How do you show engineering project value?

1 Define the value proposition

The first step to show engineering project value is to define the value proposition of your project. This is a statement that describes how your project solves a problem, satisfies a need, or creates an opportunity for your target audience. It should also highlight the unique features and benefits of your project that differentiate it from other alternatives. A value proposition should be specific, measurable, achievable, relevant, and time-bound. It should answer the questions: What are you offering? Who are you offering it to? Why should they care?

2 Use value engineering techniques

The second step to show engineering project value is to use value engineering techniques to optimize your project design and performance. Value engineering is a systematic approach to improve the value of a project by identifying and eliminating unnecessary costs and enhancing the functionality and quality of the project. Value engineering involves analyzing the functions, requirements, and objectives of the project, and finding creative ways to achieve them with less resources, time, and effort. Value engineering can help you reduce waste, increase efficiency, and improve customer satisfaction.

3 Apply financial analysis methods

The third step to show engineering project value is to apply financial analysis methods to evaluate the economic feasibility and profitability of your project. Financial analysis methods are tools that help you estimate and compare the present and future values of your project cash flows, taking into account the time value of money, inflation, interest rates, and risk factors. Some of the common financial analysis methods are net present value (NPV), internal rate of return (IRR), payback period, benefit-cost ratio (BCR), and return on investment (ROI). Financial analysis methods can help you justify your project decisions, prioritize your project alternatives, and demonstrate your project returns.

4 Communicate with stakeholders

The fourth step to show engineering project value is to communicate with your stakeholders effectively and persuasively. Stakeholders are the people or groups who have an interest or influence in your project, such as clients, sponsors, team members, suppliers, regulators, and end-users. Communication is essential to align your project goals, expectations, and outcomes with your stakeholders' needs, preferences, and feedback. Communication also helps you build trust, rapport, and collaboration with your stakeholders. To communicate with your stakeholders, you should use clear, concise, and consistent language, tailor your message to your audience, use appropriate formats and channels, and provide evidence and examples to support your claims.

5 Monitor and control the project value

The fifth step to show engineering project value is to monitor and control the project value throughout the project life cycle. Monitoring and controlling the project value means measuring and tracking the actual performance and results of your project against the planned value proposition, value engineering, and financial analysis. It also means identifying and managing any deviations, changes, or issues that may affect the project value. Monitoring and controlling the project value can help you ensure that your project delivers the expected benefits, meets the quality standards, and stays within the budget and schedule.

6 Capture and share the project value

The sixth and final step to show engineering project value is to capture and share the project value with your stakeholders and other interested parties. Capturing and sharing the project value means documenting and reporting the achievements, outcomes, and impacts of your project, as well as the lessons learned, best practices, and recommendations for future projects. It also means celebrating and acknowledging the contributions and successes of your project team and partners. Capturing and sharing the project value can help you demonstrate your project performance, value, and reputation, as well as improve your project management skills and knowledge.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?