What is Value Engineering? Project Management in Under 5

[@gauravrijal9163]

Many thanks to you Professor. Now about to give a presentation on Value Engineering in about an hour.

[@Onlinepmcourses]

Best of luck, Gaurav!

[@kartiksunasogodo9639]

OH YOUR VOICE IS SO SOOTHING ,U CAN BE A VOICE OVER ARTIST FOR DOCUMENTARIES THANK YOU

[@Onlinepmcourses]

Thank you, Kartik. Must go now, David Attenborough has just called!

[@PinayEngineerinGermany888]

Wow! thanks for the details. Im happy to found this site. Very informative!

[@Onlinepmcourses]

You're welcome!

[@jhimichtv4227]

I'm an accounting student. Thank you for the information 😍 Highly appreciated! 😍 From Philippines

[@Onlinepmcourses]

Glad it was helpful!

[@haks_123]

hey great video and what are the specific ways in which organisations could use Value management to implement efficiencies to an engineering activity?

[@Onlinepmcourses]

Thank you, Blaze. I'm not an engineer, but I would say that in engineering (for example, civils, mecheng, or production engineering), Value Engineering would be used to refine the value of the engineered product, rather than to make the activity more efficient. That would be some form of process optimization - like Lean, perhaps.

[@haks_123]

@@Onlinepmcourses ohk im asking because in my assignment that was one of the questions and i was really confused and i cant really have a hold of my teacher iswell. so i was wondering if you could accumulate an answer even if its relatively close to the actual answer.

[@Onlinepmcourses]

@@haks_123 Engineering is not my area, so I cannot help you. You'll need to do your own research on this. And, I do have a policy: I'll answer direct questions to the best of my ability. But I won't actively help students with assignments. I believe you will learn best by referring to established reference works and finding out for yourself Good luck with your assignment.

[@Onlinepmcourses]

And, I just noticed... You asked about Value Management. That is different from Value Engineering.

[@haks_123]

@@Onlinepmcourses oh ok thanks anyway :)

[@senyumjalanterus]

Thankyou from Indonesia sir.. Amazing...

[@Onlinepmcourses]

You're very welcome!

[@yupyuphaha]

what are your thoughts on value engineering in the construction sector?

[@Onlinepmcourses]

I don't have any. I have never worked in the construction sector and have no expertise. Any thoughts would be mere speculation and of no value.

[@somashekharertyug9528]

@Dr Mike Clayton Greetings of the day🙏 Could you please throw light upon ECR,ECO and ECN?

[@Onlinepmcourses]

Hi. I'm not an engineer and so I cannot give you much information here. All I know is that they refer to Engineering Change Requests (ECR), Orders (ECO), and Notices (ECN). They look to me to be similar to the Project Management Change Control process (kzbin.info/www/bejne/bXu4kHptodR8rNk). Wikipedia is your friend on this topic: en.wikipedia.org/wiki/Engineering_change_order

[@somashekharertyug9528]

@@Onlinepmcourses Thank you very much Mike Have a great day Look forward to more videos

[@declancox5952]

I understand the concept of Value Engineering, with the goal to reduce costs without compromising the quality of a product. What would be a few examples of this being implemented in a real life situation?

[@Onlinepmcourses]

Pick up some brands of mobile phone and maybe the materials were chosen to reduce cost, and the processes for the construction of all phones would have been value engineered. In a new building, architects and engineers would think about finishes, services, and a thousand components. In a corporate technology project, we might compare different approaches to training staff. Always, we are searching for alternative solutions to meet the need, rather than trying to produce a stripped-down product with less functionality..

[@albertokindole4454]

Is possible.If you think to reduce cost is impossible try to improve function and keep the cots constant.Simply Value Engineering is the ratio of function and cost.That is you can reduce cost or improve function or do both.Mr Declan Cox please understand this simple maths of VE

[@maleeq754]

@@Onlinepmcourses Sir, if the value analysis applied to existing products to assess the functionality and cost are proportionate than we hv to choose the existing smart phone brand as an example? like Iphone?

[@Onlinepmcourses]

@@maleeq754 I am not sure I understand you, Naz. But we can be sure Apple has applied a mass of Value Engineering approaches at the iPhone. Just because it's expensive to buy and set at a premium level of functionality, usability, and quality, that does not mean VE is not relevant. In fact, we know publicly that iPhone manufacturing costs are very low compared to sale price. This is for many reasons, but doubtless one of them is the VE applied to the process engineering.

