", "

"r
'L--------------------------,
APPLICATION OF FAST DIAGRAM
FOR DECISION MAKING INTOLL BOOTH EXPANSION
Case Study- Seoul Toll Plaza Project
PREAMBLE.
Recent increases in construction costs on Korean public works projects, largely due to
change orders caused by poorly elaborated design, became the motivation for applying VE
process in Korean construction industry. The "Kyungboo Express Highway" project, recently
value analyzed by VE team, demonstrates how value engineering helps save time and
money and increases functional performance. The objective of this project is to upgrade and
expand existing facilities and systems ~ n "Kyungboo Express Highway," the main artery for
the Korean peninsula linking Seoul to Pusan. The VE study generated several innovate
alternatives capable of saving up to 50% of project cost and increasing performance and
value from the baseline project plan.
The "Seoul Toll Plata" serves as. an entrance gate to metropolitan Seoul for motorists
traveling on this Kyungboo Express Highway. Due to high traffic volumes, the highway users
" '
experience approximately 30 minutes of queuing delays at peak periods. With planned
highway expansions; this delay time is expected to grow slgniflcantlv, The current location of
the toll plaza severely restricts the space available to add new tollbooths. Therefore,
innovation was required to solve the project's objectives to reduce the queue time while
maintaining collection of toll revenues.
This project used the performance based value engineering methodology to analyze and
reduce the traffic delay caused by the tollbooth. This methodology uses some unique tools
that the baseline project measured, which the project stakeholders defined, weighed, and
rated for the project performance criteria that explicitly measure the project scope and schedule.
PRESENT SCENERAIO.
The Seoul toll plaza has a total of 32 booths; 19 of them are pay booths (Seoul direction) and
BuIlding I IRestaurant Gas station
. 011 Office_IO .01
cgJ
Airshaft Building
----------
General national road
+
,
'.
13 of them are ticket booths (Pusan direction). In addition, 7 out of 32 booths are reversible
(payor ticket) to accommodate peak periods. Also, 10 out of 19
pay booths utilize double booths system to increase their capacity. Fig. 2 shows the layout
of the existing Seoul toll plaza.
-,;
During the information phase, the project stakeholders established 7 project performance
criteria in order to evaluate the effectiveness of the VE alternatives to be developed.
Qualitative and quantitative parameters are used to increase the objectivity in the
application. The criteria used are shown below:
Travel delay (A): The time required to travel through the booth. Defined by the time
that driver began slowing down from freeway-operating speed to when driver
required freeway-operating speed.
Safety(S): The number of accidents and aggregate severity of those accidents per
year.
Operationat efficiency(C): Ease of operation and maintenance of the pay and ticket
booths.
Air quality(D): The amount of pollution encountered by the local community due to
congestion caused by the toll booth.
Socioeconomic(E): The farmland and other economic activities with community
affected by the toll plaza (businesses, local transportation system, housing, etc).
Project schedule(F): The time required to deliver the project to the public (improvement in delay
to highway user).
Constructibility(G): The ease of construction. The likelihood of constructing the
facility -with minimal impacts to the local community, existing transportation
systems, and highway users. Also, the ease of construction for the contractors.
Once the criteria were established, the VE teams applied the AHP method to determine
weights. Table 5 shows the weights determined by AHP analysis, including "travel delay" and
"safety" that carried the highest orders of importance.
Using the established definitions and weights of the performance criteria, the original design
was measured for project performance. The original design scored 475 performance points,
out of a minimum of 100 points and an ideal performance of 1000 points. This will be used .
as a comparison baseline to alternative values.
Table 5. Performance Weights and Evaluations for Original Design
Criteria A B C D E F G Total
Weights 26 23 20 8 5 3 15 100
Ratings 5 4 3 4 6 5 6 33
Performance 156 92 60 32 30 15 90 475

-,; - .
FUNCTIONAL ANALYSIS AND EVALUATION PROCESS.
The Technical FAST diagram was developed and used to find major functions required to
support the secondary functions of the project, which helped to improve performance of
functions and make creative ideas. The FAST diagram also helped to find relationships
between functions and cost, which helped to make proper decisions for satisfying
stakeholders.
.
"'"'-'"
islttGf..,.
USO t 7JJ)
NlIions $ItA
-.

