Combining risk assessment and value engineering (this is project risk management class) - Essay Example

ng is an important technique that helps in the identification and elimination of unnecessary costs in construction, product design, manufacturing, operations, practices and processes. For over sixty years of existence and use, value engineering is referred to by different names. While some people refer to it as value engineering, others call it value analysis, value methodology or value management. However, the reference to value engineering in different terminologies does not change its concept.

The concept of value engineering as a systematic process can be used to improve a projects value through a critical analysis of its functions by a multidisciplinary team. Value refers to the equivalent in goods, money, services or a fair return for something exchanged. It is most often represented in the relationship indicated below: The function is measured by the customer performance requirements while the resources are measured in labour, materials, time, price and many other elements that are essential for the accomplishment of the function.

In a value methodology, the focus is primarily on how to improve value through the identification of alternative ways of reliably accomplishing a function that meets the customers performance expectations. A job plan in the systematic process of value engineering outlines the specific steps used to evaluate an issue and attain the maximum feasible alternatives that address the issue in consideration. The issue being considered could be a particular event risk(s) that potentially can be dealt with through value engineering in the context of risk assessment (Cretu, Stewart and Berends, 2011).

The analysis of functions, as done by a multidisciplinary team through the application of value engineering, helps to improve the value of a project. The multidisciplinary team is a value engineering team that comprises the project stakeholders and experienced professionals. The team members are chosen based on their experience and expertise