ARIZONA DEPARTMENT OF TRANSPORTATION
VALUE ANALYSIS PROGRAM
PROJECT DEVELOPMENT PROCESS MANUAL
-EXCERPTS-
4.Project Scoping Phase
4.9 Scope Consensus Study
During the PA (or DCR or L/DCR, as appropriate) process, the Project Team may find it advantageous to organize a one-day Scope Consensus Study to achieve an agreement between the involved parties as to what a particular project is to be. This study is a consensus meeting which utilizes the systematic approach and tools of the value analysis methodology to solve scoping problems and build genuine consensus. Project Teams are encouraged to use this approach on appropriate projects.
Special Programs Section should be notified when the project manager recognizes a significant consensus problem and decides to organize a consensus study. Working with the project manager, Special Programs Section is responsible for organizing the study team, setting the meeting date and time and assembling appropriate documents. The study team will conduct a one-day study, make recommendations for the scope, and recommend implementation procedures. Special Programs Section will provide assistance to the project manager in organizing and conducting the meeting.
The team for this type of study will consist primarily of persons directly involved with the development of the project who will be selected and organized by the project manager, with consultation from Special Programs Section. Appropriate materials, documents, and training will be provided to project managers and study team members by Special Programs Section.
Editor’s Note: PA = Project Assessment; DCR = Design Concept Report; L/DCR = Location/Design Concept Report.
Note: Excerpts taken from the ADOT Project Development Process Manual, DOC 31-077, February, 1995.
4.10 Value Analysis
All projects with an estimated construction cost of $5 million or more and being of average or greater complexity will be value analyzed at either the Initial Project Assessment, Initial L/DCR or the Pre-Initial Design stages. In addition, all projects of a complex nature should be considered for Value Analysis regardless of estimated cost. The project manager will determine, in consultation with Special Programs Section, at which stage the Value Analysis will be performed. See Section 5.5 for a discussion of the procedures for the Value Analysis.
5. Design Phase and Pre-Construction Activities
5.5 Value Analysis
All projects with an estimated construction cost of $5 million or more and being of average or greater complexity will be value analyzed either during the Scoping Phase or at the Stage I Review. In addition, all complex projects should be considered for Value Analysis regardless of the project’s estimated cost. Teams for these studies will be composed primarily of staff not involved with the development of the project and will be organized by the Special Programs Section (SPS). The Special Programs Section staff will lead and/or facilitate the study or contract for such services where appropriate. SPS will prepare a report of the study findings and, after consultation with the project manager, circulate the report to group managers and to the appropriate technical managers for review. SPS will monitor the review process and advise the project manager on those items which are recommended to be incorporated in the project design.
The Project Team will implement the appropriate recommendations and the project manager will advise the Special Programs Section of the recommendations to be implemented.
The Process results will be conveyed to the Value Study Team and technical managers and entered into the Value Analysis database by the Special Programs Section.
The project manager is responsible for contacting the Special Programs Section to schedule the value study preferably two months in advance of the proposed study.The project manager will advise the Special Programs Section on disciplines to be represented on the study team. The project manager may participate in the study.
In addition to the cost and complexity thresholds, value studies may be requested from time to time by group level, or higher, management. In such cases, the group manager will request the project manager to initiate the study, working through the SPS as described above. The requesting manager will be kept informed of all phases of the value analysis study.
More information on all aspects of the Value Analysis Program is contained in procedure documents available from the Special Programs Section. The project manager is requested to become familiar with this important program, and to consider it to be a powerful tool for consensus building, problem solving, and cost saving -- not as "inspection" or "peer review". The objective of the Value Analysis Program is to enhance quality by improving value. (emphasis added)
Excerpted from Part B: Dictionary of Standardized Work Tasks from Statewide Project Management Group
1050 Value Analysis
"Value Analysis," also known as "Value Engineering" consists of those tasks performed by a value analysis team in accordance with the Value Analysis Program Manual as referenced in Section 200 of the Scope of Work and available from the ADOT Value Analysis Section. Any studies or other activities of a similar nature shall not be referred to as "Value Analysis" or "Value Engineering."
