Project - "value engineering" references to cut project costs
Project - "value engineering" references to cut project costs
(OP)
Dear all,
I am looking for some general advice on good references books,articles,links which accuractly sumerise value engineering principals. I am not really sure of a good start point..
We are going to employ a consultant to lead this effort on a project but i would like a better understanding of the process before we go out to tender..
comments most welcome...
I am looking for some general advice on good references books,articles,links which accuractly sumerise value engineering principals. I am not really sure of a good start point..
We are going to employ a consultant to lead this effort on a project but i would like a better understanding of the process before we go out to tender..
comments most welcome...





RE: Project - "value engineering" references to cut project costs
These "old Grey Hairs" should be able to give you lots of advice (suggestions). These suggestions should then be discussed by the actual project team before they write their individual and overall project Scope document.
RE: Project - "value engineering" references to cut project costs
Another definition of "value engineering" could apply to engineering with regard to the installed and operating costs instead of lowest price components or fewest engineering hours.
For example - in the process industry it is not unusual to find piping changes where lines split or join with other lines. Valves look the same on 2D piping drawings. It is really visual if the block valves are selected the size of the larger line at a reducer instead of the smaller line. Selecting the larger valve could result from a concious decision for the larger bore. However, it would always look like indifference to the cost of the materials etc.
Another example for an engineering and construction company is minimal drawing content to reduce engineering time where the construction crafts cannot determine how to implement the design.
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RE: Project - "value engineering" references to cut project costs
http://en.wikipedia.org/wiki/Value_engineering
RE: Project - "value engineering" references to cut project costs
When you read through the documentation it can be overwhelming with all the jargon - unfortunately the consultants have to make the procedure somewhat complicated to justify their fees - but the basics are very simple. The heart of the method is to distinguish function from action. The question to ask is "what is this item's function, or what must it achieve" rather than asking "what does it do".
This is best illustrated with an example. If you dismantled a 1980's computer keyboard you would have found dozens of levers, springs, switches and wires. If you asked the question "what does each component do" you could have got very detailed descriptions of the action of each sub-component. But the correct question to ask was "what must the keyboard achieve?" and the simple answer is "inform the computer which key has been pressed". If you dismantle a new keyboard you will find a printed circuit board and a sheet of molded rubber - and very little else. This achieves the required function at a fraction of the complexity and cost of the 1980's version.
Another example that is often used during training in VE is the simple wooden pencil. The graphite represents about 80% of the cost, but the last inch or so of lead is never used. So why put it there? By leaving it out you immediately cut 10-15% off the manufacturing cost without affecting the function at all.
I'm sure you will enjoy the process and I equally sure you will be surprised at the "obvious" improvements it highlights.
Katmar Software
Engineering & Risk Analysis Software
http://katmarsoftware.com
RE: Project - "value engineering" references to cut project costs
Steve Jones
Materials & Corrosion Engineer
http://www.pdo.co.om/pdo/
RE: Project - "value engineering" references to cut project costs
It sounds a littly "touchy feely," and can be perverted into such, but if well done, it can be highly beneficial, mostly in the design phase.
RE: Project - "value engineering" references to cut project costs
RE: Project - "value engineering" references to cut project costs
Weeding out the obvious
Ball park life cycle cost estimation of plausible options
Select implementable options
Valuable if done during the early stages of the Project
Regards,
Guru
"Evolution rather than Revolution"
RE: Project - "value engineering" references to cut project costs
I aggree i think it will be very easy on paper to propose process simplifications..much harder in reality to actualy manager the unreliability added by those solutions...and meet project schedule be reworking designs effecively....
i think the key with a faciliator is to have someone that knows the detail not a 60 000 ft level perspective..consultant with no detailed engineering knowledge..
RE: Project - "value engineering" references to cut project costs
VE is nothing but having a FRESH look at key issues that have the potential to heavily influence the cost/quality and schedule…
"Evolution rather than Revolution"
RE: Project - "value engineering" references to cut project costs
What he was saying was that the back and forth discussion between two people produces more ideas than two individuals engaged in their own private thoughts. Add more people, get more synergy. Five people is probably optimum. Ten is too many. One slug can ruin the whole process, especially if he (she) is an "authority."