VALUE ENGINEERING MANUAL - West Virginia

1 VALUE ENGINEERING MANUAL WEST Virginia DEPARTMENT OF TRANSPORTATION DIVISION OF HIGHWAYS ENGINEERING DIVISION January 1, 2004 with revisions to June 2014 VALUEENGINEERINGMANUALP repared by: Technical Section ENGINEERING Division Division of Highways West Virginia Department of Transportation January 1, 2004 PRINTED BY: WVDOH OFFICE SERVICES DIVISION i TABLE OF CONTENTS SECTION 10: INTRODUCTION .. 1-1 EXECUTIVE SUMMARY .. 1-1 VALUE ENGINEERING FOR HIGHWAYS .. 1-2 DEFINITION OF VALUE ENGINEERING .. 1-2 WHAT VALUE ENGINEERING ISN'T .. 1-3 ROADBLOCKS TO COST EFFECTIVENESS.

2 1-3 HISTORY OF VALUE 1-4 APPLICABILITY OF VALUE ENGINEERING .. 1-4 EFFECT OF VALUE ENGINEERING .. 1-6 FUNDAMENTALS OF VALUE ENGINEERING .. 1-6 1-6 VALUE ENGINEERING JOB PLAN .. 1-6 VALUE ENGINEERING PRINCIPALS .. 1-10 VALUE ENGINEERING COORDINATOR .. 1-11 SECTION 20: SELECTION 2-1 OBJECTIVE .. 2-1 PROJECTS REQUIRING VE STUDY .. 2-1 CRITERIA .. 2-1 REPRESENTATIVE PROJECT CONCEPT .. 2-1 VE STUDY TIMING.

3 2-2 CONTRACT PLANS .. 2-2 design 2-2 HIGH COST OR HIGH VOLUME ITEMS OR PROJECTS .. 2-2 VE STUDY SELECTION APPROVAL .. 2-3 VE JOB 2-3 VE TEAM 2-3 GENERAL .. 2-3 TEAM MEMBERS FOR PROJECTS REQUIRING VE STUDY .. 2-4 TEAM 2-4 DATA REQUIRED FOR A VE STUDY .. 2-4 SELECTION PHASE CHECKLIST .. 2-5 SECTION 30: 3-1 OBJECTIVE.

4 3-1 INVESTIGATION PHASE 3-1 DISCUSSION .. 3-2 GATHER ALL TYPES OF INFORMATION .. 3-2 GO TO THE BEST INFORMATION SOURCE .. 3-3 OBTAIN COMPLETE PERTINENT 3-3 WORK WITH SPECIFICS/FACTS .. 3-3 GET ALL AVAILABLE 3-4 DETERMINE THE FUNCTIONS .. 3-4 DEFINING FUNCTIONS .. 3-4 ii IDENTIFYING 3-5 CLASSIFYING FUNCTIONS .. 3-6 FUNCTIONAL RELATIONSHIP .. 3-6 DEVELOPING A FAST 3-7 DETERMINATION OF FUNCTIONAL WORTH .. 3-9 DETERMINATION OF FUNCTIONAL 3-9 DETERMINATION OF FUNCTIONAL VALUE .

5 3-10 INVESTIGATION PHASE CHECKLIST .. 3-10 SECTION 40: SPECULATION PHASE .. 4-1 OBJECTIVE .. 4-1 SPECULATION PHASE OUTLINE .. 4-1 PLAN FOR CREATIVE SESSIONS .. 4-1 CREATIVE THINKING TECHNIQUES .. 4-1 FREE ASSOCIATION TECHNIQUES .. 4-2 BRAINSTORMING .. 4-2 GORDON 4-2 ORGANIZED TECHNIQUES .. 4-3 CHECKLIST 4-3 CATALOG 4-3 MORPHOLOGICAL ANALYSIS.

6 4-3 ATTRIBUTE 4-3 SPECULATION PHASE 4-3 SECTION 50: EVALUATION 5-1 OBJECTIVE .. 5-1 EVALUATION PHASE 5-1 DISCUSSION .. 5-1 WEIGHTING ALTERNATES .. 5-1 ALTERNATE/CRITERIA METHOD .. 5-1 ALTERATE OBJECTIVE 5-2 WEIGHTING CRITERIA AND OBJECTIVES .. 5-3 EVALUATION PHASE CHECKLIST .. 5-4 SECTION 60: DEVELOPMENT 6-1 OBJECTIVE .. 6-1 DEVELOPMENT PHASE OUTLINE.

7 6-1 DISCUSSION .. 6-1 DEVELOPMENT PHASE TECHNIQUES .. 6-1 6-2 LIFE CYCLE 6-3 SECTION 70: PRESENTATION PHASE .. 7-1 OBJECTIVE .. 7-1 PRESENTATION PHASE OUTLINE .. 7-1 DISCUSSION .. 7-1 iii WRITTEN PROPOSAL .. 7-2 GAINING VEP 7-2 THE VE WORKBOOK .. 7-3 REASONS FOR REJECTION OF VE 7-4 PRESENTATION CHECKLIST .. 7-5 WRITTEN REPORTS .. 7-6 ORAL PRESENTATION .. 7-6 VISUAL 7-7 SECTION 80: IMPLEMENTATION 8-1 OBJECTIVE .. 8-1 IMPLEMENTATION PHASE OUTLINE .. 8-1 DISCUSSION .. 8-1 IMPLEMENTATION INVESTMENT.

8 8-1 EXPEDITING IMPLEMENTATION .. 8-1 IMPLEMENTATION PHASE CHECKLIST .. 8-1 SECTION 90: AUDIT PHASE .. 9-1 OBJECTIVE .. 9-1 AUDIT PHASE OUTLINE .. 9-1 DISCUSSION .. 9-1 9-1 AUDIT RESPONSIBILITY .. 9-2 AUDIT PHASE CHECKLIST .. 9-2 SECTION 100: VALUE ENGINEERING CHANGE PROPOSAL .. 10-1 INTRODUCTION .. 10-1 10-1 APPENDIX A: VALUE ENIGNEERING STUDY WORKBOOK (Blank) .. A-1 VALUE ENIGNEERING STUDY WORKBOOK (Example) .. A-36 APPENDIX B: ENGINEERING ECONOMICS ..B-3 COST FACTORS ..B-11 SUMMARY ..B-14 GLOSSARY.

9 B-14 ENGINEERING ECONOMIC TABLES ..B-19 LIFE CYCLE COST REFERENCES ..B-43 iv1-1 SECTION 10: INTRODUCTION EXECUTIVE SUMMARY: The West Virginia Division of Highways (WVDOH) recognizes the need for the prudent use of diminishing resources and revenues while providing a quality transportation program. VALUE ENGINEERING (VE) is a function-oriented technique that has proven to be an effective management tool for achieving improved design , construction, and cost-effectiveness in various transportation program elements. It is anticipated that the successful implementation of a VE program will result in additional benefits beyond design and cost savings; for example, constant updating of standards and policies, accelerated incorporation of new materials and construction techniques; employee enthusiasm from participation in agency decisions; increased skills obtained from team participation.

10 VALUE ENGINEERING is one of the most effective techniques known to identify and eliminate unnecessary costs in product design , testing, manufacturing, construction, operations, maintenance, data, procedures and practices. This MANUAL provides guidelines for the implementation and application of a VE program for the WVDOH. The following are the core elements of the WVDOH VE program: xA firm commitment of resources and support by executive management to assure the success of the VE program. xAll levels of management must understand and support VALUE ENGINEERING . xA commitment to provide some degree of VE training or program familiarization at appropriate levels within the WVDOH organization.