122 value engineering

Dr Fereidoun Dejahang
Dr Fereidoun DejahangProductivity Expert at CPI Team à UK
VALUE ENGINEERING
helpdesk@construction-productivity.co.uk
htt://www.construction-productivity.co.uk
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
122 value engineering
122 value engineering
122 value engineering
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 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
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.
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.
122 value engineering
Value Engineering
Value Engineering
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122 value engineering

  • 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.