VALUE ENGINEERING

(3)
“ Having All the Pertinent
Information is the Ideal Situation,
But Missing Information Should
not Preclude the performance.”
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 Orientation Phase
• Orientation Phase:
- It is usually known as preparation or pre-
workshop phase.
- The purposes of the orientation phase are:
1 - Refine the problem and prepare for the value
study.
2- Determine what aspects of problem will be
addressed in detail.
3 - Preparing everything needed for the analysis
itself.
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 Orientation Phase
• Activities of The Orientation Phase:
1 - Identify the specific issue to be
addressed.
2 - Assess the potential gains for resolving
each of these issues.
3 - Prioritize the issues.
4 - Draft a scope and objective for the value
study.

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 Orientation Phase
• Activities of The Orientation Phase:
5- Establish evaluation factors.
6- Determine team composition.
7- Collect data.
8- Prepare logistically for the VE study.

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 Orientation Phase
• 1- Identify the Specific Issues to be Addressed:

- The problem area should be divided into

its constituent elements.
- Each element should represent a specific
issue that can be addressed and resolved.

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 Orientation Phase
• Identify the Specific Issues to be Addressed:

- Identifying such specific issues is

accomplished by developing an
understanding of the sponsor ‘s problems
and avoiding areas that the sponsor would
not be able to change because of political,
cultural, or feasibility implications.

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 Orientation Phase
• 2- Assess the Potential Gains for Resolving Each
of These Issues:
- The purpose of this activity is to identify
issues that have the greatest potential for
value improvement.
- The assessment for the potential gains for
resolving issues should be as quantitative
as possible, however at this stage of
analysis, estimates will be crude.

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 Orientation Phase
• 3- Prioritize the Issues:
- Issues should be prioritized based on:
- Potential gains.
- Determining an effective solution and the
feasibility of implementing that solution.
- Importance of the problem to the project
sponsor.
- Other benefits such as performance
improvement.

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 Orientation Phase
• 4- Draft a Scope and Objective for the VE Study:
- The study team‘s efficiency is significantly
enhanced when limits are established in
advance.
- The scope must be approved by the study
sponsor.
- The scope and objective will be ultimately
finalized in the information phase.

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 Orientation Phase
• 5- Establish Evaluation Factors:
- Target for improvement and evaluation
factors must be measurable.
- They determine the relative importance of
the ideas and potential solutions
generated by the team.
- Both improvement targets and evaluation
factors must be approved by the study
sponsor.

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 Orientation Phase
• 6 – Determine Team Composition
- Characteristics for team members include:
- Technical or functional expertise.
- Problem solving and decision making
ability.
- Interpersonal skills.
- The ability to be a team player, share
responsibilities, work together toward a
common objective.

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 Orientation Phase
• 6 – Determine Team Composition

- The selected team should be:

- Multidisciplinary.
- Include all factions affected by the study.
- Have no more than 12 participants.

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 Orientation Phase
• 6 – Determine Team Composition
- A management memorandum to be sent to all
team members to :
- Emphasize the necessary of their role.
- Approve the necessary time commitment.
- Authorize sharing of any objective and
subjective data.
- Identify the team leader.

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 Orientation Phase
• 7 – Data Collection
- The team leader organize the data
collection in advance of the workshop.
- To increase the study team‘s
productivity, collect as much data as
possible in advance.
- It is often beneficial to involve the entire
team in the data collection effort.

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 Orientation Phase
• 7 – Data Collection
- The collected data should:
- Be as tangible and quantitative as
possible.
- Include anything potentially useful for
Understanding the problem, Developing
solutions , and Evaluating pros and cons of
the solutions.

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 Orientation Phase
• 7 – Data Collection
- The collected data should:
- Concerning the technologies involved and
the latest technical developments pertinent
to the subject being reviewed.
- Include cost data that can help to
evaluate and rank alternative solutions.
- Concerning the customer and user
attitudes.

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 Orientation Phase
• 8 – Prepare Logistically for the VE Study
- The team leader is responsible for
preparing the team to participate in the VE
study.
- Four to six weeks should be allowed to the
personnel to arrange their schedules
around the study.
- When the workshop setting is used, the
value study typically takes 3 – 5 days.

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 Orientation Phase
• 8 – Prepare Logistically for the VE Study
- The team leader should:
- Ensure participants know what data they
should bring.
- Set up study facilities.
- Set up kickoff briefing and results
briefing with management.

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 Orientation Phase
• 8 – Prepare Logistically for the VE Study
- The team leader should:
- Obtain an example of a study item for the
team to use.
- Distribute pre-study reading materials to
participants. They include agenda, design
documents, performance requirements,
production quantities, inventory data, and
failure information.

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 Orientation Phase
• 8 – Prepare Logistically for the VE Study
- Pre- workshop meeting should:
- Review workshop procedures.
- Acquaint people with the problem and the
read-ahead material.
- Jump start the team building process.
- Clarify acceptable and unacceptable
behaviors (rules of the road).
- Identify additional information needs.

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 Information Phase
• Information Phase:
- The information phase completes the
activities begun in the Orientation Phase
- The purposes of the Information Phase are:
1 – Finalize the scope of the issues to be
addressed, target for improvement, and
evaluating factors.
2- Build cohesion among team members.
3 - Complete the data collection process.

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 Information Phase
• Activities of The Information Phase:
1 – Establish workshop rules of the road.
2 – Finalize the problem and the associated
facts.
3 – Refine the scope.

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 Information Phase
• 1- Establish Workshop Rules of the Road:
- Share workload equally whenever
possible.
- Do not be afraid to make mistakes.
- Stay focused-off tangents- and follow the
basic problem solving steps. Keep the
discussion relevant.

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 Information Phase
• 1- Establish Workshop Rules of the Road:
- Do the job together as a team. Do not force
your solutions. Remember, there can be
more than one solution to a problem.
- Be a good listener, do not cut off people
and do not second- guess what other
people are about to say and what they are
thinking.

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 Information Phase
• 1- Establish Workshop Rules of the Road:
- Keep an open mind and do not be a
roadblock.
- Be enthusiastic about the project.
- Do not attempt to take over as a team
leader, be as helpful as possible.
- Accept conflicts as necessary and
desirable. Do not suppress them or ignore
them.

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 Information Phase
• 1- Establish Workshop Rules of the Road:
- Respect individual differences. Do not
push each other to conform to central
ideas or way of thinking.
- Work hard. Keep the “team climate” free,
open and supportive.
- Fully use individual and team abilities,
knowledge, and experience.

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 Information Phase
• 2- Finalize the Problem and the Associated Facts:
- The purpose is to discuss the problem so
that all team members achieve a consistent
understanding of the issue at hand.
- The following should be considered:
- Work on specific, not generalities.
- Get up –to-date facts.
- Get facts from the best sources.

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 Information Phase
• 2- Finalize the Problem and the Associated Facts:
- The following should be considered:
- Where supported facts are not obtainable,
the opinions of knowledgeable person may
be used.
- Separate facts from opinion.
- Question assumption.
- Define customer needs and translating them
into specific plan to meet those needs.

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 Information Phase
• 3- Refine the Scope:
- The following should be considered:
- Re-scope the problem to ensure that the
most important elements are examined
during the workshop.
- Ensure that the final set of facts are collected
from the best possible sources of data.
- Targets for improvement and evaluation
factors should be re-examined and finalized.

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 Quiz (4)

• State the main causes of

roadblocks?

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 THANK YOU
Prof. HOSSAM HOSNY

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