The design team is encouraged to recommend value analysis for ADOT standards and specifications, as well as for elements of the project.
1051 Value Analysis Team
A value analysis team consisting of ADOT [personnel, personnel from consultants or outside agencies, or some combination of these sources will perform the value study. The design team shall cooperate fully with the value analysis team, providing necessary background information for analysis. At the discretion of the project manager, the design team may be requested to assign one of its representatives to the value analysis team.
1052 Design Team Responsibilities
- The design team, upon notification of the approval of a value analysis, shall compile appropriate data for analysis and make a presentation to the value analysis team, in accordance with the Study Plan prepared by the value engineer. The design team shall communicate and cooperate fully with ADOT’s value engineer and the value analysis team.
- It is expected that the element necessary for a value study can be assembled and delivered by the design team with minimum expenditure of effort and time under its normal design procedures in approximately four (4) working days. The design team will be allowed to budget thirty-two man-hours for data compilation, the presentation and study response, if appropriate. If the design team is requested to furnish a representative to participate as a member of the value analysis team, additional hours may be necessary. Although costs for value analysis activities are not identified as a separate expense item for accounting purposes the design team shall report the hours expended and estimated costs of labor and materials to the ADOT value engineer for cost tracking and value analysis program evaluation purposes.
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In accordance with the Program manual, the findings and recommendations of the value study will be forwarded to the ADOT project manager for review. The project manager will review the value analysis recommendations with the project team and respond to the value analysis section as soon as practical, indicating acceptance, possible acceptance pending further investigation, or rejection of each recommendations. The design team shall implement the approved recommendations of the value study. If significant effort is required, the additional work will be added to the Scope of Work by contract modification.
ARIZONA DEPARTMENT OF TRANSPORTATION
VALUE ANALYSIS PROGRAM
COST ACCOUNTING PROCEDURES
I. Objective: These procedures will provide for the accounting of all significant costs associated with the Value Analysis Program. This accounting will facilitate the administration of the Program, and a comparison of benefits to costs.
II. Applicability: These procedures are applicable to all ADOT and consultant personnel who expend work-hours on a value analysis activity which is administered under the Program. Work-hours devoted to similar activities, not administered under the program, should not be charged in accordance with these procedures.
III. Types of Costs: The personnel costs of the value analysis program are of three basic types:
A. Study Costs.
1. Designer Preparation and Presentation.
2. Study Team Costs.
3. Management/Designer Review and Response.*
B. Training Costs.
C. Administrative Costs.
*Note: ADOT and Consultant personnel costs will be considered value analysis costs up to the point where study recommendations have been reviewed and either accepted or rejected by ADOT management. ADOT personnel costs incurred beyond this point will be considered as part of the normal design costs. If significant additional consultant design costs are required to implement accepted recommendations, they will be deducted from the savings associated with the recommendations.
IV. Cost Accounting - ADOT Employees (BTS charges):
A. General - Project numbers and work-hour budget will be provided by the Study Team Leader. In all cases, the employee’s Expense Budget number will be used.
B. Study of Established Project - Charge project number plus Activity Code GN 84.
C. All other Studies - Charge a special project number provided plus Activity Code GN 84.
D. Training - Charge to project number provided plus Activity Code GN 84. (Be sure to sign training roster for proper credit.)
E. Administrative - Charge to Activity Code GN 84 only. Administrative charges are for general program activities only. (All charges associated with a specific study or training session must have a project number.)
V. Cost Accounting-Consultant Personnel:
A. Management Consultant costs associated with a value analysis study will be considered part of the ordinary management cost and will not be accounted for separately.
