what is value analysis?
DESCRIPTION
What is Value Analysis?. Value Engineering a.k.a. Architorture”. Value Analysis is…. “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…. A COST CUTTING PROGRAM!!!! - PowerPoint PPT PresentationTRANSCRIPT
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What is Value Analysis?
Value Engineering a.k.a. Architorture”
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Value Analysis is….
“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”
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Value Analysis is NOT…..
A COST CUTTING PROGRAM!!!!– Cost cutting programs cut costs
regardless of how they affect the product.
– Any product can be cut in costs!
JUST A HURDLE TO JUMP THROUGH
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Value Analysis IS about…..
Sound, Defensible, Value-based Decision Making
Providing essential functions for an appropriate cost
Benefit to Cost Relationships and working both sides of the equation.
Managing the Decision Points Making better decisions!!!
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Why do Value Analysis…..?To improve benefit or reduce cost….
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Value Analysis Job Plan
Information Phase (Investigation) Functional Analysis Phase (Analysis) Creativity Phase (Speculation) Evaluation Phase Development Phase Recommendation Phase (Presentation) Implementation Phase
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INFORMATION INFORMATION PHASEPHASE
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Information Phase
Understand the function and purpose of the project by gathering relevant information.
Review base data– Stakeholders– Building Program– Current Alternatives
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FUNCTIONAL FUNCTIONAL ANALYSIS ANALYSIS
PHASEPHASE
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Functional Analysis
Park Purpose and Significance -- ? Exist for Monument Open Space/Monument Fire Center?
Program What does a facility need to do? How do you do it? Why do you do it?
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Functional AnalysisFast Diagram
Functional
Analysis
System
Technique
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FAST Diagramming
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Functional AnalysisShenandoah NP - Water Pipe MaterialFUNCTION ANALYSIS SYSTEM TECHNIQUE (FAST) DIAGRAM
HOW? WHY?>>==> DESIGN OBJECTIVES ALL THE TIME <==<<
Reduce Improve MeetCost Efficiency Codes
Prevent Reduce PreventLoss of Resource Ground Water Depletion Waste
Contain Prevent Reduce ReduceWater Leakage Corrosion Interactivitiy
| WrapProvide Transport | Prevent D.I. Pipe
Visitor Enjoyment Water | Contact|
Protect Avoid Strengthen Increase InstallWater Breakage Pipe Break Strength D.I. Pipe
Protect Bed ScreenPipe Pipe Material
Improve Reduce Increase Install UtilizePark Operations Disruption Production Rate More Pipe Equipment
AddCrews
|LightenPipe
|Simplify
Installation
High Order Function Basic Functions Secondary Function Construction Features
Construction Oriented FA ST Diagram
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Cost Model
PLAN COMPONENT COSTS - NEW RIVER GORGE NR DCP
$2,621,576
$1,812,000
$1,195,043
$1,195,043
$1,153,720
$857,500
$655,394
$655,394
$639,000
$450,000
$332,350
$332,350
$224,000
$203,000
$190,000
$171,000
$158,172
$150,000
$144,000
$100,000
$90,000
$40,500
$36,000
$36,000
$30,000
$15,000
$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000
CSA - Clif fside Amphitheater
POA - Maintenance Shop
POA - Associated Site Work
POA - Associated Utilities
GS/U - Associated Utilities
POA - Off ice Complex
CSA - Associated Site Work
CSA - Associated Utilities
CORE - New Visitor Center
CORE - Environmental Education Center
CORE - Associated Site Work
CORE - Associated Utilities
TS - New Asphalt Road and Parking
CORE - Restrooms
TS - Clearing and Grubbing
TS - Road Restoration
POA - Ranger Fire Cache
GS/U - Align/Adjust New Asphalt Road
PA - Picnic Shelters (4 ea @ 2&3)
POA - Refurbish Site of Demo Struct
TSMaintainance Pole Barn
POA - Covered Parking: Vehicle Storage
PA - Associated Site Work
PA - Associated Utilities
POA - Demolish Unused Core Area Structures
GS/HM - Hazmat Removal
PL
AN
CO
MP
ON
EN
TS
NET CONSTRUCTION COST
KEY
GS/HM - General Site/Building HazmatPOA - Park Operations AreaTS - Turkey SpurCORE - Core AreasCSA - Cliffside AmphitheaterPA - Picnic AreasGS/U - General Site Work & Utilities
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What areas should we focus on?
