course | Value Engineering and Cost Reduction

Module 1

Project Scheduling and Cost Planning Skills

Project Estimating Basics

• Basic Project Management definitions
• Triple Constraints – Time, Cost, Scope
• Project Selection Methods
• Defining the Project Scope
• Cost & Schedule Estimation, cost Budgeting & Control
• Project Schedule Planning and Critical Path Method

Developing Project Budget and Schedule Control

• Project management inputs to cost budgeting
• Resource Requirements
• Direct & Indirect Project Costs
• Planning and Scheduling Limited Resources
• Options for Accelerating the Schedule
• Crashing the Schedule - How?

Managing The Risks

• Risk Identification, Analysis & Management
• Contingency Reserve
• PERT, Probability and Standard Deviation Formula
• Network Activity Risk Profiles
• Application: Estimating Project Duration
• Project Risk Strategies

Measuring Project Performance

• Balanced Project Schedule without Buffers (Finish-Start) and Inserting Buffers
• Comparison of Unbalanced with Balanced Schedules
• Measuring Planned Progress on Schedule
• Risk distribution in contracting
• Actual Progress and Work Conditions
• Managing Variable Conditions

Module 2

Performance and Profitability

Framework for applying Value Engineering Projects.

• Defining Value and Value Engineering concepts and principles
• How and when is Value Engineering applied?
• Project definition through stakeholder analysis and management
• Team player styles
• Identifying relationships between Value, Cost and Worth
• Overview of Different Value Engineering Phases

The Function Analysis Phase – Expressing Project Functional Needs  and Constraints. 

• The Information Phase – steps and procedures
• Developing Value Engineering Job Plan
• Defining project constraints
• What is function analysis and Function-Cost-Worth Analysis
• Developing FAST Diagrams to identify critical project components
• Cross-Functional Project Team Approach

Creative Thinking

• Creative thinking techniques
• Reaching consensus and leveraging the power of project team collaboration
• Project risk perception and identification
• Identifying priorities through paired comparison
• Output of the Creative Phase

The Evaluation Phase – Making Informed Project Decisions

• Project evaluation methods
• Performing project risk and scenario analyses
• Life-cycle costing techniques
• Incremental benefit-cost analysis for project evaluation
• Effective Decision-making in project environment
• Output of the Evaluation Phase

The Planning and Reporting Phases – Getting Results Through  Effective Communication

• Develop and assess VE proposals to optimize project value
• Action planning roles and responsibilities
• Reporting VE findings to Senior Management and project stakeholders
• Incorporating VE into the early project phases
• Integrating VE with Continuous Improvement Techniques