Value Engineering Study

• The Primary objective of a Value Engineering Study is value improvement. The value improvements might be related to functional design, coordination, constructability, schedule for project expansion.
• To generate and evaluate alternative concepts that would contribute to reduction of the NET Present Value.
• Secondary Objective is improving Operability, maintainability and HSE performance.

Value Engineering (VE) is a systematic process using a multidisciplinary team to improve the value of a project through analysis of its system, equipment, facilities, services functions and supplies for achieving required functions at Inexpensive Life Cycle Cost, consistent with required reliability, performance, HSE, and quality.

Deploy teamwork to blend combined talents toward common Value Engineering objectives in a workshop environment. The Value Engineering Job Plan was employed in analyzing the project and is composed of the following phases:

Orientation Phase/Pre-VE study – Refine the problem and prepare for the value study.

Information ‐ The objective of this phase is to obtain a thorough understanding of the project’s design criteria and objectives by reviewing the project’s documents and drawings, cost estimates, and schedules.

Functional Analysis ‐ The purpose of this phase is to identify and define the primary and secondary functions of the project. A Functional Analysis System Technique (FAST) is used to quickly define the functions of the project. A Model FAST diagram is shown below.

Creative/Speculation ‐ During this phase the team engages creative techniques such as  brainstorming to develop a number of alternative concepts that satisfy the project’s primary functions.

Evaluation ‐ The purpose of this phase is to evaluate the alternative concepts developed by the Value Engineering Team during the brainstorming sessions. The team uses a number of tools to determine the qualitative and quantitative merits of each concept. A Model evaluation criteria template is shown below.

Development ‐ Those concepts that ranked highest in the evaluation were further developed into Value Engineering recommendations. Narratives, drawings, calculations, and cost estimates are prepared for each recommendation.

Presentation ‐ The Value Engineering Team presents their finding in the form of a written report. In addition, an oral presentation is made to the owner and the design team to discuss Value Engineering recommendations.

Implementation/Resolution ‐ Evaluate, resolve, document and implement all approved recommendations. A Model Template is attached below.

Value Engineering study session activities includes exploring the project ambit, visiting the site (if required), examining project functions, brainstorming ideas, developing ideas and finally presentation of selected ideas to Project Manager for approval and implementation.
The Value Improvement Process’s indicated in the below table is applicable to “Operational” stage shall be discussed with the team and the team inputs shall be recorded in the Value Engineering Ideas table.

The Value Improvement Process’s indicated in the below table is applicable to “Operational” stage shall be discussed with the team and the team inputs shall be recorded in the Value Engineering Ideas table. 

WORKSHOP PARTICIPANTS

A multidisciplinary team of engineers / specialists from COMPANY, CONTRACTOR and HSE CONSULTANT shall participate in Value Engineering workshop to ensure that all hazards are identified and assessed.

The Value Engineering Workshop will be facilitated by Value Engineering Chairman (HSE CONSULTANT) and the workshop proceedings will be recorded by the Scribe (HSE CONSULTANT).

The list of participants required during the workshop are Project Manager, Value Engineering Chairman , Technical Scribe , HSE Engineer, Operations Specialist , Maintenance Specialist , Civil / Structural Engineer, Electrical Engineer, I & C Engineer, Piping / Pipeline Engineer , Process Engineer , Asset & Operating Integrity Specialist (on call basis), Construction Representative (on call basis).

WORKSHOP PACKAGE

The following documents shall be provided to all workshop participants before the workshop

1. Value Engineering TOR

2. The soft copies for Value Engineering package

•  Description of existing and new facilities
•  HSE Philosophy
•  Hazardous Area Classification layout
•  Fire Protection Philosophy
•  Emergency Response Plan
•  Fire and gas Detection system Layout
•  Process Description
•  PFDs
•  P&IDs
•  Plot Plan
•  Equipment Layout
•  Operating Philosophy
•  Equipment List
•  Maintenance Philosophy
•  Major Equipment’s (Weight wise and size wise)

A combined Value Engineering Report will be submitted, for review and approval. As the study report shall document the following as:

1. Executive Summary;
2. Introduction;
3. Areas of potential weakness;
4. Further studies required;
5. Recommendations
   • Appendix
   • List of Attendees
   • Terms of reference
   • Worksheets
   • Drawings utilized during the Workshop
   • List of background reference document
   • Action sheets

ACTION TRACKING

Action Close out Sheets shall be filled upon completion of the Value Engineering workshop. Close out of actions resulting from the recommendations of the workshop shall be performed by response