What is Value Analysis? Value Engineering a.k.a. Architorture”

Value Analysis is…. 4 “an organized team study of functions to creatively generate alternatives which will satisfy the users needs at the lowest initial and/or life-cycle cost”

Value Analysis is NOT….. 4 A COST CUTTING PROGRAM!!!! –Cost cutting programs cut costs regardless of how they affect the product. –Any product can be cut in costs! 4 JUST A HURDLE TO JUMP THROUGH

Value Analysis IS about….. 4 Sound, Defensible, Value-based Decision Making 4 Providing essential functions for an appropriate cost 4 Benefit to Cost Relationships and working both sides of the equation. 4 Managing the Decision Points 4 Making better decisions!!!

Why do Value Analysis…..? To improve benefit or reduce cost….

Value Analysis Job Plan 4 Information Phase (Investigation) 4 Functional Analysis Phase (Analysis) 4 Creativity Phase (Speculation) 4 Evaluation Phase 4 Development Phase 4 Recommendation Phase (Presentation) 4 Implementation Phase

INFORMATION PHASE

Information Phase 4 Understand the function and purpose of the project by gathering relevant information. 4 Review base data –Stakeholders –Building Program –Current Alternatives

FUNCTIONAL ANALYSIS PHASE

Functional Analysis 4 Park Purpose and Significance -- ? Exist for Monument Open Space/Monument Fire Center? 4 Program 4 What does a facility need to do? 4 How do you do it? 4 Why do you do it?

Functional Analysis Fast Diagram F unctional A nalysis S ystem T echnique

FAST Diagramming

Functional Analysis

Cost Model

What areas should we focus on?

CREATIVITY PHASE

Creativity Phase 4 "Brain-storm" alternative methods of achieving the required functions of a project. 4 Ideas are not evaluated, since criticism of an idea could discourage participation, decrease the flow of alternatives, and inhibit the creative endeavor. 4 Promote and encourage sustainable concepts and other policy objectives Keywords: Brainstorming, Deferred Judgment, Options, Alternatives

Roadblocks to new ideas…. 4 It needs higher approval 4 Its too ambitious for us 4 We did it this way the last time 4 We have no problems now…why change 4 If you want a quick answer it is…NO!! 4 It does not agree with the guide specs 4 It’s against our policy 4 That’s not the way it’s done around here

Roadblocks to new ideas…. (cont) 4 It won’t work 4 It’s too much trouble to phase in 4 We tried that 10 years ago, and it didn’t… 4 Let maintenance take care of that 4 Let operations handle it

EVALUATION PHASE

Evaluation Factors

Objectives 4 Protect cultural and natural resources 4 Provide for visitor enjoyment 4 Improve efficiency of forest operations 4 Provide cost-effective, environmentally responsible, and otherwise beneficial development for the national forest system

Evaluation Factors 4 Prevent loss of resources 4 Maintain or improve condition of Resources 4 Provide visitor services and educational and recreational opportunities including accessibility 4 Protect public health, safety, and welfare 4 Improve operational efficiency and sustainability 4 Protect employee health, safety, and welfare 4 Provide other advantages to the national forest system

CHOOSING BY ADVANTAGES A DECISION MAKING PROCESS

CBA Purpose To simplify, clarify and unify decisionmaking 4 To quantify non-monetary benefits or advantages

Effective Decisionmaking 4 Doing the Right Things Right - the First Time, Every Time, and On Time - in a manner that is acceptable to various stakeholders who may have conflicting values and preferences

Definitions

CBA Matrix...

DEVELOPMENT PHASE

Development Phase 4 Best alternatives are developed into proposals for final evaluation and presentation. 4 Initial Cost Estimates 4 Life Cycle Cost Estimates

Money Decisions Require Special Methods 4 The Principle of Interdependency: A dollar spent for one purchase is not available for another 4 Wellington’s Rule: “No increase of expenditure over the unavoidable minimum is expedient or justifiable, however great the probable profits and value of the enterprise as a whole, unless the INCREASE can with reasonable certainty be counted on to be, in itself, a profitable investment.”

Money Decisions Require Special Methods 4 An increment is increase in cost, coupled with an increase, a decrease, or no change in total importance of advantages, or benefits.

Importance to Cost Graph

Life Cycle Cost is…. “Life cycle costing is the development of all significant cost of ownership of an item, system, or facility, over a specified length of time”

Life Cycle Cost Development Phase 4 Initial Cost – Cost associated with initial development of a facility, including project costs as well as construction costs. 4 Recurring/Cyclic Costs – Costs that recur on a periodic basis throughout the life of a project. 4 Annual Cost – Operations – Maintenance – Staffing – Energy

RECOMMENDATION and PRESENTATION PHASE

Recommendation and Presentation Phase 4 Review Decisions 4 Make Recommendations 4 Conduct Presentation 4 Summarize 4 Wrap-up

IMPLEMENTATION PHASE

Implementation Phase Occurs outside the workshop and provides for implementation of accepted VA proposals. 4 Follow Through 4 Documentation 4 Monitoring