ENGINEERING VALUE THROUGH WORKSHOPS AND CASE STUDIES

ENGINEERING A BETTER
TOMORROW
OVER FIVE DECADES
Value Addition Workshop

MMBU – 21st August 2020
CONFIDENTIAL 1
01 Introduction
02 Concept of Value Addition
PRESENTATION 03
Where, When and How to look for Value
Addition Opportunities
AGENDA
04 How to categorize and record Value Additions
Case studies – Value Addition examples, Value

05 Engineering Workshop
06 Conclusion
CONFIDENTIAL 2
Prelude
Definition of Value Engineering
 Value engineering is a systematic, organized approach to providing necessary
functions in a project at the lowest cost.
 Value engineering promotes the substitution of materials and methods with less
expensive alternatives, without sacrificing functionality.
 It is focused solely on the functions of various components and materials, rather than
their physical attributes.
 “Good” Value is the lowest cost to reliably provide the required function with essential
performance.
 Value is always increased by decreasing costs while maintaining essential
performance.
 Value may also be increased if the customer needs, wants, and is willing to pay for
greater performance.
(definition from Investopidia - https://www.investopedia.com/terms/v/value-
engineering.asp)
CONFIDENTIAL 3
Prelude
Development of the concept of Value Engineering
 The concept of value engineering evolved in the 1940s at General Electric, in the
midst of World War II.
 Due to the war, purchase engineer Lawrence Miles and others sought substitutes for
materials and components since there was a chronic shortage of them.
 These substitutes were often found to reduce costs and provided equal or better
performance.
CONFIDENTIAL 4
Prelude
Understanding of the concept of Value Engineering
 Value engineering process involves the review of new or existing product or service during the
design phase to reduce costs and increase functionality to increase the value of the product.
 The value of an item is defined as the most cost-effective way of producing an item without taking
away from its purpose.
 Therefore, reducing costs at the expense of quality is simply a cost-cutting strategy.
 Value of a product or service is the ratio of two elements: function to cost.

 The function of an item is the specific work it was designed to perform
 The cost refers to the cost of the item during its life cycle.
 The value of a product can be increased by either improving its function or decreasing its cost.
 Cost related to design, production, maintenance, and replacement are included in the
analysis.
CONFIDENTIAL 5
Prelude
Small Story on Value Engineering
 In a major pedestrian bridge project, the basic design was based on two main considerations:
 It was designed to have enough width for emergency vehicles.
 It was designed straight (a straight bridge).
 These requirements were standard engineering work and did not require “out of the box” thinking
in the original design
 The value engineering session took place after the detailed design of the bridge was complete.
The value analysis altered these two features of the design.
 The value engineering group met with local emergency services and decided that emergency
vehicle access was not necessary.
 After consulting with the public, it was determined that a curved, aesthetic bridge was in the best
interests of the public
 There were significant design changes, but the end result cost taxpayers several million dollars
less while providing a better product.
 The owner’s value engineering team paid for itself many times over on that project.
(Source: https://www.projectengineer.net/what-is-value-engineering/)
CONFIDENTIAL 6
Title: Value Engineering Workshop and some
Case Studies
Contents:
 Concept of Value Addition
 Value addition in TCE’s scope of engineering services
 Why is value addition important in our work
 Forms of Value Addition in TCE’s services
 How to imbibe the culture of Value Addition in projects
 How to look for Value Addition opportunities
 How to record Value Additions
 Examples of Value Addition Case Studies and Value Engineering Workshops
CONFIDENTIAL 7
Introduction
CONFIDENTIAL 8
Introduction
 Definition
Through value addition, a product or service is enhanced before offering to customers. The
difference made in the design gives a perception of increased value to the client or
customer.
 Value addition in TCE – why it is important

 In TCE way of working, value addition is considered as a critical part of project solution
creation.
 While it was unstated earlier and depended on the working by the team involved, it has
become a game changer in projects for clients in recent times.
 Clients are not only looking for compliance to the terms of contract for project execution
but are also focusing on the difference our way of work can bring to the project with
potential for value creation.
CONFIDENTIAL 9
Introduction
 How do we define Value Addition?
 Value addition for projects executed in TCE can be either external to the client/ owner or
internal when it benefits TCE’s improved way of working.
 It can be in system design, plant design, cheaper and better material, design
methodology, construction methodology, equipment selection, without compromising the
safety and operability, during tenders, cost estimations
 Normally optimization studies within the given project specifications are expected and is
not considered a value addition.
 However, if the specified boundary conditions can be altered to render the design more
effective while delivering equivalent output to customer, it is considered a value addition.
 Internal value additions will result in completing the same task with less effort or
automating the process to ensure consistent and quality output and the improved
processes then become way of working in TCE.
CONFIDENTIAL 10
Introduction
What Value Engineering Is Not!

