The U.S. Department of Energy`s Value Engineering Program: Audit report
Value Engineering (VE) is defined as the organized analysis of the functions of a program, project, system product, item or equipment, building, facility, service, or supply of an executive agency. This analysis reduces these functions to their most basic elements and then looks for cost-efficient alternatives. VE contributes to the overall management objectives of streamlining operations, improving performance, reliability, quality, safety and reducing life-cycle costs. Further, it can result in the increased use of environmentally-sound and energy-efficient practices and materials. VE benefits have been documented by the General Accounting Office, which reported that VE usually produces a net savings of 3 to 5 percent of project costs. The Department of Energy (Department) used the VE methodology primarily in construction related processes, including design reviews, and reported savings of $31.3 million for Fiscal Year 1996. The VE program was primarily executed by the Department`s management and operating and other prime contractors. The objectives of this review were to assess the effectiveness of the Department`s VE program and test the validity of VE savings reported for FY 1996.
- Research Organization:
- USDOE Office of Inspector General, Office of Audit Services, Washington, DC (United States)
- Sponsoring Organization:
- USDOE Office of Inspector General, Washington, DC (United States)
- OSTI ID:
- 661558
- Report Number(s):
- HQ-B-98-01; ON: TI98007111; NC: NONE; TRN: AHC29814%%116
- Resource Relation:
- Other Information: PBD: Jul 1998
- Country of Publication:
- United States
- Language:
- English
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