Everything you wanted to know but were afraid to ask about… The Value Methodology
Everything you wanted to know but were afraid to ask about… The Value Methodology.
Dec 18, 2015
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Everything you wanted to know but were afraid to ask about…
The Value Methodology
What is the Value Methodology?
The Value Methodology (VM) is known as “value engineering”, “value analysis”, and “value management”.
The Value Methodology originated in the 1940s.
The Value Methodology uses function analysis to improve projects, products, and processes.
Common misconceptions
VM “cheapens” projects. VM creates adversity. VM ignored the design
professional’s concept. VM is a bureaucratic conspiracy. VM is a pain in the #@%*!
Basic VM is:
How does VM work?
Reduce complicated projects into basic components by analyzing its functions.
Identifying the functions of components and systems leads to identifying better ways to accomplish project goals.
The owner’s perspective
The budget is fixed. No change orders! We need it yesterday. Local economy is important. Respect our traditions. Meet code requirements. No complications!
The designer’s perspective
Today it is not unusual for project to exceed established budgets during the design process.
Designers are not known for their cost estimating skills.
The VM consultant has a plan
Keep all eyes on the ball. Develop winning plays. Emphasize team collaboration. Develop a budget strategy.
Everybody wins!
How VM defines “value”
The reliable performance of that which a product or process must do to make it work and sell at the least possible cost.
How VM handles cost
There is always a better way to do anything.
The secret is to understand functions…
And then determine best value!
Best value does not mean“cost cutting.”
Value and cost are not the same!
A simple match can produce fire. A book of matches can light 20 fires. A book of matches costs 1¢. A butane lighter also produces fire. A butane lighter can produce 5,000
fires. A lighter costs $1.
Value and cost are not the same!
A light from a match costs $0.01/20 = $0.0005
1,000 lights cost $0.50 A light from the lighter costs
$1/5,000 = $0.0002 Which choice has the greatest
worth?
The VM job plan
Information phase: Review and define the current conditions of the project and identify goals of the study.Objectives, criteria, codes, mandates,
program, budget, schedule, cost estimate.
It isn’t a REAL VALUE STUDY without aCERTIFIED VALUE PROFESSIONAL.
The VM job plan
Function Analysis Phase: Define the project functions using a two-word verb-noun definition and analyze them to determine which require improvement to meet the goals of the study.What does it do? What must it do?
What is its value? Who is it for?80% of the opportunity to improve
value and achieve cost savings is here!
It isn’t a REAL VALUE STUDY without aCERTIFIED VALUE PROFESSIONAL.
The VM job plan
Creative Phase: Apply creativity techniques to identify different ways or ideas to perform key functions of the project.Brainstorm, generate ideas, identify
continuing concepts, identify contiguous concepts, identify opposite concepts.
It isn’t a REAL VALUE STUDY without aCERTIFIED VALUE PROFESSIONAL.
The VM job plan
Evaluation Phase: Use a structured evaluation process to select which ideas could best improve the project.Compare, research the facts, seek out
experts, document resources, use common sense, determine the pros and cons.
It isn’t a REAL VALUE STUDY without aCERTIFIED VALUE PROFESSIONAL.
The VM job plan
Development Phase: Develop selected ideas into VM alternatives (or proposals) and document them at a sufficient enough level to enable decision makers to determine if the alternatives should be implemented in future project activities.Prepare sketches, refine cost, research life
cycle costs, weigh advantages/ disadvantages, determine whether alternatives meet the criteria.
It isn’t a REAL VALUE STUDY without aCERTIFIED VALUE PROFESSIONAL.
The VM job plan
Presentation Phase: Develop a report and/or oral presentation that conveys and documents the alternatives developed by the team.Each proposal stands alone.Savings are cumulative.Each proposal is presented and
debated.
It isn’t a REAL VALUE STUDY without aCERTIFIED VALUE PROFESSIONAL.
The VM job plan
Implementation Phase: Execute the approved alternatives.Assist the design professional.Response to requests for information.User partnering to negotiate change.Monitor project progress.Report to client regularly.Document cost impact.
It isn’t a REAL VALUE STUDY without aCERTIFIED VALUE PROFESSIONAL.
Who’s on the VM team?
