Advanced Value Engineering (VE) Techniques

Introduction:

Value, in the context of client projects, encapsulates the benefits and advantages derived from a project. Value Engineering (VE) represents a structured approach aimed at maximizing project benefits, minimizing life-cycle costs, and eliminating inefficiencies. VE focuses on ensuring that investments in benefits management during project planning, construction, and procurement stages are optimized.

Advanced VE practices allow designers and organizations to generate and evaluate alternative designs and solutions at various project phases, avoiding wasted time and investment in ineffective designs. VE prioritizes obtaining the best value for resources spent rather than merely seeking the lowest cost. It enhances organizational efficiency, competitiveness, and creativity.

This advanced VE value engineering training is designed to help participants implement VE effectively, achieve cost savings, and improve project scope, cost estimates, design solutions, and budgets. The course aims to enhance skills in creative thinking, problem-solving, rational evaluation, and decision-making in project management.

Objectives:

By the end of this advanced VE value engineering course, participants will be able to:

• Understand fundamental concepts of value engineering and project management, ensuring best practices throughout the project cycle.
• Gather and describe necessary information and costs for key project elements.
• Incorporate stakeholder input in developing the project charter and plan.
• Evaluate and balance the relationships among cost, value, and function in project decisions.
• Provide comprehensive feedback to top management and stakeholders on value-adding alternatives.
• Present evidence-based justifications for selected project alternatives.

Training Methodology:

• Use of Case Studies
• Interactive Exercises
• Interview Techniques
• Role Playing
• Psychodrama
• Group Work

Course Outline:

Unit 1: The Basis of Employing Value Management in a Project

• Measurement of Valuation
• Definition and Purpose of Value Engineering
• Value Management Principles
• Project Stakeholders Analysis and Management
• Importance of Group Dynamics and Cross-Functional Teams

Unit 2: The Function Analysis Phase - Defining Project Requirements from a Functional Perspective

• Conceptualization of Value Engineering Phases/Job Plans
• Information Phase: Steps and Procedures
• Functional Analysis in Projects
• Preparing FAST Diagrams for Project Value Analysis
• Identifying Project Constraints and Alternatives
• Cost Estimation Planning

Unit 3: The Creative Phase - Enhancing Project Creativity

• Risk Management
• Relationship Between Value, Cost, and Worth
• Facilitating Creativity
• Techniques for Improving Project Benefit/Cost Ratio
• Overcoming Creativity Obstacles

Unit 4: The Evaluation Phase - Ensuring Well-Informed Decisions

• Utilizing Synergy in Project Management
• Selection of Ideas
• Evaluation Methods and Valuation Criteria
• Stages of Development
• Problem-Solving Techniques
• Life Cycle Cost Estimation

Unit 5: The Planning and Reporting Phases - Achieving Results Through Communication

• Decision Making in Project Environments
• Formulating Action Procedures and Assigning Roles
• Reporting VE Data to Senior Management and Stakeholders
• Application of VE and Continuous Improvement from Project Initiation