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Fadi Elayache, Dubai 2010
What is Value Engineering? How Do we Apply VE? When is it used? Value Engineering Six Steps Plan? VE Case Studies
Value Engineering the Forgotten Technique
Originally called Value Analysis by its inventor, Larry Miles, an engineer in GE's purchasing operation in 1947, VA/VE uses a value equation that says value is equal to function divided by cost. If, for example, the buyer wants to get more item value, he/she needs to either increase the item's functionality at the same time he/she is containing cost; or he/she needs to reduce cost while holding or improving its functionality. Either way, the result is more value for the customer
Ref: Purchasing Magazine - "Value Analysis makes a comeback," Jim Morgan, November 20, 2003.").
or organization. Bryant. and provide the necessary functions to meet the required performance at the lowest overall cost. interdisciplinary problem solving activity that focuses on improving the value of the functions that are required to accomplish the goal.” Ref: John M. service. 1998 5 . Oct. or objective of any product. establish the worth of those functions. VALUE METHODOLOGY “The systematic application of recognized techniques which identify the functions of the product or service. VM Standard. Society of American Value Engineers.What is Value Engineering? Value Engineering (VE) is an intensive. process.
Concept of Value FUNCTION VALUE = COST 6 .
Concept of Value Desirable Ideal Good Acceptable Passable Value = Function Cost Function Cost 7 .
Concept of Value Undesirable Undesirable but Passable (cheapening the product) Function Cost Function Cost 8 8 Value = .
Value Engineering is used to reduce cost on existing Projects. 9 . Value Engineering is used to improve quality. increase reliability and availability.When Value Engineering is Used Value Engineering is used to determine the best design alternatives for Projects. Value Engineering is used to improve schedule Value Engineering is used to reduce risk Value Engineering is a powerful tool used to identify problems and develop recommended solutions. and customer satisfaction . Value Engineering is also used to improve organizational performance.
Construction Dwgs Release Concept Design Construction 10 TIME .Potential Saving from VE Re-Test Feasibility Drawings Released Design Changes Cost Net Savings from VE Total Cost of VE Implementation VE Implementation beyond this point results in a net loss.
Value Study Diagram 11 .
plan management presentation. score remaining ideas on a scale and group ideas into categories. broken. ** Screen ideas for acceptance. Rate and design scenarios. or develop Give oral presentation to management. Brainstorm ideas on how to improve the high cost. identify key recommendations. rank ideas. ** Plan how to sell ideas to management. recommendations. .Six Steps VE Plan Information Information Phase Phase Functional Functional Analysis Analysis Creativity Creativity Phase Phase Evaluation Evaluation Phase Phase Development Development Phase Phase Reporting Reporting Phase Phase ** Clearly identify the problem(s) to be solved. or inadequately performed key functions. Develop on a scale and group ideas into categories. ** Give oral presentation to management. Develop design scenarios. and gather information on the background. written report. and selection criteria. or develop written report. and Clearly identify the problem(s) to be solved. Rate and rank ideas. ** What must the project do? What are the functions What must the project do? What are the functions and how are they related? and how are they related? ** Brainstorm ideas on how to improve the high cost. plan management presentation. functions and requirements of the project. or inadequately performed key functions. functions and gather information on the background. and selection criteria. score remaining ideas Screen ideas for acceptance. broken. identify key Plan how to sell ideas to management. requirements of the project.
Information Phase Facts Finding What do you need to know about the problem that you don’t know now? What facts are known? What are the requirements of the system? Are these facts. assumptions. opinions. or prejudices? Where or how can information be obtained? 13 .
A logic diagram to describe how a system works.Use active verb and measurable noun FAST (Function Analysis System Technique) . Examples : 1 2 3 4 5 6 Secondary Functions Plan Finishing Material Magnify Living Room Area Reduce Wall Thickness Design Exposure Minimize Defect Design Finishing Key Function : Satisfy Tenant 14 .Describe what something does Functions .Functional Phase Functions .
Function Analysis Secondary Functions Design Unit Plan Put Cavity Wall Control Temperature Minimize Exterior Surface Execute Natural Ventilation Maintain Cleanliness Supply Air Conditioner Keep View Install Insulation Control Humidity 1 2 3 4 5 6 7 8 9 10 Key Function : Maintain Facility 15 .
Pipe Space Add Sewage Space 1 2 3 4 Key Function : Install Equipment Secondary Functions 1 Arrange Wall 2 Collect Opinion 3 Install Art Key Function : Design Interior 16 .Function Analysis Secondary Functions Supply Pipeline Space Design Ventilation Space Provide Elec.