DesignTeam
Client
Customer
StudyTeam
Leader(CVS)
PROJECT,PRODUCT,
OR PROCESSUNDERSTUDY
VM results
Cost Effective Design Cost Effective Design Cost Effective Reliable Design
“Cost Reliability” means:
Basic Function = Common Sense Common Sense = Cost Reliability Cost Reliability = Good Value Good Value = Everybody Wins!
SAVE International
Mission: SAVE International will be the leading advocate for the practice of value enhancing methods.
Vision: SAVE International will promote, support, and advance the practice of value enhancing methods through global exchange, networking, certification, member services, professional growth, and recognition.
Spreading the Vision
SAVE International promotes and advances value enhancing methods through international affiliations: Canadian Society of Value Analysts Design-Build Institute of America European Governing Board Hong Kong Institute of Value Management Indian Value Engineering Society Institute of Industrial Engineers Institute of Value Management UK Korean Institute of Construction Engineering and Management Society of Hungarian Value Analysts Society of Japanese Value Engineers Society of Korean Value Engineers Value Engineering Society of Beijing Value Management Institute of Taiwan
SAVE International membership
SAVE International has members in nearly 50 countries worldwide and about half have earned certification through the society’s certification program.
Membership Distribution
77.9%
5.6%
8.2%
6.1%
0.7%
1.5%
USA & Canada
Europe
Middle East
Far East & Pacific Rim
West Indies, Mexico, Central America,South America
Elsewhere
SAVE International programs
Certification programCertified Value SpecialistsValue Methodology PractitionersAssociate Value Specialists
SAVE International’s membership and certification program encompass over 40 countries worldwide!
Contact the Certification Administration Office ([email protected]) for more information about the SAVE International Certification Program!
Certification Program
Associate Value Specialist (AVS) affirms that the individual has achieved basic understanding of the value methodology.Module I workshop completed.Pass Parts I and II of certification exam.Certification does not expire.
Certification Program
Value Methodology Practitioner (VMP) recognizes individuals with basic VM training and some experience in the application of the value methodology.Module I workshop completed.Minimum 240 hours study contact hours.Minimum 6 value studies.Minimum 150 hours in VM learning.Minimum 50 hours for sharing VM.Pass Parts I – IV of certification exam.Must re-certify every four years.
Certification Program
Certified Value Specialist (CVS) is the highest level of SAVE International certification and is reserved for value specialists or value program managers who have demonstrated expert level of experience and knowledge in the practice of the value methodology.
Certification Program
Certificated Value Specialist (CVS)Complete Module I and Module II workshops.Minimum 480 hours value study contact hours.Minimum 12 value studies.Minimum 300 hours in VM learning.Minimum 100 hours in sharing VM.Original, scholarly paper.Pass Parts I – VII of certification exam.Must re-certify every four years.
Comparison of certifications
Total Active Certifications
AVS76.0%
VMP0.3%
CVS23.7%
Certifications Among SAVE International Members
AVS47.6%
VMP2.1%
CVS50.3%
SAVE International programs
Annual ConferenceAwards 24 hours of VM learning to
participants.Affords worldwide networking
opportunities.Showcases innovations and success
stories through technical presentations.Offers educational workshops.
SAVE International programs
Web-Based Lecture SeriesOpen to all SAVE International
members.One connection can serve a group of
people.Short (1-hour) presentation broadcast
over the web.
SAVE International publications
Value World: peer-reviewed, scholarly journal.
InterActions: member newsletter. Consultant Directory: annual,
paid directory of value consultants. Conference Proceedings:
technical papers presented at each annual conference.
SAVE International member benefits
Subscription to publications. Subscription to interest-based, electronic
discussion groups. Discounts to training and educational
programs. Discounts on conference and workshop
registrations. Access to online member resources. Access to a worldwide network of value
professionals. Discounts on bookstore merchandise.
For more information
Call (937) 224-7283. Fax (937) 222-5794. Email [email protected]. URL www.value-eng.org. Mail to 120 South Keowee Street,
Dayton, OH 45402 USA.
Become a member. Join online!
Thank you!
SAVE International thanks its dedicated members for their contributions to promotion of and education in the Value Methodology.
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