Value Management

Approach
 General Information Getting Started The Job Plan Information Phase

Function Analysis Phase
Creative Phase Evaluation Phase Development Phase Presentation Phase

 Post Study Events

 

 General Information
Overview The purpose for initiating a VE study is to ensure the project meets its functional requirements cost effectively. The results of a VE study validate the design concept, identify value improvements to reduce project construction cost, and ensure the concept does not adversely effect operating costs, thereby helping to ensure the overall cost effectiveness of the project. The VE study will also address any specific concerns or issues cited by the project stakeholders.
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Getting Started
Pre-Study Activities Meaningful and measurable results are directly related to the pre-study work performed. Key information that needs to be determined during the pre-study phase includes:
  • Clear definition of the current situation and objectives
  • Identification of project stakeholders
  • Definition of how stakeholders are impacted by the project
  • Identification of key issues and concerns
  • Development of a project cost model
  • Gather project data and distribute to VE team

In preparation for the VE studies, the team leader (CVS) will meet with the Client and stakeholders to outline the VE process, initiate data gathering, refine project scope and objectives, identify team members and technical specialists, and finalize study plans.
Following the initial planning meeting, the team leader will review the data collected for the project and develop a cost model. The team leader will also consult with the technical specialists to prepare them for the VE study.

VE Study The VE Job Plan guides the VE team in their search for poor value in the project. VMS follows a seven-phase Job Plan:

1. Information Phase
2. Function Analysis Phase
3. Creative Phase
4. Evaluation Phase
5. Development Phase
6. Presentation Phase
7. Implementation Phase

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The Job Plan 
Information Phase At the beginning of the VE study, the background and decisions that have influenced the development of the project are reviewed and understood. The VE study starts with a meeting with representatives of the stakeholder organizations. If appropriate, the VE team may visit the project site to observe how the new or renovated project relates to the site. This enhances the VE team's knowledge and understanding of the project and the operational requirements. Analysis of the project proceeds based on the data provided. The analysis includes reviewing the cost model(s), and becoming familiar with the issues and constraints provided by the stakeholders.
Function Analysis Phase Development of the functional requirements of a project are key to assuring a stakeholder that the facility will meet the stated criteria. The analysis of these functions in terms of actual cost is a primary element in a VE study. This technique is used as a basis for improving the project without removing or compromising necessary requirements. A FAST diagram is developed to help the team better understand the functional relationships of the project. Costs and issues are related to the project functions on the FAST diagram to identify any "value mismatches" and direct the team to the functions where they should focus their efforts.
Creative Phase During this phase, the VE team generates as many ideas as possible to provide the necessary functions for the project. Judgment of the ideas is not permitted, and all ideas are recorded.
Evaluation Phase The VE team, as a group, evaluates each idea with respect to the functional requirements of the project. Each idea is evaluated against specific, prioritized criteria established by the VE team and stakeholders. Advantages and disadvantages of each idea are recorded.

Once each idea is fully evaluated, the idea is ranked based on a scale of 1 to 10 to prioritize the development of the ideas.

Development Phase During the development phase, each idea rated 7 or higher is expanded into a workable solution and documented on the VE Alternative forms. Ideas rated as a 6 may be written-up as Design Suggestions, time permitting. The development consists of the alternative concept, impact on facility operation, life cycle cost comparisons, and a descriptive evaluation of the advantages and disadvantages of the alternative. Each alternative is documented with a brief narrative to compare it with the original concept. Cost impacts are also prepared for each alternative.
Presentation Phase The last step of the VE study is an informal oral presentation of alternatives to the process stakeholders. This provides the stakeholders an opportunity to preview the alternatives developed by the VE team, and develop an understanding of the rationale behind them before the draft VE report is published.
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Post-Study Events
Written Report - Draft Following the completion of the VE study, the CVS compiles the information developed during the VE study into the draft Value engineering Study Report. This report, documenting the viable alternatives, is provided to the customer within two weeks after the study is completed. It incorporates the alternatives developed during the study and includes an Executive Summary, Implementation Action, VE Alternatives, Project Analysis, Project Description, Idea Evaluation, and VE Process documentation.
Implementation Phase After the stakeholders have had an opportunity to review the alternatives identified by the VE team, the VMS team leader will conduct an implementation meeting with the Client and project stakeholders to discuss the alternatives and resolve appropriate action for each VA alternative.

This post-study meeting helps to ensure that savings or project improvements are not lost due to a lack of communication.

Written Report - Final Once decisions are made and comments are received from the stakeholders, the Implementation Action section of the report is edited to reflect the disposition of the alternatives. At a minimum, this revised section is redistributed to finalize the report. This helps to ensure clear and documented agreement regarding the disposition of each VE alternatives is available for future reference. If necessary, any other VE report edits requested by the Client will also be made, and a final report will be issued.
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