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What is Value Analysis?
Value Engineering a.k.a. Architorture
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Value Analysis is.
an organized team study of functions to
creatively generate alternatives which will
satisfy the users needs at the lowest initialand/or life-cycle cost
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Value Analysis is NOT..
A COST CUTTING PROGRAM!!!!
Cost cutting programs cut costs
regardless of how they affect the product.
Any product can be cut in costs!
JUST A HURDLE TO JUMP
THROUGH
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Value Analysis IS about..
Sound, Defensible, Value-based Decision
Making
Providing essential functions for anappropriate cost
Benefit to Cost Relationships and working
both sides of the equation. Managing the Decision Points
Making better decisions!!!
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Why do Value Analysis..?To improve benefit or reduce cost.
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Value Analysis Job Plan
Information Phase (Investigation)
Functional Analysis Phase (Analysis)
Creativity Phase (Speculation)
Evaluation Phase
Development Phase
Recommendation Phase (Presentation)
Implementation Phase
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INFORMATIONINFORMATIONPHASEPHASE
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Information Phase
Understand the function and purpose of the
project by gathering relevant information.
Review base data
Stakeholders
Building Program
Current Alternatives
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FUNCTIONALFUNCTIONAL
ANALYSISANALYSIS
PHASEPHASE
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Functional Analysis
Park Purpose and Significance -- ? Exist for
Monument Open Space/Monument Fire
Center? Program
What does a facility need to do?
How do you do it?
Why do you do it?
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Functional Analysis
Fast Diagram
Functional
AnalysisSystem
Technique
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FAST Diagramming
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Functional Analysis
Shenandoah NP - Water Pipe MaterialFUNCTION ANALYSIS SYSTEM TECHNIQUE (FAST) DIAGRAM
HOW? WHY?>>==> DESIGN OBJECTIVES ALL THE TIME
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Cost Model
PLAN COMPONENT COSTS - NEW RIVER GORGE NR DCP
$2,621,576
$1,812,000
$1,195,043
$1,195,043
$1,153,720
$857,500
$655,394
$655,394
$639,000
$450,000
$332,350
$332,350
$224,000
$203,000
$190,000
$171,000
$158,172
$150,000
$144,000
$100,000
$90,000
$40,500
$36,000
$36,000
$30,000
$15,000
$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000
CSA - Cliffside Amphitheater
POA - Maintenance Shop
POA - Associated Site Work
POA - Associated Utilities
GS/U - Ass ociated Utilities
POA - Off ice Complex
CSA - Associated Site Work
CSA - Associated Utilities
CORE - New Visitor Center
CORE - Environmental Education Center
CORE - As sociated Site Work
CORE - A ssoc iated Utilities
TS - New A sphalt Road and Parking
CORE - Restrooms
TS - Clearing and Grubbing
TS - Road RestorationPOA - Ranger Fire Cache
GS/U - Align/Adjus t New As phalt Road
PA - Picnic Shelters (4 ea @ 2&3)
POA - Refurbish Site of Demo Struct
TSMaintainance Pole Barn
POA - Covered Parking: Vehicle Storage
PA - Associated Site Work
PA - Associated Utilities
POA - Demolish Unused Core Area Structures
GS/HM - Hazmat Removal
P
LANCOMPONENTS
NET CONSTRUCTION COST
KEY
GS/HM - General Site/Building HazmatPOA - Park Operations Area
TS - Turkey Spur
CORE - Core Areas
CSA - Cliffside Amphitheater
PA - Picnic Areas
GS/U - General Site Work & Utilities
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What areas should we focus on?
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CREATIVITYCREATIVITY
PHASEPHASE
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Creativity Phase
"Brain-storm" alternative methods of
achieving the required functions of a
project.
Ideas are not evaluated, since criticism of an
idea could discourage participation,
decrease the flow of alternatives, and inhibit
the creative endeavor.
Promote and encourage sustainable
concepts and other policy objectives
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Roadblocks to new ideas.
It needs higher approval
Its too ambitious for us
We did it this way the last time We have no problems nowwhy change
If you want a quick answer it isNO!!
