What Is Value Engineering?

What Is Value Engineering?

The Methodology for Maximizing Project Value Table of Contents Chapter 1 – Value .................................................................................................................... 1 Introduction ................................................................................................................................... 1 What is Value Engineering? ........................................................................................................ 2 History ............................................................................................................................................. 3 Value Study ................................................................................................................................... 5 Job Plan ......................................................................................................................................... 5 Value Engineering Principals ....................................................................................................... 9 Reasons for Poor Value .............................................................................................................. 12 Chapter 2 – Preparation and Pre-Workshop Activities ....................................................... 15 Introduction ................................................................................................................................. 15 Definitions..................................................................................................................................... 15 Common Activities ..................................................................................................................... 15 Pre-Study Meeting ...................................................................................................................... 16 Specific VE Project Plan Features ............................................................................................. 16 Value Study Team Structuring ................................................................................................... 17 Team Operation ...................................................................................................................... 18 Performance Attributes ............................................................................................................. 18 Attributes and Requirements. ............................................................................................... 18 Value Study Agenda ................................................................................................................. 20 Typical 5-day Value Study Agenda ..................................................................................... 20 Data Required for a Value Study ............................................................................................. 22 Pareto's Law ............................................................................................................................. 23 Cost Model .............................................................................................................................. 24 Pre-Workshop Checklist ............................................................................................................. 25 Chapter 3 – Teamwork .......................................................................................................... 26 Introduction ................................................................................................................................. 26 Content & Dynamics .................................................................................................................. 26 Relationships ............................................................................................................................ 28 Communication is a two-way street .................................................................................... 28 Team Member Participation Expectations ............................................................................. 30 Value Study Ground Rules ......................................................................................................... 31 Team Members' Responsibilities ............................................................................................... 32 The Role of the Value Study Leader ........................................................................................ 33 Principles of Social Behavior .................................................................................................. 33 Promoting Cooperation ......................................................................................................... 36 Team Building .......................................................................................................................... 37 Communication Exercises .................................................................................................. 37 Problem Solving/Decision Making Exercises .................................................................... 37 Planning/Adaptability Exercises ........................................................................................ 38 Trust Exercise ........................................................................................................................ 38 Conflict ..................................................................................................................................... 38 Set goals and ground rules in advance........................................................................... 39 Look for warning signs ......................................................................................................... 40 Remain neutral and defuse the emotions ....................................................................... 40 Conclusion ................................................................................................................................... 42 Chapter 4 – Workshop Activities Information Phase ........................................................... 43 Introduction ................................................................................................................................. 43 Definitions..................................................................................................................................... 43 Common Activities ..................................................................................................................... 43 Obtain project data ............................................................................................................... 43 Confirm the most current project concept ........................................................................ 44 Project Overview..................................................................................................................... 44 Constraints and Controlling Decisions .............................................................................. 44 Gather All Types of Information ......................................................................................... 45 Obtain Information ................................................................................................................. 45 Obtain Complete, Pertinent Information ......................................................................... 46 Work with Specifics/Facts ................................................................................................... 46 Get all Available Costs ....................................................................................................... 46 Information Phase Checklist...................................................................................................... 47 General .................................................................................................................................... 47 Specifications .......................................................................................................................... 47 Engineering and Design ......................................................................................................... 48 Methods and Processes ......................................................................................................... 48 Materials and Procurement .................................................................................................. 49 Maintenance ........................................................................................................................... 49 Chapter 5 – Workshop Activities Function Analysis Phase ................................................. 50 Introduction ................................................................................................................................. 50 Definitions..................................................................................................................................... 50 Common Activities ..................................................................................................................... 50 Determine the Functions ........................................................................................................... 51 Defining Functions .................................................................................................................. 52 Purpose and Need ................................................................................................................

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