The Value
Methodology
January 2017
The Value Methodology
What is the value methodology?
The value methodology (VM) is known
as value engineering, value analysis
and value management
A function-based, systematic approach
to improve a project, process or product
that can optimize costs while
maintaining or improving performance
and quality
The Value Methodology
Optimizing function, performance,
`
and costs for project, products, and
processes
The Value Methodology
Markets
Manufacturing
Construction
Process improvement
Healthcare
Other
The Value Methodology
Common misconceptions
Cost reduction
Creates adversity
Ignores the design concept
The Value Methodology
How does VM work?
Reduce complicated elements into
basic components by analyzing
functions
Identifying the functions of components
and systems creates opportunities to
review alternative concepts to meet
functional requirements
The Value Methodology
What differentiates VM?
Focus on function
The primary or intended purpose that a
product, project or process is expected
to perform
Review and analysis of function to
optimize performance
The Value Methodology
The owner’s perspective
The budget is fixed
No change orders
Time is of the essence
The Value Methodology
The owner’s perspective
Adherence to adopted standards
Meet project or process requirements
Minimize complications
The Value Methodology
The designer’s perspective
Accurately aligning anticipated cost
and scope is a challenge
Project scope and budget likely set
prior to the current market condition
Pride of ownership
The Value Methodology
Benefits of value studies
Confirm program requirements
Confirm functional requirements
Generate alternative solutions
Analyze proposed improvements
The Value Methodology
Benefits of value studies
Identify process improvements
Review and establish cost targets early
Stakeholder buy-in on design and cost
The Value Methodology
The VM plan
Emphasizes team collaboration
Focus on improvement
Development of common goals
Develop a budget strategy
The Value Methodology
How VM defines value
The reliable performance which a
product or process must do to make it
work and sell at the least practical cost
Value = Function / Cost
The Value Methodology
How VM handles cost
Opportunities
Understand function requirements
Identify alternative ways meet
functional requirements
Determine the best value
The Value Methodology
The VM job plan
Information gathering
Review of the project, process or product
Identify goals, objectives and scope
Collect required background information
Function analysis
Define study elements by what do they do
and what they must do to meet
requirements
The Value Methodology
The VM job plan
Creative speculation/alternate idea
generation
Creative techniques to identify alternative
approaches
Evaluation
A structured process to select alternative
approaches that could best meet project
functional requirements
The Value Methodology
The VM job plan
Development
Document selected alternatives
Implementation
Present alternative proposals
Assist in decision-making
Reporting
The Value Methodology
VM team makeup
Study
Team
Leader
(CVS)
PROJECT,
PRODUCT,
Design OR PROCESS Customer
Team UNDER
STUDY
Client
The Value Methodology
Value study timing options
Value
Scoping
Alternatives
Analysis
VA/VE
Study
VE Change
Proposal
Programming Concept Design
Design Construction
Construction
The Value Methodology
VM results
Improves efficiency
Improved Reliability
The Value Methodology
Cost Reliability means:
Basic Function Common Sense
Common Sense Cost Reliability
Cost Reliability Improved Value
The Value Methodology
Summary of Past VE Savings
Federal-Aid Highway Program
FY 2008 FY 2007 FY 2006 FY 2005 FY 2004
Number of VE Studies 382 316 251 300 324
Cost of VE Studies Plus Administrative $12.34M $12.54M $8.15M $9.80M $7.67M
Costs
Estimated Construction Cost of Projects $29.60B $24.81B $21.53B $31.58B $18.7B
Studied
Total No. of Recommendations 2978 2861 1924 2427 1794
Total Value of Recommendations $6.57B $4.60B $3.06B $6.76B $3.04B
No. of Approved Recommendations $1308 1233 996 1077 793
Value of Approved Recommendations $2.53B $1.97B $1.78B $3.19B $1.12B
Return on Investment 205:1 157:1 219:1 325:1 145:1
About SAVE
International®
Established in 1959
Premier international society devoted to
advancing and promoting the Value
Methodology
Provides its members with education and
training, publications, promotional tools,
certification, networking and recognition
Currently has approximately 1,600 members
residing in over 45 countries
Affiliated with VM associations in India,
Hungary, Japan, Korea, China and Taiwan
Membership Distribution
Middle East
31%
Europe
6%
Australia & Africa
1%
Asia & Pacific Rim
9%
South & Central
Americas
0%
North America
53%
SAVE International ®
Membership
Individual Membership
Provides 1 person with full membership benefits and privileges, not
transferable
Annual dues are $175 USD
Dual Membership
Provides 1 person with full membership benefits and privileges of both
SAVE & Value Analysis Canada (VAC), not transferable
Annual dues are $230 USD
Educator Membership
Provides 1 person with full membership benefits and privileges, not
transferable
Available for those employed full time as an educator at a high school
or institution of higher education
Annual dues are $90 USD
Student Membership
Full-time college and university students may join SAVE free for 1 year;
after the first year, annual dues are $25 USD
A valid student email account with an accredited college or university
is required.