B. Design Consultant contracts contain a work-hour budget for value analysis. These work-hours are to cover study preparation, presentation, and response costs up to the point where study recommendations are either accepted or rejected by ADOT management. The Consultant will provide an accounting of incurred costs to the Coordinator upon completion of this work.
C. Independent Consultant personnel (not involved in the development of a study subject), required for a value analysis study, will be procured and compensated by means of a Letter Agreement. The Coordinator will be the Monitor for all such agreements.
ARIZONA DEPARTMENT OF TRANSPORTATION
VALUE ANALYSIS PROGRAM
FEDERAL VALUE ENGINEERING REGULATION
1997
Part 627--Value Engineering
Sec.
627.1 Purpose and applicability.
627.3 Definitions.
627.5 General principles and procedures.
Authority: 23 U.S.C. 106(d), 106(f), 302, 307, and 315; 49 CFR 18.
§627.1 Purpose and applicability.
(a) This regulation will establish a program to improve project quality, reduce project costs, foster innovation, eliminate unnecessary and costly design elements, and ensure efficient investments by requiring the application of value engineering (VE) to all Federal-aid highway projects on the National Highway System (NHS) with an estimated cost of $25 million or more.
(b) In accordance with the Federal-State relationship established under the Federal-aid highway program, State highway agencies (SHA) shall assure that a VE analysis has been performed on all applicable projects and that all resulting, approved recommendations are incorporated into the plans, specifications and estimate.
§627.3 Definitions.
Project. A portion of a highway that a State proposes to construct, reconstruct, or improve as described in the preliminary design report or applicable environmental document. A project may consist of several contracts or phases over several years.
Value engineering. The systematic application of recognized techniques by a multi-disciplined team to identify the function of a product or service, establish a worth for that function, generate alternatives through the use of creative thinking, and provide the needed functions to accomplish the original purpose of the project, reliably, and at the lowest life-cycle cost without sacrificing safety, necessary quality, and environmental attributes of the project.
§627.5 General principles and procedures.
(a) State VE programs. State highway agencies must establish programs to assure that VE studies are performed on all Federal-aid highway projects on the NHS with an estimated cost of $25 million or more. Program procedures should provide for the identification of candidate projects for VE studies early in the development of the State’s multi-year Statewide Transportation Improvement Program.
(1) Project Selection. The program may, at the State’s discretion, establish specific criteria and guidelines for selecting other highway projects for VE studies.
(2) Studies. Value engineering studies shall follow the widely recognized systematic problem-solving analysis process that is used throughout private industry and governmental agencies. Studies must be performed using multi-disciplined teams of individuals not personally involved in the design of the project. Study teams should consist of a team leader and individuals from different specialty areas, such as design, construction, environment, planning, maintenance, right-of-way, and other areas depending upon the type of project being reviewed. Individuals from the public and other agencies may also be included on the team when their inclusion is found to be in the public interest.
(i) Each team leader should be trained and knowledgeable in VE techniques and be able to serve as the coordinator and facilitator of the team.
(ii) Studies should be employed as early as possible in the project development or design process so that accepted VE recommendations can be implemented without delaying the progress of the project.
(iii) Studies should conclude with a formal report outlining the study team’s recommendations for improving the project and reducing its overall cost.
(3) Recommendations. The program should include procedures to approve or reject recommendations and ensure the prompt review of VE recommendations by staff offices whose specialty areas are implicated in proposed changes and by offices responsible for implementing accepted recommendations. Reviews by these offices should be performed promptly to minimize delays to the project.
(4) Incentives. The program may include a VE or cost reduction incentive clause in an SHA’s standard specifications or project special provisions that allows construction contractors to submit change proposals and share the resulting cost savings with the SHA.
(5) Monitoring. The program should include procedures for monitoring the implementation of VE study team recommendations and VE change proposal recommendations submitted by construction contractors.
