Amin Terouhid, Ph.D., CVS

 

Executive takeaway. A value engineering (VE) alternative may save time without compromising functional scope or performance metrics. Localized activity time savings, or what is referred to as schedule compression, do not necessarily shorten project duration. Instead, assessing the critical path can determine if such schedule compression results in shortening the duration of a project. As such, project owners are recommended to evaluate proposed time savings within the schedule network prior to acceptance.

Start with the required function

Value engineering (VE) is a structured process for improving value by analyzing required functions and developing VE alternatives or design suggestions. SAVE International’s Value Methodology uses function analysis as the basis for conducting a VE study. According to SAVE International, the “Value Methodology (VM) is a systematic process used by a multidisciplinary team, led by a qualified VM facilitator, to improve the value of a project, product, process, service or organization through the analysis of functions. VM helps achieve an optimum balance between function, performance, quality, safety and cost. The proper balance results in the maximum value for the project” [1].

If schedule improvements are being considered as part of a VE study, it needs to be determined if such efforts undermine or adversely affect the value of the project or not. Compressing durations by compromising quality, safety margins, or operational durability erodes total value.

Time savings are assessed against the schedule network

Evaluating VE alternatives for schedule improvement requires assessing the critical path of the project network. The critical path represents a project’s longest continuous sequence of activities in the project schedule. This path determines the earliest time that the project can be completed. To complete a project earlier than its originally-planned completion date, the project longest path is typically shortened. Shortening a project schedule may be costly and result in unintended consequences. For example, schedule compression may cause stacking of trades and ultimately result in loss of labor and equipment productivity. Nevertheless, project teams may choose to shorten a project schedule due to a variety of reasons, such as catching up to achieve the planned dates that are affected by delays or due to a need to achieve some milestone dates earlier than expected.

Due to the potential impacts of schedule compression on the project, the project teams should use proper strategies to shorten the project longest path. In accelerating project activities, priority needs to be given to the critical activities because these activities drive the expected project completion date in the schedule. If a number of options exist, priority is typically given to those critical activities whose crashing is less costly. Improper implementation of acceleration plans may result in less than expected time savings, unexpectedly high costs of crashing, quality or safety issues, and loss of labor or equipment productivity. It is important to note, however, that acceleration is not the only option for shortening the longest path.

Depending on the type of the project and its scope of work, project teams may have a number of options to compress project schedules. The following table outlines some of the example methods in during the engineering, contracting and procurement phases:

Phase	Method	Method Description
Engineering	Constructability review and analysis	The review of designs to ensure designs can practically be implemented with cost-effective means and methods.
	Incorporate modular components in design	The incorporation of modular components in design to ensure less time is needed to be spent on the jobsite to implement these components.
	Reuse designs and plans	The reuse of previously-used design elements may result in saving design time and efforts.
	Incorporate standard or typical components in the design	The use of standard or typical designs may help the design team save time and efforts in implementing designs.
	Incorporate pre-engineered or on-the-shelf components in the design	The incorporation of pre-engineered or on-the-shelf components may reduce the need for designing new elements.
Contracting and procurement	Fast-tracking	The creation of an overlap between design and procurement or an overlap between procurement and implementation activities may result in time savings.
	Outsourcing	The assignment of work to outside entities instead of implementing all activities in-house may help to use in-house resources in more effective ways.
	Find alternative or equivalent modular products or systems	The use of alternative or equivalent products or systems may help to save time that would have otherwise been used to fabricate or supply items.

Conclusion

Because of the potential impacts of schedule compression on the project, the teams should use proper strategies to shorten the project’s longest path. Acceleration is not the only option to shorten the longest path. If a project team intends to shorten the project’s longest path, it is recommended that the team choose the most appropriate strategies in each of the main phases to ensure the schedule can be properly compressed in a cost-effective manner that fits the project needs, and by verifying that the value of the project is not adversely affected by factors such as compromising the quality or improperly sequencing the work.

Reference

[1] SAVE International. About the Value Methodology.