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Conference Archive > 2011 Conference - Innovation through Value Analysis
Title : The Value Engineering Program in Conestoga College's bachelor of applied technology. (PDF | 2011 | #630)
Author : Julia Biedermann
Description : This presentation provides background on the Conestoga’s Bachelor of Applied Technology program in Architecture – Project and Facility Management (APFM) and the results of the first Value Engineering course offered from both the College and the Region’s perspective.
Author : Chris Gauer
Description : This presentation addresses  the role of VE in Alternative Delivery. Design Build and P3 projects require designers and contractors to be innovative in the project procurement phase. Once the project is won, the challenge continues in terms of providing value, meeting the Design Build Agreement requirements, while affording cost savings through both formal and informal VE practises.
Author : Robert Rocco
Description : If you are involved in project management, development of cost estimates, or preparation of project schedules and you are not used a risk-based approach, this presentation is for you. Without knowing and managing the risks, costs tend to rise and deadlines are inevitably missed. This presentation provides the basics, showing the inputs to risk management, the outputs especially related to cost impacts, and tools for management, mitigation, and risk-based cost estimating.
Author : Allen K. Lucas, Scot McClintock
Description :

The Ravensview Wastewater Treatment Plant was identified in 2003 as requiring upgrades to increase the hydraulic capacity to meet the growth projections for Kingston, Ontario and also to add advanced secondary treatment to meet the provincial effluent guidelines. A key to the success of the project, which was undertaken over a 6 year period, was the completion of a Value Engineering session. Having completed the necessary planning and preliminary design, Utilities Kingston (the operating authority for the plant) and the engineering design team completed a four day Value Engineering Workshop project to ensure that the works proposed would meet the City of Kingston’s needs and provide the best value to the customers.

The Value Engineering Workshop was deemed a success by Utilities Kingston. The outcomes produced verification that critical design decisions were correct, provided opportunity to include additional features to make operations more flexible and provided for substantial projected cost savings. As the project at the time, was the largest municipally funded capital works, Value Engineering was considered beneficial.

Author : Renee Hoekstra
Description : This presentation defines the Constrcution Manager At Risk (CMAR) process and then discuss how risk analysis and value engineering should be applied. Currently, ADOT has been applying a formal Risk Analysis and Value Engineering process to the CMAR process that was developed by Renee Hoekstra. We will discuss the specifics and show the tools used during this 3-day workshop. We will discuss who should be in attendance and why. This process is an important step in the overall CMAR process as well as documenting the benefits of the entire team working together to focus on adding value to a project and the success of the CMAR as a process.
Author : Stuart Sokoloff
Description :

Design Build procurement offers a unique opportunity to identify alternatives to the design as presented by the Owner’s engineer, and to offer creative and cost effective means to complete the design and construct the project. Although a formal VE analysis is rarely performed by the DB team, alternatives are proposed, evaluated, costed and incorporated if they have merit. Part of the decision making is based on an informal risk evaluation that has three (3) perspectives: 1) Will the alternate disqualify from the project (non-responsive); 2) will the DB be successful in its implementation (especially if approvals are required) and 3) how will it impact upon schedule.

The new Yankee Stadium Station DB project had a cost of over $80 million dollars and was built specifically to offer a transportation alternative to those attending games at the new Yankee Stadium. Work included deep foundations is soft and seismically fragile soils including H-piles and drilled mini-piles, new track, new platforms, a new station building and new 260 ft. long enclosed pedestrian bridge

Author : Laszlo A. Retfalvi
Description : This presentation provided an overview of industry risk management best practices, techniques, and critical success factors. Attendees will learn the basics of schedule risk analysis and how it may be applied on projects to increase the probability of success.
Author : Rob Kivi
Description : Using a case study approach, the presentation examines the use of Value Engineering as a tool to build consensus and expedite decision making on issues involving First Nations stakeholders. Red Rock Indian Band (RRIB) expressed interest in acquiring lands that were being protected by the Ministry of Transportation of Ontario (MTO) for future highway improvements. Value Engineering was utilized to expedite the development of a recommended preliminary design concept that could be used as the basis for property protection and allow MTO to declare a portion of the protected lands surplus to their needs. By involving the First Nations stakeholders as active participants in the VE study, both MTO and RRIB were able to share their objectives, concerns and issues, while working toward a solution that offered benefits to both parties.
Author : Gregory Brink
Description : Comparison of the anticipated Value of a project, product, or process and the resulting Value of developed alternatives is often conducted with reference to the expected outcome or the “ideal” conditions. In a world where uncertainty is prevalent and the ideal conditions are often only statistically the most likely to materialize, it is important to acknowledge the multiple sets of outcomes that may occur. By introducing uncertainty, or risk, into facets of Performance (as a direct substitution for Function), Cost, and Time within the context of the Value equation, one can acknowledge the inherent uncertainty present within the dimensions of the Value equation.
Author : Géza Kmetty
Description :

An independent VE Team evaluated the preliminary construction plans of an outdated traffic interchange. The VE Team found that the design was not an optimal solution to satisfy budget constraints. Using performance over cost the VE team was able to demonstrate an alternative but more expensive solution was better value. 