(b) State VE coordinators. Individuals knowledgeable in VE shall be assigned responsibilities to coordinate and monitor the SHA’s program and be actively involved in all phases of the program.
(c) Use of consultants. Consultants or firms with experience in VE may be retained by SHAs to conduct the studies of Federal-aid highway projects or elements of Federal-aid highway projects required under § 627.1(a) of this part. Consultants or firms should not be retained to conduct studies of their own designs unless they maintain separate and distinct organizational separation of their VE and design sections.
(d) Funding eligibility. The cost of performing VE studies is project related and is, therefore, eligible for reimbursement with Federal-aid highway funds at the appropriate pro-rata share for the project studied.
I. Scope
A. All ADOT value analysis activities will be conducted in accordance with these Guidelines.
B. Activities of a similar nature, which may be performed by Arizona Department of Transportation employees or consultants, but which are not in accordance with these Guidelines, shall not be referred to as "value analysis" or "value engineering." This will avoid confusion about the value analysis program.
II. Administration
A. The Value Analysis Section will administer the program under the direction of the Engineering Technical Group Manager. The Value Analysis Section is located in Room 197, Mail Drop 173A, Fax 602.254.5128.
B. Value Analysis Section will develop appropriate administrative procedures and documents, and will maintain the program files. They will also develop a value analysis library and a database. The database will contain information about resources available within the Department, as well as technical resources available elsewhere.
III. Study Selection
A. As stated in the Project Development Process Manual, Section 5.5 Value Analysis, "All projects with an estimated construction cost of $5 million or more and being of average or greater complexity will be value analyzed either during the Scoping Phase or at the Stage II Review. In addition, all complex projects should be considered for Value Analysis regardless of the project’s estimated cost."
B. Any project, standard, specification, procedure, or material may be proposed for value analysis study. In addition, anyone can, and is encouraged to, suggest subjects for study.
IV. Team Selection
A. Value analysis study teams will normally consist of 5-7 persons, drawn from throughout the division. Some teams will be supplemented with one or more consultant employees.
B. Value Analysis Section will maintain a roster of employees with value analysis experience. The roster will indicate how many studies an employee has participated in. Copies will be available to interested parties upon request.
C. Once a project is selected, Value Analysis Section, in collaboration with the Project Manager, will determine the disciplines needed on the team, and will contact the appropriate representative of the various groups/sections to request one or more team members from the roster. It will be the group’s/ section’s prerogative to determine which employee(s) to assign to the study team. However, when a specific expertise is required, the Coordinator may request a specific employee.
D. A representative from the Project Development Team will be invited to participate on the Study Team. This is encouraged, but not required.
E. When proposing a value analysis study, employees are requested to recommend any specific discipline or employee considered important to the success of the study.
F. The designation of a V.A. liaison person at the Group level is suggested.
V. Study Procedure
A. Value analysis studies will normally require 3-4 days of full-time effort by the entire team. The time allotted to each study will be determined in advance. Some studies will be conducted as a series of sessions, with the team determining the dates and frequency of meetings.
B. Value Analysis Section will secure an appropriate location for each study, and will maintain a roster of available space within the Intermodal Transportation Division facilities. Most studies will be held in Phoenix, but other locations may be used.
C. Value Analysis Section will prepare a Study Plan and distribute it in advance to each team member. The Study Plan will contain information about the scope of the study, the logistics, and team preparation. Value Analysis Section will also arrange for the pertinent documents to be made available to the team at the beginning of the study.
D. Value Analysis Section will select a Team Leader in advance of the Study.
E. Where appropriate, the Value Analysis Section will arrange for a brief presentation or discussion by the designer at the beginning of the study. A field trip is desirable when feasible.
F. The completed Study Workbook will constitute the Study Report. It will be completed by Value Analysis Section, generally within two business days following the completion of the study. The report will be sent to the Project Manager for review. Team members will receive a copy.
