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April 2015
The Value in Value Engineering - the Altus Group, April 2015

 

The Value in Value Engineering (VE)

 

With any project, it is imperative to understand which processes and procedures provide benefit or hinder the project. A strong proven way to improve these items is through analysis in a systematic and structured manner.

Areas that typically gain the most benefit from this approach are manufacturing, design and construction projects, as well as business / administration functions. At Altus, we have found the ideal solution for this analysis arises from a value engineering initiative where factors of function, time obsolescence, performance, quality, safety, and cost are finely balanced.
 
Why Value Engineering Spans Global Markets
 
Value engineering is embraced globally by a variety of different sectors, particularly within depressed markets where cost cutting initiatives are at the forefront of all business decisions. First used by General Electric during World War II, value engineering acted as a cost cutting and efficiency initiative, proving to be a popular method ever since.
 
You may know this method by another name such as value management, cost savings initiatives, and business process improvement, but no matter what you call it, value engineering is really all about having a systematic and structured approach for improving projects, products, and processes. It boils down to helping your project become more streamlined and cost effective.
 
Considerations for Value Engineering
 
When considering whether value engineering will benefit your project from a cost perspective, it is important to understand the steps involved, specifically: 

  • Information gathering: better understand the project and its individual factors.
  • Function analysis: helps to understand and clarify the required functions.
  • Creating ideas: consider all the possible ways to accomplish the required functions.
  • Evaluating ideas: select the feasible ideas for development into specific value improvements.
  • Development of approved ideas: select and prepare the ‘best’ alternative(s) for improving value.
  • Presenting: communicate the value recommendation to your project stakeholders.

When undertaking value engineering, greater results can be achieved by using an experienced, multi-disciplined team, which is why it is recommended to partner with a company that specializes in this methodology. Although value engineering may seem initially time and labour intensive, the benefit of value engineering your projects is a more efficient, cost effective and streamlined business for longer term success.

 

If you have any questions or require additional information please contact:

Kevin Ellis                    403-476-1038                    kevin.ellis@altusgroup.com
David Crane                403-410-3169                    david.crane@altusgroup.com
Stuart Boyce                403-410-3178                   stuart.boyce@altusgroup.com
Curtis Cameron           780-409-7378                   curtis.cameron@altusgroup.com