What is the formula for calculating value in Value Engineering?

The concept of value in Value Engineering emphasizes the relationship between the functions of a product or service and the resources necessary to achieve those functions. The correct formula, which is represented as Functions/Resources, highlights that value is determined by the efficiency and effectiveness of how functions are performed relative to the resources consumed.

This indicates that to enhance value, one can either improve the functions (increasing their effectiveness) or decrease the resources required to achieve those functions without compromising quality. By focusing on this ratio, Value Engineering seeks to maximize the functions offered while minimizing the costs and resources, thereby achieving the best possible value for stakeholders involved in a project or product development process.