VI. Review and Implementation
Primary review of value study reports will be conducted by the Project Team, who will seek assistance from technical groups as required. Resolution of study recommendations should be a consensus-building effort between the two teams, facilitated by Value Analysis Section. Escalation, if required, will be to the Deputy State Engineer for development.
VII. Reports
A. Value Analysis Section will prepare an Annual Report for each Federal fiscal year, which will summarize the activities, achievements, problems and costs of the value analysis program. The Federal fiscal year is used to avoid duplication and confusion regarding required reports to FHWA.
B. Value Analysis Section will prepare Status Reports on a monthly basis. These reports will track each study through the preparation, review, and implementation phases.
C. Periodically, a Newsletter may be prepared for general distribution throughout the Division. The Newsletter will concentrate on disseminating information about the program, and increasing awareness of value analysis in general.
VIII. Training
A. From time to time, the 40-hour FHWA/NHI value analysis course, or its equivalent, will be offered. Thirty to forty employees can be accommodated in each course.
B. Several positions on each team will normally be filled by untrained employees. This "on-the-job training" will result in numerous employees gaining value analysis experience each year. These employees would still be candidates for the 40-hour course.
C. A team leader training course will be offered as deemed necessary to develop a roster of V.A. team leaders.
ARIZONA DEPARTMENT OF TRANSPORTATION
VALUE ANALYSIS PROGRAM
TEAM MEMBER PREPARATION GUIDE
INTRODUCTION
Congratulations! You've been selected to serve on a value team. We are sure that you will find this experience to be both rewarding and enjoyable. It will also be hard work. You will spend several days working intensively and creatively with a group of your peers. Regardless of the results of your particular study, you will gain a better understanding of the perspectives of your teammates, and of the complexities of highway design and development.
PREPARATION
Value studies normally require three consecutive days. Please make every effort to clear your calendar and delegate as needed, so that you will be able to concentrate fully on your study. This will not only enhance your experience, but will also help your teammates. Should you have a problem in this regard, please contact us as soon as possible.
You will receive a brief Study Plan in advance of the study, either at the same time you receive this Guide, or soon thereafter. The Study Plan contains background, scope and logistical information about your study. Sometimes it will include one or more attachments which will provide a brief description of your study subject. Often these are excerpts from documents which will be available during the study. When reading these excerpts, you might want to note which documents you want to review more thoroughly during the first phase of the study. It is not intended for you to spend more than an hour or two preparing for the study.
You are encouraged to bring appropriate resources with you to the study. Please keep in mind, however, that value analysis is by design an intensive, time-constrained procedure. Therefore, bring only those resources with which you are very familiar, and can refer to quickly and accurately. Phone numbers of sales engineers and other contact persons could also be helpful. Bring your own calculator, computer, notepaper, pencils, etc.
If questions occur to you prior to the study, please contact the Value Analysis Section for clarification, not the Project Manager or Design Team.
Some things to consider regarding teams:
- Check your "agendas" at the door! But bring your respect for and trust of your teammates.
- Approach your study with a positive attitude!
- Teams sometimes tend to slip into "war story" sessions during a study. Up to a point, these may help with team building and provide useful information, but they also eat up a lot of valuable time!
- The "Abilene Paradox" which describes a situation in which everyone on a team agrees to something that no one really supports. They each assume that the others are in favor, so they go along. More typically, you will observe a similar situation in which one or two team members support an idea, and the rest, who don't, go along anyway for various reasons. Don't go to Abilene! If you can't "buy in" to what is proposed, it is your responsibility to speak up. It is also your responsibility, of course, to help the team achieve true consensus. You may have to compromise, but don't do so until you have aired your views.
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Value Analysis is not about quotas, peer review, design review, etc. Your role as a team is to "search for the second right answer", not to find fault.
- Work hard and have a good time! (If you don't think you can do both at the same time - please think again!)
- Most importantly, trust in, and follow the methodology. It has been successfully used around the world for 50 years!
