Section 7

Question 1

What is Value Engineering?

Answer 1

A systematic evaluation of a project design to obtain the most value for every dollar of cost by carefully investigating costs, availability of materials, construction methods, shipping costs or physical limitations, planning and organizing, cost/benefit values, and similar cost influencing items. Improvement in the overall cost of the project can be realised.

Question 2

What are the key points of Value Engineering?

Answer 2

Use professional effort to optimize overall facility costs
Allocate sufficient time for this
Use a systematic, planned approach
Document efforts

Question 3

What to do using VE?

Answer 3

Continue to ask why, and how can this improve?

Question 4

Potential Savings using VE…

Answer 4

Total budget…1-3%
In large facilities…5-10%
In high-cost areas…15-25%

Question 5

What is an Incentive Clause?

Answer 5

Net savings from using VE is shared between Contractor and Owner

Question 6

What are the 5 key words in VE?

Answer 6

Quality
Function
Cost
Worth
Value

Question 7

What are the VE job plan steps?

Answer 7

Develop Information and Requirements
Speculate on Alternatives
Analyse and evaluate alternatives
Develop the best alternatives
Proceed with proposal, presentation and selling

Question 8

What is the Project Definition Rating Index (PDRI)?

Answer 8

Measures scope development on industrial projects
Used evaluate completeness of scope definition at any point prior to authorisation to perform detailed design and construction.
Max score is 1000
Lower the score the better the scope development

Question 9

What is the Lessons Learned Process (LL)?

Answer 9

Used to improve project performance over time by communicating…
The things that were successful and should be repeated, and the things that were the opposite.