Reducing Total Installed Cost Without Sacrificing Performance
Value engineering isn’t about cutting corners—it’s about maximizing return. In capital-intensive industries like glass and ceramics, where project costs can exceed $10M, even a 5–10% reduction in Total Installed Cost (TIC) can change the economics of an investment. The key is knowing where—and how—to find savings without compromising throughput, safety, or future flexibility.
Where Value Engineering Delivers the Most Impact
Redundant equipment or systems not tied to uptime
Over-specified materials (e.g., refractory linings beyond temp requirements)
Vendor scope overlaps in installation and commissioning
Site prep inefficiencies and logistics handling costs
Core Techniques to Apply
Function-Based Design Reviews
Break each system down by function. Ask: Is there a simpler or lower-cost way to achieve the same outcome?
Modularize Where Possible
Pre-fabricated units reduce onsite labor and minimize weather risk. Great for control rooms, motor centers, and utility modules.
Leverage Supplier Substitutions
Allow OEMs to propose alternates, especially for fasteners, enclosures, and ancillaries. Vet rigorously but remain open.
Time-Phase Labor Requirements
Avoid overstaffing site crews too early. Shift labor toward peak periods, and tighten daily mobilization plans.
Bundle Commodities Across Projects
Pipe, steel, wiring, and conduit can be procured centrally across multiple sites to improve pricing and delivery certainty.
Final Tip
Embed value engineering checkpoints at 30%, 60%, and 90% design review—not just after budget approval.
