Value Engineering

Value engineering is a collaborative, systematic approach to analysing all aspects of a project to maximise value. Value engineering can be done at any stage of a project, however its value is greatest when applied during the early phases of a project, such as pre-feasibility phase.

Value Engineering is an investment in project value. It identifies capital or operating costs that can be removed while maintaining or improving a project’s functionality, quality, performance and risk profile.

Value Engineering Principles

Project value is often created by challenging assumptions and the usual ways of doing things so that we can explore innovative ideas to and better align projects with client requirements.

Value engineering principles can be applied to products, processes, systems, and even organisational strategies. The ultimate aim is to optimise value by finding the best ways to meet client needs and achieve project objectives.

Key aspects of the value engineering process are:

1
Function analysis

The first step in value engineering is to identify and understand the essential functions of the product, process, or system. This involves breaking down the components and processes involved and determining the primary purpose or role of each element.

2
Creative idea generation

Value engineering encourages brainstorming and creative thinking to generate ideas for improving the value. Multidisciplinary teams where professionals come together to propose alternative solutions, design changes, or process improvements.

3
Evaluation and analysis

The ideas generated are then evaluated on their potential to reduce costs, enhance performance, improve quality, or address other identified needs. The analysis involves assessing the feasibility, benefits, and potential risks of each proposed idea.

4
Cost-benefit analysis

Value engineering considers the costs associated with implementing proposed changes or improvements and compares them to the anticipated benefits. This analysis helps determine the value-added potential of each idea and guides decision-making.

5
Cost-benefit analysis

Once the most viable ideas are selected, a detailed implementation plan is developed that outlines the steps, resources, timeline, and potential impacts of the proposed changes. It also considers any necessary modifications to existing processes, supply chains, or manufacturing methods.

6
Monitoring and reviews

Value engineering doesn't end with implementation. Continuous monitoring and review are essential to evaluate the effectiveness of the changes and ensure they are delivering the expected value. Feedback from end-users or customers is considered, and further refinements may be made based on the observed outcomes.

Why choose Arche Energy

At Arche, we prefer to start with a value engineering workshop. It brings the team together from kick-off and focusses everyone on building the right project.

Our value engineering workshops are facilitated by an engineer at Principal or Director level who is supported by a second engineer with an independent view on the project.

A good value engineering workshop includes a multidisciplinary team of 8 to12 people, including:

Facilitator
Project sponsor
Concept designers
Operations team
Risk manager
Health/ Safety Advisor
Environmental Lead
Creative Thinkers
Senior Engineers
Versatile Advisors

Arche Energy offers a fixed price value engineering workshop service that will get your project started on its journey started.

For energy and carbon reduction drivers, we also offer a fixed price carbon and energy reduction review.

Email us on [email protected] to find out more.

Value engineering process

This process gets you started and sets an agenda for further analysis and development of concepts during the pre-feasibility study or subsequent stages if the project is in a later stage of development or if the facility is in operation.

Arche Energy creates a workshop environment that fosters creativity, preferably away from the office.

There is nothing like a couple of days away at a luxury retreat to get the creative juices flowing.

When implementing our workshops, we reward creativity and prefer to do our workshop face to face as it fosters collaboration.

We also believe in building a sense of teamwork and trust as value engineering is not a critique nor an opportunity to prove that you are the smartest person in the room.

This is why it is important assume that those who developed the concept design were intelligent and competent but likely had a limited budget or a slightly different project brief when they prepared the concept study.

We also focus on value and business outcomes including emissions reductions and risk reductions.

Value Engineering ideas in energy projects

1
Technological innovation

Explore and leverage technological advancements to improve project efficiency and performance. This could involve adopting cutting-edge renewable energy technologies, implementing smart grid systems, utilising advanced control and automation systems, or integrating energy storage solutions.

2
Supply chain optimisation

Optimise the supply chain by collaborating with suppliers, contractors, and partners to identify opportunities for cost savings, quality improvement, and schedule optimisation. Efficient procurement practices, effective contract management, and strategic vendor selection can help reduce costs and streamline project execution.

3
Energy efficiency measures

Implement energy-efficient design principles and technologies throughout the project. This includes optimising building insulation, utilising energy-efficient equipment, incorporating renewable energy systems, and employing energy management systems. By prioritising energy efficiency, you can reduce operational costs and enhance the project's environmental sustainability.

4
Waste heat

Explore options for utilisation of waste heat for electricity production or process heat.
Include aspects such as adsorption and absorption air-conditioning (yes waste heat can produce cold air).

5
Performance Monitoring and Optimisation

Continuously monitor project performance and gather data to identify areas for improvement. Utilise data analytics and performance metrics to track energy production, resource utilisation, system efficiency, and financial performance. Regularly analyse performance data to identify opportunities for optimisation and make informed decisions.

Options to explore in value engineering infrastructure projects

Stakeholder engagement

Engage with stakeholders, including local communities, government agencies, and regulatory bodies, throughout the project. Seek their input, address concerns, and incorporate feedback into project planning and decision-making processes.

Quality assurance and control

Implement quality assurance processes to ensure compliance with industry standards and specifications. Conduct regular inspections and quality control checks during construction to maintain high-quality standards.

Risk management

Identify and mitigate risks associated with the project. Conduct comprehensive risk assessments to identify potential hazards, vulnerabilities, and uncertainties. Develop risk mitigation plans and contingency strategies to address potential disruptions or adverse events.

Optimise design and planning

Invest time and resources in the design and planning phase to ensure optimal project outcomes. Conduct feasibility studies, environmental impact assessments, and detailed engineering analyses to identify the most efficient and cost-effective design solutions.

Lifecycle cost analysis

Conduct a thorough analysis of the project's lifecycle costs, including construction costs, maintenance costs, operational expenses, and future upgrades. By considering long-term costs and benefits, you can make informed decisions that optimise value over the project's lifespan.

Apply principles

Apply value engineering principles to optimise project value. Identify opportunities to reduce costs without sacrificing quality or functionality. Collaborate with project stakeholders to generate ideas for value improvement, assess their feasibility, and implement viable alternatives.

Project management and control

Implement robust project management practices to ensure efficient project delivery. Establish clear project objectives, roles, and responsibilities. Develop detailed project schedules, monitor progress, and manage resources effectively.

Collaboration and knowledge sharing

Foster collaboration and knowledge sharing among project stakeholders, industry experts, and research institutions. Participate in industry associations, conferences, and collaborative initiatives to stay updated with emerging trends, best practices, and lessons learned.

Sustainable and resilient design

Integrate sustainability and resilience principles into the project design. Incorporate energy-efficient features, renewable energy sources, and water conservation measures. Consider climate change adaptation strategies to enhance the project's resilience to future environmental challenges.

Innovation and technology

Embrace innovative technologies and construction methods to improve project efficiency, sustainability, and performance. This could involve utilising Building Information Modeling (BIM), digital twins, and other advanced technologies to enhance project visualisation, coordination, and management.

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