Integration of VE and Risk Assessment in Oil Industry

Value Engineering (VE) is a proven and effective tool for both continuous improvement and design enhancement. This paper deals with the integration of VE; Risk Assessment and Continual Improvement concepts in order to provide an effective model to be used for meeting the challenges the oil industry is confronting. The model is applicable for old installations as well as the new plants applying new technologies. After a short introduction to the risks in the industry, the five phases of VE including Investigation, Speculation, Evaluation, Development and Presentation are discussed. The guidelines on key elements of value management - how to specify at a level appropriate to, but not in excess of, the required degree of performance (the principle of value engineering) - could be used by design engineers in various fields of the industry from reservoir engineering to final delivery of crude oil; middle distillates and petrochemical products at terminals or other delivery points.

Keywords:

Value Engineering , Oil Industry , Risk , Loss Control , Continuous Improvement , Quality Enhancement