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What is Value Engineering?

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Sameh Nasr Project Controls General Manager - MRO & Offshore Rigs| Confidential Saudi Arabia
An approach used to optimize project life cycle costs, save time, increase profits, improve
quality, expand market share, solve problems, and/or use resources more effectively.
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Anonymous
Wow Sameh - you forget world famine and global warming :-) just for fun

Can you explain how value engineering help "expand market share, solve problems"?
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1 reply by Sameh Nasr
May 08, 2016 4:08 AM
Sameh Nasr
...
Bonjour Mounir,

Thank you for your precious question, I hope the below narrative answer your question.

Value Engineering is a management technique that seeks the best functional balance between cost , reliability and performance of a product, project, process or service.

The value methodology works through a VE / VA / VM study that brings together a multidisciplinary team of people who own the problem and have the expertise to identify and solve it. A VM study team works under the direction of a facilitator who follows an established set of procedures - the VM job plan - to review the project, making sure the team understands customer requirements and develops a cost-effective solution.

Value Engineering is:
_ Systematic problem solving process
_ Multi-discipline team approach
_ Life-cycle cost oriented
_ Value oriented
_ Function-based analysis
_ Free of normal design restrictions
_ A proven management technique

Value Engineering is not:
 A Design Review
• It is not intended to correct omissions in the design, nor to review calculations made by the designer.
 A Cost Cutting Process
• It does not cut cost by sacrificing needed quality,reliability, or performance.
Routinely Done on all Designs
• It is not a part of the normal design process, but a formal cost and function analysis.

The VE job plan can be applied to any subject. It is a mechanism for guiding a study from inception to conclusion. By adhering to certain formalities, the VE job plan ensures that consideration is given to all necessary facets of the problem. Although the job plan divides the study into a distinct set of work elements, judgment is necessary to determine the depth to which each phase is performed as a function of the resources available, the results expected, and the people involved (often the most important determinant).
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Vincent Guerard Coach - Trainer - Speaker - Advisor| Freelance Mont-Royal, Quebec, Canada
Can we say in short a way to increase benefits to the project?

Benefits is very large, could be profit or increase customer satisfaction, decrease time, simplified process.
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Sameh Nasr Project Controls General Manager - MRO & Offshore Rigs| Confidential Saudi Arabia
Bonjour Mounir,

Thank you for your precious question, I hope the below narrative answer your question.

Value Engineering is a management technique that seeks the best functional balance between cost , reliability and performance of a product, project, process or service.

The value methodology works through a VE / VA / VM study that brings together a multidisciplinary team of people who own the problem and have the expertise to identify and solve it. A VM study team works under the direction of a facilitator who follows an established set of procedures - the VM job plan - to review the project, making sure the team understands customer requirements and develops a cost-effective solution.

Value Engineering is:
_ Systematic problem solving process
_ Multi-discipline team approach
_ Life-cycle cost oriented
_ Value oriented
_ Function-based analysis
_ Free of normal design restrictions
_ A proven management technique

Value Engineering is not:
 A Design Review
• It is not intended to correct omissions in the design, nor to review calculations made by the designer.
 A Cost Cutting Process
• It does not cut cost by sacrificing needed quality,reliability, or performance.
Routinely Done on all Designs
• It is not a part of the normal design process, but a formal cost and function analysis.

The VE job plan can be applied to any subject. It is a mechanism for guiding a study from inception to conclusion. By adhering to certain formalities, the VE job plan ensures that consideration is given to all necessary facets of the problem. Although the job plan divides the study into a distinct set of work elements, judgment is necessary to determine the depth to which each phase is performed as a function of the resources available, the results expected, and the people involved (often the most important determinant).
avatar
Anonymous
May 08, 2016 4:08 AM
Replying to Sameh Nasr
...
Bonjour Mounir,

Thank you for your precious question, I hope the below narrative answer your question.

Value Engineering is a management technique that seeks the best functional balance between cost , reliability and performance of a product, project, process or service.

The value methodology works through a VE / VA / VM study that brings together a multidisciplinary team of people who own the problem and have the expertise to identify and solve it. A VM study team works under the direction of a facilitator who follows an established set of procedures - the VM job plan - to review the project, making sure the team understands customer requirements and develops a cost-effective solution.

Value Engineering is:
_ Systematic problem solving process
_ Multi-discipline team approach
_ Life-cycle cost oriented
_ Value oriented
_ Function-based analysis
_ Free of normal design restrictions
_ A proven management technique

Value Engineering is not:
 A Design Review
• It is not intended to correct omissions in the design, nor to review calculations made by the designer.
 A Cost Cutting Process
• It does not cut cost by sacrificing needed quality,reliability, or performance.
Routinely Done on all Designs
• It is not a part of the normal design process, but a formal cost and function analysis.

The VE job plan can be applied to any subject. It is a mechanism for guiding a study from inception to conclusion. By adhering to certain formalities, the VE job plan ensures that consideration is given to all necessary facets of the problem. Although the job plan divides the study into a distinct set of work elements, judgment is necessary to determine the depth to which each phase is performed as a function of the resources available, the results expected, and the people involved (often the most important determinant).
Dear Sameh

You explained what I already know. My question is how does it "expand market share, solve problems"? I understand the solve problem in the context of the exercise but not general problems.

Anyway - let us focus on market share - how does it help?
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M. Sahir A. Shatiry, PMI-RMP, PMP Senior Hook-up and Commissioning Engineer| Petronas Carigali Sdn Bhd Ipoh, Perak Darul Ridzuan, Malaysia
This value engineering, it is a tool or technique? When normally we practice this value engineering, based on the description above seem that the VE can be implemented on any stages of project?

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