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How can you ensure value engineering aligns with project sponsor needs?

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Value engineering (VE) is a systematic approach to optimize the function, quality, and cost of a project or a product. It can help you deliver more value to your project sponsors and stakeholders by eliminating unnecessary features, improving performance, and reducing waste. However, VE is not a one-size-fits-all solution. You need to align your VE objectives and methods with the specific needs and expectations of your project sponsors. Here are some tips on how to do that.

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Luis Rojas Valdivia

Empresario, Científico e investigador, CEO GMT Group, Doctorando en Industria Inteligente #PUCV
Bisma Nasim

Avionics Systems Engineer | Engineering Manager | MEng, BE

1 Understand the sponsor's value drivers

Before you start your VE process, you need to identify and understand what your project sponsor values the most. What are their goals, priorities, and constraints? What are their criteria for success and satisfaction? How do they measure and compare the benefits and costs of different alternatives? You can use various tools and techniques, such as stakeholder analysis, value tree, value matrix, and value index, to elicit and clarify the sponsor's value drivers. This will help you define the scope and focus of your VE efforts and avoid misalignment or conflict.

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Luis Rojas Valdivia

Empresario, Científico e investigador, CEO GMT Group, Doctorando en Industria Inteligente #PUCV
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Mi experiencia, la clave para asegurar esta alineación comienza con un diálogo abierto y continuo con el patrocinador. Este diálogo va más allá de las reuniones formales; se trata de construir una relación de confianza y comprensión. He aprendido que los objetivos de un patrocinador pueden ir más allá de lo económico, incluyendo aspectos como la sostenibilidad, la innovación y el impacto social, especialmente en la minería, donde la responsabilidad ambiental y social es foco. Un ejemplo práctico de cómo hemos aplicado esto es a través de sesiones de trabajo colaborativo. En estas sesiones, utilizamos herramientas como el análisis de partes interesadas y el árbol de valores, no solo al inicio del proyecto, sino como una práctica continua.

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2 Involve the sponsor in the VE team

One of the best ways to ensure your VE aligns with the sponsor's needs is to involve them in the VE team. The sponsor can provide valuable input, feedback, and support throughout the VE process. They can also help you communicate and coordinate with other stakeholders, such as end-users, customers, regulators, and suppliers. By involving the sponsor in the VE team, you can build trust, rapport, and buy-in for your VE proposals. You can also reduce the risk of resistance or rejection during the implementation stage.

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3 Apply the VE methodology rigorously

To ensure your VE is effective and credible, you need to apply the VE methodology rigorously. The VE methodology consists of six phases: information, function analysis, creative, evaluation, development, and presentation. Each phase has specific objectives, tasks, and tools to help you analyze, generate, select, and present the best value alternatives for your project or product. You need to follow the VE methodology systematically and document your results and decisions clearly. This will help you demonstrate how your VE aligns with the sponsor's needs and how it adds value to the project or product.

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Luis Rojas Valdivia

Empresario, Científico e investigador, CEO GMT Group, Doctorando en Industria Inteligente #PUCV
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He observado que el éxito de la EV reside en seguir meticulosamente sus seis fases: información, análisis de funciones, creatividad, evaluación, desarrollo y presentación. En cada proyecto, dedicamos tiempo a comprender en profundidad el contexto del proyecto, lo que nos permite realizar un análisis de funciones más efectivo y relevante. Esta fase es crucial, ya que establece la base para las ideas innovadoras que surgirán en la etapa de creatividad. En la fase de creatividad, fomentamos un ambiente donde el equipo se siente libre de proponer ideas audaces, lo cual es esencial en una industria que constantemente busca superar límites técnicos y ambientales.

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4 Use relevant and reliable data

Another way to ensure your VE aligns with the sponsor's needs is to use relevant and reliable data to support your analysis and recommendations. You need to collect and verify the data that relates to the sponsor's value drivers, such as functional requirements, performance indicators, cost estimates, risk assessments, and market trends. You also need to use appropriate data analysis techniques, such as function-cost analysis, life cycle cost analysis, value engineering change proposal (VECP), and return on investment (ROI) analysis, to compare and quantify the value of different alternatives. By using relevant and reliable data, you can increase the confidence and acceptance of your VE by the sponsor.

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Luis Rojas Valdivia

Empresario, Científico e investigador, CEO GMT Group, Doctorando en Industria Inteligente #PUCV
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Para cada proyecto, nos enfocamos en recopilar y verificar datos precisos relacionados con los impulsores de valor del patrocinador. Esto incluye desde los requisitos funcionales y los indicadores de rendimiento, hasta las estimaciones de costos y las evaluaciones de riesgos. Los datos sobre tendencias del mercado también son críticos para anticipar cambios y adaptar nuestras estrategias. Aplicamos técnicas de análisis de datos como el análisis de costos de función y el análisis de costos del ciclo de vida, lo que nos permite tener una visión completa del valor a lo largo de la vida útil del proyecto.

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5 Communicate the VE results effectively

Finally, you need to communicate the VE results effectively to the sponsor and other stakeholders. You need to tailor your communication style and content to the audience's needs and preferences. You need to highlight the benefits and advantages of your VE proposals, as well as address any concerns or objections. You need to use clear and concise language, as well as visual aids, such as charts, graphs, diagrams, and models, to illustrate your VE results. You also need to solicit and respond to feedback and questions, and seek approval and commitment for the implementation of your VE proposals.

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6 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?

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Bisma Nasim

Avionics Systems Engineer | Engineering Manager | MEng, BE
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It is important to identify applicable standards and industry best practices as well; followed by outlining compliance benefits. Explaining to customers how your solution can simplify compliance processes, reduce the risk of penalties and eventually enhance reputation.

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How can you ensure value engineering aligns with project sponsor needs?

1

2

3

4

5

6

1 Understand the sponsor's value drivers

2 Involve the sponsor in the VE team

3 Apply the VE methodology rigorously

4 Use relevant and reliable data

5 Communicate the VE results effectively

6 Here’s what else to consider

Engineering Management

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How can you ensure value engineering aligns with project sponsor needs?

1

2

3

4

5

6

1 Understand the sponsor's value drivers

2 Involve the sponsor in the VE team

3 Apply the VE methodology rigorously

4 Use relevant and reliable data

5 Communicate the VE results effectively

6 Here’s what else to consider

Engineering Management

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