Integrated value engineering — Increasing the value of a forklift subsystem

Abstract

National and international competition demands companies to sell products with maximum value for the customer, which is reflected by high functionality for low costs. Approaches in cost management like value engineering and target costing support practitioners in developing valuable products and to reduce costs. The relatively new approach of integrated value engineering (IVE) uses matrices to combine target costing and value engineering in a structural model. The main objective of this work is to define milestones and deliverables for the IVE basic process for a better understanding of the process and tracking of its progress in application. The deliverables are explained based on an industrial use case. The case shows the application of the IVE approach to optimize a forklift system to reach higher customer value with reduced costs for its next release.