 Cost Cutting
 Design Review
 Project Elimination
 Scope Reduction
 Quality Reduction
 Detailed Cost Estimating
 Redesign
CONFIDENTIAL 11
Introduction
 What does not constitute Value Addition?
 Optimization studies – these are part of normal engineering work for any project and is
expected as part of standard delivery.
 Alternate solutions to suit site/ execution challenges – these are expected as known
challenges especially for projects in brownfield sites where availability of data is a
concern. In such cases solutions proposed to mitigate such challenges do not constitute
value addition.
 Change in structural arrangement for more efficient systems will not constitute value
addition; however, modification of basic form while maintaining/ improving desired
functionality, improved aesthetics will become “value add”.
 Use of new tools, creating new tools in software packages, implementing new
techniques and tools for project delivery are ongoing process improvements and do not
constitute specific value addition.
CONFIDENTIAL 12
Opportunities for Value Addition
CONFIDENTIAL 13
 Why to look for Value Addition/ Value Engineering
Value engineering process is carried out since it:
 Focuses on essential functions, not systems or procedures
 Embraces creativity and out-of-the-box thinking
 Uses life-cycle cost analysis for decision-making
 Provides and organized, multi-disciplinary framework for creative alternative
development
 Consistently achieves desirable results: high ROI for the project; or savings
>5% of estimated project cost
(Source: CH2MHILL)
CONFIDENTIAL 14
 Where to look for Value Addition opportunities
Identifying a scope for value addition in design may be carried out during:
 Valued addition workshops –
 Client specific
 Sector specific
 Discipline specific
 Jobs where value addition is a project requirement (explicitly stated in the
contract/ work order against a stated payment or additional payment above
the service scope)
 VA&I opportunity identification can be based on Key and strategic customers,
with project value identified (as part of other initiatives).
 However, it should be extended to other prestigious customers also even with
lower project values.
CONFIDENTIAL 15
 When to look for Value Addition opportunities
Should this be done at specific times or as a continuous improvement process?
 Value engineering most often takes place after a design (functional or
detailed) has taken place, but the best time to do it is actually before design.
 As per present practice idea needs to be propagated during IKOMs.
 The generated ideas are then be reviewed during PICM/ PRM.
 However, it has also been observed that at IKOM stage level of project
information is low and scope of identification is limited.
 As alternate it may be more suitable to conduct a workshop after receipt of
basic information and concept design stage.
 Conceptual review should be made mandatory for all major packages/ work
items where such proposals are to be put forward.
 VA&I opportunities shall be identified before carrying out detail design
CONFIDENTIAL 16
 When to look for Value Addition opportunities
 At Concept-Level to select a preferred

