Amin Terouhid, Ph.D., CVS

Maryam Mirhadi, Ph.D., VMA

 

Executive takeaway. Function analysis identifies what a project, process, organization, or system must accomplish before the value engineering (VE) team decides how to deliver it. By separating the required purpose from the proposed solution, owners can explore more alternatives while protecting the functions. The resulting discussion supports better decisions about both initial expenditure and long-term ownership of the subject project, process, organization, or system.

Begin with the purpose behind the proposed solution

Value Engineering (VE) is a structured, systematic methodology designed to optimize project outcomes relative to consumed resources. According to SAVE International [1], the process relies on a multidisciplinary team—guided by a certified facilitator—that rigorously analyzes required system functions before generating and evaluating potential alternatives. Function analysis provides the foundational framework and common language that makes this process effective. To apply this methodology effectively, key terminology must be clearly delineated:

• Component: The physical entity or mechanism that performs a function (e.g., a steel beam).
• Function: The essential action or purpose a system or component performs (e.g., transfer loads).
• Specification: The prescriptive parameters governing materials, construction, or performance (e.g., load capacity).

Defining a requirement purely by its function—such as “transfer loads”—allows project teams to evaluate alternative materials and configurations without prematurely committing to a single design path.

Use two words to make the need clear

Function analysis commonly pairs an active verb, which expresses an action, with a measurable noun, which identifies what the action affects. This concise format focuses discussion on one function at a time and helps move attention away from a predetermined solution. [2] Examples of these pairs include:

• Transfer loads
• Control temperature
• Convey passengers

These two-word expressions define what the system must do. However, they do not replace detailed engineering performance criteria. Instead, they serve as a neutral baseline. For instance, while “convey passengers” establishes the core functional need, the project team must still define specific performance parameters—such as peak demand, vertical rise, maximum wait time, accessibility standards, and system reliability.

Classify functions within a defined study scope

Determining functions requires establishing a clear study boundary (scope). Within this boundary, functions are categorized into two primary types, although other types of functions also exist:

• Basic Functions: The fundamental, primary reasons for the system’s existence.
• Secondary Functions: Auxiliary tasks that support the basic function or satisfy secondary requirements

SAVE International emphasizes that while basic functions must be preserved, secondary functions often represent significant cost-reduction or optimization opportunities. Importantly, functional classification depends on the defined analytical boundary. For example, “control temperature” represents a basic function when evaluating an HVAC system, but a secondary function when evaluating a complete airport terminal facility. Categorizing a function as secondary does not imply it is optional; many secondary functions remain mandatory for reasons such as operational integrity.

Open alternatives, then test them against the requirements

Reframing the right questions to ask expands the solution space. For example, asking “Which elevator model minimizes equipment cost?” focuses narrowly on procurement, finishes, and vendor pricing. In contrast, asking “How else can we convey passengers between these levels?” encourages the team to evaluate spatial layouts, service relocations, operational adjustments, or existing equipment upgrades alongside new equipment installations.

Proposed alternatives must undergo rigorous technical validation against baseline design criteria. For instance, substituting stairs for an elevator is invalid if regulatory accessibility standards require vertical motorized transit. Similarly, relocating services to reduce foot traffic may create unforeseen operational bottlenecks. As outlined by the Federal Highway Administration (FHWA), the VE process sequentially transitions from function analysis to creative alternative generation, followed by rigorous technical and financial evaluation [3].

This evaluation phase must account for life-cycle performance, balancing initial capital costs against long-term operational expenditures (energy consumption, routine maintenance, and replacement schedules). A low-cost capital option that incurs high maintenance or energy costs over time rarely delivers optimal long-term value.

Practical exercise: rewrite the question

To apply function analysis, consider the baseline proposals in the table below. Identifying the underlying function and establishing clear evaluation criteria allows teams to objectively assess alternative options.

Starting statement	Suggested function	Example evaluation requirement
Use a steel beam	Transfer loads	Required load capacity, span, and allowable deflection limits
Purchase a larger air conditioner	Control temperature	Targeted indoor temperature range under peak environmental loads
Install an additional elevator	Convey passengers	Peak passenger demand, acceptable wait times, accessibility compliance

(Note: The examples provided above are illustrative; exact functions and performance parameters must be calibrated to the specific project scope.)

Implementation Recommendations for Project Teams

To successfully integrate function analysis into upcoming project planning, the following course of actions is recommended:

• Select a Critical System or component: Document its core functions, quantitative performance criteria, baseline design solution, and projected life-cycle costs.
• Align Stakeholders: Engage owners, designers, contractors, and facility operators to confirm non-negotiable performance baselines prior to generating solutions.
• Facilitate Consensus: Conduct structured workshops to resolve scope ambiguities and standardize functional definitions.
• Document Decisions: Formally log the technical and financial rationale for accepting or rejecting each alternative.

Adopting this structured methodology transforms function analysis from a theoretical exercise into a repeatable, value-adding decision process.

References

[1] SAVE International. About Value Engineering.

[2] Value Analysis Canada. Function Analysis Phase.

[3] FHWA. The Value Engineering Process and Job Plan.