What is it about?
A value analysis is a structured methodology performed by a team to obtain investment cost savings, while maintaining integrity of the project.

The value of a project/process is defined as follows:

The envisaged process is divided into required functions (not based on unit operations), such as “feed raw materials” or “measure flow”. Utilizing this functional approach the team’s creativity is enhanced to generate alternatives for the functions. In this manner considerable cost savings can be obtained.

Why should you use it?
A value analysis is a tool to structure a group process aimed at maximizing the value of a project. It gives the relevant project team members (process engineer, process licensor, site representative, manufacturing representative, R&D leader, cost estimator, the responsible BU principal) an opportunity to generate alternatives in a brainstorm session under the guidance of a trained T&E facilitator. By reviewing all functions of the process (and/or the project) systematically, means can be identified to increase its value.

When should you use it?
A value analysis is normally performed on projects when an AR grade investment estimate is ready. Preferably towards the end of a pre-project and before submitting the AR.

However it should be considered to perform a value analysis also at the end of the study phase of a project. More time is then available to evaluate process alternatives. A preliminary cost estimate should be prepared.

What does it yield?
The value analysis team assesses the generated alternatives on criteria such as impact on schedule, health, safety & environment, operability, capacity, operational costs and evidently capital savings.

Based on a standardized rating system, decisions are made whether to accept, reject or study alternatives.

Means to maximize the value are:
• eliminate unnecessary functions;
• reduce costs;
• include required but missing functions;
• improve functions.

Or more specific as cost reduction mostly is the primary objective of the value analysis:
• eliminate unnecessary equipment;
• use less expensive equipment;
• apply alternative unit operations;
• consider changes in basis of design if a big cost effect is expected.

What do you need?
Relevant documents needed to prepare a value analysis are:
• process design book;
• drawings (PFD, P&ID, lay-out);
• cost estimate;
• pertinent R&D reports.

What can T&E do?
The facilitator of the value analysis is preferably an outsider to the project.
T&E has more than 8 years experience in facilitating value analysis. Based on extensive experience in manufacturing technologies it is possible to organize a value analysis on short term.

Typically the facilitator needs two weeks to prepare the value analysis session. The value analysis session by the team usually takes two days. Subsequently the value analysis report can be issued shortly after.