Publications

Author : Michael Wright, GHD

Description : This presentation outlines the challenges, key results and lessons learned in developing and executing an effective Asset Management Program and how Value Engineering and Risk are integrated into Asset Management. A function diagram of the asset management plan development is shown. This includes developing a risk framework to increase understanding of critical assets and how they support service levels, and the long-term funding requirements for sustaining service delivery. The development of an asset management plan (AM Plan) provides a structure to understand the function and value of a municipality’s diverse services and departments. The development of an AM Plan provides the impetus to move from understanding municipal service functions to applying asset management principles, obtaining feedback, and continuously improving toward the goal of providing reliable services, at the lowest lifecycle cost.

Author : Dean Lindquist, Executive Director, Alberta Education, Michael Ediger

Description : Presentation highlights how a Value Management study helped bridge the competing needs of the school authority and the ministry of education funding the project. Project had competing needs and values and a school had to be constructed by 2 school authorities and take into consideration Parks Canada and municipal concerns in Jasper Alberta.The reconciliation of needs between the school for the deaf and the school board led to a best solution model.

Author : Jill Woller

Description : New York City converted a 222 acre landfill site into an 18 hole PGA golf course at Ferry Point Park. This presentation describes the use of VE and Function analysis to meet the many challenges of building a golf course over a landfill site.

Jill Woller directs the City of New York’s Value Engineering (VE) Program, located within the Office of the Mayor’s Office of Management & Budget (OMB). She has degrees in Public Administration and Architecture. She has been working for NYC OMB for over eighteen years, and has developed the Program almost since its inception. Prior to this position, she worked for design and project development firms. Ms. Woller has initiated many contracting and organizational innovations to create a climate which fosters the application of classical VE to publicly funded projects and services. Over time, the Program has become institutionalized and is now an accepted part of the City’s approval process.

Author : Dr. Hussien Al-Battaineh, Art Washuta

Description : The City of Edmonton Southeast and West Light Rail Transit (LRT) project isis 27 km and includes the construction of 29 stops, 5 transit centres, 5 bridges and two tunnels; the project budget is about $2.75 billion dollars (2010/2011). Connected Transit Partnership (CTP) led by AECOM was awarded the preliminary design on August 2011, and proposed an innovative Risk-Based Design approach for this project. A Value Engineering workshop was held in October 2011 to collect and evaluate creative ideas which can be used to increase the value of the Southeast and West Light Rail Transit Project. The workshop participants including comprehensive representation from several City of Edmonton departments – LRT Design and Construction, Urban Planning, Edmonton Transit, Parks, Transportation, and Drainage – as well as the Connected consulting team. International advisors representing 6 additional countries were also present (US, UK, Norway, Sweden, Finland, and Germany). A total of 509 ideas were generated at this workshop, 241 of which were recommended to be carried forward for further analysis and consideration. This presentation reviews how Risk-Based design was incorporated in the Job Plan, the integration of Risk Analysis and Value Engineering, the challenges of facilitating a workshop with a large number of participants, and the mitigation plan. It also discusses facilitating workshop with participation from the owner side and the consulting team.

Author : Siri Fernando, Holly Parkis, Dr. Hussien Al-Battaineh

Description : This presentation highlights an integrated methodology of Value Engineering and Risk Analysis for Tunnelling Projects, which are considered high risk operations due to the high uncertainty associated with the available information required for construction. This methodology couples value engineering based on SAVE International standards and a structured risk analysis process, and utilizes sensitivity analysis for life cycle cost. The proposed methodology differs from current practice in each of its three steps: risk analysis, criteria evaluation, and sensitivity analysis. In the proposed methodology, firstly, risk analysis is a quantitative analysis in which risk factors are evaluated for each of the options and the expected cost of risk is evaluated for each option which is later added to the options cost. Secondly, criteria evaluation is done using the analytical hierarchy process (AHP) which accounts for consistency. Thirdly, the value calculation has a direct relationship with life cycle cost, which can vary based on assumptions for the financial parameters (interest rate and inflation rate); sensitivity analysis is used to explore the assumptions’ sensitivities and account for those variations. The presentation showcases successful tunnelling projects in Alberta.

Author : Jay Sagoo, Alberta Infrastructure

Description : Alberta Infrastructure has endorsed the use of Value Management in its successful practice towards capital projects over many years. Several improvements have been made to the current Value Management program, such as the importance of data collection, coordinating risk management activities with value studies, identifying initiatives within the organization that may benefit with a value study, as well as training staff in value management. Other areas of improvement will be discussed in the presentation. This presentation will be of interest to those individuals who have been tasked to implement a Value Engineering/Management program within their organization.

