Value Engineering and Value Management by SAMI
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Examples of the Explosive Results.

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state government local government private business cooperative enterprises nonprofit organizations schools professional societies


We have done extensive work for various state, Federal agencies, and governments worldwide. Hazardous cleanups, public involvement, construction, reorganization, remodeling, water resource projects, libraries, dormitories, Indian Tribes, generating laws to enable national economic improvement, transportation, and VECP activities are just a few of the thousands of studies we have led for these government groups.

Federal Government

Due to its success in private industry, and the limited amount that it has been applied in government, in February 1996 the Federal government mandated the "establishment of effective programs to apply the practice of Value Engineering" in all executive agencies. As a result, Federal agencies report to the Office of Management and Budget their efforts to apply the Value Method in their agency. Since government is not in the business of making a profit, they concentrate on the savings they obtain. Their average return on investment was more than twenty dollars for every dollar they expended. Each agency's reports are audited every three to five years. Since 1988, each year more than a billion dollars each year have been reported as saved. Audits have verified much of the savings. Specific agency reports of its success are written each year for inclusion in conferences and publications. Yet, in 1995, less than 5-percent of Federal government activities were value studied.


State Governments

Unlike the Federal government, figures on use in state governments are not kept on a national level. However, examples of success abound. Several state governments have an internal value program. While most of these programs are for their state highway department construction program, they also apply it to their other programs.  Some excellent examples of the success highway departments have been accumulating is being compiled by the Arizona Highway department. In addition to the sate of Arizona, three other notable value programs available on the Internet are the 'Massachusetts Highway (MassHighway) Value Engineering Program, Utah State Highway Department of Transportation Value Engineering Program, and State of California Department of Transportation Value Program. Savings in the tens of millions on a single project are not uncommon.

Local Governments

Local governments, cities and counties, often use the Value Method to better meet the needs of their citizens. The larger cities often have their own internal value programs. Examples of success abound. The City of Oshkosh, Wisconsin saved more than two million dollars and the City of New Castle, Pennsylvania saved nearly five million dollars each on one of their wastewater treatment plants. A government managed large hospital (New York) originally requested a value study for an expansion they were planning. While the hospital services were enhanced by the Value Method value study and construction cost savings were significant (about 8-percent reduction), the value study identified that the capital project was only 6-percent of the overall activities for the operating year. They identified more than $138 million in revenue enhancements through better coordination of the capital activity (construction) with the hospital operations. This far exceeded the construction savings and their rate of return was nearly $2,500 for every dollar they invested in the value study and its support operations.

Many school districts, colleges, and other educational institutions have had similar results. With the growing competition for funding, reducing capital project costs and improving the efficiency of school operations is becoming more crucial everyday. Reductions in capital projects have allow school districts to do more with the bond funds they obtained. This has resulted in more satisfied taxpayers that are more open to future bond issues and a chance for better educated students.


Private Enterprise Businesses barchart 2

Business can be tough. Whether your company is small or large, it still can be tough. Competition is keen and a company must keep innovating to maintain their competitive edge. The technical process system SAMI VE LLC uses is the Value Method. We use this process because it is tested, highly effective, and reduces the risk that a result won't meet the needs of our customers. Unlike classical Total Quality Management (TQM) and Reengineering/Reinvention it is a full, complete process. These processes have excellent techniques and some excellent results. However, their failure rate is far too high. TQM has failed in nearly 50-percent of the companies it was adopted in. The "discoverers" of reengineering warned in their popular book that the documented failure rate for reengineering was about 70-percent. Examples of executives, that only wanted the best for their organization, losing their positions abound.

In contrast to other techniques, the Value Method success rate is nearly 100-percent. Official records of its application in the Federal government shows that, when they used it, they obtain a success rate of more than 80-percent. Private industry does better. Our application of the Value Method is based upon the recommended process and many enhancements. Its success is so great that most private concerns consider its application in their business as a proprietary activity and specific disclosure of examples in their business is contractually forbidden. Private businesses have obtained annual returns as much as $2,500 for every dollar invested through application of our services in their company. For example:

  • Power Companies. A power supply utility paid for their entire capital improvement project through increasing their revenue flow by changing their construction techniques and schedules. Another power company reduced their costs by more than five million dollars through an investment of less than $20,000.

  • Chemical Processes. A company using chemical processes to generate their wholesale products received more than $420 for every dollar invested due to reductions in required capital expenses to meet customer demand. Further, they expect to be able to increase existing production capacity by $25 million of product per year for an initial investment of $500,000. Attaining this production increase will not require any additional annual costs one the initial investment is completed. This is a return of about $2,500 for every dollar invested in their value study effort. Although value studies of chemical processes tend to cost more than other types of value studies, the profitable results from value study operations for large companies in the chemical industry often exceed billions of dollars.

  • Small Businesses. Very small to medium sized business are helped through our subsidiary and our business and marketing consultants therein. Examples of some of these clients include: A small restaurant (very small business) improved their market share by a factor of 50 through our services. (Overcoming a potential failure of the business and loss of the owners investment.) A new communications business has moved from an initial investment of $80,000 to more than $2.5 million dollars of capital with a payback in the first year.

  • Administrative, Management, and Sales. A technology sales group increased their sales by a factor of two as a result of a single one-day consultation. A three day effort returned on administrative activities returned $50 for every dollar investing in increased productivity. While some realignment was needed, jobs were retained and the cost of separation was avoided. The realigned jobs now produce more customer sales and support than was possible previously-- it is a win-win, satisfying both the company and their customers.

Cooperative Organizations

Several cooperative organizations have used our services due to the improved communication that use of the Value Method ferments. Since the Value Method is a recognized, uniform process that generates positive communication between the involved parties, cooperative group chose to use our services for this purpose alone. The history of their conflict spanned many decades. In one discussion, they stated that the money they were saving was "nice," but the real benefit was that they were able to progress toward a mutually satisfactory result.

Nonprofit Organizations and Professional Organizations and Societies

Nonprofit organizations have operations that are often termed "quasi-government" in that they serve a need and are not expected to make a profit. Thus savings and meeting their mission in the most efficient fashion tend to be the goal. Some non-profits we have served include groups with projects similar to those shown in the local government. Occasionally, nonprofit improvements have been significant enough to attract purchase queries from for profit businesses.

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Certified value specialist and value analysis at SAMI

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