Value engineering can be broken down into the following phases:
1. Information
The information phase involves gathering project information and refining the goals of the project. Data is collected and analyzed, and the information obtained is used to finalize the priorities of the project and areas of improvement.
The potential issues are broken down into constituent components, which are elements to be addressed. This phase also involves identifying the methods that the team will use to evaluate the progress of the project.
2. Function Analysis
The function analysis phase involves determining the functions of the project and identifying them with a verb/noun combination for every element under evaluation. The function is defined as the set targets to be attained through the execution of an element or a set of elements.
Each of the identified functions is analyzed to determine if there are improvements to be made and if a new function is required. An example of a function can be “disinfect water.”
The function should be as non-specific as possible, to leave room for multiple options that perform the function presented by the project. A cost is assigned to each identified function.
3. Creative
The creative phase follows the function analysis phase, and it involves exploring the various ways to perform the function(s) identified in the function analysis phase. This allows team members to brainstorm alternatives to existing systems or methods that are in use.
Brainstorming forces people to be creative and allows team members to speculate on all possible solutions to the problems presented, or alternatives to the function. The team is required to develop a list of potential solutions to the function formulated by the verb/noun combination.
4. Evaluation
In the evaluation phase, the merits and demerits of each of the suggested solutions and alternatives from the creative phase are listed. The team should describe each advantage and disadvantage in general terms.
When the disadvantages exceed the advantages, the alternative is dropped in favor of other solid alternatives. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase.
5. Development
The development phase involves conducting an in-depth analysis of each best alternative to determine how it can be implemented and the cost involved. The examination of each alternative may involve creating sketches, cost estimates, and other technical analysis.
Team members formulate an implementation plan for the project, which describes the process to be followed in implementing the final recommendations.
6. Presentation
The presentation phase is where the team meets with the management and other stakeholders to present their final report. The team is required to present their findings to the decision-makers using reports, flow charts, and other presentation materials to convince them that the final ideas from the development phase should be implemented.
The ideas should be described in detail, including associated costs, benefits, and potential challenges. The final report acts as a record of the team’s accomplishments during the study and a summary of the team’s deliberations and findings. It can also act as a reference tool for the company in future projects.
7. Implementation
Implementation of the project begins after the management’s approval of the team recommendations. If there are changes requested by the management or other decision-makers, these changes should be incorporated into the implementation plan before the implementation begins.
When implementing the project, the team should ensure that the primary goal of increasing value is achieved. The actual cost savings of the project should be determined based on the implementation of the recommendations.
Comments