The report highlights the importance of value engineering in capital projects to optimize value over the entire asset lifecycle. Value engineering involves systematically identifying opportunities for cost reduction without compromising functionality, leading to cost savings of at least 10% and opportunities for value enhancement. However, companies often face challenges such as risk aversion, lack of capabilities to evaluate opportunities systematically, and an emphasis on capital cost rather than lifetime costs, hindering the full optimization of capital projects. The report suggests that organizations need to overcome these challenges and embrace change to fully leverage value engineering in capital projects.
