The Use of Analytical Hierarchy Process (AHP) in Value Engineering (VE) For Selecting The Best Alternative (Case Study: Auto-making Industry)

Abstract:
If organizations are to survive in the area of customers, variable demands and diverse expectations, as well as, in the changing environment, they should create “value” for the customers and their communities. Value engineering (VE) is one of the methods of value-creation and value-improvement for products and services that not only is used in many fields such as industry, services, agriculture, education, transportation, road and construction and development projects, but it is also very effective for decisions in government and nongovernment arenas. In this research using the analytical hierarchy process (AHP) in value engineering process, by considering limitations, a product (automobile) will be introduced to the market that will provide the best value for customers and community.Today, the necessity of introducing a new product to the market is felt in this company, but it is not possible to put it to practice because of the time required for this project as well as lack of needed financial resources. Facelift is a suitable alternative for the defined problems. Hence, the aim of this research is to determine the best parts for facelift with regard to the investment limitations. Therefore, with the usage of an integrated model of VE and AHP the best decision is selecting the most effective exterior parts for auto-design.
Language:
Persian
Published:
Journal of Business Management, Volume:6 Issue: 3, 2007
Page:
87
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