Abstract
Accounting continuously strives to keep pace with the rapid and profound advancements in pure and applied sciences, alongside technological progress, which have introduced new concepts that challenged long-standing axioms; for instance, while raw materials and finished goods inventories once formed the backbone of industrial and commercial enterprises, the emergence of the Just-In-Time (JIT) system redefined these paradigms by adopting a "hand-to-mouth" production philosophy. Furthermore, traditional cost and pricing concepts have been destabilized by the philosophy of free-market competition and globalization, where the customer has become the central pivot of organizational success or failure, rendering ideal production methods futile if they fail to meet evolving consumer tastes. Technological shifts have also significantly impacted product lifecycles, where the introduction of new goods often triggers a shift in demand and gives rise to the critical issue of technical obsolescence, necessitating substantial investments in research and development to align with rapidly changing consumer preferences. In response to these dynamics, modern management approaches have sought to align with scientific progress, compelling accounting—specifically cost and managerial accounting—to frame these theories to serve their objectives. Consequently, Value Engineering (VE) and Business Process Re-engineering (BPR) have emerged as prominent modern managerial and technical methods designed to navigate the changing business environment and achieve the primary organizational goal of satisfying customer requirements by reducing costs while enhancing product value. This research, therefore, aims to demonstrate the role of these two methods in achieving key competitive success factors, highlighting Value Engineering as a distinct approach that addresses high production costs by decomposing and analyzing products into specific functions and components, while Business Process Re-engineering focuses on the fundamental redesign of organizational activities and processes.
DOI
10.33095/jeas.v17i61.1058
Subject Area
Accounting
First Page
238
Last Page
263
Recommended Citation
Al-Bakri, R. H., & Aziz, P. S. (2011). Value Engineering and Process Re-Engineering and Their Role in Reducing Costs. Journal of Economics and Administrative Sciences, 17(61), 238-263. https://doi.org/10.33095/jeas.v17i61.1058