It does not agree with the guide specs
Its against our policy
Thats not the way its done around here
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Roadblocks to new ideas.(cont)
It wont work
Its too much trouble to phase in
We tried that 10 years ago, and it didnt Let maintenance take care of that
Let operations handle it
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EVALUATIONEVALUATION
PHASEPHASE
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Evaluation Factors
Value Analy i
Evalua ion Fa o
Choo ing By Advan age
Se vi ewide P io i y
Evalua ion Fa o
Choo ing By Advan age
Na ional Leade hip Coun il
bje ive
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Objectives
Protect cultural and natural resources
Provide for visitor enjoyment
Improve efficiency of forest operations
Provide cost-effective, environmentally
responsible, and otherwise beneficial
development for the national forest system
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Evaluation Factors
Prevent loss of resources
Maintain or improve condition of Resources
Provide visitor services and educational and
recreational opportunities including accessibility
Protect public health, safety, and welfare
Improve operational efficiency and sustainability
Protect employee health, safety, and welfare Provide other advantages to the national forest
system
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CHOOSING BY
ADVANTAGESA DECISION MAKING PROCESS
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CBA Purpose.......
To simplify, clarify and unify
decisionmakingTo quantify non-monetary
benefits or advantages
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Effective Decisionmaking
Doing the Right Things Right - the First
Time, Every Time, and On Time - in a
manner that is acceptable to variousstakeholders who may have conflicting
values and preferences
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Definitions
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CBA Matrix...
FACTOR ALTERNATI ES
SITENO. 8 SITENO. 19 SITENO. 23
FACTOR 1 WaterAttributes
y 60 Feet Away y 260 Feet Away y 150 Feet Away
Advantages
200Feet Closer 40 110 Feet Closer 30
FACTOR2 Te tSpotAttributesy Moderately Level y Almost Level y Quite Sloping
Advantages
Moderately more Level 30 Much more Level 70
FACTOR 3 - Ta
leAttributes
y Without y Without y With
Advantages
With versus Without 65
FACTOR 4 -
rivacy
Attributesy Close sites
y Near Roady screened
y distant sitesy screened
y Close sites
Advantages
Much More Privacydue to screening andremoteness
100Moderately morePrivacy due toscreening
45
TOTAL I
ORTANCESOF
ADVANTAGES
70 170 140
TOTALCOST $3.00 $4,50 $20.00
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DEVELOPMENTDEVELOPMENTPHASEPHASE
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Development Phase
Best alternatives are developed into
proposals for final evaluation and
presentation. Initial Cost Estimates
Life Cycle Cost Estimates
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Money Decisions
Require Special Methods The PrincipleofInterdependency:A dollar
spent for one purchase is not available for another
Wellingtons
Rule:
No increase of
expenditure over the unavoidable minimum is
expedient or justifiable, however great the
probable profits and value of the enterprise as a
whole, unless the INCREASE can with reasonablecertainty be counted on to be, in itself, a profitable
investment.
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Money Decisions
Require Special Methods An increment is increase in cost, coupled
with an increase, a decrease, or no change
in total importance of advantages, orbenefits.
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Importance to Cost GraphCAMPSIT SELECTION
170
0
70
140
0
20
40
60
80
100
120
140
160
180
200
$0 $5 $10 $15 $20 $25
INITIAL COST(Net)
IMPORTANCE
A
lternativeS2
Alt
ernativeS3
AlternativeS
1
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Life Cycle Cost is.
Life cycle costing is the development of all
significant cost of ownership of an item,
system, or facility, over a specified lengthof time
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RECOMMENDATIONRECOMMENDATION
andandPRESENTATIONPRESENTATION
PHASEPHASE
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Recommendation and
Presentation Phase Review Decisions
Make Recommendations
Conduct Presentation
Summarize
Wrap-up
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IMPLEMENTATIONIMPLEMENTATION
PHASEPHASE
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Implementation Phase
Occurs outside the workshop and provides for
implementation of accepted VA proposals.
Follow Through
Documentation
Monitoring