design approach if several alternatives are
envisioned to meet the project
requirements
 High Opportunity for cost savings or
functional enhancement at the early-to-mid
design phase
 Too late to incorporate VE at the late
design phase (VE is not a Constructability
Review)
(Source: CH2MHILL)
CONFIDENTIAL 17
 Who should look for Value Addition opportunities
Should this be done by special team or all project delivery teams?
 One need not be an expert to identify a scope/ potential for value addition.
 Value engineering can be used at any time, on any project, to encourage “out
of the box” thinking. Hence, everyone should be familiar with value
engineering techniques to improve their project delivery.
 Engineer at any level of the design process can come up with an idea for
value addition.
 Once an idea is generated, the Team Lead, PE, Discipline Lead along with
DH will participate in further development of the idea.
 A value analysis is undertaken whereby practitioners or subject matter experts
gather together to perform the value methodology.
Identify a multi-disciplinary team of Value Engineering Champions in the BU who
will work across projects to generate VA proposals
CONFIDENTIAL 18
 Value engineering is a formalized method to
 select customer critical functions
 quantify value
 relate customer benefits to costs
 create and select alternatives
 reduce costs
 focus on effective action
 Systems Approach
 focused on customer and performance
 applied at all stages of operation
CONFIDENTIAL 19
 How to look for Value Addition opportunities
Should this be done at specific times or as a continuous improvement process?
 As per present practice this is required during IKOMs where the idea needs to
be propagated.
 The generated ideas are then be reviewed during PICM / PRM.
 However, it has also been observed that at IKOM stage level of project
information is low and scope of identification is limited.
 As alternate it may be more suitable to conduct a workshop after receipt of
basic information and concept design stage.
 Conceptual review should be made mandatory for all major packages/ work
items where such proposals are to be put forward.
 VA&I opportunities shall be identified before carrying out detail design
CONFIDENTIAL 20
 How to look for Value Addition opportunities
 Based on areas identified (slide 10) certain areas to look for are identified.
 However, engineers must be sensitive to new developments and have an eye
for seeing things differently than specified but with no compromise on
requirements or enhancement of output without other burdens.
 Explore suitable state of art technologies, technical advancements beyond
project brief or new work methods to achieve same results.
 Use of tacit knowledge of experts, better design supported by references.
 Look at project JCR’s of similar executed projects were such ideas may have
been captured.
CONFIDENTIAL 21
 Develop a work culture for Value Addition opportunities
The standard job plan consists of 6 phases.
 Information: Gathering project information and understanding its primary
goals.
 Function Analysis: Identifying the functions of the project, and describing
them with verb/noun pairs, for example, “Preserve wildlife habitat.”
 Creative: Generating alternative solutions which accomplish the intended
functions but add value.
 Evaluation: Reduce the ideas to a short list that can be implemented.
 Development: Develop the alternatives into viable, actionable plans.
 Presentation: Present the results to management or other stakeholders.
CONFIDENTIAL 22
 Develop a work culture for Value Addition opportunities
 Take the time at various stages during the design phase to brainstorm what
functions the project serves?
 What are the verb/noun pairs that describe the functions?
 The primary functions will be obvious (the reasons for the project’s existence) but
what are the secondary ones?
 Value engineering sessions take a step back and look at the project from a
functional perspective rather than how it’s originally conceived.
 Projects tend to be initiated based on linear, generic thinking that does not
consider the secondary functions.
 The project team, can do this during the design phase, when innovation can
save money, increase quality, or just score valuable points.
 The business unit can assign targets to each project team for VE contribution
CONFIDENTIAL 23
To promote Culture of Value Addition
 Encourage project teams to create opportunities and capture VA:
 VA&I shall be included in the KRA targets of the BU as per the accrual for
respective BU.
 The VA&I target for the BU shall be included in the BSC of the BU
 The value for VA&I target shall be 5% of accrual for the respective BU.
 Discipline Leads shall finalize the VA&I in association with the DH and shall
approve the same in the VA&I portal.
 Conducting value addition work shop mandatorily for every project. This VA
workshop shall be carried out within a fortnight after IKOM of the project. DHs
may facilitate in conducting the value additions workshop.
 Recognitions and rewards for good VAs to identified by DHs
 Minimum 10 nos. innovation entries selected for INNOVISTA to be included in
BU KRA.
CONFIDENTIAL 24
Enhancing Value addition(VA) Culture in BUs
Objective:
 To inculcate VA culture at all levels
 To be a business differentiator
 Client satisfaction and increase CFF index
 Increase Innovista entries to have more visibility in group
VA achievements
Sr. no. Year Revenue Saving from VAs % saving
1 2017-18 630 Cr 52 Cr. 8.2%
2 2018-19 700 Cr 52 Cr 7.4%
3 2019-20 800 Cr. 45 Cr. 5.6%
Suggestion:
 Each BU should be given a VA target of 5% of BU revenue
 Minimum 5 nos. entries in Innovista
 Conducting VA workshop for every project.
CONFIDENTIAL 25
CONFIDENTIAL 26
Capturing Value Additions
 Categories of Value Additions defined in TCE way of work consist
 Savings in Capex/ Opex/ Life-cycle cost
 Generating better value by-products
 Improving techno-economic attractiveness of process (even at cost of Capex/
Opex increase)
 Improving product quality
 Improving output without additional cost burdens
 Improvement in safety, operability, reliability, maintainability, productivity,
constructability, aesthetics
 Overcoming constraints without compromising project objectives
 Reducing environmental footprint – carbon/ water
CONFIDENTIAL 27 27
 Snapshot from the VA&I portal in Rhythm
CONFIDENTIAL 28 28
Value Additions Life Cycle
CONFIDENTIAL 29
 Creation > Approval > Publishing of Value addition
 VA done in projects remain only with project teams
 Not entered in JCR
 Sharing of knowledge will be source of information in future projects, opportunity for
further improved solutions, enhance TCE brand image during marketing
 Some of these values adds could potentially be innovations and may have intellectual
property (IP) value
 Online platform is created to capture, analyze, refine, classify and store data centrally
 DTC Heads can “Approve”, “Reject”, or “Hold with reasons” the VA claim logged in
 DTC will recommend whether the VA is selected for external contests, external
publication or has IP potential
 Dashboard provided with different access permissions to different category of users to
extract relevant information and present at appropriate forum
CONFIDENTIAL 30 30
 Snapshot from the VA&I portal in Rhythm – Entering data
CONFIDENTIAL 31 31
 Workflow of VA logging and approval
CONFIDENTIAL 32 32
 Workflow of VA logging and approval
CONFIDENTIAL 33 33
 Dashboards for various user levels
 Administrator dashboard
CONFIDENTIAL 34 34
 Administrator dashboard
CONFIDENTIAL 35 35
 Administrator monthly summary dashboard
CONFIDENTIAL 36 36
 BUH-HOD-HOS Dashboard
CONFIDENTIAL 37 37
Case Studies
CONFIDENTIAL 38
Capex Reduction thro change in design philosophy
Value Addition Case Studies: Case # 1
Project:Wet Flue Gas Desulphurisation
(FGD) system for 4 X 500 MW power plant
Rihand (NTPC- India)
Value Addition Domain: Capital cost
reduction
Approximate Reduction in cost: Rs.5.5
crores
Tender Proposal and Normal Proposed and adopted Benefits:
practice: Changes:
FGD absorber needs a very rigid base During DE stage after studying the Approximate cost
at ground level. Therefore pile raft bore hole details it was found that soil benefit of Rs.5.5 Cr in
foundation with pile cap of 2m thick strata at 9m depth was very good and Foundation works
resting on 400 piles of 750mm diameter normal raft foundation can be adopted
was proposed since the structure was safely but challenge was to provide a
located on 6m thick ash filled area. rigid base at 9m above the founding
strata.This was achieved by adopting
rigid framed foundation.
Capex Reduction - Change in design philosophy
Project: Samsung C& T - Project FUJAIRAH F3 Independent Power Plant – 2400MW CCPP
Value Addition Domain: Capital cost reduction Approximate Reduction in cost: Rs. 139 lakhs
Existing Practice: Proposed Changes: Benefits:

DCS controllers and cabinets location as per initial We suggest DCS panel and RIO locations as Approximate cost benefit of 139
plant layout for review was as below: below lakhs INR (1,80,000 USD)
a. MEB(CCR) : Common systems and GTG’s
interface and HRSG’s cabinets . a. GT# 11 Control Building: Respective Locating the DCS panels ,
b. ST#10 Control Building: Respective STG systems HRSG and GT interface and unit wise controllers in the above suggested
like condensate, bypass, vacuum etc.) systems. locations will have the following
c. ST#20 Control Building: Respective STG systems b. GT# 12 Control Building: Respective advantages:
like condensate, bypass, vacuum etc.) HRSG and GT interface and unit wise 1. Cost savings of cables from
d. Sea water Intake Building : Sea water intake systems. HRSG’s field instruments to Main
system, ECP etc. c. GT#21 Control Building: Respective HRSG electrical building ( CCR )
e. Fire Brigade Building: FGC , Fuel gas metering and GT interface and unit wise systems. 2. Ease of maintenance due
and gas chromatograph locating the IO cards , field
RIO location: instruments and respective cables
a. Water water treatment building near the main equipment's .
b. FO tank area 3. No congestion of DCS cabinets
in CCR and space can be used for
other useful purpose or reduced .
GT#11, GT#12 and GT#21 Suggested DCS Panel Location
Main electrical
building ( CCR)
GT control
building 11
GT control
building 21
GT control
building 12
Capex Reduction thro change in auxiliary power supply scheme
Project: PACHIPENTA PUMPED STORAGE PROJECT
(370MW)
Value Addition Domain: Capital cost reduction
Approximate Reduction in cost: Rs 6.25 crores
Existing Practice Proposed Changes Benefits
For dual operation (generator- Instead of deriving the power from 400kV Approximate cost
Motor), a HV phase reversal switch grid for SFC and aux power, a Generator benefit of Rs.6.25Cr by
and static frequency converter Circuit Breaker (GCB) is introduced in series avoiding 400kV
(SFC) is used. SFC derives power with phase reversal switch. SFC circuit is Switchyard bays,
from 400kV grid through 2 Nos of connected across the GCB. In pumping 400kV aux
10MVA SFC transformer which mode, GCB will be open. Once motor starts, transformers and its
takes care of SFC and aux. loads. GCB will be ON and normal power supply auxiliaries.
Further 2 x 5MVA, SFC will be fed through GCB and SFC will be by
transformers and aux transformers passed. Aux transformer is tapped before
are provided to feed the starting GCB connection to derive aux supply for
circuit and aux loads resp. startup and running loads.
Project: KAPP 3 & 4 – Inspection cum pump
testing nozzle on cooling water network
reduction
Approximate Reduction in cost: Rs.1.8
crores
As per tender document, the pump Proposed to provide flanged dished ends Approximate cost benefit of
testing nozzles were provided with for pump testing as well as manhole Rs.1.8Cr by adopting dished
blind flanges and above which the nozzles instead of blind flanges.
ends instead of blind flanges for
Thickness of the dished ends for pump
manhole for periodic inspection were the nozzles.
testing and manhole works out to be
proposed. The man-holes were also 18mm leading to savings of 36 tons of CS
proposed to be closed by blind material and fabrication cost. Reduced
flanges. wastage of material and faster fabrication
due to lesser machining.
Savings in revenue loss thro change in design philosophy
Project: Debottlenecking of Butadiene Storage
Terminal at Indian Molasses Company, Kandla
Value Addition Domain: Minimising revenue
loss by reducing downtime of tanks
Approximate Savings in cost: Rs.1.5 crores
Tank domes required to be insulated to Dome shape of the tank is proposed to be Approximate savings of Rs.1.5Cr
overcome operational issues. Tank utilised to do away with welding of cleats on
in revenue loss by adopting ring
domes required to be welded with the roof. The bolted ring structure can be fully
factory fabricated and rested on tank dome type insulation supports instead
insulation cleats for holding the insulation.
In order to carry out the welding work, without welding it to the roof. The entire of welding rods on tank domes as
installation of the insulation ring structure can terminal operations are not
tanks were to be emptied, gas freed, hot
be completed in two days and does not
work permits etc would have taken require tanks to be emptied out and hot work.
affected.
minimum 2 weeks and terminal would Insulation and cladding activities do not
have suffered revenue loss. warrant the tank filling and transfer activities
be stopped.
Capex Reduction thro change in type of HRSG
Project: Al-Dhafra Paper Manufacturing
Company Ltd. (ADPMCL), Abu Dhabi
reduction
Approximate Reduction in cost: Rs.5 crores
EPC specification includes a ‘water An economical option of a ‘smoke Approximate cost benefit of Rs.5 Cr
tube type HRSG’ with supplementary -tube type HRSG’ was proposed with the proposed type of HRSG
firing for a capacity 35 TPH of dry after conducting a comprehensive
steam at 7.5 bar(g) @173°C. study considering various
aspects. The same is accepted
by the Client.
Project: Tata Consultancy Services Pune
reduction
Approximate Reduction in cost: Rs 5.92
crores