Author : Rock J. Antonios

Description : Presentation outlines how why Cx (Customer Experience Process) and VM lead to efficient asset management for mechanical building systems. The commissioning of mechanical systems for buildings can be enhanced through integration with the Value Management process to improve asset management. Shows how the use of VM helps set the Owners Project Requirements and ensure the Basis of Design meets these requirement in accordance with the Cx. A case study of a HVAC system is used showing how all the steps of the job plan were used during various phases of design and commissioning. Notes that Commissioning and Value Methodology applied to a project or a system improve quality, enable savings and lead to comprehensive, innovative and sustainable Asset Management.

Author : Scot McClintock & Paul Lewis

Description : Both Risk Assessment and Value Analysis are important tools in the quest for the delivery of excellent projects within today’s ever tightening budgets. Some clients require a separate workshop for each tool while others embrace the concept of performing them together in a single workshop. In the first half of 2012, the co-presenters had the opportunity to apply both approaches for the Ministry of Transportation, Ontario (MTO) and Stantec on two very similar highway route planning study projects in Northern Ontario, using essentially the same team members. From this “laboratory” of case studies, the advantages and disadvantages of each approach are discussed and opinions expressed on which approach is preferred.

Author : Paul Johnson

Description : An overview of the Value Engineering study  for a coal mining operation in British Columbia. Value Engineering process was used to identify optimal technologies early in the design phase for a planned Selenium Active Water Treatment Facility. Selenium reduction goals are a cooperative effort between the environmental jurisdictions, the community, and the private coal mining company. Reduction of selenium to target levels is for the purpose of benefiting the environment and fish habitat. As this project is being financed by a private company, use of VE in the design process was an optional service for which the company expected to receive a suitable return on investment from the VE study, while delivering a facility that will maximize selenium reduction at an optimal cost. This is the first project of its kind in Canada, with only one other facility of its kind in the world that is currently being designed in West Virginia. Paul’s presentation will provide an overview of the VE process and the results.

Author : Greg Brink, CVS, PMI-RMP, PMP, CCE/A

Description : The effect of uncertainty on value can play a major role in decision making. Lack of data, incomplete information, and overly cautious designs are just a few examples of the many symptoms of delayed decision making. Often, when it is not immediately clear what the best value decision may be, these symptoms can manifest themselves in the form of project risks that need to be managed. Threats can just as surely erode project value, as can the overlooking plausible opportunities. The improvement and utilization of quantitative risk analysis and management techniques in recent years has brought greater attention to the role of risk in effectively evaluating and delivering projects of all scope and scale. Risk studies are becoming commonplace; however, there exist gaps in thinking that directly link to a lack of understanding of project functions. The exploration of relational dependencies of risk on project functionality can allow for uncertainty to be evaluated and managed in a more effective and proactive fashion. In addition, a developed understanding of project functionalities that drive risk affords proper management of the impacts of uncertainties involving threats and potential opportunities throughout the project lifecycle. This paper explores the application of the Function Driven Risk Management (FDRM) process to fully integrate value-based function analysis and risk response mechanisms into project and program risk management practices. The approximate $1.5 billion US-41 Highway Reconstruction Mega Project in the US state of Wisconsin will be used as a case study in which the FDRM techniques have been successfully applied for the management of risk in both design and construction. The case study will discuss the integration of value principles into risk management practices on a functional basis to bring focus to identifying project risks, aid in prioritizing risks, and focus critical thinking on the development of appropriate risk response strategies.

Author : Michael Dallas, MA, MICE, FIVM

Description : Presentation demonstrates how the use of Management of Value process focuses decision making by a clear articulation of needs, identifying what priorities of stakeholders, identifying how to meet needs, and measuring the best value for money. The Management of Value guidance was released in 2011 as part of the Best Management Practice portfolio of the UK Cabinet Office. The portfolio also includes PRINCE2, Management of Risk, Portfolio, and Programme and Project Offices.  Michael Dallas was the principle author of the Management of Value guidance. Management of Value is similiar to European Value Management but differs in terminology, referencing functions as "value drivers". 

