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

3. 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”

4. 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

5. 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!!!

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

7. 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

8. INFORMATION PHASE

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

10. FUNCTIONAL ANALYSIS PHASE

11. 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?

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

13. FAST Diagramming

14. Functional Analysis

15. Cost Model

16. What areas should we focus on?

17. CREATIVITY PHASE

18. 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

19. 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

20. 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

21. EVALUATION PHASE

22. Evaluation Factors

23. 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

24. 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

25. CHOOSING BY ADVANTAGES A DECISION MAKING PROCESS

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

27. 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

28. Definitions

29. CBA Matrix...

30. DEVELOPMENT PHASE

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

32. 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.”

33. 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.

34. Importance to Cost Graph

35. 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”

36. 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

37. RECOMMENDATION and PRESENTATION PHASE

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

39. IMPLEMENTATION PHASE

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