The role of value engineering in reducing the costs of failure and achieving competitive advantage

Abstract

Modern technological developments and their impact on the modern manufacturing environment led to the emergence of intense competition between international companies, which was followed by the development of accounting systems and the information that these systems produce, and the increased need for this information by its users, as accounting plays a more vital role in determining the information that management needs in Economic unit. To keep pace with modern developments, the management moved towards thinking about new trends such as customer satisfaction and focusing on success factors represented by using modern methods of cost management such as the just-in-time (JIT) production system, activity-based costing (ABC), value engineering, and process re-engineering or reverse engineering. Hence, cost accounting and management accounting played a major role In translating these systems into financial and non-financial measures, including the financial and administrative accounting information they contribute to assist management. Value engineering is one of the most important modern administrative and technical methods appropriate to keep pace with developments and changes in the business environment to achieve the main goal that organizations seek today, which is to meet the requirements and desires of customers by achieving two goals: the first is to reduce the cost of the product, and the second goal is to improve the value of the product to achieve customer satisfaction. It is the basis for the success of organizations, in addition to dividing the product into functions, analyzing and studying them. This is done through the use of value engineering technology in accordance with modern scientific methods.