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<h1><font size=2><b>Many of you have been slamming WalMart for
introducing products for segment marketing. The issue you are
discussing is value engineering. Below is a primer on value
engineering. Following that is a link to an announcement by Levi
Strauss describing their new Red Tag Signature Line (2002)<br><br>
WalMart and other mass distribution channel merchandisers across the
globe are fully engaged in value engineering - a process that lowers
cost, improves functionality and/or provides a product to a segment that
previously had no opportunity for consumption.<br>
<br>
Following the Straus piece is a link to a global site on value
engineering which provides additional links to value engineering
issues.<br><br>
The key to success for value engineering is to have mass channel
merchandisers add value engineered products to their inventory. It
appears that all mass merchandisers are supporting this initiative.
WalMart did not invent this concept; but they have advanced it.<br><br>
</font>Value engineering<br><br>
<br>
</b></h1><h3><b>From Wikipedia, the free encyclopedia</b></h3>Jump to:
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<b>Value Engineering</b> is a systematic method to improve the
"Value" of goods and services by using an examination of
FUNCTION. Value, as defined, is the ratio of Function to Cost. Value can
therefore be increased by either improving the Function or reducing the
cost. It is a primary tenet of Value Engineering that quality not be
reduced as a consequence of pursuing Value improvements.<br><br>
In the United States, Value Engineering is specifically called out in
Public Law 104-106, which states “Each executive agency shall establish
and maintain cost-effective Value Engineering procedures and
processes.”<br><br>
Value Engineering is sometimes taught within the
<a href="http://en.wikipedia.org/wiki//wiki/Industrial_engineering">
industrial engineering</a> body of knowledge as a technique in which the
value of a system’s outputs is
<a href="http://en.wikipedia.org/wiki//wiki/Optimization_%28mathematics%29">
optimized</a> by crafting a mix of performance (Function) and costs. In
most cases this practice identifies and removes unnecessary expenditures,
thereby increasing the value for the manufacturer and/or their
customers.<br><br>
Value Engineering uses intuitive logic (a unique "how" -
"why" questioning technique) and the analysis of Function to
identify relationships that increase Value. It is considered a
quantitative method similar to the Scientific Method, which focuses on
Hypothesis - Conclusion to test relationships, and Operations Research,
which uses model building to identify predictive relationships.<br><br>
Value Engineering is also referred to as "Value
Methodology".<br><br>
<br>
Here is a link to an announcement by Levi Strauss about their new mass
channel products - the red Signature line:<br><br>
<a href="http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=23&contId=4701" eudora="autourl">
http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=23&contId=4701</a>
<br><br>
Please note that this product was announced by Levi Strauss in
2002.<br><br>
Here is the link to other sites (global) that are involved with value
engineering:
<a href="http://www.value-engineering.com/weblinks.htm" eudora="autourl">
http://www.value-engineering.com/weblinks.htm</a></body>
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