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Presentation describes how the Montreal Transit Agency, STM, used Value Analysis and Functional Performance Specification to describe the system requirements for their Metro (subway) cars.
Value Engineering (VE) has been applied to two recent wastewater treatment plant (WWTP) projects in the Region of Durham with total capital costs exceeding $500 million dollars. The recently completed Courtice WWTP was commissioned in 2008. In 2004 with design nearing completion, construction cost estimates showed the project heading for an overrun of approximately $10 million dollars. To address this potential overrun, the Region commissioned a VE study consisting of the Region representatives and an internal VE team assembled by the design consultant. This team was comprised of senior consultant staff familiar with the project but not involved in the day to day design. An intensive four day session included functional analysis, identification of alternative solutions and development of cost proposals. Cost reduction objectives were realized without compromising project quality. The Duffin Creek WWTP expansion is the second project where the Region's of York and Durham are partnering on the $400 million upgrade and expansion. This project has been delivered including 3rd party VE sessions at the Conceptual Design, Detailed Design and Final Design Stages - it is currently under construction. While overall project value was enhanced at each stage, the cost savings at the conceptual design stage were the most significant. These two projects showed that while the VE was approached differently in each case, the basic VE framework was successful in achieving significant cost savings. In the case of the 3rd party VE, the greatest savings were realized at the conceptual design stage.
As consultants, we have been involved with the development and maturation of several transportation agencies’ programs for managing project cost and schedule risk. Along the way, the agencies’ programs evolved in various ways to meet their particular needs and to overcome challenges. We offer our external perspective on some lessons learned and continuing challenges for these and other agencies in their pursuit of effective project risk-management programs.
HDR has successfully combined Cost Risk Analysis with Value Engineering into an integrated process called “CRAVE”. CRAVE identifies and quantifies opportunities while accounting for risk. CRAVE augments risk analysis by assessing within the same framework all possible alternatives and solutions suggested or recommended by the value engineering team, providing a reality check on proposed innovations. The presentation will provide an overview of the process and how it's applied to various type of projects as well as discuss few case studies.
Nguyen-Parrot is a firm involved mostly in product development using value tools among others. In the past few years, product development has taken a "green" turn and sustainability must be designed into the products right from the start, to satisfy the various stakeholders. This presentation will show how sustainable development of products can be acheived using function analysis with a slight twist to it. An example will help understand the process.
VE Can Help Teams and Projects Be More Sustainable:
- Multi-disciplinary approach helps explore sustainability from other perspectives
- Sustainability can be used as a performance criterion
- Social, economic and environmental sustainability can be weighted
- Sustainability can be a brainstorming target
- VE teams can consider sustainability in making recommendations
- Improved sustainability can be the goal of a VE workshop
The McGill University Value Engineering Workshop provides a unique forum for the interaction of students and industry towards solving a real world problem given by a company. All participants learn the Value Engineering (VE) methodology, but mostly they learn cooperation and a team approach to solving problems. The mutual exposure raises the engineering professionalism of the students, provides solutions to problems for companies, and contributes to the education process. Companies of all sizes have participated in the workshop over the years, obtaining significant value enhancement to product design, manufacturing processes and services, as well as learning the VE methodology.
The presentation will provide an overview of the results of the recent value engineering review of the West Transitway expansion project in Ottawa. An exclusive transit corridor for Bus Rapid Transit (convertible to Light Rail) to be constructed thru an established urban environment. The project value has been estimated at $140 million. This VE review assessed the staging of the extension of the transitway system and the previous EA recommendations that included a tunnelled section of transitway.
The Value Methodology, the oldest, most complete process for identifying problems or improvement opportunities in products, processes or services, has not been adopted nor does it enjoy the visibility of the more popular management tools in today's competitive environment. Total Quality Management, Theory of Constraints, Quality Function Deployment, Design of Experiments, Design for Manufacturing/Assembly, TRIZ, Target Costing, Lean Manufacturing, Six Sigma, etc., are a few of the tools being employed by organizations to resolve problems and improve their bottom line. While these tools may work well within their focus, many lack the broad scope necessary to resolve the overall business concern.
This paper will provide a brief survey of these tools and how they relate to the Value Methodology Job Plan. In many instances the most beneficial management approach would be to employ the value methodology as an overarching approach to addressing management concerns and inserting the appropriate tool when conditions warrant.
The Let’s Get Windsor-Essex Moving strategy is a commitment by the federal and provincial governments to jointly invest $300 million for the implementation of short- and medium-term projects to improve traffic flows to existing crossings and address congestion and security issues in the Windsor Gateway. The strategy includes grade separation of the cross-border Canadian Pacific Railway line at Howard Avenue and Walker Road. The projects are being delivered by the Ontario Ministry of Transportation in cooperation with the City of Windsor and Transport Canada.
Howard Avenue is a major north-south arterial road in Windsor. Significant traffic delays are experienced from the 26 trains that cross Howard Avenue at the CPR tracks each day and these delays have become longer following the installation of the Vehicle and Cargo Inspection System (VACIS), which is required by the U.S. Customs and Border Protection Agency for US-bound trains.
The project to construct a grade separation at Howard Avenue received environmental assessment approval in Spring 2007 and is currently in design with an anticipated construction start in 2009.
A value engineering study was held early in the design phase of the project to identify opportunities to increase the value of the project based on an analysis of the EA recommendations and early pre-design work. The VE brought together all the key stakeholders in the project including representatives from Canadian Pacific Railway, Hydro One Networks, City of Windsor and Transport Canada. Key members of the newly acquired design consultant also participated to maximize the flow of ideas from the workshop to the design team.
