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Maximizing Engineering Value

Publication No
RR245-11
Type
Academic Document
Publication Date
Feb 01, 2009
Pages
201
Research Team
RT-245
DOCUMENT DETAILS
Abstract
Key Findings
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Abstract
The value that engineering contributes to capital projects is rarely maximized for a wide variety of reasons. The engineering phase can be rushed; the design team can be underresourced; owner’s requirements can be unclear; technology can change rapidl
Key Findings

Decisions made in the earliest phases of a project have the highest potential to exercise the greatest influence on a project as a whole. As depicted in the Cost-Influence curve below, influence starts to decrease rapidly after the Basic Engineering phase. 

Sixty-four engineering strategies were identified and defined by Research Team 245, in collaboration with the strategies previously identified by Research Team 233. Sixteen are considered fundamental and should be implemented on most, if not all, projects. Below are 2 examples of these 16 fundamental engineering strategies. Detail explanations for each strategy is found in the research summary and research report. (RR245-11, p. 24): 

 

  • A 4 – Appropriate Allocation of Design-Related Risks & Rewards
  • A 14 – Integration of Lessons Learned into Design

The remaining optional engineering strategies have been categorized into 6 different groupings: 

  1. Alternative design delivery strategies
  2. Assistance to owner services
  3. Management of design interfaces
  4. Strategic design decisions
  5. Design approaches
  6. Opportunity capture/Design for X

A more detailed list of the optional engineering strategies is included in the research summary.

Engineering Strategy Tradeoff’s 
Although all engineering strategies are important, some can involve tradeoffs or negative impacts to one or more project value objectives (PVO). It is important that the engineering strategies selected be properly aligned with the Owner’s relative prioritization of project objectives. Schedule reduction, capital cost reduction, and design/construction quality are the objectives most frequently supported by the strategies, while capital cost reduction is also the most commonly sacrificed objective (or tradeoff) among the strategies. A complete tabular presentation of objectives supported by each strategy is presented in Appendix B of the Research Report. 

The purpose of this selection tool is to provide guidance on which strategies will likely offer the most value for a project. Judgment from the project team is still required. The results are intended to initiate a team dialog regarding which strategies should be given serious consideration for implementation. Additional information and a detailed description of the Project Value Objectives involved for each strategy is included in Appendix G of Research Report 245-11. Included under Implementation Tools below as well. (RR245-11, p. 41)
RR245-11, Engineering Strategy Selection Tool (Excel)

Developed to facilitate the selection of optional engineering strategies for implementation based on most value for your project. (RR 245-11, Appendix G – page 92)
Filters & Tags
Research Topic
Optimizing Engineering Value in Projects
Keywords
Engineering, Alignment, Project Value Objectives (PVOs), Design Effectiveness Practices (DEP), Engineering Strategy (Fundamental & Optional), Engineering Strategy Tradeoffs, Maximizing Engineering Value, Barriers to Engineering Value, rt245