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
12.
13.
14.
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.