Large capital projects are often not delivered at the lowest possible cost, nor do they always deliver maximum value at any given cost. Value engineering provides a framework to systematically identify opportunities for cost reduction, whilst maximizing functionality and incorporating innovative ideas and options along the way.
Value engineering of large capital projects typically delivers cost savings of at least 10% and can create great opportunities for value enhancement. Savings as high as 30% are not unheard of.
This Arthur D. Little viewpoint discusses how companies can benefit from applying this technique and explains step by step what they should do to maximize value benefits from capital projects value engineering.