What are the best practices and standards for value engineering in project engineering?

There is always an easier way to solve a particular problem! In 1990 I went to work for the company that manufactured the ground stations for the Search And Rescue Satellite system. The antenna, its pointing mechanism, support structure and radome had a manufacturing cost of $7,500, and it was difficult to assemble on site, expensive to ship and it didn't work at very low temperatures. Value Engineering it resulted in reducing then number of nuts and bolts needed to be used on site from 640 to 28; the shipping weight was reduced by 640 LB; servicing accessibility was considerably improved and it worked fine at temperatures below -40 Celsius. The manufacturing cost was reduced to $2500.

Value Engineering (VE) in project engineering, is about optimizing project outputs while minimizing costs. It involves critically analyzing each project element to ensure it provides maximum value at the lowest cost without compromising quality or performance. From my time as a PE for instance, on one project we evaluated different radar electronics components for cost-effectiveness and functionality, ensuring optimal performance within budget constraints. VE is crucial because it leads to more efficient use of resources, cost savings, and enhanced project value, which is especially important in projects with strict budgetary guidelines. This approach is essential for delivering high-quality cost-effective solutions in engineering projects.

When used appropriately, value engineering improves the function-to-cost ratio in projects. We must carefully examine consumer priorities early on and revisit as the design progresses. Document decisions, quantify the impact on performance and budget, track outcomes, and communicate lessons learned. Adopting simple across-the-board cuts risks lowering quality. Instead, systematic value engineering suited to each project, using innovative thinking and technology optimisation, can result in large cost savings without compromising customer-valued operations.

Best practices for value engineering in project engineering involve identifying opportunities to optimize value while minimizing costs. This includes conducting thorough analysis of project requirements, materials, and processes to find alternatives that achieve the same or better performance at a lower cost. Collaborate with stakeholders and subject matter experts to brainstorm innovative solutions. Prioritize ideas based on potential impact and feasibility. Implement value engineering throughout the project lifecycle, from design to construction and beyond. Regularly evaluate and iterate on solutions to ensure continuous improvement. Adopt industry standards and guidelines to ensure quality and compliance while maximizing value.

In addition to how, we must consider when to conduct a VE study. The most impactful times to conduct a VE study are i) during FEED, when finalizing the development of the selected alternative and freezing the design is the most impactful, and ii) when analyzing solutions to issues identified during detailed design, construction, and commissioning, where there are a number of possible solutions and a value-based judgment is required.

Value engineering in project engineering involves optimizing costs while maintaining quality. Best practices include early involvement, cross-functional collaboration, and life cycle analysis. In the energy sector, optimizing materials in solar panels or refining processes for efficient power generation exemplify successful value engineering. Case studies show how early identification of cost-effective solutions enhances project outcomes.