Author : Chris Gauer
Description : This presentation reviews the introduction of Value Engineering on highway and transportation projects to the City of Regina and the Provinces of Saskatchewan and Manitoba. The presentation discusses the initial VE projects undertaken in these jurisdictions, how was VE received and adapted to their local requirements.
Author : Doug Madsen, Rick Thompson
Description :

In conjunction with Metrolinx and funded by the Province of Ontario, the Toronto Transit Commission is embarking on the Eglinton-Scarborough Crosstown Project, a 25 km rapid transit expansion through the centre of Toronto. With a budget of over $8B, the line will run underground for 19 km from approximately Black Creek Drive to Kennedy Station, and then on the existing SRT alignment for an additional 6 km of combined at grade/elevated right of way. The Crosstown will include up to 26 stations, with three connections to the subway. Passengers will ride in new Light Rail Vehicles (LRVs), which will operate in 3 car consists. Two maintenance and storage facilities will also be provided to store and maintain the new fleet.

The presentation shows how value engineering will be employed in effort to deliver a safe, reliable product, at the lowest cost.

Author : Mike Pearsall, P.Eng., CVS
Description : Highway agencies are faced with making tough decisions as staff levels shrink, governments face deficits and traffic volumes continue to increase. All desirable system expansion projects cannot be designed or constructed, so a system must be in place to prioritize the projects. Traditionally decisions have been made relying heavily on traffic volumes alone or projects were advanced for ad hoc reasons. This presentation shows how Value Analysis was employed through a Functional Performance Specification methodology to develop a multi-faceted but easy to use prioritization system. The value methodology used in this context not only helped develop the prioritization method, but also aided in achieving buy-in for the new method.
Author : Denis Dagenais
Description :

As demand increased significantly in the last year, a metal powder manufacturing company had to quickly optimize the production capacity of the plant. At first, more than 200 ideas were generated from intensive brainstorming sessions. About 35 of them were retained for cost evaluation and preliminary engineering. Since the capital expenditure for those projects ranged from $20K to $2M, it was needed to identify those which had the highest gain to cost ratio although the expected returns could not be quantified with certitude.

By combining Value Engineering and the Paired Comparison Matrix techniques it was possible to identify projects that had a significant impact for the plant as well as meeting budget constraints. The scope of work has been approved, some plant modifications have been implemented and detailed engineering initiated for more complex issues.

Author : Storer Boone
Description :

Probabilistic analyses are becoming more commonly used in the mining industry to assist with decision-making. Complex systems with a significant number of variable input and output conditions make traditional approaches to selection of design and management approaches more difficult. Examples of such complex systems optimization include balancing water uses and discharges as related to ore processing and tailings management on mine sites. Additionally, Failure Modes and Effects Analyses (FMEA), a structured, qualitative approach for the analysis of risks, have been undertaken to examine categories of consequences such as health and safety, environmental, financial, and reputation.

Risk of failure analyses have examined issues such as major ground falls, water inflows into mine shafts, uncontrolled discharges from mine tailing sites, and risks associated with development of carbon sequestration facilities. These approaches have been used for resource mining, carbon sequestration, nuclear waste repositories, and other major underground facilities. This presentation summarizes some of the applied probability methods being used to assist with developing priorities for risk management activities with the goal of improving overall safety, production, operation, and financial performance of mines and mining-related facilities.

Author : Roch Pilon
Description : Risk assessment can be a valuable tool in the selection of alternatives. How can risk assessments be used in this fashion? How can risk assessments be used in conjunction with value engineering in order to help select alternatives. What are the implications of using risk assessments prior to or following a VE study? This presentation will bring these questions forward in the context of highway planning for expansion projects.
Author : Brian Ruck, Tom Williams
Description : In this case study value engineering methods are applied in a heavily-used bus and traffic corridor. The Orange Blossom Trail project was typical of transit projects, requiring examination of traffic capacity, transit travel times, pedestrian access, cyclists, and the transportation-land use connection. Value Engineering methods were well suited to resolving competing issues and developing innovative solutions to be applied along the Orange Blossom Trail and to other Florida Department of Transportation projects.
Author : Steve Taylor
Description : Value Planning can be an effective facilitation technique to engage the public, technical agencies and political decision makers in making cost effective choices for public infrastructure. This presentation will describe some techniques and provide examples of where the planning for new public infrastructure has benefited from the Value Engineering methodology.
Author : Dr. Avi Habinski, Director, Capital Planning, Alberta Education
Description :

