Introduction:

Value Engineering (VE) is a structured methodology used to optimize cost, performance, and efficiency in procurement and project management. This program provides an in-depth understanding of VE principles and their application in selecting materials for high-rise commercial buildings. Participants will explore strategies to enhance procurement processes, evaluate alternative solutions, and improve financial decision-making. The training emphasizes practical approaches to balancing cost-effectiveness with quality and performance standards in procurement operations.

Program Objectives:

By the end of this program, participants will be able to:

Apply Value Engineering (VE) principles to procurement and construction projects.
Conduct Cost-Benefit Analysis (CBA) to evaluate material alternatives.
Develop VE Analysis Reports with structured function and cost evaluations.
Create and present Value Proposition Presentations for procurement decisions.
Link VE accomplishments to procurement staff objectives and KPIs.
Utilize on-the-job (OTJ) accomplishment templates and tools for structured procurement reporting.
Align VE strategies with Innovo’s procurement and cost-saving objectives.

Target Audience:

Procurement Managers.
Project Managers.
Cost Engineers.
Construction Engineers.
Facility Managers.
Contract Administrators.
Strategic Sourcing Specialists.

Program Outline:

Unit 1:

Foundations of Value Engineering in Procurement:

Overview of Value Engineering (VE) and its role in procurement and cost optimization.
The VE Process: Function analysis, alternative development, and cost evaluation.
Importance of linking VE accomplishments to procurement staff objectives.
Key Procurement Cost Factors: Material selection, labor, and supply chain efficiency.
Case Study: Successful application of VE in a high-rise commercial project.

Unit 2:

Conducting Cost-Benefit Analysis (CBA) for Procurement:

Principles of Cost-Benefit Analysis (CBA) in procurement.
Assessing Material and Lifecycle Costs: Procurement, installation, and maintenance.
Comparing Alternative Materials for Cost and Performance (Triple-Glazed vs. Laminated Acoustic Glass).
Financial Metrics and Procurement Decision-Making: ROI, payback period, and cost savings.
Using CBA for Justifying Procurement Decisions to Stakeholders.

Unit 3:

Developing a VE Analysis Report:

Structure of a VE Analysis Report: Key sections and reporting standards.
Function Analysis: Evaluating primary and secondary functions of materials.
Cost Comparison: Material cost, installation cost, and long-term savings.
Risk Identification and Mitigation Strategies in Procurement.
Ensuring Compliance with Industry Standards (STC, OITC, and Sustainability).

Unit 4:

Value Proposition Presentation & Stakeholder Communication:

Key Components of a Value Proposition for Procurement Decisions.
Effectively Communicating Cost-Savings and Performance Advantages.
Structuring Presentations for Internal Approval and Procurement Justifications.
Financial Impact of VE Recommendations and Procurement Strategies.
Best Practices for Presenting VE Findings to Decision-Makers.

Unit 5:

Implementing VE in Procurement Operations:

Aligning VE Accomplishments with Procurement KPIs and Strategic Goals.
On-the-Job (OTJ) Accomplishment Templates and Tools for VE Application.
Evaluating Supplier Market Conditions and Alternative Sourcing Strategies.
Managing Procurement Risks and Supply Chain Challenges.
Ensuring Sustainable and Cost-Effective Procurement Solutions.

Value Engineering for Cost Optimization in Procurement