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CREATIVITY CREATIVITY PHASEPHASE
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Creativity Phase
"Brain-storm" alternative methods of achieving the required functions of a project.
Ideas are not evaluated, since criticism of an idea could discourage participation, decrease the flow of alternatives, and inhibit the creative endeavor.
Promote and encourage sustainable concepts and other policy objectives
Keywords: Brainstorming, Deferred Judgment, Options, Alternatives
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Roadblocks to new ideas….
It needs higher approval Its too ambitious for us We did it this way the last time We have no problems now…why change If you want a quick answer it is…NO!! It does not agree with the guide specs It’s against our policy That’s not the way it’s done around here
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Roadblocks to new ideas….(cont)
It won’t work It’s too much trouble to phase in We tried that 10 years ago, and it didn’t… Let maintenance take care of that Let operations handle it
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EVALUATIONEVALUATIONPHASEPHASE
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Evaluation Factors
V a lu e A n a lys isE va lua tion F ac to rs
C h oo s ing B y A dva n ta g es
S e rv ice w id e P rio rity E va lu a tion F ac to rs
C h oo s ing B y A dva n ta g es
N a tion a l Le a de rsh ip C ou n c ilO b je c tives
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Objectives
Protect cultural and natural resources Provide for visitor enjoyment Improve efficiency of forest operations Provide cost-effective, environmentally
responsible, and otherwise beneficial development for the national forest system
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Evaluation Factors
Prevent loss of resources Maintain or improve condition of Resources Provide visitor services and educational and
recreational opportunities including accessibility Protect public health, safety, and welfare Improve operational efficiency and sustainability Protect employee health, safety, and welfare Provide other advantages to the national forest
system
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CHOOSING BY ADVANTAGES
A DECISION MAKING PROCESS
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CBA Purpose.......
To simplify, clarify and unify decisionmaking
To quantify non-monetary benefits or advantages
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Effective Decisionmaking
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
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Definitions
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CBA Matrix...FACTOR ALTERNATIVES
SITE NO. 8 SITE NO. 19 SITE NO. 23
FACTOR 1 – WaterAttributes
60 Feet Away 260 Feet Away 150 Feet Away
Advantages200Feet Closer 40 110 Feet Closer 30
FACTOR 2 – Tent SpotAttributes
Moderately Level Almost Level Quite Sloping
AdvantagesModerately more Level 30 Much more Level 70
FACTOR 3 - TableAttributes
Without Without With
AdvantagesWith versus Without 65
FACTOR 4 - PrivacyAttributes
Close sites Near Road
screened distant sites
screened Close sites
AdvantagesMuch More Privacydue to screening andremoteness
100 Moderately morePrivacy due toscreening
45
TOTAL IMPORTANCES OFADVANTAGES
70 170 140
TOTAL COST $3.00 $4,50 $20.00
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DEVELOPMENT DEVELOPMENT PHASEPHASE
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Development Phase
Best alternatives are developed into proposals for final evaluation and presentation.
Initial Cost Estimates Life Cycle Cost Estimates
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Money Decisions Require Special Methods The Principle of Interdependency: A dollar
spent for one purchase is not available for another 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.”
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Money DecisionsRequire Special Methods
An increment is increase in cost, coupled with an increase, a decrease, or no change in total importance of advantages, or benefits.
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Importance to Cost GraphCAMPSITE SELECTION
170
0
70
140
0
20
40
60
80
100
120
140
160
180
200
$0 $5 $10 $15 $20 $25
INITIAL COST(Net)
IMP
OR
TA
NC
E
Alt
ern
ati
ve
S2
Alt
ern
ati
ve
S3
Alt
ern
ati
ve
S1
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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”
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Life Cycle CostDevelopment Phase
Initial Cost– Cost associated with
initial development of a facility, including project costs as well as construction costs.
Recurring/Cyclic Costs– Costs that recur on a
periodic basis throughout the life of a project.
Annual Cost– Operations
– Maintenance
– Staffing
– Energy
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RECOMMENDATIONRECOMMENDATIONandand
PRESENTATIONPRESENTATIONPHASEPHASE
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Recommendation and Presentation Phase Review Decisions Make Recommendations Conduct Presentation Summarize Wrap-up
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IMPLEMENTATIONIMPLEMENTATIONPHASEPHASE
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Implementation Phase
Occurs outside the workshop and provides for implementation of accepted VA proposals.
Follow Through Documentation Monitoring