VALUE MANAGEMENT SERVICES
RH & Associates provides all services needed to design, implement and evaluate a Value Management program
for planning, design and construction projects, as well as team and process development and refinement.
RH & Associates has the ability to provide an entire team of experts in a variety of disciplines to aid
in the formal value analysis or we can merely provide the Certified Value Specialist to lead your team of
experts. Our overall services include:
- Program design and evaluation
- Facilitation of value management workshops
- Comprehensive workshop reports
- Team building/Partnering
- Team Scoping Analysis
Approach to the Value Analysis Process
Value engineering is a function oriented, systematic team approach to add customer value to a program,
facility, system or service. Improvements like performance, quality, initial and life cycle costs are
paramount in value engineering/ methodology. RH & Associates has developed a value engineering program
using the value methodology as defined by SAVE International. The value engineering program implemented
utilizes the specific requirements of each project. The program follows the SAVE approved job plan as
defined for the value methodology as outlined below.
On February 10, 1996, President Clinton signed the Defense Authorization Act, now known as Public Law
104-106, which contains a special section of procurement reform for the entire Executive Branch.
The law states:
“each executive agency shall establish and maintain cost-effective value engineering procedures and processes.
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Value Engineering means an analysis of the functions of the following: program, project, system, product,
item of equipment, building, facility, service, or supply of an executive agency. This service is to be
performed by qualified agency or contractor personnel and directed at improving performance, reliability,
quality, safety, and life cycle costs.”
How is Value Analysis best applied?
Applicability - Wherever cost and/or performance improvement is desired and can be measured in terms of monetary,
quality, productivity, time, energy, environmental impact, and durability.
Design Process -
This is best applied early in the project or process. The team has an opportunity to work together
to identify project functions and approaches to various design elements. This should occur at the
beginning of the project and then at the various, natural breaks or review times throughout the
design process. This could be applied as we move from the design concept phase to the preliminary
design phase and then from preliminary design to the final design document phase.
Design/Build Process -
Value Engineering is an integral part of the design/build process. It first occurs during the
Concept Stage where the team defines the project scope, develops the concept, refines the request
for proposal, and helps to develop the budget/cost items. The second occurrence is during design
after the bid, where the team refines the budget/cost elements, establishes project criteria,
determines life-cycle costs, and provides for problem resolution.
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THE BENEFITS OF THE PROCESS
The benefits are many. We encourage a team approach to projects, improve project performance,
identify project functions, and focus the team on the project at hand. Benefits can be defined as follows:
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- Customer Satisfaction
- Performance Improvement
- Productivity Improvement
- Quality Improvement
- Time Saving
- Proven over 50 years
- Functions Achieved
- Results Oriented
- Enhanced operation
- 5-15% cost savings
- Lower life cycle costs
- Benefit to cost 20:1
THE VALUE MANAGEMENT (VM) PROCESS
The SAVE approved job plan includes three stages that are performed for VM programs.
These include the Pre-workshop, Workshop and Post Workshop stages.
The Pre-Workshop stage involves completion of all preparatory activities, such as data collection,
preliminary site investigation, and developing appropriate models. Data models are identified and
developed prior to the workshop stage. “This may include a cost model, cost-benefit model, etc.
All team members are selected and confirmed by RH & Associates and the client. RHA can also help
to finalize the workshop venue arrangements, as needed by the client.
The workshop stage will follow the classic VE methodology (Information, Function Analysis, Creativity,
Evaluation, Development, and Presentation) in a sequenced approach.
The workshop will commence with a brief introduction to the basics of Value Engineering to ensure that
all workshop participants have a rudimentary understanding of the methods and sequence of the various phases.
Several perspectives, including owner and/or designer, will be presented to the VE Team to enhance their
understanding of the project/process under study.
Special emphasis will be placed on developing appropriate data models. Where possible, we may develop
these models (or drafts) in advance of the workshop, during the pre-workshop stage, so that the specialists’
time during the workshop is effectively utilized.
Function Analysis Phase
The Function Analysis activity will use the FAST (Function Analysis System Technique)methodolgy.
The FAST diagram, documents the study team’s understanding of the required and desired functions and will
be used as one tool to identify potential study targets.
All attendees will fully participate in the interactive Creativity session to generate ideas related
to the identified targets. Brainstorming techniques and additive/ subtractive strategies will generally
be used during this session. We will screen the ideas by consensus using a method which best suits the
program approach. This may include a Nominal Group Technique or Value Index system.
Ideas will usually be referenced for easy identification. We generally use the selected target functions
or the key target areas/elements a project. In a transportation project this might include alignment,
and typical section, in a rail project this might include, operations and ridership. In a water or
wastewater treatment facility this might include SCADA and operational strategies. In almost all
construction projects staging/phasing strategies, construction methods, material selection, risk
management/schedule, etc. will be included as a basis for categorization. The team will reach consensus
on each idea in terms of implementation probability (i.e. Does the idea work? Can it be modified to work?
Can it be implemented when needed?). This discussion is extremely important to test the “sale-ability” of
each idea to senior staff later in the assignment.
Development of the short listed ideas will follow the Creativity Phase. Every effort will be made to
match workshop attendees with topics of interest (people will generally be more enthusiastic with
this approach) to ensure that “topic champions” emerge.