VALUE TEAM LEADER
The Value Team Leader is responsible for the overall conduct of the study. He or she will either be a member of the Value Analysis staff, or be selected by them. Team Leaders receive significant training in V.A. prior to service.Experienced consultant team leaders may be utilized to lead some of the more complex studies. They will be "Certified Value Specialists" who do this work as a vocation. Your role as a team member will be the same, regardless of who serves as leader.
Because of the intensive and structured nature of the value method, good teamwork and "group dynamics" are essential parts of a successful study. There will be plenty of opportunity for everyone to contribute during each phase, but the Team Leader may have to "move things along", or spread the conversation around, in order to be sure everyone participates and the goals of the study are met. Please give your Team Leader your maximum cooperation in this regard.
THE STUDY
Value studies consist of five phases:
1. Identification of Potential.
2. Analysis of Functions.
3. Generation of Ideas.
4. Evaluation of Ideas.
5. Development of Recommendations.
The proportion of the total study time which is spent on each phase will vary, but each will be a distinct part of the total effort.
Identification of Potential - During this phase, the team will identify those elements of the subject which are most likely to yield value improvement. You will use various techniques such as Cost Modeling, FAST Diagramming, or Failure (Problem) Analysis, in combination with the team’s professional judgment to make these decisions. Once you have selected those elements with the greatest potential, you will concentrate exclusively on them for the remainder of the study.
Analysis of Functions - Function analysis is really the "heart and soul" of value analysis. During this phase you will analyze each selected element in order to determine its basic and secondary functions. Your Team Leader will conduct a brief overview of this process before you begin. The most important thing to remember is that function analysis is a means to an end, not the end itself. It is a process which allows a multi-discipline team to achieve consensus as to the needed functions, in preparation for generating ideas about how best to provide those functions. There really are no absolutely correct function analysis solutions - getting there is what’s important!An important tool in function analysis is the FAST diagram. Think of this as a critical path of functions, rather than activities. It is a logic diagram, which helps the team understand its subject and also search for function problems.
Idea Generation - This phase is more typically known as "brainstorming". Once you understand the functions of your subject, you must think creatively, as an individual, and as a team, to generate ideas. There are several "rules" for brainstorming:
- When you do reach this phase - don’t hold back! No idea is too wacky during brainstorming. Don’t prejudge or dismiss anything. Write them all down! A way-out idea, when focused on by a team, may generate a very feasible idea.
- Don’t just sit there waiting for ideas to surface. Think hard! Concentrate on the functions, not the existing solutions. Concentrate on the other ideas and try to build on them. Someone has likened this to pearl diving - the more oysters you collect, the more likely you are to find a pearl.
Evaluation of Ideas - During this phase, you will reduce your list of ideas to those most feasible, by analyzing advantages and disadvantages. In some cases, you may compare alternatives with a "matrix" approach, and use life-cycle cost techniques. Compared to the more "free- wheeling" phases which precede it, this phase may seem somewhat tedious, but it is no less important to a successful study!
Development of Recommendations - The Development phase will vary significantly from study to study. Basically, it involves the advancement of the team’s ideas to the level of recommendations which can be presented, and to some extent, defended. This work can include the preparation of sketches, calculations, graphics and reports, as well as making contacts to obtain further information. Your team will be responsible for determining the extent of the Development phase for your study, based on the nature of your ideas and recommendations, and on time constraints. Although the entire team will contribute to a written report, the report will be completed and distributed by the Value Analysis Section.
We have developed a significant library of books and articles about value analysis. If you would like more information about the process, please do not hesitate to call Value Analysis Section at 602.712.7961.