17 17 .Creativity Definition Creativity is the art of bringing something new into existence. or producing something new and different. inventing. It has the art of making.
and naysayers. R. skeptics. J.2004 18 . Blow apart the misconceptions. Wixson .Creativity & Innovation You must blast before you can create. focus on possibilities. Rather. Blow-up the preconceived ideas and common theories of how things should be done.
while imagination embraces the entire world.Imagination Imagination is more important than knowledge. Albert Einstein 19 . for knowledge is limited.
Socrates 20 .Thought of the Day When you always do what you have always done .you always get what you have always gotten.
IDEAS Vs Solutions A solution requires justification & validation. A solution is solid and self supporting. A solution is an end point. DON’T KILL IDEAS WITH ROADBLOCKS!! 21 . and idea needs no justification. an idea is just the beginning. an idea is tender and must be built upon.
Royal Society. president. we shall hear very little more of Edison or his electric lamp." [New York Times.Information for Skeptics INNOVATION "." [Lord Kelvin.. 1895] "Airplanes are interesting toys but of no military value. January 16. Professor of Strategy. 1880] AEROSPACE "Heavier-than-air flying machines are impossible. Ecole Superieure de Guerre] 22 . after a few more flashes in the pan." [Marechal Ferdinand Foch. Every claim he makes has been tested and proved impracticable..
Information for Skeptics COMPUTATIONAL SYSTEMS "I think there is a world market for maybe five computers. Chairman and founder Digital Equipment Corp. chairman IBM." [Bill Gates. [Thomas Watson." [Ken Olson. 1977] "640K ought to be enough for anybody. 1943] "There is no reason anyone would want a computer in their home.“.. 1981] 23 .
Counter Skepticism Tilt-up Construction is an innovative construction method that will replace traditional construction of low and mid rise buildings in the Middle East within few years Fadi Elayache 2010 24 .
Counter Skepticism Aluminum Honeycomb System is an Innovative Solution for Stone Cladding of High Rise Buildings Vincenzo Portciello. 2010 25 .
Counter Skepticism Mateen-bar will replace steel reinforcement in structures exposed to aggressive environmental conditions in the Middle-East . Fadi Elayache 2010 26 .
Free-wheeling is encouraged . Select an appropriate meeting place 27 . not quality.Listen and improve on the ideas of others. Don’t criticize .No evaluation of ideas Encourage everyone to participate Record all ideas presented Time to let ideas “incubate” should be allowed.Rules of Brainstorming Generate a large number of ideas .quantity.
More Creativity Creative Ideas & Innovative Solutions Will be covered in the VE Case Studies 28 .
29 .Evaluating Ideas GO . −Record all assumptions when voting.NO GO −Scratch ideas that hold no interest. −Combine ideas. CHAMPION −Who will speak for the ideas and support them? GFI (Gut Feel Index) −Discuss pro/con and vote. add new ideas. GFI is team average.
Performance Comparison Performance Comparison Matrix Criteria Roof Structure Constructability Weather Resistance & Durability Thermal Resistance Fire Resistance & Safety Flexibility in Applying Finishes Score Roof Finishes Maintenance Aesthetics Ease of Installation (skilled labor requirement) Score Total Score Option A Option B Option C Option D 1 1 1 2 1 6 2 2 2 6 18 2 2 1 2 2 9 2 2 2 6 24 3 3 3 3 3 15 2 2 2 6 36 3 3 3 3 3 15 2 3 1 6 36 30 1= Acceptable 2= Good 3= Excellent .
000 119.000 851.Curved Steel Beam + FRP Cladding Description Roof Structure: Curved Steel Beams + Purlins + Intermediate Steel Members Metal Deck CIP Concrete (150mm) Waterproofing + Rigid Insulation Boards + Protection FRP Panels F.100 1.Cost Comparison Option A Cost Estimate .C.C.000 Total Cost (AED) ton 120 3.C.400 6.400 5.520 1.000 sqm sqm sqm sqm ton sqm 1.579.509. Suspension System F.194 400 100 100 608.900 2.360.205.C.000 121.400 2. Overhead & Profit) Unit Quantit y Unit Cost (AED) 28. Overhead & Profit) sqm sqm sqm 1. Suspension System F.000 100 532.721.610 Option D Cost Estimate .200 608.400 119.900 Concrete Roof Slab Waterproofing + Polyurethane sqm 1.194 350 80 85 400 28.185 Cost Saving of 4 million AED 31 . Gypsum Board Sub Total Total (including 15% Contractor's Prelims.194 1.520 85 129. Gypsum Board Sub Total Total (including 15% Contractor's Prelims.200 Foam Insulation + Protection FRP Panels F.200 119.PT Concrete Slab + FRP Cladding Unit Total Quantit Description Unit Cost Cost y (AED) (AED) Roof Structure: Post Tension cum 389 3.600 129.181.520 1.520 1.520 30 1.520 1.
schedule. and deliverables? ROI? 32 .Development Phase Planning What is recommended? Who has to approve it? What is the implementation plan? Are mockups or prototypes required to verify final decisions? What are the cost.
