Anderson School of Management Theses & Dissertations

Publication Date



The purpose of this paper is to exemplify the techniques and uses of value engineering and to evaluate their significance in the aerospace industry. The recent development of value engineering stems from several basic factors. The highly competitive nature of the aerospace industry since World War II has placed increasing importance on cost-oriented efforts. At the same time the characteristics of the industry require exceptional levels of reliability and product research as well as compressed delivery schedules. Fiscal procurement policy changes by the government have also emphasized the increasing concern over aerospace costs. Considering the fact that government aerospace expendtures account for forty percent of the total defense budget, such concern is well warranted. Therefore, it is not surprising that both the aerospace industry and the government are interested in developing and utilizing a technique that will help reduce costs without lowering the quality or reliability of military hardware, and logistic support activities. Other industries, such as the automotive, textile, appliance and commercial banking industries, now utilize varying forms of value engineering. However, the aerospace industry affords one of the most fertile areas available due to the rapidly changing technology, high research and development costs and the limited production of many aerospace products. The progress and achievements of value engineering span some 18 years yet it is only in the past five years that exceptional efforts have been offered by the aerospace industry. It is this five year period that encompasses the significance of value engineering in the aerospace industry. Special thanks are extended to Mr. George W. Gebhardt, Staff Engineer, Norton Air Force Base and instructor associated with the University of California. Through Mr. Gebhardt and his associates in the Orange County Chapter of the Society of American Value Engineers a great deal of the information in this paper was made available. Also, thanks are due to my employer, The Rohr Corporation and Mr. S. L. Icampo, Project Cost Supervisor, whose interest and concern in value engineering prompted this paper.



Document Type


Degree Name

Master of Business Administration (MBA)

Level of Degree


Department Name

Anderson School of Management

First Committee Member

Rudyard Byron Goode

Second Committee Member

Everett Franklin Collins Jr

Third Committee Member

Frank Parker Fowler, Jr.