The VE study resulted in significant improvements to the design including new bridge types for the two structures and alignment revisions. Value is being realized by the implementation of recommendations that improve the design and reduce property impacts.
Waterfront Toronto (WT), an arms-length corporation funded by and accountable to city, provincial, and national governments, is taking the lead on revitalizing some 2,000 acres of underutilized former industrial lands into sustainable mixed-use communities. An initial step in this $17-billion+ endeavour involves delivering a $2.1-billion program comprising brownfield remediation, civic infrastructure, and public amenities. Innovative design approaches are being widely employed, interface management is complex, and cost/schedule performance is being intensely scrutinized.
To meet these challenges and to better understand and manage the many risks inherent in such complex and multi-faceted projects, WT has been adapting and enhancing the Cost Estimating Validation Process (CEVP®) originally developed by Washington State Department of Transportation (WSDOT) to quantitatively assess cost and schedule risk on individual transportation projects.
The presentation outlines the process WT is following to create risk-based range estimates for program components of varying type, scale, and completion status, integrate estimates on a program level, select budget and schedule targets, set rational contingencies, and communicate analysis results.
At Sanmina-SCI, we have used the VAVE technique on many products in the telecommunications and industrial sectors, such as internet routers and switches, wireless RFID (radio frequency identification) and industrial controller. In the last ten years, we have conducted numerous joint VAVE sessions with our major customers, which resulted in tens of millions of dollars in cost reductions, improved quality and waste elimination. We will present to the audience our approach and a few case studies done recently.
Since year 2001, we have co-developed with a major customer, an accelerated way of conducting VAVE sessions, which was necessary due to time limitations. We can complete a VAVE session on a complex PCBA (Printed Circuit Board Assembly) or a chassis within one day. To achieve it, we prepare and distribute all required information two days prior to the group session. Three phases are completed during the one day session: Function and cost analysis, creativity and ideas evaluation. Finally, the phases of development and presentation, followed by implementation and follow-up are done in the next few weeks after the joint VAVE session, via weekly conference calls.
Sanmina-SCI’s core VAVE expertise consists of four engineers and is promoted by the sales department, to which they belong. Two engineers specialize in electronics, and two in mechanical design. Activities are mainly conducted in North America, but VAVE services are also available in Europe with local, additional resources. Among Sanmina-SCI’s customers, all sizes of companies are eligible to benefit, as long as they provide their resources and commit to follow the process. For example, the customer’s designers are invited at the session to present the functionality of the product in scope. That information is a must to do the functional analysis. It also contributes to educate the multidisciplinary team of Sanmina-SCI on the product’s characteristics.
John Counter Boulevard is a 3.6 km section of roadway that runs east-west within the City of Kingston. It accommodates large volumes of traffic serving local and regional traffic demand. The roadway has become a critical arterial providing an east-west transportation corridor midway between Highway 401 and downtown Kingston. This route will make up part of the corridor for a future third crossing of the Cataraqui River.
To address existing and future demand, the City is proceeding with plans to widen the arterial from 2 to 4 lanes. The Project offers considerable challenges including a proposed grade separation (road over rail) to be constructed in poor soils and through a wetland, contaminated soils issues, property and funding constraints. The estimated cost included in the ESR for the improvements was $32M (2003 Dollars). The City proposes to fund the project entirely through development charges.
MRC undertook a Risk Management Workshop and Risk Analysis in the early stages of their Preliminary and Detailed Design Assignment prior to the final selection of the grade separation alignment. Although not normally undertaken as part of a Risk Assessment Workshop, a brief Value Engineering brainstorming session was integrated with contributions from all of the Workshop participants. This presentation, a case study of MRC’s RECAP Risk Management Process, will include remarks on the integration of some Value Engineering in the Risk Management Process as well as some comments on the suitability to Municipal Government Transportation Projects.
The presentation will discuss two successful case studies that provided the City with a strategy for each project that not only enhanced the original baseline, but also introduced new concepts. In both cases the VE sessions were undertaken upon completion of the study stage and each session included a risk management phase. The new strategies developed by the VE teams are now being carried forward into the design stage.
Function cost is a tool used in value studies to help illustrate the relationships between project elements. Interactions between elements and their perceived value are examined and then used to provide insight into cost.
Through a function cost analysis each project component (function) is identified and assigned an estimated cost. Then, these figures are compared to their perceived value. The exercise yields determinations about value mismatches, shedding light on problem areas. The primary objective of this concept is to achieve the highest user satisfaction while decreasing function costs. This powerful tool is the keystone of effective value planning.
The concept of function cost is widely recognized in theory, but lacks an abundance of documented practical examples. In this presentation, five case studies are drawn from various infrastructure design projects. A series of function cost analyses were incorporated in these projects during the planning phase, and invaluable insight was realized as a result.
The following case studies were conducted:
Case Study 1 - Value is achieved through function cost increases.
Case Study 2 - Value is achieved though reducing cost via selection of an alternate.
Case Study 3 - Value is increased through comprehensive understanding of function cost through the eyes of the client.
Case Study 4 - The perception of cost allocation is explored, with reallocation of the proper function cost elements.
Case Study 5 - Simple solution leads to decreased cost and increased value.
This presentation will walk attendees through the processes of an actual function cost exercise. The information shared here will provide an understanding of how the delicate balance between cost and user satisfaction can be managed. A variety of graphical exhibits will be presented that help explain the importance of this tool and its impact on the engineering industry.
- About VA
- Business Process, Restructuring
- About CSVA
- Success Stories
- Functional Performance Specification (FPS)
- Project Management
- Risk Analysis
- 2004 CSVA Conference
- 2006 CSVA Conference
- 2007 CSVA Conference
- 2008 CSVA Conference
- Business Processes, Restructuring
- Innovation, Integration