257 VALUE ENGINEERING

1. 257VALUE ENGINEERING Dr f Dejahang (BSc CEng, BSc (Hons) Construction Mgmt, MSc, MCIOB, PhD)

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: • Information; • functional analysis; • creative mind; • Evaluation; • planning & proposal; • Implementation; • 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.

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