Abstract
Abstract In this paper a new approach to the construction of the functional block diagram (FBD) and function evaluation system is proposed. It makes it possible to apply to design-stage value engineering (VE) and/or production-stage VE. The main aim is to describe and illustrate a formal procedure for the graphic presentation of the FBD and the evaluation of function items, given the necessary information concerning the relation of each function item to each other function item. Through application of this method the target cost for each part and/or each function can be derived. In order to show how the proposed method works, a practical example is illustrated.
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