Value Analysis USFS Presentation

8/8/2019 Value Analysis USFS Presentation

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What is Value Analysis?

Value Engineering a.k.a. Architorture


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Value Analysis is.

an organized team study of functions to

creatively generate alternatives which will

satisfy the users needs at the lowest initialand/or life-cycle cost


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Value Analysis is NOT..

A COST CUTTING PROGRAM!!!!

Cost cutting programs cut costs

regardless of how they affect the product.

Any product can be cut in costs!

JUST A HURDLE TO JUMP

THROUGH


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Value Analysis IS about..

Sound, Defensible, Value-based Decision

Making

Providing essential functions for anappropriate cost

Benefit to Cost Relationships and working

both sides of the equation. Managing the Decision Points

Making better decisions!!!


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Why do Value Analysis..?To improve benefit or reduce cost.


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Value Analysis Job Plan

Information Phase (Investigation)

Functional Analysis Phase (Analysis)

Creativity Phase (Speculation)

Evaluation Phase

Development Phase

Recommendation Phase (Presentation)

Implementation Phase


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INFORMATIONINFORMATIONPHASEPHASE


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Information Phase

Understand the function and purpose of the

project by gathering relevant information.

Review base data

Stakeholders

Building Program

Current Alternatives


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FUNCTIONALFUNCTIONAL

ANALYSISANALYSIS

PHASEPHASE


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Functional Analysis

Park Purpose and Significance -- ? Exist for

Monument Open Space/Monument Fire

Center? Program

What does a facility need to do?

How do you do it?

Why do you do it?


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Functional Analysis

Fast Diagram

Functional

AnalysisSystem

Technique


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FAST Diagramming


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Functional Analysis

Shenandoah NP - Water Pipe MaterialFUNCTION ANALYSIS SYSTEM TECHNIQUE (FAST) DIAGRAM

HOW? WHY?>>==> DESIGN OBJECTIVES ALL THE TIME


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Cost Model

PLAN COMPONENT COSTS - NEW RIVER GORGE NR DCP

$2,621,576

$1,812,000

$1,195,043

$1,195,043

$1,153,720

$857,500

$655,394

$655,394

$639,000

$450,000

$332,350

$332,350

$224,000

$203,000

$190,000

$171,000

$158,172

$150,000

$144,000

$100,000

$90,000

$40,500

$36,000

$36,000

$30,000

$15,000

$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000

CSA - Cliffside Amphitheater

POA - Maintenance Shop

POA - Associated Site Work

POA - Associated Utilities

GS/U - Ass ociated Utilities

POA - Off ice Complex

CSA - Associated Site Work

CSA - Associated Utilities

CORE - New Visitor Center

CORE - Environmental Education Center

CORE - As sociated Site Work

CORE - A ssoc iated Utilities

TS - New A sphalt Road and Parking

CORE - Restrooms

TS - Clearing and Grubbing

TS - Road RestorationPOA - Ranger Fire Cache

GS/U - Align/Adjus t New As phalt Road

PA - Picnic Shelters (4 ea @ 2&3)

POA - Refurbish Site of Demo Struct

TSMaintainance Pole Barn

POA - Covered Parking: Vehicle Storage

PA - Associated Site Work

PA - Associated Utilities

POA - Demolish Unused Core Area Structures

GS/HM - Hazmat Removal

P

LANCOMPONENTS

NET CONSTRUCTION COST

KEY

GS/HM - General Site/Building HazmatPOA - Park Operations Area

TS - Turkey Spur

CORE - Core Areas

CSA - Cliffside Amphitheater

PA - Picnic Areas

GS/U - General Site Work & Utilities


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What areas should we focus on?


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CREATIVITYCREATIVITY

PHASEPHASE


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Creativity Phase

"Brain-storm" alternative methods of

achieving the required functions of a

project.

Ideas are not evaluated, since criticism of an

idea could discourage participation,

decrease the flow of alternatives, and inhibit

the creative endeavor.

Promote and encourage sustainable

concepts and other policy objectives


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Roadblocks to new ideas.

It needs higher approval

Its too ambitious for us

We did it this way the last time We have no problems nowwhy change

If you want a quick answer it isNO!!

