November 2015
Intermediate to advanced
192 pages
4h 46m
English
Content preview from Value Analysis and Engineering Reengineered
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64 • Value Analysis and Engineering Reengineered
e twin questions of What does it cost? and What is it worth? can be
explained better with the classic example of the pencil that is comprised of
materials (wood, lead, rubber, metal, and paint) purchased from dierent
sources. e basic part of the pencil is the lead/graphite and all others
are secondary parts. When you observe the cost/worth ratio of 0.07–0.02
in Figure 8.2, you can appreciate the potential for value improvement. e
worth of each function is the estimated cost of the least expensive way to
fulll that function of “makes marks,” which is two cents. e comparison
indicates whether ...
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