A Quick Guide to Value Engineering for Projects

A Quick Guide to Value Engineering for Projects

Value engineering is when a business looks at how it functions and develops a systemic and organized approach to deliver its project at the lowest cost possible. It focuses on the functions of the various components and materials of the project, not their physical attributes. Value engineering is calculated as a ratio of function to cost and is broken down into five phases: information, creative, evaluation, development and presentation. The first stage involves gathering data and analyzing it, while the creative phase involves brainstorming with the team and looking at all possible solutions to the problems you've identified and alternatives to the function. Finally, the functional analysis is done to determine if there are improvements that can be made.

Value engineering is used in project management to determine the merits and demerits of suggested solutions. It involves an in-depth analysis of the best alternatives, sketching out possibilities, creating cost estimates, and developing an implementation plan. The team then presents their winning solutions to management and stakeholders with reports, flow charts, and other presentation materials. Once approved by management and any requested changes are applied, the implementation plan is executed.