Value Engineering

Value analysis is also known as Value Engineering or value management. It is a powerful problem-solving tool that can reduce costs while maintaining or improving performance and meeting quality requirements. It is a function-oriented, systematic team approach to providing value in a product, process, or service. It can be applied to achieve cost and/or performance improvement in billion dollar public works projects, subdivision or commercial development design, change management projects, and office or work process evaluations.

Typically, the most beneficial results are achieved when a value analysis workshop is applied earlier in the design or project-planning process. This is partially due to the relative ease of redirecting a project or making changes in design during the initial stages of development without significant rework or schedule impacts. Studies conducted at the end of the schematic phase of design are typical in larger projects. While the benefits of value analysis can be seen in projects of any size, the larger the project, the greater the potential benefit or potential for savings. In addition, a constructability review can be performed at the completion of the design. This proves beneficial in identifying high-risk components of the projects, and minimizing changes during construction.

Don’t confuse Value Engineering with simple scope reduction or loss of desired features. Value Engineering provides the maintenance of required functionality while investigating opportunitites to reduce costs. The value analysis process includes the following steps:

Pre-study Phase: Establish study scope and constraints; gather information; select team; develop workshop agenda
Informational Phase: Review project and data package; visit site; determine study expectations; Q&A session
Function Phase: Identify and classify functions; determine function costs; select functions for study
Creative Phase: Brainstorm ideas to accomplish functions in alternative ways
Evaluation Phase: Rate & rank ideas; consider project objectives, study goals, performance, cost, and schedule impacts; select ideas for development
Development Phase: Review technical criteria; complete descriptions; perform cost analysis (capital & life cycle); generate implementation plan
Presentation Phase: Present study results; issue final study report; establish plan to assist owner with final decisions
Post-study Phase: Assist owner with decision making process; document final decisions in a report addendum

At PDG, we are able to meet your study needs in either of two ways. We can facilitate a study with a team you have selected. This option will allow you to utilize a team comprised of individuals with whom you are familiar. Members of the design team may be included if this is thought to be beneficial. The second option is to allow us to call on our resources to provide you with a pool of potential team members. Following your review of the pool, we can help you select a team for your study. We can also help you scope your study and establish the proper constraints on the team. We can then work with you to set the proper duration for the study, to assure the efforts of the team will provide a study to meet your needs. Either approach includes leadership of the study sessions and a report on the final recommendations. We look forward to working with you to maximize the overall value of your project.