Abstract

Currently, the use of value engineering has been done in various business fields. Not only large companies, but SMEs in the region have also started to recognize the method of business management with value engineering. This research attempts to solve the problem of how SMEs can improve their performance based on Value Engineering approach. This research is a qualitative research. From the research activities, obtained the following conclusions. (1) Application of Value Engineering method on SMEs can complete better solution in order to improve company performance. (2) Based on the alternative combination of work methods created then, alternative application of value engineering selected. Because the application of value engineering has advantages such as: (a) Rapid production process, (b) Neat workmanship, (c) Selling price is higher. While the technical specifications owned by Value Engineering alternatives that will be run are as follows: (a) The process does not work long time to manufacture 1 unit of minimalist metal fence. For the size of 8m2 it only takes 2 days. (b) The quality and quality required have a perfect shape and are not defective. (c) The welding joints are not easily broken by impact / blow. (3) Cost reduction can be done on Value Engineering method, because the change of new method in production process of minimizing iron fence affecting the reduction of labor cost. The reduction of these costs will affect the increase in the higher performance of the product, so the value of the product to rise, then affect the selling price to be high.

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