 Alberta's departments of Education and Infrastructure have undertaken 20 Value Analysis processes in order to gain insight into the nature of the needs and challenges as well as reach a consensus on the scope of the project to be submitted for provincial funding. The work with a broad range of stakeholders enabled the establishment of the priority order for the needs, identification of creative solutions, cost estimates of options, risk analysis and determination of value for the public investment. In addition, the local involvement resulted in a “buy-in” into the scope of the project and avoided cost escalation during the planning design and construction stages.

The presentation focuses on processes and outcomes associated with the implementation of Value Analysis in Alberta Schools. It also uses examples to illustrate the type of projects and circumstances under which such process may be successful.

Author : Matthew Lane
Description : Why we don't drive to Dvorák explores the benefits of FAST outside its usual applications, specifically in the domain of classical music composition. Principally, it examines how FAST (Function Analysis System Technique) stimulates creativity, and how music benefits from a function-based approach. It presents the notion that the quality of music, often shied away from as a subjective idea, can be much more objectively assessed by applying a function-based model. Using FAST, classical music can overcome some of its struggle to find new relevance, and as an audience, our listening approaches can be similarly modified or refined. The presentation discusses the inherent link between analysis and composition, other function-based precedents in musical analysis, and how FAST diagrams can help reconcile some of the divide between musical analysis and musical composition. It will take a brief look at some other musical genres and how function-analysis could or does benefit them, as well as sharing M. Lane's approach to incorporating FAST into his writing. 
Author : Jeffrey Plant
Description : Large European contractors are a significant force in the North American infrastructure market. This presentation will review the players, discuss their competitive advantages and provide an insight into how they approach risk management in the North American context. Attendees may be surprised to learn that the biggest risks faced on alternative delivery projects have little to do with their design and construction.
Author : Alain Leblanc
Description : The presentation introduces attendees to the different aspects of risk management process from risk identification, assessment to response plan. Risk assessment will be of a semi-quantitative approach estimating the risk impact in terms of recurring cost, schedule and other value criteria of the product or project.
Author : Terry Hays
Description : The presentation discusses strategies to initiate business process improvement studies, unique activities that need to be considered for business and organizational studies, and discuss several examples on a wide range of projects to demonstrate the benefits of including business process improvement studies as part of your Value Improvement Program.

It is not really possible to step in and “re?engineer everything”; that was tried 15?20 years ago in many organizations and while the concept was valid, it had problems in execution. While typically critical areas are known and can be focused on for whatever the rationale, it is often beneficial to start with a Strategic Business Improvement Plan, using VM to develop this plan, and prioritize where the business and organizational focus should be to support the goals of the organization.
Title : Stripping out Bias in Risk Estimating (PDF | 2011 | MEMBER-ONLY | #598)
Author : SteVE Holmes
Description : Risk based estimates in transportation projects are based on the subjective expertise of subject matter experts. All of us have bias. We draw on our personal experience and use judgment to estimate the likely cost or schedule for project elements. In the financial industry, risk is predicted through analysis of statistical information and as we saw in 2008, they still get it wrong. In a transportation cost risk assessment, teams will be biased. This presentation shows what to look for in ensuring that bias is stripped out of the estimate.
Title : Integration of TRIZ with Value Management (PDF | 2011 | MEMBER-ONLY | #599)
Author : John Borza
Description : Value Management is a function based methodology focused on improving value (defined as function ÷ cost). Its function-based analysis, and traditional brainstorming approach to problem solving, share a number of characteristics with TRIZ, creating a unique opportunity to apply TRIZ principles into the Value Methodology. The synergy between these approaches results in enhanced brainstorming output (quantity of high quality ideas). This paper examines a way to integrate key ingredients of these two approaches, and the benefits that can be realized from the combination of the Value Methodology and Structured Innovation.
Author : Scot McClintock
Description : Each VA Study is unique, from the project being studied to the VA Team members to the Owner, design team, and project stakeholders. In planning the approach to a given VA Study, the facilitator must choose the right tools from his/her VA toolbox. In addition, the facilitator should be open to modifying the selected VA tools as needed to best fit the unique VA Study, either while planning the study approach or in the heat of the workshop. Through the use of examples from actual VA Study workshops, the author demonstrates the successful modification of VA tools to fit real workshop situations.
Author : David Wilson
Description :

Water/wastewater infrastructure - the lifeline of the community, the enabler of growth, and likely one of the highest areas of cost for a municipality. But with water and sewer charges levied directly to customers, the taxpayers, it’s also the object of great criticism. Highly publicized cost overruns and delayed schedules manifest in community frustration with these projects and the elected officials and the staff responsible to deliver them. Value Engineering can successfully maximize the cost-effectiveness of infrastructure delivery by focusing on right-sized, right-featured solutions.

