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Value Planning
 

 

Value Planning is normally conducted when the conceptual design has not yet been finalized and Value Analysis techniques, especially Function Analysis Systems Technique (FAST), diagramming, are used to select the optimum initial direction for the design to proceed.  Value Planning is especially useful in a design charette.  The Naval Facilities Engineering Command refers to this as Function Analysis at Concept Development (FACD).

Key Benefits

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Value Planning derives the  maximum benefits of the Value Methodology since larger changes to the base case can be made without incurring large redesign costs and/or schedule delays.

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Value Planning is more efficient approach to a new project since there is less momentum to overcome with a particular design approach which will result in more alternative proposals being accepted by the project team.

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Additional benefits derived from doing these early studies include public participation and early “buy-in” by stakeholders that will result in less revision due to rethinking of the project as it progresses.

Applications

 
 
Highway Design During The NEPA Process:

Many of the more comprehensive proposals of a value engineering (VE) study are declined because they are proposed too late in the design process (i.e., 20%-30% completion).  This is because implementation of these proposals would require modification of the DEIS (Draft Environmental Impact Statement), EIS (Environmental Impact Statement), or EA (Environmental Analysis).  Modification of these documents would obviously create considerable project delay and/or cost overruns.  Therefore, the earlier a value engineering study can be conducted during the environmental planning process, the earlier the larger-scope proposals (i.e., those proposals that can save more money) can be implemented without obviating potential savings and creating project schedule disruptions.

The obvious earliest stage to conduct a VE Study is during the Environmental Assessment (EA) or Environmental Impact Study (EIS).  However, only a few VE Studies (CALTRANS and the Utah DOT have done one each) have been done at these stages.  The most likely reason for not doing studies at this stage is that a traditional VE Study has to have a base case against which to measure value improvement most commonly measured in life-cycle cost savings.  With a little incrementing of the VE Job Plan it is possible to do formal VE Study during an EA or EIS and achieve the best of both worlds.

Technology Selection and Process Simplification In Process Industries
 

Value Planning has been used by Solutions Engineering & Facilitating in the chemical industry to examine current processes and to introduce new enhancements, evaluate new processes, e.g., conversion from batch to continuous, and/or reevaluate the direction a research and development program is taking.

 
New Process Check
Value Planning is an especially effective tool for evaluating new and unproven processes early in the design stage.  The controlled rigorous job plan allows challenges and responses to planned designs to take place in a non-threatening manner.

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References Available On Request:

 

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Last modified: 05/23/06