[@maleeq754]

@@Onlinepmcourses Alright sir thank you for the information. I've understand it very clear now👍👍👍👍 looking forward for your vid 😁

[@omarnalsayad]

I have a small question! Can you perform the operation of value engineering without having access to the cost? I hope my question is clear!

[@Onlinepmcourses]

The question is clear and it's a reasonable one. I would say, in principle, yes. But it will require you to make assumptions. Some will be eminently reasonable: fewer units of a component must be lower cost than more. Others will be highly likely; like component X is unbranded, but with the same quality rate. But most assumptions you make are subject to real uncertainties. My real response though is why? Why would someone 'trust you' with a VE project, but not enough to share the data that success relies on. I'd turn that project down. It seems like blindfolding you and asking you to run a maze. You can do it, but there would be a real risk of falling or bumping. And the chances of doing it as well, would be next to nil.

[@omarnalsayad]

@@Onlinepmcourses Thank you so much Mr. Mike, I can’t begin to explain how helpful this is.

[@Onlinepmcourses]

@@omarnalsayad My pleasure.

[@mdtapilatu]

Nowaday's terms are befidling, we used to call it as it is..cost benefit analisys

[@Onlinepmcourses]

Value Engineering is NOT the same as Cost-Benefit Analysis. CBA is the analysis of what benefits you get for the cost. VE is looking for ways to increase the benefit for the given cost or, more often, reduce the cost while keeping all or a disproportionate amount of the benefit.

[@mdtapilatu]

@@Onlinepmcourses then its the same as saying ways of minimizing cost while maximizing benefits, i can't see the difference. But thank you for the defenition

[@Onlinepmcourses]

Yes, value engineering is precisely the process of looking for ways of minimizing cost while maximizing benefits.

[@LindeNethamba]

Thank you so much!

[@Onlinepmcourses]

You're welcome!

[@edronemutogo8476]

Well explained,thank you Professor

[@Onlinepmcourses]

You're welcome, Edrone.

[@akhilnair5593]

HOW DOES IT DIFFER FROM VALUE ANALYSIS??

[@Onlinepmcourses]

Akhil - what an excellent question, thank you. They are similar in intention, but the real difference is the domain in which they are applied. Value engineering is part of a process for developing new products. That's why it is relevant to us, as project managers. Value analysis is a process applied to existing products, to assess whether the functionality and cost are proportionate. Consequently, VA is very much an operational process, that concerns us less, as project managers. So, VA is used to reduce the cost (and increase the net value) of an existing product, while VE is a process to drive down the cost of a product while it's in the design and development phases.

[@sudhanshukukreja287]

CA Kar Raha h kya Bhai??

[@Onlinepmcourses]

@@sudhanshukukreja287 ???

[@thuthao1637]

First, many thanks to y'all and especially Professor. Btw, I have a question about the relasionship between VE and sourcing that WHAT IS SOURCING'S ROLE IN VALUE ENGINEERING? Hope you can see and answer. Tks again

[@Onlinepmcourses]

Clearly, the prices you pay for components and services impact the product's final price. So, selecting the right quality/price point for anything you procure is vital to VE. And, remember, cheap can sometimes be expensive. If you pay less for the same product, but then have hassles with your supplier, there is a hidden cost. So, evaluation is a skilled task. Here are some videos I recommend (in no particular order): - Competitive Procurement: How to Run a Tender Process kzbin.info/www/bejne/Y3y3hoedp9qkl6M - Should a Project Manager Get Involved in Contract Negotiations? kzbin.info/www/bejne/norEhaSgd9KghZI - Vendor Management: How to Work with Vendors kzbin.info/www/bejne/ZoawkJmpiciBi6M - A Fixed Price Contract for Your Project: Pros and Cons kzbin.info/www/bejne/rorPf5qDl898ppo - How to Manage Vendors: Getting the Best Results kzbin.info/www/bejne/gJykm5WAdsaaebs

[@thuthao1637]

@@Onlinepmcourses Thank you so much

[@maysaosman8059]

thx from SUDAN

[@Onlinepmcourses]

You're welcome! From the UK.

[@muhammed7547]

This isn't an advert for M&S Food!!! However great content learning a lot.

[@Onlinepmcourses]

Confused! But certainly glad you are learning from it!

[@rajankandel8354]

Listen at 1.75 speed

[@Onlinepmcourses]

Rajan Kandel: Good idea if you want the information more quickly. Not everyone speaks English fluently.

[@irfanfarid1529]

sorry what disaster in the UK I cant hear it clearly.

[@Onlinepmcourses]

Grenfell Tower - but it's a systemic issue and a very real scandal over here.