Student members have access to SAVE’s online member resources and
SAVE International ®
Membership
Corporate Membership
Membership Benefits
SAVE International membership provides you with access to
tools, content, resources and other professional
development opportunities to help you do your job better
Resources & Content
A subscription to Value World, a monthly e-newsletter full of SAVE news
and content on relevant topics
Member pricing on publications and other SAVE educational programs
Access to models, samples and other real-world documents you can
adopt or adapt
Professional Development
Access to on-demand distance learning; take learning to a new level
with access anytime, anywhere
Opportunity to earn a professional designation through VMA or CVS
certification programs
Networking and educational opportunities at the annual SAVE Value
Summit
Access to local chapters to build your professional network with like-
minded professionals
SAVE International®
Certification Program
The SAVE International Certification Program is the
industry standard for recognizing competence in the
practice of the Value Methodology
SAVE offers two levels of certification:
The Value Methodology Associate (VMA)
recognizes those individuals who decided to become
professional value engineers, but who have not yet
acquired all the experience or technical skills expected
of a CVS
The highest level is the Certified Value Specialist
(CVS), which is recognition of the individual who has
met all certification requirements, both technical and
experience, and whose principal career is value
engineering
Certification Program
Levels
VMA certification requires the following from each
candidate:
Certification application
Payment of the appropriate application fee
Copy of their Module I certificate of completion
Completed certification exam
VMA certification does not require recertification;
however, it does require an annual fee of $50 USD
for SAVE members or $200 USD for non-members
In addition, there is a continuing education
requirement of 8 hours bi-annually (beginning in
June 2017)
Certification Program
Levels
To achieve CVS certification, one must:
Select an adviser who is a Certified Value Specialist (CVS)
Complete an approved Module I workshop
Complete an approved Module II seminar
The Module II seminar may not be taken sooner than six months after
the Module I workshop unless the applicant participates in at least
two value studies during the time between the Module I and Module
II
Accumulate the required certification points (CPs)
Submit an original scholarly paper on a value related subject
Submit the application
Submit a summary worksheet and supporting documentation.
Pass Parts I through VII of the certification exam after
Certification Board approval of the application and paper
CVS initial and recertification fees are $360 USD for
members or $960 USD for non-members
Certification Program
Certification Totals
AVS/VMA
Over 2,000 worldwide
75% SAVE members
CVS
Over 1,000 worldwide
20% SAVE members
Certification Distribution –
AVS/VMA
Australia & Africa Asia &
0.13% Pacific
Rim
36.41%
Middle East
35.10%
Europe
4.74%
South & Cen-
tral Americas
0.55% North America
23.09%
Certification Distribution –
CVS
Europe
3%
North America
20%
Asia & Pacific Rim
75%
Middle
East
2%
Australia
& Africa
0%
Certification Program
Module I and II Course Instructors
Must be a CVS in good standing
Must be approved by SAVE to have
course accepted for certification
program
Course approvals valid for only 4 years
Course application fee is $500 USD for
SAVE members or $1,500 USD for non-
members
Value Summit
Held annually, typically in June
Program includes several pre-conference
workshops and seminars that can be claimed for
certification credit
Technical program runs 2½ days
Program includes:
On-site Workshops & VE Training
Benchmarking Tours & Site Visits
Interactive Forums & Technical Presentations
Honors & Awards Presentation
Attendance can be claimed for certification credit
E-Learning Portal
Open to the public
Served through Verified Learning
platform
Seminars include end-of-session
testing
Can be claimed toward certification
credit
For more information…
SAVE International®
19 Mantua Road
Mount Royal, NJ 08061 USA
Telephone: 856-423-3215
Fax: 856-423-3420
Email: [email protected]
Website: www.value-eng.org
