Workshop 1: Value Engineering (VE) – Methodology & Application
Module I – Training Workshop
Introduction
The VE methodology has been used for over 50 years to assist management, architects and engineering professionals to obtain optimum value for each dollar spent. Typical savings range from 15 to 35% for most projects. The objective of this training workshop is to acquaint participants with the methodology of VE and its decision-making process. The workshop demonstrates the effectiveness of VE techniques in enhancing value while reducing costs. It is recognized as an approved VE Module I course facilitated by project-based approach. Participants apply the VE methodology and decision-making skills to an actual project in order to gain the practical experience. Workshop participants are expected to develop their VE proposals for a real construction project in the workshop. Managers of various government agencies and private companies discover the power of this technique through the VM workshop.
This training workshop is designed for people responsible for making decisions concerning facility, product, process or procedural activities in various government activities and capacities. In the past, attendees have come from government departments such as defense, interior, environment, transportation and the judicial system.
Upon completion, each participant will be awarded a certificate and those wishing to take the SAVE AVS exam may do so, provided advance notice is given.
Facilitator :
Mr. James RAINS
President of Advanced Value Group in USA.
CVS, FSAVE, Life Member and ex-president of SAVE International, USA.
Venue :
Plaza Conference Centre, 35/F., Central Plaza, 18 Harbour Road,
Hong Kong
Language :
English
Date :
28th June - 2nd July 2004 (Monday to Friday)
Time :
9:00 - 18:00
Introduction of the Facilitator
James (Jim) A. RAINS, Jr., CVS, FSAVE
President
Advanced Value Group, LLC
Jim got his start in value analysis in 1980 as a workshop participant. At that time he learned about the power of value analysis, mainly because he applied it first hand to a project, and implemented numerous design proposals that improved the quality of the product, whilst also achieving a significant reduction in cost.
Value credentials:
Facilitated over 600 teams in VM
Lead teams in all types of value projects, including product design, process improvement, strategic planning, organization structure, manpower planning, planned maintenance, quick set-up, procedure and system improvement and product development processes.
Served as Past President of SAVE International
Is currently a Life Member of SAVE International
Is currently a member of the Institute of Industrial Engineers (IIE)
May 2002 was elected to SAVE’s College of Fellows
Earned his Certified Value Specialist (CVS) in 1988 and became a Life CVS in 2000.
Was a awarded the Presidential Citation by the Society of Japanese Value Engineers in Tokyo, Japan in 2001
Served as the Chairperson of the General Motors Corporate Value Management Committee.
Currently serves on the Executive Committee, Board of Directors and Treasurer of the Lawrence D. Miles Value Foundation.
Has facilitated workshops and/or presented papers globally such as Mexico, Hungary, Korea, Australia and Japan, France, Germany, Austria, Sweden, Canada, England and areas of the Middle East.
Structure of the 5-day workshop
Day 1
Introduction to workshop
Information Phase – Project meeting
Value Management Job Plan/ Background
The Value concept
Team building exercise
Principles of VA/VE
Function analysis
Day 2
Function analysis (cont’d)
Creativity Phase
Day 3
Creativity Phase (cont’d)
Evaluation Phase
Day 4
Evaluation phase (cont’d)
Development phase
Corporate VM program
Day 5
SAVE International
Presentation phase
Dry run presentation
Value management concept – This concept is
used globally in any type of organization. Industrial/manufacturing
applications were the first to use value engineering. Then it expanded
into government agencies, primarily defence related. It is now used
on construction projects including buildings, highways, transit systems,
oil refineries and drilling sites, waste treatment facilities and parks
of historical significance.
Value management methodology – The methodology
is based on satisfying the needs of the end user of any product or service.
By understanding those needs, customer needs can be provided for the
least possible cost. In value engineering, we call those needs functions,
since people that buy products and services actually buy functions and
how well those functions are performed. Thus we look at a simple formula
in value engineering.
Value = Function/Cost, where we work to improve the required functions
and improve their performance while at the same time reducing their
cost. This all leads to improved customer value.
VM development – As mentioned earlier, value
engineering started in the industrial arena. Mr. Lawrence D. Miles of
General Electric is credited as the “Father of Value Analysis”.
This concept was first exposed to the world in 1947. From that time
the methodology has grown significantly around the world. The premier
professional society of value engineering is SAVE International, which
was formed in 1959. Other nations have developed their own value engineering
societies and mimic the methodology and its practice from SAVE International.
Job plan – The methodology is a team-oriented
process that follows a distinct process. This process is called a job
plan. For value engineering to be successful, the job plan must be followed.
It is best to be led by an experienced facilitator to ensure each phase
of the job plan is performed. The phases of the job plan are:
Information Phase
Function Analysis Phase
Creative Phase
Evaluation Phase
Development Phase
Presentation Phase
Implementation Phase
Report and Follow-up Phase
Techniques of function evaluation – The identification
and analysis of function is the most distinct and important element
of the value methodology. In value engineering a function is a two word
term consisting of an action verb and a measurable noun. By keeping
the identification of functions at a generic level the mind-set of the
team members changes from a specific to an abstract level. The view
point of the team members changes. This change of view point is where
value engineering gets its great power.
FAST diagram – The Functional Analysis System
Technique or FAST diagram is a picture of the inter-relationships of
functions. The inter-relationships are established by understanding
the logic of the random listing of functions. The logic gets created
by asking a series of How? Why? If? Then? and Caused By? questions.
Creativity – The most important activity any
organization can do is to allow the creative freedom of its associates
or employees. Creativity is the birth of any constructive change. New
ideas, like babies, are fragile and must be handled carefully. The purpose
of creativity in the value methodology job plan is to generate as many
ideas as possible.
Evaluation methods – Once hundreds of ideas
have been generated, a series of steps are required to begin to narrow
the ideas into the best ones that can be used for future concepts. Again
an experienced facilitator with knowledge of the many different evaluation
techniques will help a team to move the idea list into concepts ready
to be developed into proposals.
Development and implementation of proposal –
Concepts ready to be developed need continued special handling. The
team is directed to take their best ideas and combine them with other
best ideas to arrive at a recommendation for implementation. Each recommendation
has numerous important elements; such as what is the recommendation,
what are its advantages and disadvantages, what costs are improved,
what implementation expense and resources are required to make the changes,
and what is the detailed action plan to make the recommendation a reality.
Presentation – The presentation at the end
of the workshop is the team’s first opportunity to “sell”
their recommendations. This presentation must be positive and energetic.
The presentation must be brief, but include all the important and main
points of the recommendation. This presentation should be made to the
ultimate decision makers of the organization. It should be the objective
of the team to get approval from these decision makers to proceed.
Mr. Simon Chow, Mr. Henry Luk, Mr. Ken Leung, Mr. Thomas Wong, Mr. Chiu-fung Lai
Dr Mei-yung Leung, Mr. James Rains, Miss Zhang Hong, Miss Sandy Tang
(Workshop participants with Mr. Rains and Dr Leung)
"Any opinions, findings, conclusions or recommendations expressed in this material / any event organized under this Project do not reflect the views of the Government of the Hong Kong Special Administrative Region or the Vetting Committee for the Professional Services Development Assistance Scheme."