Assign a completion date for the action. Anticipate 4-6 weeks to complete the actions. “When should the task be completed?” Plan regular team status meetings. 33 .Action Plan “What needs to be done?” “Who should be assigned the action?” Assign a team member.
Plan for Roadblock 34 .
concise. Be clear. Support it with written executive brief. Anticipate roadblocks Use good human relations.Reporting Give oral presentation. 35 . and positive.
Close out the project. Publicize the results. Audit the performance of the implemented actions. 36 .Follow –up Activity Recognize the participants.
Case Studies Replacing Piles with Footings Worked Performed: Replacing 43 piles with isolated footings outcome 1.Cost Savings = 1.119. tidier and safer construction 37 .Easier.000 AED 2.Time Saving = 2 months 3.
000 AED 2. tidier and safer construction 4.Case Study.384 to 7000 m3 2-Remove 100 piles 3.Reducing size from 14.Time Saving = 3 months 3.930.Relocate WT Under footprint of Bldg outcome 1.Resizing & relocating Water Tank Worked Performed: 1.Cost Savings = 7.Easier.Regain Land space 38 .Minimize depth to avoid excessive excavation in sandstone layer 4.
Use Double liners instead of concrete floor with 2 stages installation 5.Cost Savings = 8. walls & liners Worked Performed: 1.Lagoon Depth.Incorporate underwater theming within pre-cast panels 4.Reducing depth by 1.600 AED 2.Introduce leakage detection system in lagoon bottom and behind wall outcome 1.Time Saving = 2 months 3.25 m about 50000 m3 2.338.Replace CIP Reinforced Concrete walls with Pre-cast panels 3.Easier constrction 39 .Case Study.
25 m and achieve more effective collection of sediments 40 .Lagoon Depth Five pits were used instead of one To reduce Lagoon Depth by 1.Case Study.
Case Study.Lagoon Walls Recommendations for the 1675 m long lagoon perimeter: 1.To use 6 Deg tilted walls instead of vertical walls to reduce footing sizes 3.Incorporate theming in Underwater precast Panels to reduce cost 41 .To Use Gravity Precast panels Instead of CIP reinforced concrete walls 2.
Case Study.To Use double liners.Floor Liners Recommendations for the 40000 m2 Floor 2 liners instead of one liner and concrete floor: 1. one 1.5 mm and the 2nd 0.5mm thick separated with granular layer 2.To provide leakage detection system as shown 42 .
40 m Dome Structure Recommendations for the 30 and 40 m LH Domes 1.Case Study. outcome 1.065 + 2.No Time impact 3-Similar construction Risk 43 .466.Cost Saving of 4.Reduce Suspension System of False Ceiling.To use PT Concrete curved Roof instead of Steel 2.Eliminate Fire Proofing 3.Reduce Thermal Insulation 4.385.600 for the 40 and 30 m Domes respectively 2.
To reduce interference Among trades 3.625 44 .Cost Saving of 891.To manage risk of potential scheduling conflict outcome 1.Case Study – Displaced Cooling Recommendations for Air Displacement System 1.To use Conventional Ventilation Instead 2.
Design. & construction In House Training of Project Team for Value Engineering Analysis We partner with Contractors for: Preparation of value Engineered alternatives proposals at the tender stage Proposing Value Engineered alternatives during construction. 45 .Our VE Services We Partner With Consultants & Developers to provide: Value Engineering Services for all project Phases. Conceptual.
Sr. Wixon.Jerry Kaufman & Jimmie L. “ work Experience with Parson Brinkerhoff ME. “Value Standard and Body of Knowledge “. PM Theme Park”. “ Value Engineering The Forgotten Lean Technique”. June 2007 2. Carter “ Evaluating Brainstorming Ideas” 1994 4. Industrial Technology Program.References 1. Fadi Elayache. J. Save International. Chi-Sung in et al. University of Idaho. J.R. 3.” 5. 2008 Thanks 46 . “Hierarchical Concept Modules for improving Function Analysis of Construction VE Process.
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