122 value engineering

Dr F.Dejahang, BSc CEng, BSc (Hons) Construction Mgmt, MSc, ex MCIOB, ex MCMI,ex.... PhD

1. VALUE ENGINEERING
[email protected]
htt://www.construction-productivity.co.uk

2. Value Engineering-Constructability
VALUE ENGINEERING
Value Engineering (VE) has been defined as:
the systematic effort directed at analyzing the
functional requirements of:
systems
equipment
facilities
procedures
and supplies for the purpose of achieving the
essential function at the lowest total (life-cycle)
cost.

3. Value Engineering-Constructability
Also, all the efforts are focused on meeting needed
issues such as:
Performance;
Reliability;
quality, maintainability;
aesthetics,
Safety;
fire resistance;
while, at the same time, achieving lowest life-cycle
cost.

4. Value Engineering-Constructability
Constructability implementation can
act as a predecessor to value
engineering.
Providing information through
constructor input and lessons
learned from past projects such
that value engineering may be
more effective.

5. Value Engineering
Implementation of value engineering involves
several steps:
1.Information;
2.functional analysis;
3.creative mind;
4.Evaluation;
5.planning & proposal;
6.Implementation;
7.follow-up.

6. Value Engineering
The creative step involves a brainstorming
session where life-cycle cost alternatives, for
design components are considered.
Value engineering may be performed in two
ways:
(1) Proactively
(2) Reactively

7. Value Engineering(Value Analysis)
What Is Value Engineering?
Value Engineering (V.E.), also known as Value Analysis,
is a systematic and function-based approach to
improving the value of products, projects, or processes.
VE involves a group of people following a structured
process.
The process helps team members communicate better
across boundaries.
understand different perspectives,
innovate, and analyze.

8. Value Engineering
What does Value Engineering do?
Value Engineering improves value.
On a major road development, improvements
to value might include:
reducing the life cycle cost of an interchange,
enhancing safety in a design;
or reducing impacts to the public by
shortening the duration of a construction
project.

9. Value Engineering
Value Engineering uses a combination of
creative and analytical techniques to identify
alternative ways to achieve objectives.
The use of Function Analysis differentiates
Value Engineering from other problem solving
approaches.
VE focuses on delivering the product or service
at the best price.
This is achieved by incorporating those value
characteristics deemed most important by the
customer.

10. Value Engineering
How does V.E. work?
V.E. follows a structured thought process
to evaluate options.
Every V.E. session goes through a
number of steps:
Gather information -What is being done
now?
Measure Performance -How will the
alternatives be measured?

11. Value Engineering
Analyse Functions -What must be done?
What does it Cost?
Generate Ideas (Brainstorming) -What else
will do the job?
Evaluate and Rank Ideas -Which Ideas are
the best?
Develop and Expand Ideas -What are the
impacts? What is the cost? What is the
performance?
Present Ideas Sell Alternatives

15. Value Engineering
People involved in VE should be able of
establishing the following:
effective challenge to design criteria and
accepted standards;
access and evaluation of operational and
maintenance cost;
focus on high cost areas and replace with
lower;
selection of effective alternatives.

16. Value Engineering
There are four important steps most be taken in
modified VE job plan. They are as follow:
1. Information Phase
-Briefing by the Client
-Feasibility study with client presence,
-Outline proposals
-Scheme design

17. Value Engineering
2-VE Steps
Validation or preparation of cost estimate
Familiarisation and breakdown of data into
elements-cost models
Functional evaluation of areas to isolate high
cost, poor value areas,
3-Speculative Phase
Team review of project-idea listing
Development of final idea listing.

18. Value Engineering
4-Analytical Phase
Evaluation of ideas listing
Selection of high cost areas for in-depth study,
Team brainstorming for generation of possible
alternatives suitable for in-depth analysis
Investigate alternatives
Team review of analysis
Preparation of proposal drafts.

19. Value Engineering
Proposal Phase
Review of results from analytical phase with
client to gain additional information and enhance
implementation.
Review and revision of proposal
Preparation of final proposals
Report, including cost estimate review

20. Value Engineering
What are the benefits of V.E.?
Value Engineering is a tool that will improve
Mangers ability to manage projects;
solve problems;
Innovate;
communicate.
A VE program in an organization will give the
organisation a definitive tool to improve value in
any product, project or process.

21. Value Engineering
The advantages of carrying out a VE are:
Cost savings;
risk reduction;
schedule improvements;
 improved designs and better collaboration
have been the outcomes of investment in
VE studies.
The return from the investment in VE
normally exceeds 10:1.

22. Value Engineering
CASE STUDY
A commercial office development was to be
constructed using JCT 2007 following the
completion of the design.
The client was reluctant to accept the financial
feasibility study.
Therefore, it was decided to VE the design down
to an acceptable cost.

23. Value Engineering
Solution
The value engineering team decided
during the initial information stage to
target 3 main areas, such as;
primary criteria: ratio of net let table area
to gross building area

24. Value Engineering
architectural review: attempting to
relax specifications without affecting
the overall quality of the building.
The basement, plant rooms, service
cores and the cladding system were
all identified as possible targets.

25. Value Engineering
engineering review- targets included:
superstructure
public health requirement
smoke extraction systems
environmental services installations.
A brain storming approach was adopted for
the creation of alternative ideas.
The scope of value improvement was listed
as:

26. Value Engineering
the basic shape of the original design
was critical as being wasteful in terms
of the resultant net let table floor area.
Alternatively proposals were made for
improving floor layouts, leading to 80%
net let able floor area, compared to the
75%.

27. Value Engineering
potential savings were identified by
concentrating the major plant items in
the basement areas and reducing the
extend of the basement ductwork by
relocating the air shafts.
Rationalisations were also suggested
for the layout and number of lift cores.

28. Value Engineering
a significant simplification was perceived
to be possible if the dimensions of the
central atrium and the width of the
entrance were adjusted to coincide with
the structural grid.
 build ability principles were applied to the
external cladding resulting in the
suggested use of composite steel framed
panels to fit the storey heights and column
centres.

29. Value Engineering
The proposed toilets were also reviewed and
a considerable saving was recognised as
being possible by the incorporation of pre-
fabricated toilet pods.
Form the cost figures it can be seen that the
alternative design proposals represented a
construction saving of 2.1 million.
The cost of VE WAS £43,000.

31. Value Engineering

32. Value Engineering