPS L4M2 – Specification and Value Management)

CIPS L4M2 defines value engineering (VE) as a structured process used to examine functions of a product or service to ensure that each function delivers maximum value for minimum cost.

In this case, analysing functions, costs, and value-add is a textbook example of the value engineering process — used to improve or redesign specifications for future purchases.

Value analysis is retrospective, focusing on cost reduction in existing products.

Value engineering looks forward, improving design/specifications.

Since the goal is to benefit future purchasing, this is VE.

Relevant L4M2 references:

“Applying value analysis and value engineering”

“Optimising performance and cost through specification review”