"""""'"
USD I
-W iens""
"""'".
......
....
r-,
v

b_
eano_. R...,...
....-.a..., .lDIlboce'l ;:.:.=
-.......
Collect
H H
uSIU"Ull a toll fee
K
MI1__ USD2Ul USD2UIl US0 11J1Z
MiIiQr,.II2It MiDOons5I.A Mliorsl:UY.
COnstueta
,a.d_"_
H -l
usa l Ull
l!! Ma....3UI.

C
.........
2 s....

0."
H
Q) '"' USDIUJ2
_.....
USO"" - ,..".
'E
0
' <11 Q) '"'
c

0 ...
-
oS! =
tl
_....
,-
C
'Uso 112 H
UlD1.
.2

0
L,.,
Q)
.,.......
U "'W Inisc

Lo -
-l Q)
s: _.....

oso"'"
,0)
.,.
J: _.
......
OfIM!lting.,..", ..... .......
H


k
'"
,
",
The "Reduce Storage Time" was the basic function identified for this project. Fig. 3 shows
the function analysis of Seoul Toll Plaza project and its relationship with cost as established
on the FAST Diagram.
A total of 143 alternative ideas were proposed throughout the team brainstorming process.
In the next step, evaluation and ideas with the greatest potential to improve the current
design have.to.be established.
- ~ -
Table 6. Alternative Ideas for Seoul Toll Plaza
No. Alternative Ideas Ranking
8-1 Make additional toll plaza 4
8-3 Change Toll Booth layout 4
8-5 Apply "Hi-Pass" lane (4 lane 6 lane) 4
8-7 Apply "Touch and Go" system 3
8-8 Double Booth (all booths) 3 .
8-10 Reorganize lane marking intoll plaza 3.
Above table shows "out of the box" ideas that were generated in the-creativity session, an
overhead tollbooth that does not consume scarceand expensive roadbed. The evaluation
process ranked VE ideas ' from 5 (significant value improvement) to 1 (significant value
degradation) by considering their performance and cost. The evaluation phase paired down
the 143 ideas down to 26 potential alternatives to be developed. Table 6 shows 6 out of 26
alternative ideas.
The 26 surviving alternatives were developed in technical and cost detail in the
development phase by the VEteams. As a conclusion to this development, each alternative
had to be compared back to the baseline performance and cost basis. The value was
checked by using the basic formula (formula 1) while Life Cycle Cost (LCe) models were
Table 7. Example of Combined Alternatives
Combination ofIdeas
Baseline
Extend From 32 toll booths jo 46 toll booths
(Pusan direction: 16. Seoul direction: 30)
VE8et4 8-1 + S-5 + 8-1 +8-8 + 8-10
VE 8et6 8-3 + S-5 + 8-1 + 8-8 + 8-10
"
applied to the alternatives. This study used the conventional LCC model, including the initial
. and subsequent maintenance costs.The economic analysis brought all
Table 8. Comparison of Performance
Baseline VE Set 4 VE Set 6
Total Performance 449 645 532
% Change
-
+44% +19%
Table 9. Comparison of LCC (Billion won)
Baseline VE Set 4 VE set 6
Initial cost 315 242 157
% Change I.C. - 23% 50%
Maintenance cost 133 151 154
NPV 448 393 311
%ChangeNPV
-
12% 31%
cost to the present, i.e. appliedthe "present valuemethod" USing
4.5% interest ratefora 2Q-yearperiod.
COMBINATIONAND EVALUATION PROCESS
To obtain the best value, several alternatives were combined. This study suggested 8
combinations of alternatives._Table 7 shows the best two alternative combinations:
Set-4 and Set-G.
Set-4 includes 5-1 (Create additional toll plazas), 5-5 (Apply "Hi-Pass" lane), 5-7
(Apply "Touch and Go" system), 5-8 (Double Booth), and 5-10 (Reorganize lane
marking in toll plaza).
- Set-G includes 5-3 (Change Toll Booth layout), 5-5 (Apply "Hi-Pass" lane), 5-7 (Apply
"Touch and Go" system), 5-8 (Double Booth), and 5-10 (Reorganize lane marking in
. toll plaza).
After forming the combination of alternatives, the performance of the sets was determined. .
The VE sets were measured against the criteria and weights established for the baseline
.project.
,
Table 10. Comparison of Alternative Values
Baseline VESet4 VESet6
Performance 449 645 532
Initial Cost 315 242 157
% Change - 23% 50%
Value Index (pIC) 0.14 0.27 034
Value % Change
-
87% 138%
Table 8 indicates that VE 5et4 provides a 44% improvement while VE 5et6 provides a 19%
improvement in its comparable base design performance.
After the comparison of performance, we need to consider LCC costs for different ideas.
Because of the uncertainties and noisiness of input variables, this study applied Monte Carlo
Simulation (MCS) method. From this analysis, we found that VE Set4 has 12% and that VE .
