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Transformation of DoD’s Value Engineering Program

Transformation of DoD’s Value Engineering Program. Dr. Spiros Pallas OSD/Defense Systems 20 November 2002. What is Value Engineering?. “An analysis of the functions of a program, project, system, product, item of equipment, building, facility, service or supply Of an executive agency

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Transformation of DoD’s Value Engineering Program

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  1. Transformation of DoD’sValue Engineering Program Dr. Spiros Pallas OSD/Defense Systems 20 November 2002

  2. What is Value Engineering? • “An analysis of the functions of a program, project, system, product, item of equipment, building, facility, service or supply • Of an executive agency • Performed by qualified agency or contractor personnel • Directed at improving performance, reliability, quality, safety, and life cycle costs.” Reference: Title 41, U.S. Code, Section 432

  3. Potential Effectiveness of VE • VE is a proven method for identifying and implementing system improvements • When widely used, program has made significant accomplishments • AMRAAM considered a major success story • VE is required by law (41 USC 432) • But much DoD guidance is somewhat out of date

  4. Decline of Value Engineering • Use of VE has declined within DoD in recent years • Particularly contractor-initiated (VECP) segment of the program • In-house program has remained stronger in spots (Navy, Army, DLA) • Perception: 1) too bureaucratic, 2) lack of investment funding, and 3) lack of Systems Engineers

  5. Revitalizing Value Engineering • OSD-sponsored series of meetings involving Services, industry, and non-profits • Potential uses of VE • Barriers to its use • Options for increasing use of VE • Development of VE fund legislative proposal • Re-evaluation of VE procedures, training, etc. • Regulatory relief • Development of VE module on R-TOC web page and incorporation of VE within R-TOC activities

  6. Legislative Initiative • Still being worked by the Administration • USD(AT&L) supports overall effort • Status: Submitted to OMB – awaiting Administration approval • Will get it out to everyone for review as soon as OMB approves for release

  7. Workshop Objective • Obtain input from government and industry acquisition professionals on • General objectives of the VE program • Specific program recommendations • Obtain overview presentations from the Services and DLA • Current implementation and coordination • Plans and budgets • Identify barriers and recommendations for improving VE process

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