Cost Optimization through Value Engineering

In much of industry’s cost-cutting exercises, more than 70% of these exercises achieve short-term results but result in long-term performance issues and cost escalations that end up causing significantly more damage than the benefits claimed.  However, there is a better and proven way. Value Engineering (VE) is a structured approach that engineers and project managers have been using for over 70 years to address cost and budgeting problems effectively and in a manner that is creative and motivational.  Value Engineering does not simply focus on cost; it also creates a clear focus on generating best overall commercial performance and prioritizes profit ahead of simply lower costs.  Done properly, it is a creative and innovative process that employees will enjoy rather than dread and help change engineering from a technical process to add a sharp entrepreneurial edge.  Value Engineering works by bringing together multi-disciplinary teams with a common mission to achieve project requirements and key functions at the lowest possible cost.  Resources (people, costs and equipment) that support key functions are factored in and optimized.  Costs are not viewed as a short-term priority, but as a full lifecycle consideration.  There are multiple methodologies used in industry with great effect (lean sigma, Reliability Centered Maintenance (RCM) and Cost Effective Maintenance) with some similar principles at different stages in asset life.  Value Engineering is unique in its early application in project concept and design phases.  This course brings best-in-class Value Engineering methodology and then demonstrates how other methodologies, such as Cost Effective Maintenance, can naturally be added to extend and sustain the benefits. PrerequisitesNone — open to managers at all levels