:AACE CERTIFICATION 2009-2010:

I’m a bit shame when I’m going through value engineering theory in the Total Cost Management Framework. I’m an electrical engineer and I have been working for about 8-years in designing electrical system and I have never introduce myself how important value engineering to the company. Value engineering supposed to be implemented in the past!. AACE course then help me out to open my mind to implement value engineering into the organization from engineering design and project perspective.

Figure 3.12 pages 37 of 75 AACE course slide day-5 give me the inspiration to implement value engineering in the engineering organization. I have been designing electrical plant and electrical connector is the most common material for electrical installation. I have never asked my self as the engineer, can less-expensive connector material be used? Can the number of different connector materials used be reduced? Can the connector designs be simplified to reduce the number of part? Is the current level of connector type necessary? Can another cheaper product be used? Honestly, those questions always neglected considering the company has lot money to buy the expensive materials with very robust engineering design. Our common practice is to design the electrical system based on the available material stock in the warehouse referring to 30-years old material specification include design specification. The ‘status-quo’ specification is reviewed periodically but only to review the functionality of the equipment or material despite the opportunity to determining the most cost effective way to provide high value at an acceptable cost.

Financial constraint lately leads to commodity prices fallen into the bottom meanwhile operating cost increase very significant resulting negative cash flow to the most of the company around the world. There is no way to run except the company to push hard on cost saving initiatives, reduce the capital & operating expenditure, hiring freeze, suspend the contract and other ways to survive. I believe that one of big contributions to help the company survive is to apply and implement the value engineering and I have a golden opportunity to make a CHANGE since I’m now lead the electrical instrumentation engineering section who provides an engineering design for capital and operating projects.

What do I have to do to make this change to produce engineering deliverables in the most cost effective manners? Open the book: Engineering Economy page 124-126, Skills & Knowledge of Cost Engineering chapter 24, Total Cost Management Framework page 153-158 and surfing into www.value-eng-org (unfortunately I have to be a member to download the important file) give me a clear guidance on how to start implementing value engineering into the organization.

The process map for value analysis and engineering is clearly mentioned what are the inputs, tools and techniques and the outputs.

The following sections briefly describe the steps in the value analysis and engineering process1:
1. Plan and initiative the VA/VE study
2. Perform function analysis
3. Apply creativity
4. Evaluate ideas
5. Develop and document alternatives

I think those process is not hard to be implemented as long as we committed to do it with of course, support from top management and I truly believe they will.

I’m still continuing to read all of that stuff and try to summaries the key concept of value engineering process to align with the current organization structure. Considering there are a lots technique of value engineering processes then I have plan to make a brief process map for value engineering that can be easily implemented in the company specifically to the engineering organization.

Again, I don’t want to reinvented the wheel, I need some helps from the expertise at least give me a guidance on how to perform the value engineering more effective and achievable, can you help me Dr. Paul?. I consider having value engineering as one of my initial topic of paper to be submitted.

I will guarantee that if value engineering implemented in my organization, the AACE course will generate a favorable Return On Training Investment (RoTI).


1 AACE International, Total Cost Management Framework page 154