Outline of New VE Proposal Procedures

  • Tokyo Electric Power Company (TEPCO) has decided to introduce new VE proposal procedures by improving and reformulating the existing proposal system in a bid to further reduce its operating costs.
  • The new VE formulas comprise five versions - a registered product VE formula, at-estimating VE formula, post-contract VE formula, pre-advance notice VE formula and post-contract VE formula.
  • "VE" (value engineering) means a system to positively adopt any means, other than already in use, that can reduce costs without impairing functions. In our materials, equipment and supplies procurement, VE covers not only pure technical efforts but also general activities to curtail costs in a broader sense.
  • This "New VE Formulas" should be originally included in "Outline of Procedures (materials & equipment)". So model flows and explanations of flow in this "New VE Formulas" fundamentally apply to procurement procedures in "Outline of Procedures (materials & equipment)".

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