Value and risk Management ReporT

Value and risk Management Report

Value and risk Management Report

Introduction

The statutory and regulatory delineations encompass investigation of functions performed by a group of trained staff administered at advancing performance, reliability, value, safety, and life cycle charges of goods, systems or procedures. The study of functions helps to achieve “best value” for resources involved by improving the relationship of worth or utility to monetary cost. The best value is associated with an item that has the ability of performing its function at an optimum level of quality, reliability, maintainability, and life-cycle cost. This analysis reduces processes, equipment, facilities, services, supplies, or products to their most basic functional elements and then looks for cost-efficient alternatives. At minimum, proper value management perform will encompass all of following items:

identified initiatives

invested resources

implementable recommendations

identifiable return on investment

Discussion

A summary view of value management is the systematic search for an undiscovered answer through the collective efforts of a team composed of experienced and highly qualified professionals. The goal of the VE analysis is to ensure that the owner, user, and other stakeholders, receive a product that provides the greatest “value,” or return on their collective investment. Value administration methods and Practices emphasize the return on investment aspect in terms of life cycle costs to maintain or improve on desired levels of capability and performance during planning, acquisition, and execution and procurement activities (Solomon, 2006, 28-29).

The reliance on a proper integrated product-oriented team to achieve valuable results cannot be overemphasized in any discussion of the definition of value management. Multiple teams may be assigned to review an identified item in a highly structured VE study session or workshop. Teams are comprised of knowledgeable staff representing many technical and operational disciplines, including someone well-versed in value management practices, as well as the client, user and other cognizant stakeholders (Pearson, 2002, 77-79).

Whead covering worth administration is not?

Value Engineering is not what good planners and designers do as a matter of routine, it's not part of the typical design development process. A VE analysis is more rigorous than the typical project review. Each VE effort brings together an impartial team of professionals with a common purpose, improving the project design. The format and structure of the value management methodology serves to aid both the owner and designer with achieving their objectives. Similarly, a VE investigation is not a customary cost reduction approach. In a VE analysis, cost reduction is achieved by making a design more efficient without reducing essential performance, reliability, or maintainability. Conversely, traditional cost reduction efforts will concentrate on material substitutions, and reducing or eliminating specific elements. This approach frequently results with reduced quality, or diminished performance. Performing a VE analysis is not the same as a usual value Assurance (QA) review. The traditional QA review will answer questions such as: does the design meet code requirements; will the design work; and does the design conform to accepted standards of practice? The VE analysis will answer these questions: what else will achieve the same ...