Advanced Value Engineering for Petroleum - Oil and Gas - Engineers

Module 1: Introducing Advanced Value Engineering

• What is Value Engineering?
• Value Engineering History
• 5 Precepts of Value Engineering
• Addressing the Problems Through Value Engineering
• Benefits of Value Engineering
• The Reasons for Unnecessary Costs
• When to Apply Value Engineering
• How is Value Engineering Done?
• Concept of Value
• VE Methodology and Techniques
• Variations in Cost
• Interface with Other Programs
• Demonstrated Impact of VE

Module 2: Value Engineering: Engineering Applications

Project Scope and Budget

• Elements of the Project Budget
• Prevalent Budgeting Techniques
• Contingency Amount
• Cost Control
• Defining Project Scope
• Parameters and Parameter Cost

The Capitalized Income Approach to Project Budgeting (CIAPB)

• CIAPB Objectives
• Measuring Property Value
• The Meaning of Capitalization
• The Capitalization process
• The Need For Cost Control

Module 3: Cost Modelling and Planning for Value Engineering Services

Preparation for Cost Models in Advanced value Engineering

• Introduction
• Making Models
• Construction Cost Models
• Other Resources
• Types of Models

Planning for Advanced Value Engineering Services

• VE Objectives
• Level of Effort
• VE and Total Project Management
• Team Selection
• The VE Job Plan

Module 4: Advanced Value Analysis for Engineers

• Phase 1 – Information Phase
• Phase 2 – Function Phase
• Phase 3 – Creative Phase
• Idea Stimulator Checklist
• Phase 4 – Analysis/Judicial Phase
• Analysis/Judicial Phase: Analysis/Development
• Analysis/Judicial Phase: Analysis/Evaluation
• Phase 5 – Recommendation
• Phase 6 – Presentation and Implementation

Module 5: Advanced Value Engineering Case Analyses

• Case Study 1 – The Drilling Site preparation
• Case Study 2 – The Workover Operation
• Case Study 3 – Resolving the Offshore Rig Problem
• Case Study 4 – Master Planning Competition
• Case Study 5 – To ‘Complete’ or ‘Abandon Well’: The Multi-Million Dollar Decision
• Case Study 6 – The value of the ‘Christmas tree’
• Case Study 7 – ‘Christmas Tree’ to ‘Oil and Gas Terminal’: Efficiency or Waste

Module 6: Practising Advanced Value Engineering

Life Cycle Engineering Costing

• Decision Maker’s Impact on LCC
• LCC and Total Building Costs
• LCC Terminology and Examples
• LCC Methodology
• Application of LCC to Buildings

Integrating Value Engineering into the Construction Industry

• Planning and Design
• Construction
• Maintenance and Operations (M&O)

Module 7: Project Life Cycle, Creative Thinking and Engineering Cost

• Planning – conceptualization, analysis, proposal, justification, agreement
• Doing – start-up, execution, completion, hand over
• Checking – review
• Acting – feedback
• Development of a Project Life Cycle, Project Brief and Proposal
• The Management of Change
• The Systems Approach to Project Management
• The requirements of successful Project Management
• Balancing Costs and Benefits
• Managing the Planning Process
• Critical Incident Analysis
• Project Control Mechanism
• The Value Chain: Adding Value To Processes, Products and Processes
• Project Decision-making
• Project Coordination: The 5 Bases of Co-ordination
• Developing a CATWOE Focus of project management

Module 8: Employee Resourcing, Interpersonal Relations and Staff Management for Advanced Value Engineering for Petroleum – Oil and Gas Engineers

Worker Commitment and Job Design

• Moral Commitment -
• Remunerative Commitment -
• Calculative Commitment;
• Recruitment and Selection as a resourcing activity
• Job Design
• Types of Job Design
• Mechanistic Job Design
• Biological Job Design
• Motivational Job Design.
• Perceptual Job Design

Salient Issues in Recruitment and Selection for Advanced Value Engineering

• Systematic Recruitment and Selection Process
• Conducting Job Analysis
• Designing Job Description
• Designing Personnel Specification
• Market Targeting
• Designing and Placing Advertisement
• Weighting and Using Candidate Assessment Form (CAF)
• Non-conventional Personnel Selection
• The value of Staff Induction
• The Concept of Motivation

Motivating Workers for Advanced Value Engineering

• Theories of Motivation
• Content Theories & Some of Their Contributors
• Maslow’s Hierarchy of Needs
• Analysis of Maslow’s Claims
• McClelland's Studies
• Taylor: Money & Motivation
• Motivator-Hygiene Factor: Herzberg’s Contribution
• Process Theories
• Equity Theory
• Goal-Setting Theory
• Expectancy Theory
• Equitable Reward Systems
• Reinforcement Theories
• Reinforcement Theory
• Motivation & Contingency Theory
• Designing An Effective Motivation Strategy

Module 9: Risk Management in Advanced Value Analysis for Engineers

• Defining risk
• Contextualizing Risk
• Formulating Risks Statements
• Risk Examples
• Non-Risk Examples
• Proposal Risk
• Performance Risk
• Management’s perception and calculation of risk
• Risk probability and improbability
• The traditional ‘number line’ and traditional risk management calculation
• ‘ Risk-Improbability Scale Or Continuum’
• Understanding risk in organisations
• Analyzing and identifying risk in organisations
• Developing strategies and approaches to treat and manage risk
• What is Risk Management?
• Continuous Risk Management Example
• Non-Continuous Risk Management Example
• Evaluating likely risks and consequences
• Assessing the options for accommodating risks
• Prioritizing risk management efforts
• Developing risk management plans
• Authorizing the implementation of risk management plans
• The context of risk management in organisations
• The link between Risk Management and Governance arrangements
• Risk Management Standards
• The differing levels of risk within an organization, business risk, project risk and process risk
• Developing criteria for determining acceptable levels or residual risk

Module 10: Crisis Management: Security and Natural Disaster Recovery in

Advanced Value Engineering for Engineers

• Contingency Planning
• Continuity Management and Disaster Recovery
• Recovery Planning
• Recovery Planning and Logistics
• Business Continuity Management
• Introduction to BS 25999: Business Continuity Management
• Business Recovery Management