Author : James Guyette, ARGO

Description : Case Study of a Rail Road Turnout process for a 50,000 sq ft Turnout manufacturing facility with an overhead crane and three tracks. Value study objectives were to assess existing .turnout manufacturing sites, create future state scenarios and develop options to save CapEx. A key to the success of the value study was looking at the project from both an OpEx and CapEx perspective. A technical fast found value mismatches in the proposed turnout facility. The VA  study involved end users and resulted in quantifiable benefits including a more efficient layout that dramatically reduced FTEs.

Author : Eric Meng, AIA, CVS

Description : What aspect of the Value management process consistently produces the most substantial results?Function analysis is the tool traditionally used to set the stage for the creative speculative phase; and it is a reliable driver for producing useful alternative concepts. But often other elements of the process, outside of the functional model should receive credit for the breakthrough concepts. This presentation highlights a half dozen Value Management studies that produced considerable project impacts ; and explores where those breakthrough concepts actually occurred in the Value management process. Highlighted projects include major water infrastructure, buildings, industrial plants, energy, and transportation projects. All of them produced ideas that were unexpected; and these ideas came from unpredictable components of the process. Team structure, risk, criteria, cost modeling, and historic reference are all elements that typically play supporting roles in function-driven VM; but in these examples they were used for creative drivers, rather than merely supporting components. VM, with a strong rigid work plan claims to produce creativity on demand – right on time during the speculative stage of the process. But many creative people outside of VM will claim that the process is often serendipitous, and cannot be controlled. These examples, however, illustrate how serendipitous creativity can in fact be recognized and used in the VM process to enhance productivity outside of the limited time often available for pure speculation in the traditional VM work plan.

Author : Jack Warchalowski, Duncan Patrick

Description : This presentation  elaborates on the root causes of project failure, provide an overview of CCPM, an in-depth explanation of the three rules of CCPM and how to apply them, plus share several client success stories. Critical Chain Project Management (CCPM) is a significant improvement to the Project Management body of knowledge. The technique is indepent of VM but useful for teams to be aware of. 

Author : Dr. A. P. Sukumar

Description : Value Engineering has long been established as a mature methodology for improving value of infrastructure projects Worldwide, although the practice is somewhat sporadic in Canada due to lack of strong buy-in from the senior officers of the owner organizations. Many consider the process as just ‘cost-cutting’ or scope reduction exercise. ‘Value by Design’ can help close this communication gap by demonstrating the fact that Value Engineering is not just about reducing life cycle financial costs of the project, but it is an integrated approach of improving social and environmental benefits as well.  In this presentation, the integrated approach –“Value by Design” is introduced along with its relevance in the Triple Bottom Line concerns of the society. “Value by Design” is a collaborative and systematic approach to project or process design that draws out creativity and innovation of the people integrating their ideas to develop the most efficient and value enhanced solutions. Social and environmental aspects are well integrated along with the financial goals of the study. Final decisions and selection of alternatives are based on strategic decision making technique in which the various factors are given due weightage based on the owner organization’s strategic intent and vision.  Two specific hydroelectric projects in British Columbia that underwent Value Engineering with a view to improving the integrated life cycle value will be featured in the talk to establish the concept of Value by Design. In these projects, there were significant financial impacts (several $ millions) along with highly desirable environmental and social benefits.

Author : Dr. Avi Habinski

Description : During the past four and a half years, Alberta’s departments of Education and Infrastructure have jointly undertaken 25 Value Analysis studies to gain insight into the nature of proposed school capital projects, reach consensus on their scope, and more accurately estimate the required funding. With the participation of a broad range of stakeholders, these studies have enabled the assessment and prioritization of needs, exploration of creative solutions, estimation of costs, identification of risks, and analysis of investment vs. value. In addition, the collaborative approach to exploring options and reaching consensus has resulted in “buy-in” from the school jurisdiction, parents and community and avoided cost escalation during the planning, design and construction stages. The presentation will focus on the processes and outcomes associated with the use of Value Analysis in Alberta school jurisdictions. Case studies and examples will be used to illustrate the type of projects and circumstances which may benefit most from Value Analysis and are most likely to yield successful outcomes.

Author : George Hunter, Greg Brink

Description : This presentation shows how Road Safety Analysis tools, techniques and benefits can be applied and integrated into VE studies. It highlighted the use of risk management techniques as they relate to road safety analysis, to be incorporated into VE studies. Project performance measurement / analytical hierarchy process (AHP) techniques and processes were integrated with risk-based road safety analyses.