Performance measures will be developed for the baseline and for subsequent concepts to compare the
differences in overall effectiveness. Performance indices will be used in the analysis to document the
advantage and/or disadvantage of each performance attribute.
Each VE proposal will include the following elements:
- Brief discussion of the existing concept
- Brief discussion of the proposed alternative
- Sketches (original, proposed) if appropriate
- Calculations, if appropriate
- Cost worksheets (capital, maintenance, LCC), if appropriate
A key component of the Development Phase is the preparation of a compelling argument supporting the
implementation of each VE proposal. This is a critical step in the VE process and its importance in
the success of the VE study, and ultimately a measure of the VE program itself and should not be
understated. Our experience, gained through other similar challenging VE studies, is that most
successful VE proposals are focused on performance improvement rather than the traditional
(and often mandated) focus on cost avoidance. As such, we often realize a greater than average
acceptance rate of VE using this approach because it avoids the cost cutting label often associated
with VA/VE studies.
The final phase of the workshop focuses on the presentation of the developed ideas by each Team “champion”.
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OTHER SERVICES AVAILABLE
Team Scoping Analysis (TSA) - project scoping and fee negotiation
RH & Associates has co-developed this new process which includes combined methodologies of a formalized
Value Analysis process and a formal Partnering process to aid in the project scoping process with
planning and design teams. This includes both internal and consultant project teams. This new process
is called a Team Scoping Analysis or TSA.
This process has been established to help both owners and consultants alike in developing a more detailed
and thorough scope of work as well as aiding in the overall negotiation of man-hours for those scope
elements. This provides various benefits to the project team including:
- Reduces contracting cycles
- Helps teams stay within budget, while eliminating unnecessary change orders
- Assures the best value
- Develops strong project teams
- Builds consensus among team members
- Provides a non-adversarial approach to fee negotiations
- Improves relations with affected agencies, customers and stakeholders
- Provides a higher value consulting service
- Ensures a better understanding of the Scope of Work
Another benefit of this new approach brings additional stakeholders, such as other agencies,
boards, districts, etc., to the table to be an important part of the overall process.
This helps the team to gather important project information such as differing project criteria,
provisions or project elements which need to be considered in developing the project scope.
This helps to develop a more diverse team as well as helps to eliminate potential change orders.
TRADITIONAL CONSULTANT SCOPING/NEGOTIATION METHOD
The traditional method of project scoping is often very time consuming and costly to both
consultants and owners. Additionally, we spend much time going through several iterations of
what the scope elements are or need to be and then long discussions and many meetings to determine
what level of effort is expected to complete each of the scope elements. After doing all this,
we are often still not in agreement. This can often lead to an adversarial and tough negotiation process.
Using the Team Scoping Analysis approach, the team applies many of the value analysis principles.
We use a value analysis approach because it is structured, function oriented, offers opportunities
for creative and cost-effective solutions to planning and design, and it is an efficient use of time.
The elements of value analysis applied during the process include the information phase, creative phase,
evaluation phase, and the development phase.
Prior to the start of the project is the time to apply this type of process. The use of the process
is to aid the team to finalize the project scope for the planning or design team. This enhances the
potential for buy in by all team members. Once the team decides on the final scope and potential
man-hours, effective, non-adversarial fee negotiations can occur.
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Process Overview & Expectations. This effort ensures the team understands the process
elements to be used throughout the TSA. We also provide an opportunity for team members to express their
expectations of the workshop.
Team Approach. This provides a short discussion of some of the elements of effective team behaviors.
It is good to get the entire team focused on this as a joint effort and to remind each other that in order
to successfully complete this project, we must all work together.
Information Phase. This phase of the workshop focuses on sharing information with each other and to
gain a better understanding of the entire project prior to discussing the specific scope elements. Team
members have an opportunity to ask questions and gain complete clarity. We develop and discuss various
- Team communication plans
- Identify stakeholder roles and responsibilities
- Develop project consensus goals
- Discuss potential project constraints, challenges and expectations
- Discuss necessary requirements and criteria
Function Analysis Phase. This phase allows us to define the scope of work in terms of functions.
We focus on the key elements of the project. The teams will use the Functional Analysis Systems Technique
(FAST) to develop the FAST Diagram depicting the entire scope of the project. This discussion allows all
team members to participate and outline the necessary scope to best suit the project. This process
focuses the team and increases the overall understanding of the project.
Evaluation Phase. This phase affords the team the opportunity to evaluate all of the scope
elements and determine need, potential duplication of effort, brainstorming other alternate approaches
to accomplishing an element, and then allows us to select the best possible approaches to those elements.
During this phase, we discuss the various project elements and discuss the level of effort and potential
man-hours necessary to accomplish these scope items.
Wrap-up. The final portion of the workshop is to discuss the final schedule for finalizing scope,
man-hours and budgets. During most workshops, we have finalized 80-90% of all scope elements and all
team members are already in agreement. The final documentation takes very little effort and much less time.
An added benefit has developed during the use of this process. The team begins to “gel” by working
together early on and developing a joint sense of ownership. This allows the project, once the
scope is finalized, to already begin with a strong team desire to accomplish the common goals.
The consultant or design team begins the project with a strong comfort level and moves immediately
into accomplishing the project elements. This process has ensured they have a much stronger
understanding of the overall project and team expectations.
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