Framework for Capturing Value Engineering Savings PPT

This PPT slide, part of the 80-slide Value Managed Relationships Analysis PowerPoint presentation, outlines a framework for capturing value engineering savings through a series of critical questions. It begins by identifying who in the value chain is best positioned to drive value engineering initiatives. The first decision point examines whether the necessary capabilities exist in-house or if they need to be developed externally. If the required capabilities are available, the client can directly capture savings. If not, the next consideration is whether cost-effective outside experts are available. If they are, the client has the option to outsource, contract, or bring expertise in-house.

The slide then explores the leverageability of value engineering ideas across different business units. If these ideas can be applied broadly across widgets, divisions, and suppliers, it significantly enhances the potential for savings. Conversely, if leverageability is limited, the slide suggests that value engineering should be a contractual requirement.

The final section addresses the need for incentives to encourage value engineering. It questions what incentives might exist for suppliers to engage in these initiatives. If no incentives or investments are necessary, the recommendation is to establish a Value Managed Relationship (VMR) to facilitate the sharing of savings. The overall structure of the slide emphasizes a decision-making process that guides clients through evaluating their capabilities, the potential for leveraging ideas, and the necessity of incentives, ultimately leading to a strategic approach to value engineering.

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