• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
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    • DOI: 10.18178/JOEBM
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HOME > Archive > 2026 > Volume 14 Number 1 (2026) >
JOEBM 2026 Vol.14(1): 41-48
DOI: 10.18178/joebm.2026.14.1.907

Economic Optimization Approach to Integrating Value Engineering in Complex System Prototype Development: A Managerial Perspective

Zhongyang Zhang, Chunfeng Jia, Panxiang Yue, and Zhili Zhao*
Cost Management Research Department, China Astronautics Standards Institute, Beijing, China
Email: zzy964457317@live.com (Z.Y.Z.); jiachunfeng@spacechina.com (C.F.J.); yuepanxiang@qq.com (P.X.Y.); zhaozhili@spacechina.com (Z.L.Z.)
*Corresponding author

Manuscript received November 2, 2025; accepted December 2, 2025; published February 5, 2026.

Abstract—The prototype development of complex systems, while effective for design validation and performance optimization, often suffers from insufficient consideration of cost factors, leading to economic inefficiencies throughout the product lifecycle. This study addresses this critical management challenge by proposing and validating an economic optimization approach that integrates Value Engineering (VE) into the prototype development phase. Through systematic case studies of leading complex system manufacturers (e.g., Boeing, Raytheon, Lockheed Martin), we demonstrate how VE serves as a strategic management tool for achieving cost-effectiveness without compromising essential functionalities. The findings reveal that VE application during prototype design enables significant cost savings and value enhancement by optimizing material selection, manufacturing processes, and functional configurations. The discussion further establishes the feasibility of this integration, outlining a managerial framework that employs functional analysis and cost-benefit assessment to guide prototype optimization and subsequent product derivation. We conclude that embedding Value Engineering into prototype development is not merely a cost-cutting tactic, but a comprehensive strategy for maximizing resource utility, enhancing project value, and securing a competitive economic advantage in complex system acquisition. This research provides a actionable managerial perspective and a practical pathway for organizations aiming to balance technological ambition with fiscal responsibility.

Keywords—value engineering, prototype development, economic optimization, cost management, managerial decision-making

Cite: Zhongyang Zhang, Chunfeng Jia, Panxiang Yue, and Zhili Zhao, "Economic Optimization Approach to Integrating Value Engineering in Complex System Prototype Development: A Managerial Perspective," Journal of Economics, Business and Management, vol. 14, no. 1, pp. 41-48, 2026.

Copyright © 2026 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

 

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