Function Approach to Transportation Projects - A Value Engineering Guide

This book describes value engineering (VE), a logical, structured method of solving problems within a team-oriented approach. Larry Miles, widely known as the father of value engineering, introduced this concept during World War II. His subsequent practice of this technique had a strong emphasis on creativity. This book uses a specific transportation project as a case study to demonstrate value engineering applications. Value engineering is practiced with a team approach, usually three to six people. However, after learning these techniques, you will find that VE can be performed by an individual on small elements. The Details of the Content The transportation case study is from an actual Benesch project. The VE methodology applied during this study is described in sequential order, so the reader can gain an understanding of how the different components relate to each other. Each chapter uses this case study as the primary example to demonstrate the theory discussed. In addition, other examples are used to supplement the reader’s understanding of the subject discussed in the chapter. Chapter 1 introduces the VE Job Plan. It describes the phases, with questions and rules for each phase. The VE Job Plan includes the Information Phase, Speculation Phase, Evaluation Phase, Development Phase and Presentation Phase. Chapters 2 through 6 describe the Information Phase. The VE methodology stresses the importance of understanding and analyzing the problems. The majority of the VE effort, as much as 60% , is used during the Information Phase. Chapter 2 defines the people behind the problem or project. Identifying the stakeholders and understanding their constraints, needs and desires are the steps learned here. In particular, recognizing stakeholders roadblocks, in the form of constraints, is key to the implementation of any new idea. Chapter 3 describes the unique VE approach to functions. Using the conflicting needs and desires of various stakeholders of the project, the VE process expresses them in terms of project functions. Functions are the reason the final project will be accepted as a solution. Chapter 4 demonstrates a way to organize functions in a structured manners. Function Analysis System Techniques (FAST) separates VE from other methodologies. In this book, it is described as a “Function Logic Diagram” instead of a “FAST diagram.” Either name is acceptable. Chapter 5 stresses that all decisions are based on cost or affordability. Cost of the project can be determined at various levels of the VE, depending upon the details that are available at that time. The concept of elemental cost, as opposed to the trade cost of material, is needed to perform function analysis. Chapter 6 describes the final step of the Information Phase. Function analysis distributes the cost of the project to each function. It also questions the worth of the function cost. This step will reveal the valuable functions as well as the mismatched functions. It sets the direction for the rest of the Job Plan. Chapter 7 describes the Speculation Phase. This phase is the creative process of problem solving. Based on their understanding of the project, the team is challenged to be creative in their thinking. For each function, the team members are encouraged to create numerous ways of performing that function. The chapter provides techniques to increase the number of ideas. Chapters 8 and 9 describe the Evaluation Phase. This phase sets the stage for the decision process. Two major steps are introduced: screening and judging. Chapter 8 describes the screening process which eliminates ideas that are not acceptable or needed. The selected ideas will be combined to a meaningful number of alternatives for judging. Chapter 9 describes the ranking of alternatives by judging. The judging process selects the ideas that warrant further consideration. Judging is based on how the alternatives perform, how they are accepted and whether the alternative is worth the effort. Leading alternatives are then developed for implementation. Chapter 10 describes the Development Phase, demonstrating how to narrow down the choices so that a preferred alternative can be recommended. It requires technical data and visual aids to sell the ideas. Chapter 11 describes the Presentation Phase. It summarizes the needs for the project, the options that were explored, reasons for the final selection and how to present them in a simple, attractive and convincing manner. Chapter 12 discusses two items that are critical to a study: team selection and subject selection. Subject selection uses a specific study to show the selection process. The VE team leader should use this as a guide to develop specific guidelines for the study. Chapter 13 presents certain features of VE. This includes the concept of VE, timing of VE study, Value Engineering Change Proposal (VECP) and understanding of team behavior.