Set6 has 31% lower lCC costs compared to the original plan. Therefore, the result shows VE
Set6 is betterin cost.
Table 9 shows the comparison of LCC cost between base design and alternatives. Notice that
the spread between the original and proposed VE recommendations were narrowed when
the maintenance costs were accounted for.
,Finally, this study compares the values between the original plan and the alternatives. VE
Set6, based on established performance measurement and cost differences, is identified as
the better value choice. Table 10 shows the comparison of values between the original
design and the VE alternatives.
The change in spread between the LCC analyses, indicated in Table 9, and the Value Indices,
shown in Table 10, can be explained by the more comprehensive list of attributes accounted
for in the performance measurements. This delineates the difference in approach in project
analysis using value indices versus life-cycle cost. The project performance measurements
are well suited for project-decision making in the earlier project development stages to
define and measure large variances in project scope and schedule.
Upgrading the Seoul Toll Plaza Project. The VE design increased the performance of the
project by adding 8 paybooths and 2 ticket booths over the existing design by the parallel
separation of the toll plaza. Other changes 'included improving the lane markings and
locating the tollbooth zigzag. The solution stresses that projects can be improved not by just
,
I / - - - - - - - , , - - - - - - : - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
removing project costs but also by improving performance of the project objectives.
In conclusion, the authors found that alternative ideas obtained from VE analysis provided
up to 50% of project cost compared to the baseline project plan while significantly
increasing the performance of the project functions.
Fig. 4 shows the layout of recommended design (VE Set6)
Ton office
Pusan
Seoul .
Fig. 4. Recommended Desi,
OUTCOME OF PROCESS
The quality and costs of highway and other public work sector projects can benefit by the
application of well-elaborated VE methedologles. Specifically, the VE methodology provides
a sound methodology for analyzing the project objectives and attributes. which, in tum,
focuses the development of alternatives in the value study. Authors offer the following
suggestions to implement a successful value engineering program in the public works
sector: a) VE responsibilities must be clearly delineated within the organization, b) VE
guidelines and manuals should be developed, used, and maintained, c) VE training should
being provided, d) VE specialists and consultants should be utilized, and e) Program
evatuation and auditing must be provided.
Three main issues must always be involved in a VE study: a) Function analysis must be done,
b) The basic systematic step-by- step process described by the VE job plan must be
. employed on .the .studv and carried out by a qualified team .leader, and c) It must involve
multi-disciplined team members. Those are very important to obtain high quality VE
outcomes, To make the best use of the VE methodology, it is' essential to establish a VE .
program that helps the public works agencies deliver the best combination of project scope,
cost, and schedule. Many VE studies are not very effective because of a failure to
completely analyze all of the project management issues (Le. scope, cost, and schedule) and
this is usually the scope portion. Also a good VE program must join seamlessly into the
agencies' project development procedures. The above two issues,' the comprehensive
project management tool and the integration of the VE program into the agencies' projttef{
development procedures, will ensure that the VE program assists_ the public agencies'
project managers in delivering good value in their projects. Particular attention must be paid
to the implementation procedures.
ACTIVITIES
Make a comprehensive report on Performance Criterias listed lnthls case study on
Indian context.
Comment on the statement "The FAST diagram also helped to find relationships
between functions and cost, which helped to make proper decisions for satisfying
stakeholders."
Discuss the suitability of this model of decision making.