AFTER THE STUDY
Once you complete your study your work is done. The Value Program includes a formal review process, and your recommendations will receive careful consideration. If after the Project Team Review comes back and there are unresolved issues, a Two-Team Review may be held. If this occurs, members of the project and value study teams meet and decide on each recommendation and move on. No new issues are brought up-unless both sides agree that there is time for "synergy". The implementation of accepted recommendations will be monitored by the Value Engineer, in order to avoid misunderstandings, and also to record any changes in recommendations and/or benefits received. Our goal is to keep all team members informed of significant events during this process, which can sometimes last several years. If you think that you might be "out of the loop", please call the Value Analysis Section at 602.712.8544 at any time.
CONCLUSION
This document is intended to assist you in preparing for your participation in a value study. It is intentionally brief. Please contact your team leader or the Value Analysis Section with any questions or suggestions.Also, please be sure to complete our Customer Satisfaction Evaluation Form and return it to 173A. Your suggestions will help us to improve the Value Program. Thank you!!
ARIZONA DEPARTMENT OF TRANSPORTATION
VALUE ANALYSIS PROGRAM
PROJECT STUDY AGENDA
(Guide Only)
DAY 1 8:00-8:15 Introductions, Warm-Up
8:15-9:30 Kick-Off Meeting (VA Overview and Design Presentation)
9:30-11:15 Individual Study of Project Documents – (Team Members)
11:15-11:30 Tentative Element List –(Team)
11:30-12:30 Lunch
12:30-2:00 FAST Diagram/Cost Model – (Team)
2:00-3:30 Individual Study of Project Documents - (Team)
3:30-4:30 Consensus on Elements to Analyze – (Team)
DAY 2 8:00-10:30 Function Analysis of Elements – (Team)
10:30-11:30 Brainstorming – (Team)
11:30-12:30 Lunch
12:30-2:00 Brainstorming Continues – (Team)
2:00-3:00 Narrowing – (Team)
3:00-4:30 Advantages/Disadvantages – (Team)
DAY 3 8:00-9:00 Consensus on Ideas to Retain – (Team)
9:00-3:30 Evaluation and Development of Recommendations – (Subteams)
3:30-4:30 Consensus on Recommendations and Wrap-Up – (Team)
DAY 4 (optional) V.A. Team Presentation
ARIZONA DEPARTMENT OF TRANSPORTATION
VALUE ANALYSIS PROGRAM
PROJECT MANAGER’S GUIDE
INTRODUCTION
This brief guide is intended for ADOT and Consultant Project Managers whose projects are scheduled for a value study in the near future. It attempts to clarify the Project Manager’s responsibilities regarding the study.
It is suggested that the Project Manager add the Value Analysis Section to the mailing list once the project is identified for study.
All contact prior to, and after, the study will be between the Project Manager and Value Analysis Section only (no contact with members of the Value Study teams). Contact during the study will be handled on a case by case basis, set up during the Design Presentation.
When the project is consultant-designed, the Value Analysis Section will send this guide only to ADOT’s Project Manager. The information contained herein should be conveyed to the Consultant’s Project Manager in whatever manner the ADOT Project Manager prefers. There will be no formal relationship between the Consultant and the Value Analysis Section. The Value Analysis Section will not contact the Consultant directly unless approved by the ADOT Project Manager.
PROJECT SELECTION
It is important for ADOT and Consultant design staffs to understand that projects are selected for Value Analysis on their own merits, irrespective of who is designing them. Value Analysis is not "Design Review" or "Peer Review"! For more information about project selection, please refer to our Policy and Procedures documents, available from the Value Engineer.
CONSULTANT SCOPE OF WORK
The generic scope-of-work for consultant projects contains a "boilerplate" section on value analysis. This guide will supplement the information contained in the scope. For some projects, a special value analysis section may be included in the scope.
VALUE STUDY SCOPE
The ideal situation for a value study is one in which the entire project is open for analysis by the team. Accordingly, we assume that each new study is unconstrained unless otherwise stipulated. It is the ADOT Project Manager’s responsibility to obtain approval from the Group Manager and the Deputy State Engineer for development for any constraints which she/he feels are required. A description of the approved constraints should then be sent to the Value Engineer, and the team will be advised accordingly. Otherwise, the team will be constrained only by the applicable AASHTO and ADOT standards, good engineering judgment, and a consideration of life-cycle costs.
