Value Management & Value Engineering Application in Oil and Gas Industry
Revised: February 18, 2010
PROCESS EXPLAINED
The following Value Management and later Value Engineering Methodologies have been applied:
- Value Management Session to Optimise Project Management issues. (Non-Technical)
- Value Engineering Study on Offshore (Technical)
- Value Engineering Study on Onshore (Technical)
Pre VE Workshop Activities:
(3 days external preparation and 1 day at Engineering Contractor’s Offices with Process Specialists)
- Analysis of Data related to the Project
- FAST Diagram (For Offshore and Onshore)
- VM / VE Methodology Explained (PowerPoint Presentation)
- VE Procedure & Workshop Agenda (detailed)
- Delegate Information Package (to be issued prior to the workshop)
VM & VE Workshops:
Value Management Session: 2 Days
- VE Process Overview and VE Workshop Ground Rules.
- Agreement on Scope (Purpose Statement – Workshop Objectives).
- Listing of Areas of concern related to functional performance and cost of design.
- Objective Matrix – Clearly stating the Goal and related environmental influences.
- Results to Achieve / Functional Requirements (Verb / Noun Definitions) translated into established Priority and Level of Importance (Cause and Effect Analysis).
- Listing of recommendations for each identified opportunity area.
- Evaluation of recommendations against Objective, Functionality Requirements and Costs.
- Allocation of Responsibilities and Time Frame of Implementation (Action Plan)
Value Engineering Study: 3 Days
- Prioritising of Areas of Investigation (All Design Parameters and Philosophies – Cost Drivers, utilising a Scanning Matrix, evaluation against major functional requirements.
- Functional Definition Cost Drivers, Recommendation with Benefits (Tangible – Non-tangible)
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