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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.
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.
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.
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.
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
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.
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.
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.
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?
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
AINCEPTION
BFEASIBILITY
COUTLINE
PROPOSAL
DSCHEMEDESIGN
EDETAILDESIGN
LCOMPLETION
MFEEDBACK
FPRODUCTIONINFORMATION
GBILLS
OFQUANTITY
HTENDERACTION
JPROJECT
PLANNING
KSITE
OPERATIONS
BRIEFINGSKETCHPLANS WORKING DRAWINGS SITE OPERATIONS
THE APPLICATION OF VALUE MANAGEMENT
COST PLANNING
COST LIMIT COST ANALYSISCOST CHECKS
COST PLAN
40 HOUR VALUEMANAGEMENT WORK SHOP
VALUEMANAGEMENTAUDIT
CONTRACTORS VALUE MANAGEMENTCHANGE PROPOSAL
RIBAMANAGEMENT
HANDBOOK
40 HOUR VALUE MANAGEMENT ORIGINATED FROM USA-INDEPENDENT BODY OF EXPERTS
Initial ConstructionCost
Additional Cost throughunnecessary
sketch design andspecification
features
Additional Cost throughinefficient Constructionmethods and techniques
Contractors Overheadthrough labour andmachinery lying idle
TotalConstruction
Cost
costofBuildingEntity
VEapplication
ManagementReviewTechniques
PlanningControlProcedures
Typical Spectrum of a cost ReductionProgramme in the Building Industry Timing of V.E. study during the design stages
SketchDesign
Design Development
Approval
DocumentationDevelopment
Approval
Approval
ConstructionProcess
Yes
Yes
Yes
No
No
No
PreliminaryDefinition
RefinementofDesign
Workingdrawings
V.EAPPLICATION 1
V.EAPPLICATION 2
CostingTeam (4)
DesignTeam(3)
Value Team(2)
Client Team(1)
Initial VE meetingAll parties involved
(A)
VE ReviewWorkshop
ResultSummarised
Recommendation put forward
VE IdeasImplemented
The overall VE study process
(A) general introductoryProgrammingBudgetDelegation of ResponsibilityFinancial Issues
(2) Qualitative Analysis(3)Quantitative and Qualitative(4) Quantitative Analysis
CostingTeam (4)
DesignTeam(3)
Value Team(2)
Client Team(1)
Initial VE meetingAll parties involved
(A)
VE ReviewWorkshop
ResultSummarised
Recommendation put forward
VE IdeasImplemented
The overall VE study process
(A) general introductoryProgrammingBudgetDelegation of ResponsibilityFinancial Issues
(2) Qualitative Analysis(3)Quantitative and Qualitative(4) Quantitative Analysis
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.
Value Engineering
There are four important steps most be taken inmodified VE job plan. They are as follow: 1. Information Phase -Briefing by the Client -Feasibility study with client presence, -Outline proposals -Scheme design
Value Engineering
2-VE StepsValidation 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.
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.
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
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.
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.
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.
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
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.
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:
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%.
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.
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.
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.
IMPLEMENTINGPROJECT
CONSTRUCTABILITY
CostSchedule Quality
Overallobjectives
knowledgegained from
other projects
Labourefficiency
Fewerdelays/
disruptionsLean
construction
Shortenedduration ofactivities
etc
Defectsfree
productetc
Supply ChainManagementJust-In-Timetechniques
ISO 9000etc
TOTALQUALITY
MANAGEMENT(TQM)
IMPLEMENTATION
TOPPRIORITIES
1-TIME2-COST
3-QUALITY4-SITE SAFETY
Standardization's ISO9000 series
PLANNING PROCESS
PROCESS MANAGEMENTOR
MANAGEMENT SYSTEMPLANNING-COMMUNICATION
CONTROLLING -COORDINATING-TRAININGMONITORING
VETO ANALYZEFUNCTION
REQUIREMENTOF
facilitiesequipmentsystemsprocedures
Performance;Reliability;
quality, maintainability;aesthetics,
Safety;fire resistance;
while, at the same time,achieving lowestlife-cycle cost.
TO MEET NEEDED ISSUES
Highproductivity
Value EngineeringVE
TO ANALYZEFUNCTION
REQUIREMENTOF
Highproductivity
(2)Reactively
(1)Proactively
1
• 1. Information PhaseBriefing by the Client -Feasibility study with client presence-Outline proposals-Scheme design
2• 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• 3-Speculative Phase- Team review of project-idea listing- Development of
final idea listing
4
• 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.
Value Engineering
VETO ANALYZEFUNCTION
REQUIREMENTOF
facilitiesequipmentsystemsprocedures
Performance;Reliability;
quality, maintainability;aesthetics,
Safety;fire resistance;
while, at the same time,achieving lowestlife-cycle cost.
TO MEET NEEDED ISSUES
Highproductivity
Reducing the lifecycle cost
Enhancingsafety in a
design
(2)Reactively
(1)Proactively