TEAM COMPOSITION
The Value Analysis Section is responsible for assembling the value team. The Project Manager is encouraged however, to offer suggestions as to disciplines or individuals. A representative of the project team is encouraged to participate in the value study.
PREPARATION
The Value Analysis Section will contact the Project Manager to discuss the documents required for the study. Each study is different, but as a general rule the following documents are needed:
3 Half-size sets of plans
1 Set of cross-sections
1 Copy of latest Cost Estimate, for each team member.
1 Copy (min.) of all studies & reports (Traffic, Drainage, Structures, etc.).
1 Videotape and/or set of photographs.
1 Aerial photograph, if available.
1 Set of Special Provisions, if available.
1 Graphics, as may be available. (Mounted, colored plans, etc.).
The Value Analysis Section is responsible for obtaining an appropriate location for the study. For consultant-designed projects, a request to use the consultant’s conference room may be made. This has proven to be very convenient for both the Consultant and the team, but is not mandatory.
DESIGN PRESENTATION
Normally a "kick-off" meeting occurs at the start of each study, at which time the designer conducts a brief presentation of the project. Depending on the complexity of the project, one to two hours is usually sufficient for this process. The ADOT Project Manager is responsible for determining who will conduct the presentation, and scheduling it accordingly.
TEAM PRESENTATION
At the conclusion of each value study, the team may give a brief presentation of its findings and recommendations. The Value Analysis Section and the Project Manager will determine if and when such a presentation will be made.
STUDY REVIEW
The Project Manager and his or her team will receive a report within 2-3 business days following the study. He or she should then review the value study report and recommendations, and respond to the Value Analysis Section as soon as possible. The goal of the review process is a consensus resolution by both teams. After the Project Team review comes back, and if certain issues are unresolved, a Two-Team Review may be conducted. Project Team and Value Study Team members meet (no ringers), and decide on each recommendation and move on. No new issues are introduced-unless both teams agree that there is time for "synergy". Escalation to the Deputy State Engineer for development should be considered only when an impasse occurs. The Value Analysis Section will generally remain neutral, in a facilitation role, during this process. We will, however, become involved if it appears that a significant recommendation which has merit may be lost without an appropriate consideration.
VALUE ANALYSIS COSTS
The costs which we would like to identify are as follows:
1. Consultant Preparation, including Design Presentation.
2. Consultant Participation, in cases where the design consultant is a team member, or spends a significant amount of time with the team.
3. Consultant Review, as required and coordinated by the ADOT Project Manager. (Note: ADOT review costs are not tracked).
4. Team Member Costs - ADOT or V.E. consultant - are tracked by the Value Engineer.
5. Cost to implement accepted value recommendations - consultant projects only. These costs are normally "netted-out" against the cost-saving resulting from the recommendation.
Our goal is to keep an approximate accounting of significant program costs. At the end of the review period, the Project Manager should provide a reasonable estimate of costs No. 1, 2, and 3 to the Value Engineer. Any implementation costs (No. 5) will normally be estimated during the review, in order to facilitate decision-making.
IMPLEMENTATION
In some cases, the implementation of approved recommendations takes place over a significant period of time. It is also possible that a change of conditions in the future may increase or decrease the acceptability and effect of a value analysis recommendation. In these cases, it is the Value Analysis Section’s responsibility to monitor the project. As in the preparation for the study, the ADOT Project Manager will be the sole contact for this process. It would be appreciated if the Project Manager would alert the Value Analysis Section to significant events which may affect the outcome of the study.
CONCLUSION
This guide is an attempt to make value studies as "painless" as possible for busy Project Managers. Please let us know what we can add or change to improve it.
