Concept of Value Engineering- History- Components- Applications- Case Study

1. Value Engineering

2. INTRODUCTION
• The concept of value engineering came into
existence during world war II , when there was
a critical shortage of resources.
• Due to this it become necessary to adopt
changes in the methods, materials and
traditional design methods which ultimately
resulted in superior reduction in costs.

3. • Due to its many advantages it become popular
in many countries.
• Presently value engineering is adopted by
many public and private sectors due to its
advantages.
• And in construction industry it is used for
management synonymously.

4. DEFINITION
• Value engineering is defined as,
A process of systematic review that is applied
to existing product designs in order to compare
the function of the product required by a
customer to meet their requirements at the
lowest cost consistent with the specified
performance and reliability needed.

5. • The benefits of value engineering can be
achieved through a job plan involving following
technique.
1. Orientation
2. Information
3. Speculation
4. Analysis
5. Development
6. Presentation
7. Implementation
8. Follow up

6. Let us see them in detail…
1. Orientation phase
In these phase , ideas for the project to be
studied are to be originated. Then the selection
of the appropriate team to study the project is
to be done.
The policies needed to assists in the evaluation
of the projects and planning for the specific
project are to be done.

7. 2. Information phase
Here, gathering and tabulation of data
concerning the present design methods adopted
for the item to determines to what all are the
function that particular item is doing and
evaluate the basic function of the items.
3. Speculative phase
During this phase, we must generate
numerous alternatives for providing the items
basic function. It is achieved by brain storming

8. 4. Analytical phase
During these phase, the group examines the
alternatives generated during the brain storming
process and develop cost effective solutions ,the
main consideration are to evaluate in order of
descending saving potential.
5. Development phase
It accomplish three phase
1. To assess the technical feasibility.
2. To obtain firm information.
3. To develop written recommendation.

9. 6. Presentation phase
In these phase value engineering study report
is presented to the decision makers.
7. Implementation phase
During these phase ,the necessary funding is
to be done and the ideas are translated into
action, deadlines are fixed, responsibilities are
designated and progress is monitored.
8. Follow up action
In these phase, the actual results are audited,
reports are prepared and cost saving assessed.

10. Its applications
1. Capital goods – plant, equipment, machinery, tools, etc.
2. Raw and semi-processed material, including fuel.
3. Materials handling and transportation costs.
4. Purchased parts, components, sub-assemblies, etc.
5. Maintenance, repairs, and operational items.
6. Finishing items such as paints, oils, varnishes, etc.
7. Packing materials and packaging.
8. Printing and Stationery items.
9. Miscellaneous items of regular consumptions.
10. Power, water supply, air, steam & other utilities
(services).

11. Case study 1:-
• APPLICATION OF VALUE
ENGINEERING FOR COST REDUCTION
OF UNIVERSAL TESTING MACHINE.

12. Value Analysis technique for cost reductionof
following components of UTM:-
I. Hand Wheel
II. Range Selector Knob
III. Top Bearing Bracket Assembly
IV. Dial Bracket
V. Recorder Gears

13. Changes suggested-
• By keeping same function the material of hand wheel
can be changed from cast iron to Nylon.( Rs.400 to
Rs.180.50)
• The material of knob can be replaced from C.I. to
Nylon which is inexpensive, light in weight, corrosion
resistance etc. (Rs.300 to Rs.130)
• The design of existing bearing bracket can be modified.
Reduction of bearings from 4 to 3(Rs.7500 to Rs.6050)
• Modification of existing dial bracket design, by use of 2
or 3 arms instead of 4.
• Replacement of brass recording gear with nylon

15. Case Study- 2
Corporate Office Building-
• 800,000 square feet 3 basement levels of parking
• 3 levels of shops 1 mezzanine level for a
restaurant
• 2 17-story office towers
Principal study constraint: Maintain the
architectural image of the building.

16. PRINCIPAL RECOMMENDATIONS
• ARCHITECTURAL-
1. Delete escalators and stairs on the north side up to newly proposed office
areas.
2. Use less expensive, yet adequate penthouse walls and interior wall
modifications.
3. Use a lower category of finish material that will still meet owner
requirements, to bring costs closer to budget
STRUCTURAL-
1. Consider precast hollow-core floor planks for either or both basement
and tower floors.
2. Delete 4th and 5th basement levels used for storage tanks and relocate
tanks and spaces.
3. Modify floor slab design using two-way slab and beam.

17. • MEP-
1. Eliminate 2nd-level penthouse by relocating water tanks at roof
and in conjunction with deletion of 4th- and 5th-level basement.
2. Reduce loads on emergency power by using diesel-driven fire
pumps, backup battery-operated emergency lighting fixtures, and
reducing the number of emergency receptacles.
Conclusion-
The teams generated 130 ideas to improve the value of the
project. From these ideas, 50 proposals (including alternates)
were written, recommending initial cost savings of $1 4.5
million.
If all these proposals were implemented, they would result in
an additional annual savings in facility operations and
maintenance of $500,00O/year.

18. CONCLUSION
• Value analysis is the most economical and penetrating tool to
achieve reduction on costs and improvement in value of the
required products and services.
• It helps in reducing unnecessary cost without effecting the
functional characteristics of the products or services.
• In construction, it helps to determine whether the cost of
construction can be reduced or eliminated, while retaining all
the features of performance and quality of a construction.

19. REFERENCES
• International Journal of Advances in
Engineering & Technology, July 2012.
• Value Engineering Practicals and Applications-
Alphonse Dell’Isola.