Abstract
The Japanese VE (Value Engineering) has traditionally contributed to the reduction of production cost through versatile VE activities. This VE is based on the well-know value equation "Value(V) =Function(F)/Cost(C)",in which Value(V) is given a specific definition. The definition of Value(V),through specific,will pose no problem in actual VE activities so long as Fucntion(F) is evaluated by the monetary value scale. The definition of value in the equation, however, requires reconsideration if Function(F) and Cost(C) are expressed not by monetary scale but by some other indies, especially for a product in the mature market. This is because Value(V) in the equation is simply a ratio between the value in use and the value in exchange. In this paper, I will attempt to show the real meaning of Value,Quality,Function, Cost, Price, etc. and how this ratio (V) should be re-definded. In fact, the ratio(V) means quality coefficient Q<__=1.0 which shows the non-price comparative advantage of a product. This paper will also introduce a method of Quality Deployment for Market Pricing named "QDm".