It does not agree with the guide specs

Its against our policy

Thats not the way its done around here


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Roadblocks to new ideas.(cont)

It wont work

Its too much trouble to phase in

We tried that 10 years ago, and it didnt Let maintenance take care of that

Let operations handle it


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EVALUATIONEVALUATION

PHASEPHASE


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Evaluation Factors

Value Analy i

Evalua ion Fa o

Choo ing By Advan age

Se vi ewide P io i y

Evalua ion Fa o

Choo ing By Advan age

Na ional Leade hip Coun il

bje ive


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Objectives

Protect cultural and natural resources

Provide for visitor enjoyment

Improve efficiency of forest operations

Provide cost-effective, environmentally

responsible, and otherwise beneficial

development for the national forest system


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Evaluation Factors

Prevent loss of resources

Maintain or improve condition of Resources

Provide visitor services and educational and

recreational opportunities including accessibility

Protect public health, safety, and welfare

Improve operational efficiency and sustainability

Protect employee health, safety, and welfare Provide other advantages to the national forest

system


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CHOOSING BY

ADVANTAGESA DECISION MAKING PROCESS


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CBA Purpose.......

To simplify, clarify and unify

decisionmakingTo quantify non-monetary

benefits or advantages


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Effective Decisionmaking

Doing the Right Things Right - the First

Time, Every Time, and On Time - in a

manner that is acceptable to variousstakeholders who may have conflicting

values and preferences


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Definitions


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CBA Matrix...

FACTOR ALTERNATI ES

SITENO. 8 SITENO. 19 SITENO. 23

FACTOR 1 WaterAttributes

y 60 Feet Away y 260 Feet Away y 150 Feet Away

Advantages

200Feet Closer 40 110 Feet Closer 30

FACTOR2 Te tSpotAttributesy Moderately Level y Almost Level y Quite Sloping

Advantages

Moderately more Level 30 Much more Level 70

FACTOR 3 - Ta

leAttributes

y Without y Without y With

Advantages

With versus Without 65

FACTOR 4 -

rivacy

Attributesy Close sites

y Near Roady screened

y distant sitesy screened

y Close sites

Advantages

Much More Privacydue to screening andremoteness

100Moderately morePrivacy due toscreening

45

TOTAL I

ORTANCESOF

ADVANTAGES

70 170 140

TOTALCOST $3.00 $4,50 $20.00


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DEVELOPMENTDEVELOPMENTPHASEPHASE


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Development Phase

Best alternatives are developed into

proposals for final evaluation and

presentation. Initial Cost Estimates

Life Cycle Cost Estimates


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Money Decisions

Require Special Methods The PrincipleofInterdependency:A dollar

spent for one purchase is not available for another

Wellingtons

Rule:

No increase of

expenditure over the unavoidable minimum is

expedient or justifiable, however great the

probable profits and value of the enterprise as a

whole, unless the INCREASE can with reasonablecertainty be counted on to be, in itself, a profitable

investment.


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Money Decisions

Require Special Methods An increment is increase in cost, coupled

with an increase, a decrease, or no change

in total importance of advantages, orbenefits.


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Importance to Cost GraphCAMPSIT SELECTION

170

0

70

140

0

20

40

60

80

100

120

140

160

180

200

$0 $5 $10 $15 $20 $25

INITIAL COST(Net)

IMPORTANCE

A

lternativeS2

Alt

ernativeS3

AlternativeS

1


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Life Cycle Cost is.

Life cycle costing is the development of all

significant cost of ownership of an item,

system, or facility, over a specified lengthof time


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RECOMMENDATIONRECOMMENDATION

andandPRESENTATIONPRESENTATION

PHASEPHASE


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Recommendation and

Presentation Phase Review Decisions

Make Recommendations

Conduct Presentation

Summarize

Wrap-up


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IMPLEMENTATIONIMPLEMENTATION

PHASEPHASE


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Implementation Phase

Occurs outside the workshop and provides for

implementation of accepted VA proposals.

Follow Through

Documentation

Monitoring

Value Analysis USFS Presentation

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