For a 10,000 seat expansion With the use of LED fixtures, LPD can Approximate cost benefit of
project (TCE’s role Design review be reduced to 5W/sq mt. The client Rs.5.92Cr due to equipment
+ PMC) Design Consultant had accepted to reduce to 6W/sq mt. It was optimisation, reduction in
not considered load optimisation. suggested to reduce the work station power distribution
For lighting, LPD(Light Power load considering that the current infrastructure cost
Density) was considered 9W/ sq laptops/desktops need lesser power.
mt which was meeting bare Client accepted to reduce to 60W from
minimum requirements of ECBC 85W per seat. Load list and equipment
2017. Work station load was sizing for transformer, DG set & UPS
considered as 85W per seat was revisited/revised
Project: Guwahati Smart City Project
(Riverfront Development project)
reduction, improved constructability
Approximate Reduction in cost: Rs. 84
crores
Boulevard is proposed on Since river bed protection system in is Construction cost saving:
riverbank for increasing people’s provided in this site, as per IRC 78, clause Reduction in pile length = 14m
interaction with river. For design 705.2.1 scouring effects can be ignored. Pile Cost saving for 6000 piles @
of pile foundation in river bed length recalculated ignoring scour and based Rs 10000 per m = Rs 84 Cr
and banks, scour effect was on the liquefiable soil depth of 13.5m. Total Improved constructability:
considered as per IRC 78 pile length is reduced resulting in cost saving Reduced length of pile and
resulting in scour depth of 27.5m and improved constructability. This was lesser time required for
and total pile length of 50m. accepted by Assam Engineering College, on installation in hard rock present
behalf of client, Guwahati Smart City Limited. at the greater depths.
Value Engineering Workshop/ Exercise
CONFIDENTIAL 48
Value Engineering Exercise/ Workshop in Projects
 Specific exercise for value engineering/ optimization study is carried out in
projects. Some of the areas where the activities are focused on include
 Review of layout and general arrangement
 Review of minimum functional requirements of project from specification and basic
design
 Review the required performance requirements of the various components of the
process/ system to meet the project objectives, statutory requirements and best
engineering practice
 Review requirement of redundancies provided in the system and optimize the design
 Rationalize consideration of external parameters and inputs
Examples of such value engineering exercise carried out in projects are presented in
following slides….
CONFIDENTIAL 49 49
Civil design for Shell Markets India Pvt Ltd. - EPCM services for Fuel
retail outlets across India
Design optimization of following civil Highlights of the optimization exercise:
units has been completed. 1. Superstructure general arrangements revised to reduce
a. 2W lube bay canopy and foundation redundancies.
b. Electrical panel canopy and foundation 2. Structural forms adjusted to maximize load resistance of the
c. Air Gauge canopy and foundation structural system and thus achieve optimum configuration
d. OWS pit details 3. Rationalized the consideration of roof Live Load based on
e. Container Pad foundation erection and maintenance conditions.
f. Air compressor Shed 4. Wind Pressure rationalized in view of Low rise structure in
g. Electrical panel and DG foundation line Indian Code provision and Best International Practices.
h. Vapour Recovery Line 5. Serviceability criteria reconsidered appropriate to the use
i. Boundary Wall and performance of the structure as per Indian Code
j. High Mast Signage Foundation provision.
k. Monolith Foundation 6. Floor mounted equipment foundation adopted instead
l. Sales Building independent foundation.
m. Storm Drain 7. Foundation size and reinforcement optimized eg. seismic
detailing avoided based upon light and flexible super-
structure, anchorage arrangements optimization etc.
8. OWS placed outside drive way, as per layout possibility,
resulting in foundation optimization CONFIDENTIAL 50 50
Shell Markets India Pvt Ltd. – Crank Vent Structure
Crank Vent is a structure that supports vent pipes for emission of hydro carbons in the air
Sr. Original Revised Cost Saving
no. Design Design
Item Total rate Total rate Cost Saving
Description without Taxes without Taxes
1. Sub
Structure ₹33,948 ₹4,837 ₹29,111
2. Super
Structure ₹58,609 ₹8,448 ₹50,161
PREVIOUS DESIGN OF CRANK VENT STRUCTURE REVISED DESIGN OF CRANK VENT STRUCTURE
DESIGN CONSIDERATION: DESIGN CONSIDERATION:
• Dimension : 4M Height and 1.2M Width • Dimension : 2.595M Height overall including crank length and 1.250M
• Crank length of the structure is 2.830M Width- ((width varies as per number of pipes)
• Wind Load is considered in designing • Crank length of the structure is 0.800M, rest of the pipe is cantilever.
• Wind speed : 50m/s with 50 years of return period • Wind Load is not considered in design, as it is an open structure.
• Deflection criteria : i) Vertical Deflection limit – Span/300 • Deflection criteria : i) Vertical Deflection limit – Span/300
ii) Horizontal Limit – Height/300 ii) Horizontal Limit – Height/300
• Net Safe Bearing Capacity : 5T/M2 • Net Safe Bearing Capacity : 5T/M2
• Pipe Load - 60N of load on each pipe on 4 members. • Pipe Load - 100N of each pipe at top member and 200N load of each
• Structural Members : Column – ISMC 250 pipe on bottom member
Bracing – L75x75x6 • Structural Members : Column – 65 NB Pip
• Sub Structure : Foundation Size 2200 x 1300 x 450 Bracing – L50x50x6
Pedestal Size – 400 x 450 x 1350 deep • Sub Structure : Foundation Size – 500 x 500 x 150
Pedestal Size – 300 x 300 x 350 deep
CONFIDENTIAL 51 51
Shell Markets India Pvt Ltd. – Straight Vent Structure
no. Design Design
1. Sub
Structure ₹26,623 ₹5,480 ₹21,143
2. Super
Structure ₹36,082 ₹4,865 ₹31,217
PREVIOUS DESIGN OF STRAIGHT VENT STRUCTURE REVISED DESIGN OF STRAIGHT VENT STRUCTURE
DESIGN CONSIDERATION: DESIGN CONSIDERATION:
• Dimension : 4M Height and 1.20m width • Dimension : 2M Height and 1.250M Width
• Wind Load is considered in designing • Wind Load is not considered in designing as it is an open
• Wind speed : 50m/s with 50 years of return period. structure.
• Deflection criteria : i) Vertical Deflection limit – Span/300 • Deflection criteria : i) Vertical Deflection limit – Span/300
ii) Horizontal Limit – Height/300 ii) Horizontal Limit – Height/300
• Net Safe Bearing Capacity : 5T/M2 • Net Safe Bearing Capacity : 5T/M2
• Pipe Load - 90N of load on each pipe on 4 members. • Pipe Load - 90N of load on each pipe on 2 members.
• Structural Members : Column – ISMC 150 • Structural Members : Column – 50 NB Pipe
Bracing – L75x75x6 Bracing – L50x50x6
• Sub Structure : Foundation Size 2100 x 1300 x 300 • Sub Structure : Foundation Size – 500 x 500 x 150
Pedestal Size – 350 x 350 x 1450 deep Pedestal Size – 300 x 300 x 350 deep
CONFIDENTIAL 52 52
Shell Markets India Pvt Ltd. – Oil Water Separator Pit
Sr. Original Revised Cost
no. Design Design Saving
1. Sub
Structure ₹2,65,313 ₹1,44,817 ₹1,20,496
PREVIOUS DESIGN OF OIL WATER SEPARATOR PIT REVISED DESIGN OF OIL WATER SEPARATOR PIT
DESIGN CONSIDERATION DESIGN CONSIDERATION
• Dimension : 5.07M x 1.44M x 2.0M • Dimension : 5.07M x 1.44M x 2.0M

