Value Engineering Approach to Increase Cost Efficiency

Nobody would argue that investment and operation costs are a key element for any industrial plant project nowadays. However, has this fact properly considered during the initial design phase of a project? Are the identified solutions selected and optimized accordingly? This point is essential during the design phase in order to increase cost efficiency during the entire lifetime of the plant. Utilizing a structured engineering approach would guarantee to identify and classify all potential opportunities in order to select the most appropriate ones for the project. From a general aspect the "value" of a plant or system can be increased by either improving its adequate functionality or reducing the required capital expenditure (CAPEX) and operational expenditure (OPEX). In order to optimize the "value" of a plant its essential functionalities needs to be properly defined and analyzed. This needs to be done in a systematic structured approach. This practice identifies and removes unnecessary functions. Achieving these essential functions at the lowest life-cycle cost would clearly improve the "value" of a system.