Value Engineering & Cost Estimating

This DIXONTECH course delivers a professional understanding of value engineering (VE) and cost estimating techniques used to optimize project costs, improve performance, and increase value. Participants will learn structured methodologies to evaluate project functions, identify cost saving opportunities, and enhance quality without compromising efficiency. Through case studies and simulations, they will gain the tools needed to conduct VE studies and prepare reliable cost estimates for effective decision-making.

TRAINING TOPICS:

•  Principles and Objectives of Value Engineering
•  Cost Estimating Fundamentals and Methodologies
•  Function Analysis and Value Methodology Process
•  Cost Modeling, Benchmarking, and Optimization
•  Life Cycle Cost Analysis and Economic Evaluation
•  Cost Control and Value Improvement Techniques
•  Project Risk and Cost Uncertainty Analysis
•  Practical Application of Value Engineering Studies

BY THE END OF THIS TRAINING COURSE, DELEGATES WILL BE ABLE TO:

•  Understand value engineering principles and applications
•  Conduct functional analysis and cost evaluation
•  Develop accurate and reliable cost estimates
•  Identify cost saving and value improvement opportunities
•  Apply life cycle cost analysis effectively
•  Integrate VE into project planning and execution
•  Support decision-making with structured cost models

TRAINING IS TAILORED TO:

•  Project managers and engineers
•  Cost estimators and planners
•  Procurement and contract specialists
•  Finance and budgeting professionals
•  Quality assurance and control engineers
•  Construction and operations managers
•  Value analysis and process improvement teams

TRAINING METHODOLOGY:

The course employs interactive lectures, practical workshops, and real case applications in value engineering and cost estimation. Participants use structured methodologies, analytical tools, and simulations to apply VE techniques and build robust cost models that enhance project value and efficiency.

DAY 1

INTRODUCTION TO VALUE ENGINEERING AND COST CONCEPTS

•  History and evolution of value engineering
•  Core principles and philosophy of value analysis
•  Importance of cost optimization in projects
•  The role of value engineering in design and planning
•  Understanding cost structures and cost drivers
•  Case study: successful VE application in industry

DAY 2

FUNCTION ANALYSIS AND VALUE METHODOLOGY PROCESS

•  Functional analysis systems technique (FAST)
•  Identifying essential and secondary functions
•  Value methodology job plan: phases and steps
•  Creativity and innovation in VE workshops
•  Developing alternative solutions for value improvement
•  Exercise: constructing a FAST diagram for a project

DAY 3

COST ESTIMATING METHODS AND TECHNIQUES

•  Overview of estimating approaches: order of magnitude, parametric, and detailed
•  Cost breakdown structures (CBS) and classifications
•  Quantity takeoff and resource based costing
•  Cost indices, escalation, and price adjustments
•  Benchmarking and historical data analysis
•  Workshop: developing a detailed project estimate

DAY 4

COST CONTROL, VALUE IMPROVEMENT, AND RISK ANALYSIS

•  Establishing cost baselines and control mechanisms
•  Monitoring cost deviations and managing changes
•  Identifying and mitigating cost related risks
•  Using sensitivity and scenario analysis for decision-making
•  Integrating value engineering into cost control systems
•  Case study: value improvement through design optimization

DAY 5

LIFE CYCLE COSTING AND PRACTICAL VALUE STUDIES

• Life cycle cost (LCC) concepts and calculations
• Economic evaluation and net present value (NPV) analysis
• Balancing performance, quality, and cost
• Conducting a complete value study: phases and deliverables
• Group project: applying VE and cost estimating tools
• Presentation of final VE and cost report
• Wrap-up: best practices in value management