(Depth varies) (Depth varies)
• Design is same for Vehicular & Non • This pit is for Non Vehicular
Vehicular movement Movement area only..
• Side walls are of RCC • Side walls are of Brick Masonry.
CONFIDENTIAL 53 53
Shell Markets India Pvt Ltd. – Electrical Panel Canopy
Electrical panel canopy is a structural unit to keep an electrical panel. It is generally located in PCC area at the backside of plot.

no. Design Design
1. Sub
Structure ₹41,247 ₹26,382 ₹14,865
2. Super
Structure ₹1,44,062 ₹77,715 ₹66,347
REVISED DESIGN OF ELECTRICAL PANEL CANOPY

PREVIOUS DESIGN OF ELECTRICAL PANEL CANOPY DESIGN CONSIDERATION
DESIGN CONSIDERATION • Canopy Dimension: 6.0M x 2.91M x 3.1M
• Canopy Dimension: 5.40M x 3.14M x 3.1M
• Column is located at 994mm from edge and width of the canopy is reduced.
• Wind is considered in design
• Wind is considered in design
• Wind velocity of 50 m/s with 50 years of return period is
• Wind velocity of 44 m/s with 25 years of return period is considered. Further, wind
considered
pressure is reduced by 20% complying to IS code, as height of canopy is less than 10M.
• SBC : 5 T/M2
• SBC : 5 T/M2
• Live load for inaccessible roof as per IS code is considered.
• Live load of 100kg is considered, assuming one person’s weight.
• Sub Structure : Foundation Size 1600 x 1600 x 300
• Member Sizes : Column – CHS 200 x 8thk
• Member Sizes : Column – CHS 100 x 3.6thk
Beam – CHS 100 x 5.4thk
Bracing – CHS 50 x 4.5thk
Bracing – CHS 32 x 3.2thk CONFIDENTIAL 54 54
Shell Markets India Pvt Ltd. – 2 Wheeler Lube Bay Canopy
2 wheeler lube bay canopy is a structural unit for oil changing and maintenance of two wheeler.

no. Design Design
1. Sub
Structure ₹1,38,092 ₹96,197 ₹41,894
2. Super
Structure ₹2,92,287 ₹1,37,787 ₹1,54,500
REVISED DESIGN OF 2W LUBE BAY CANOPY

PREVIOUS DESIGN OF 2W LUBE BAY CANOPY DESIGN CONSIDERATION
DESIGN CONSIDERATION • Canopy Dimension : 4.950M x 3.0M x 2.9M
• Dual column arrangement with pipe sections is considered.
• Canopy Dimension : 4.950M x 3.210M x 2.55M • Wind load is considered for designing of canopy
• Wind load is considered for designing of canopy • Wind velocity of 44 m/s and return period of 25 years is considered.
• Wind velocity of 50 m/s and return period of 50 years is considered Further, wind pressure is reduced by 20% complying to IS code, as height
• Live load for inaccessible roof as per IS code of canopy is less than 10M
• SBC : 5 T/M2 • Live load of 100kg is considered, assuming one person’s weight.
• Sub Structure : Foundation Size 2000 x 2400 x 400 • SBC : 5 T/M2
Pedestal Size – 500 x 500 x 1100 deep • Sub Structure : Foundation Size 900 x 1750 x 300
• Member Sizes : Column – SHS 220 x 220 x 8 Pedestal Size – 300 x 300 x 700 deep
Beam – SHS 100 x 100 x 6 • Member Sizes : Column – 65 NB pipe
Bracing – SHS 50 x 50 x 2.6 Beam – 65 NB pipe
Bracing – 40 NB pipe CONFIDENTIAL 55 55
Shell Markets India Pvt Ltd. – Air Gauge Canopy
Air gauge canopy is a structural unit for which mounts air gauge used for filling of air in vehicles.

no. Design Design
1. Sub
Structure ₹13,972 ₹13,146 ₹827
2. Super
Structure ₹49,638 ₹20,486 ₹29,151
REVISED DESIGN OF AIR GAUGE CANOPY

PREVIOUS DESIGN OF AIR GAUGE CANOPY DESIGN CONSIDERATION
DESIGN CONSIDERATION • Canopy Dimension : 2.5M x 1.5M x 1.8M
• Canopy Dimension : 3.0M x 1.5M x 1.8M
• Wind load is considered for designing of canopy
• Wind load is considered for designing of canopy
• Wind velocity of 44 m/s and return period of 25 years is considered. Further,
• Wind velocity of 50 m/s and return period of 50 years is
wind pressure is reduced by 20% complying to IS code, as height of canopy is
considered
less than 10M
• Live load for inaccessible roof as per IS code
• Live load of 100kg is considered, assuming one person’s weight.
• SBC : 5 T/M2
• SBC : 5 T/M2
Pedestal Size – 300 x 300
• Member Sizes : Column – CHS 100 x 5.4thk
• Member Sizes : Column – 65 NB pipe
Beam – 40 NB pipe
Bracing – CHS 50 x 4.5thk
Bracing – 25 NB pipe CONFIDENTIAL 56 56
Shell Markets India Pvt Ltd. – Porta Cabin Shed
Porta cabin pad rests the container which stores oil barrels, safety belts and jar.