Several case studies highlight the approaches used by municipal agencies to successfully deliver highly effective water/wastewater solutions to support their service improvement and growth needs.

Author : Will Willson
Description : The Federal Transit Administration has been working diligently over the last 10 years in developing an effective risk management process to ensure applications for Federal New Start Funds are appropriately audited and reviewed as to their robustness in budget and schedule contingency provision. However, an Grantee’s compliant application in line with guidance at the time of an assessment by the FTA is of little benefit if there is no mechanism to manage and provide visibility to those responsible for oversight as the project progresses. The FTA has now implemented through its latest guidance a robust execution plan in the form of a Risk and Contingency Management Plan [RCMP]. We will outline the structure and input required to this RCMP and the benefits derived to both a funding Agency and the project as a whole in management and control of risk and contingency.
Author : Jerry Godin
Description : Jerry has participated in 3 separate functional performance specification sessions at the ministry to assist business organizations identify their high level business needs. In each case the facilitated session resulted in an excellent starting point for the business and I&IT to understand business drivers and needs. The Fast diagram brings consensus to group within two to three days.
Author : Dr. Michael Mladjenovic and Thomas Fletcher
Description : Functional Analysis and Performance Specification (FPS), can be employed during the early stages of new product introduction (NPI) process in order to articulate user’s needs. The key benefits of their early application is a structured team creativity and increased effectives in developing and selecting preferred solutions. During the session, progress in developing innovative approach of integrating: VA/VE/VM process, Mind Mapping and Functional uncertainty modeling will be presented
Author : Office of Government Commerce, UK
Description : The British Government Office of Government commerce released a white paper on the business benefits of the Management of Value in Sept, 2011
The white paper outlines:

1.      The need for Value Management in public and private sectors

2.      That value is subjective and how VM can be used to manage and balance these subjective views,

3.      How a focus on function opens the way to explore more options.

4.      Key messages in how Value Management can help

5.      How to Implement Value Management and

6.      Barriers to Implementation of Value Management
Author : Art Washuta, Dr. Hussien T. AL-Battaineh
Description :

The Edmonton North LRT is a $755 million, 3.3 km extension of Edmonton's current 21-km LRT system, involving tunnelling, street-level construction, and three new LRT stations. It is projected to add 13,200 weekday riders to the current 92,000 weekday ridership.ffordable, accessible, and environmentally friendly. During the detailed design phase for the North LRT, two major value engineering and risk analysis workshops were conducted. The first value engineering workshop was conducted at the start of the detailed design stage to confirm the preliminary design and search for new creative ideas, and the second workshop was conducted for the LRT track to select the highest value option.

This presentation showcases the benefits gained in applying the value engineering methodology. The workshop job plan, major findings, risk analysis and the current status of the project were discussed.

Author : Bob Putzlocher
Description :

The Deloro Mine Site Cleanup Project deals with the complex legacy of environmental contamination caused by the former owners of a historical mining, refining, and manufacturing site at Deloro, Ontario.

The Ontario government has spent more than $32 million on a number of actions to significantly reduce the amount of arsenic coming off of the site. The Ministry of the Environment assumed responsibility for this site when the owner failed to comply with orders to stop pollution. The ministry has made significant progress in dealing with the complex and multifaceted environmental issues at the site. Final remediation plans have recently been developed and are currently underway. It is expected that the entire cleanup will take six to eight years to complete.

In 2009, the Moe initiated a Value Engineering Study to review the design of the Deloro Mine Site Cleanup. This review allowed the owners, designers and independent team members an opportunity to examine the design with an objective of improving the value of the investment as the project is carried forward.

Author : Peter Ried
Description :

Any development project, no matter in which industry, is connected with different kinds of risk:

 

  • Financial risk
  • Technical risk
  • Schedule risk
  • Political risk

     

Value Engineering, consequently and systematically applied in combination with FMEA (Failure Mode Effect Analysis) is an excellent management tool to creatively identify and assess all types of risks mentioned above and also to develop solutions by using different creativity techniques to prevent/eliminate or reduce risk factors and situations for a company.

