Value Engineering (VE) Course

Lesson 1 • Core Concepts and Terminology

Defines value, function, cost, and worth as precise VE terms. Provides the shared vocabulary used throughout all subsequent chapters.

Lesson 2 • The Value Equation and Its Drivers

Examines how value is increased by raising performance or reducing cost. Students learn to identify which driver applies in a given project context.

Lesson 3 • History and Evolution of VE

Traces VE from Lawrence Miles's wartime origins to modern practice. Grounds students in why VE emerged and how it differs from cost-cutting.

Lesson 1 • Presentation and Implementation Phases

Covers how VE proposals are communicated to decision-makers and tracked through implementation. Closes the loop between study and realized savings.

Lesson 2 • Information and Function Phases

Introduces the first two active phases: collecting project data and defining functions. These phases set the analytical foundation for idea generation.

Lesson 3 • Purpose and Structure of the Job Plan

Explains why a phased methodology produces consistent, defensible results. Students see how each phase feeds the next in a logical chain.

Lesson 4 • Pre-Study Preparation Activities

Covers data gathering, team selection, and scope definition before the formal study begins. Proper preparation prevents wasted workshop time.

Lesson 1 • Cost-Function Allocation

Assigns project costs to specific functions to expose high-cost, low-value areas. This quantitative step transforms FAST into an actionable cost model.

Lesson 2 • Classifying Functions: Basic vs. Secondary

Distinguishes basic functions that define product purpose from secondary functions that support or sell. Correct classification directs analytical effort.

Lesson 3 • The Two-Word Function Definition Rule

Teaches the active verb plus measurable noun formula for writing precise function statements. Precision here prevents misdiagnosis of value problems.

Lesson 4 • Function Analysis System Technique (FAST)

Introduces the FAST diagram as a visual map of function relationships using How-Why logic. Students build diagrams that reveal hidden cost drivers.

Lesson 1 • Analogical and Lateral Thinking Tools

Introduces synectics, random stimulation, and biomimicry as tools for breaking conventional thinking patterns. These methods surface non-obvious alternatives.

Lesson 2 • Brainstorming and Its Variants

Covers classical brainstorming, brainwriting, and round-robin techniques adapted for VE. Each variant addresses different team composition and time constraints.

Lesson 3 • Managing Idea Volume and Capture

Provides methods for recording, organizing, and preserving all ideas without premature filtering. Proper capture ensures no viable alternative is lost.

Lesson 1 • Initial Screening Techniques

Applies rapid filters such as feasibility checks and multi-voting to reduce idea volume quickly. Screening preserves team energy for deeper analysis.

Lesson 2 • Life-Cycle Cost Considerations

Integrates life-cycle cost thinking into idea evaluation to avoid trading initial savings for long-term expense. Students apply basic present-value concepts.

Lesson 3 • Weighted Evaluation Matrix

Teaches construction and use of a weighted scoring matrix to rank surviving ideas quantitatively. The matrix produces a defensible, documented ranking.

Lesson 4 • Evaluation Criteria Development

Guides teams in defining measurable criteria aligned with project goals before scoring begins. Pre-defined criteria prevent bias during idea screening.

Lesson 1 • Risk and Feasibility Assessment

Identifies technical, schedule, and stakeholder risks associated with each proposal and proposes mitigations. Risk transparency increases proposal acceptance rates.

Lesson 2 • Technical Documentation and Drawings

Covers the level of technical detail required to support proposal review and approval. Adequate documentation reduces back-and-forth with technical reviewers.

Lesson 3 • Cost-Benefit Analysis for Proposals

Applies quantitative methods to estimate first costs, recurring savings, and net value of each proposal. Accurate analysis builds stakeholder confidence.

Lesson 4 • Anatomy of a VE Proposal

Defines the required components of a professional VE proposal and the purpose of each section. A complete proposal enables decision-makers to act without additional research.

Lesson 1 • Visual Communication of VE Data

Teaches effective use of charts, tables, and diagrams to communicate cost and function data. Visuals accelerate comprehension and support verbal arguments.

Lesson 2 • Handling Objections and Resistance

Provides techniques for anticipating, acknowledging, and reframing stakeholder objections. Skilled objection handling preserves relationships while advancing proposals.

Lesson 3 • Tailoring Messages to Audiences

Adapts content depth and emphasis for technical, financial, and executive audiences. Audience-specific framing increases receptivity and reduces resistance.

Lesson 1 • Measuring VE Program Effectiveness

Defines key performance indicators for evaluating the overall VE program, not just individual studies. Program-level metrics justify continued investment in VE.

Lesson 2 • Building a Sustainable VE Program

Covers organizational structures, training pipelines, and leadership support needed to institutionalize VE. Sustainability transforms VE from a project tool into a culture.

Lesson 3 • Transitioning from Study to Implementation

Defines the handoff process from the VE team to the implementation owner. A structured transition prevents approved proposals from stalling after the workshop.

Lesson 4 • Tracking Proposal Status and Savings

Establishes a tracking system to monitor proposal status from approval through realized savings. Consistent tracking demonstrates VE return on investment.