no. Design Design
1. Sub
Structure ₹2,95,761 ₹44,958 ₹2,50,803
PREVIOUS DESIGN OF PORTA CABIN PAD REVISED DESIGN OF PORTA CABIN PAD
• Dimension : 6.0M x 2.4M • Dimension : 6.0M x 2.4M

• Pad foundation for container support • Individual 6 pedestals provided to rest the
container with brick infill in between
CONFIDENTIAL 57 57
Shell Markets India Pvt Ltd. – Air Compressor Enclosure
Air compressor enclosure is a structure to enclose Air compressor unit

no. Design Design
1. Sub
Structure ₹7,896 ₹0 ₹7,896
2. Super
Structure ₹66,303 ₹50,237 ₹16,066
Note:- Air compressor pedestal has been removed in revised design and
hence sub structure cost indicated as “zero” in above table. Rest of shed
cost including grade slab has been considered under super structure.
PREVIOUS DESIGN OF AIR COMPRESSOR ENCLOSURE REVISED DESIGN OF AIR COMPRESSOR ENCLOSURE
• Dimension : 2.73M x 1.3M x 1.4M
• Dimension : 2.73M x 1.365M x 1.8M
• A brick enclosed unit with 150mm thick coping MC75
• A brick wall of 230 thick enclosed unit with mullions on
section at top to support sheeting
all four edges and MC100 section at top to support
• Height of the enclosure decreased keeping minimum
sheeting
clear distance.
• Grade slab and pedestal to rest the air compressor.
• Grade slab to rest the air compressor directly eliminating
pedestal of Air compressor.
CONFIDENTIAL 58 58
Shell Markets India Pvt Ltd. – Summary
Assumptions :
1. For cost estimate, Gujarat region schedule of rates are considered.
2. Excavation, backfilling and Disposal of top 850mm of soil is not considered in costing as it falls under sub grade, sub base and site grading works.
3. The cost may vary based on site specific awarded rates.
SR Item Description Total Rate without taxes & Duties Total Rate without taxes & Duties Cost Saving (INR)
NO (PREVIOUS DESIGN) (INR) (REVISED DESIGN) (INR)
1. Crank Vent Structure
Sub Structure ₹33,948 ₹4,837 ₹29,111
Super Structure ₹58,609 ₹8,448 ₹50,161
2. Straight Vent Structure
Sub Structure ₹26,623 ₹5,480 ₹21,143
Super Structure ₹36,082 ₹4,865 ₹31,217
3. Oil Water separator pit
Sub Structure ₹2,65,313 ₹1,44,817 ₹1,20,496
4. Electrical Panel Canopy
Sub Structure ₹41,247 ₹26,382 ₹14,865
Super Structure ₹1,44,062 ₹77,715 ₹66,347
5. 2W Lube bay Canopy
Sub Structure ₹1,38,092 ₹96,197 ₹41,894
Super Structure ₹2,92,287 ₹1,37,787 ₹1,54,500
CONFIDENTIAL 59 59
Shell Markets India Pvt Ltd. – Summary
SR Item Description Total Rate without taxes & Duties Total Rate without taxes & Duties Cost Saving
NO (OLD) (REVISED)
6. Air Gauge Canopy
Sub Structure ₹13,972 ₹13,146 ₹827
Super Structure ₹49,638 ₹20,486 ₹29,151
7. Porta Cabin
Sub Structure ₹2,95,761 ₹44,958 ₹2,50,803
8. Air Compressor Enclosure
& Foundation
Sub Structure ₹7,896 ₹0 ₹7,896
Super Structure ₹66,303 ₹50,237 ₹16,066
Total ₹14,69,833 ₹6,35,355 ₹8,34,478
Note:- Air compressor pedestal has been removed in revised design and hence sub structure cost indicated as “zero” in above table. Rest of cost for
compressor room including grade slab has been considered under super structure.
CONFIDENTIAL 60 60
Signage Structure- General Arrangement and Photographs of the
Erected Structure
TRANSFORMER YARD
POWER HOUSE
MILL BAY
BOILER
ESP
Structural Framing-Longitudinal Elevation
Erected structure – Rendered View
Layout Plan-Roof level CONFIDENTIAL 61

Signage Structure- General Arrangement and Photographs of the
Erected Structure
TRANSFORMER YARD
POWER HOUSE
MILL BAY
Photographs of erected
BOILER
Signage Structure at
ESP
ID FAN Roof level
Side Elevation • Basic Assignment- Architectural Drawing

• Selected Option-3 out of initial three(3)
options due to location constraint of ODU’s.
• Provision of “ TATA CONSULTING ENGINEERS
LTD” (with Logo) signage considered on any
one of the two faces of the structure. CONFIDENTIAL 62
Signage Structure: Basis for Design - Existing structure and
Optimization
Basis:
Basic assignment – Architectural Drawings
Three options prepared. Option-3 was selected for installation of Signage Structure complying the
space constraints for the ODU’s which had been erected over the roof and considering future
provision.
Provision of “TATA CONSULTING ENGINEERS LTD” (with Logo) signage fixing had been kept
considering that it could be erected on any one face of the structure but not simultaneously on two
faces.
Used TATA Structura Hollow sections for the Project.
Structure life/ return period considered 50 years
Optimization Possibility Review:

Considering one sided signage.
Structure life/ return period considered 25 years having low life risk hazard
Rearranging the column locations( subject to rearranging the future ODU’s) and rear side framing
members.
CONFIDENTIAL 63
Signage Structure: Erected structure Vs Optimized structure design
TRANSFORMER YARD
POWER HOUSE
Analytical Structural MILL BAY
Frame Model BOILER
ESP
Analytical Optimized
ID FAN
Structural Frame Model
Optimized Rendered
Erected Signage 3D image
Structure at roof level
Considered signage mounted on one side and
with suitable relocating the left column and ODU’s
•6
CONFIDENTIAL 64
Signage Structure: Summary of Optimised arrangement and Results
Summary
 Structural arrangement
 Consider signage on one face only, additional framing for any side signage mounting provision is removed.
 Columns rearranged for optimum support location, rear side columns removed. Overall reduction in number of columns.
 Loads
 Rationalization of dead and live loads.
 Recalculation of wind loads as per latest IS:875-(part-3)-2015.
 Serviceability conditions
 No occupancy, defined by requirements of mounted signage.
 Signage is elastic, hence can deflect along with structure.
Summary
 Results
 Number of columns reduced.
 Reduced loading results in lower foundation load at the reduced number of support points.
 This would have reduced the time and cost for related execution work.
 Reduction in total tonnage by approx. 30% from third scheme which is executed.
 Further improvement
 Lettering for the signage could have been at parapet and at its top level. Supports could have been on short posts of
matching height at the parapet line. A safety handrail as extra could have been provided at the back plane.
 The logo could have been above the same with two taller posts reducing total height subject to approved assignment.
CONFIDENTIAL 65
Conclusion
CONFIDENTIAL 66
Conclusion
 Key steps in Value Engineering workshop
 Information: In this initial phase information about owner objectives, key performance
indices and definition of value are set out
 Speculation: Brainstorming session on ways to reduce initial/ lifecycle costs while
maximizing function
 Evaluation: Evaluate the ideas to determine those that can be part of solution
 Development: Develop these ideas into workable proposals with description of benefits
and drawbacks with cost comparison
 Presentation: Formal presentation of the ideas to design teams, users and client to
determine which proposals get included in the project
 The value engineering effort needs all stakeholders’ involvement
 Needs a bottom-up approach for idea generation
 Encouragement and recognition help develop culture of continuous improvement
CONFIDENTIAL 67 67
Conclusion
 Benefits of Value Engineering workshop
 This is held at initial planning stage of project and so has little impact on final
project schedule and redesign costs
 Independent teams bring in fresh perspectives using tacit knowledge of
SME’s
 Results in customer delight for same or improved output at lower cost
 Less number of design changes and delays during project execution
 Greater functionality and value for the end client
 Though value engineering principally deals with cost-saving, it can be
expanded to all aspect of engineering project design for the complete project
lifecycle; including environmental and social impacts, reduce carbon
footprint, improving safety
CONFIDENTIAL 68 68
Conclusion
CONFIDENTIAL 69 69
Conclusion
Sanpshot from AISC Forge
Award 2020 winning entry:
The Footbridge concept,
intended for a site in Manhattan
that connects to the existing
High Line. Harding and Ostrow
worked with fabricator STS
Steel, Inc. to refine their design,
which capitalizes on the aspects
of steel that make it ideal for
such a project with much of the
structure fabricated offsite for
rapid erection. The cantilevered
design minimizes the structure's
footprint.
CONFIDENTIAL 70 70
Conclusion
The design marries the raw
look of weathering steel with
the shine of hammered
stainless steel planters that
hold trees and other
vegetation.
Stormwater runoff would

drip into bespoke
weathering steel bollards on
the plaza below, creating an
immersive visual and
auditory effect in inclement
weather.
CONFIDENTIAL 71 71
THANK YOU
Shireesh S Swami – DH Mechanical, Manos De – DH Civil
9867152048, 9470525815;
ssswami@tce.co.in; mde@tce.co.in;
CONFIDENTIAL 72

ENGINEERING VALUE THROUGH WORKSHOPS AND CASE STUDIES

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ENGINEERING VALUE THROUGH WORKSHOPS AND CASE STUDIES

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ENGINEERING A BETTER

Value Addition Workshop

02 Concept of Value Addition

Case studies – Value Addition examples, Value

 Therefore, reducing costs at the expense of quality is simply a cost-cutting strategy.

 Value of a product or service is the ratio of two elements: function to cost.

 Value addition in TCE – why it is important

What Value Engineering Is Not!

 At Concept-Level to select a preferred

1 2017-18 630 Cr 52 Cr. 8.2%

2 2018-19 700 Cr 52 Cr 7.4%

3 2019-20 800 Cr. 45 Cr. 5.6%

Existing Practice: Proposed Changes: Benefits:

Existing Practice Proposed Changes Benefits

Existing Practice: Proposed Changes: Benefits:

Existing Practice: Proposed Changes: Benefits:

Existing Practice: Proposed Changes: Benefits:

Existing Practice: Proposed Changes: Benefits:

• Dimension : 5.07M x 1.44M x 2.0M • Dimension : 5.07M x 1.44M x 2.0M

Sr. Original Revised Cost Saving

REVISED DESIGN OF ELECTRICAL PANEL CANOPY

Sr. Original Revised Cost Saving

REVISED DESIGN OF 2W LUBE BAY CANOPY

Sr. Original Revised Cost Saving

REVISED DESIGN OF AIR GAUGE CANOPY

Sr. Original Revised Cost Saving

• Dimension : 6.0M x 2.4M • Dimension : 6.0M x 2.4M

Sr. Original Revised Cost Saving

Structural Framing-Longitudinal Elevation

Erected structure – Rendered View

Layout Plan-Roof level CONFIDENTIAL 61

Side Elevation • Basic Assignment- Architectural Drawing

Optimization Possibility Review:

Stormwater runoff would

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