This paper explains techniques which have been applied very successfully during the past 15-20 years in the manufacturing as well as in the construction industry.

Author : Michael Dallas
Description :
This presentation shows how the use of the methods described in Management of Value provide the basis of making decisions based on value criteria, aligned with an organisation's priorities, thereby improving performance.

Case studies  demonstrate how the processes and techniques, described in the Best Management Practice guide Management of Value (MoV™) at Portfolio (business), Programme, Project and Operational levels.

Learning points:

Mechanisms for articulating value priorities
Basing decisions on Value
Using Value Profiles to optimise programmes and projects
Defining requirements of programmes and projects
Reconciling different stakeholders requirements
Augmenting business cases
Improving operational performance
Author : Michael Dallas
Description : The UK Government has developed a portfolio of Best Management Practice comprising guidance on managing business level Portfolios, Programmes of projects to deliver business objectives and Projects. These are supported by cross cutting processes including Management of Risk (M_o_R®) and Management of Value (MoVTM ), for which Michael Dallas was lead author. The change in Government in UK in 2010 triggered comprehensive reviews of public spending and stimuli for growth to address the worst financial crisis in a generation. To contribute to this effort, the UK Cabinet Office has taken ownership of the Best Management Practice portfolio. MoV was launched by the Executive Director of the new Major Projects Authority (MPA), David Pitchford, responsible for improving project performance for the taxpayer. Amongst other requirements, all major projects must submit Integrated Assurance and Approval Plans (IAAPs) which include a requirement to use established best practice and demonstrate deliverability and value for money. Best Management Practice and MoV, in particular, has a direct part to play in this process.

The presentation will demonstrate the necessity of setting things up right from the outset in order to provide clear articulation of value priorities and avoid the destruction of value through avoidable mishaps.

 The methods contained in MoV have been used in the health sector and other complex situations facing  hard and soft issues.

Learning points:

The role of Managing Value in improving programme and project performance
How to set up programmes and projects right from the outset
The relationship of MoV to other commonly used techniques and processes
Case studies to demonstrate how the benefits of using MoV can be delivered
The key messages within MoV and the qualifications relating to it, in the context of other internationally available Value Management qualifications
Author : Ken Smith
Description : Why not give your project mangers something they really CRAVE. By combining a Cost Risk Assessment workshop with the Value Engineering workshop, you can focus you value analysis on reducing or avoiding risk. Project risk is much more than just threats to the project budget and schedule. Often times an opportunity from a cost risk assessment can be brought into the evaluation and development of the value analysis. Value engineering proposals are similar to any other project opportunity; if they are not tracked and managed they can become a missed opportunity. This interactive process uses a Monte Carlo simulation models including likelihood of implementation of individual Vale Engineering proposals.
Author : Manal Kasim
Description :

Selecting the most appropriate alternative to improve operation at an intersection is a complex issue. For a number of years, the decision was solely based on satisfying a set of criteria to determine if signals are warranted. 

Selecting the best value solution on the basis of a life cost analysis often leads to misleading results. Therefore, a value Engineering Study, VE, at early stages of the design, preferably at the preliminary design stage, provides the opportunity to compare viable alternatives based on a number of factors such as constructability, environmental, safety, traffic Operations as well as cost. To arrive at the right solution in a VE study, a group of professionals and safety experts examine the intersection in greater details, evaluate various alternatives and score each alternative based on the assigned weighting for each factor. The VE also provides the owner with the opportunity to make an informed decision based on either cost or performance without compromising the function

Author : Wendy Teufel
Description : This presentation highlights the use of VE by the Region of Peel at various stages in a projects life from conceptual design to constructability. The presentation will highlight why the Region of Peel has systematically undertaken VE studies on its complex water and waste water projects using an independent VE team.
Author : George Hunter
Description :

This paper supports the ability to enhance decision-making capability available in VE programs by explaining how risk-based road safety analysis can enhance value engineering studies. The focus of the presentation is the description of risk management techniques as they relate to road safety analysis, which can be incorporated into VE studies. Where applicable the presentation will also integrate the application of project performance measurement / analytical hierarchy process (AHP) and discuss how this tool can also be enhanced with risk management and integrated with risk-based road safety analysis.

The presentation has as its objective not just to explain the marriage of the VE, risk and road safety analysis but more importantly to encourage value engineering users to pursue tools that can enhance the traditional techniques and system known in the VE job plan. The presentation should appeal to wide audience, ranging from a novice to expert and to both VE facilitators and VE program managers.

The paper will be seeded with real study results.

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