VALUE ENGINEERING

BACKGROUND

Philosophy with providing the product desired by a customer at the required quality and the optimum cost. Evolved during 1940s in manufacturing industry in USA Concentrated on performance Technique provide the same function at an equal quality

DEFINITION

An organised approach to providing he necessary functions at the lowest cost

An organised approach to the identification and elimination of unnecessary cost that provides neither use, life, quality, appearance, no customer features

WITHIN THIS DEFINITION

Utility Life Quality Appearance Customer features

JOB PLAN
Information Creativity Judgement Development Recommendation

Information phase

Identified spaces, elements, components in terms of function

What is it element or space What does it do clients requirements, primary

functions

What else does it do secondary functions What does it cost financial evaluation, monetary value What is its value value added to the element or project

Creativity phase

Seeks to provide alternative technical solutions

Through brainstorming Concentrate on performance or primary function Should not harm to clients requirements

Judgement phase

Review of alternatives generated in creativity phase in the context of particular project

Remains workable ideas only Advantages and disadvantages Initial cost, Maintenance, Energy usage, Aesthetics, Performance, Security clients rating or priority Evaluation in the form of matrix

Develop[ment phase

Selected ideas analysed to determine technical feasibility and economical viability

Technically viable options can be costed QSs input Traditional estimating techniques and skills New techniques life cycle costing, investment appraisals, risk analysis

Recommendation

VE team report their recommendation to the design team

In a form of written report + presentation Technically not feasible and economically not viable options will not be considered Convince design team that recommended changes are worth or valuable

TIMING

When should VE exercise take place

Early design stage During cost checking QS can advice about cost implication and can request design team of VE During tender stage VE proposals from tenderers to reduce tender sum During construction contractors change proposals, provision in contract to encourage contractors and cost saving distributed between client and contractor

PROCEDURE

How is VE exercise conducted

5 days or 40 hrs workshop The Charette

Named after Canadian Value Engineer Bob Charette An inexpensive means of examining clients requirements by use of functional analysis from which occurs facilities rationalisation together with full design team briefing

IDENTIFYING UNNECESSARY COST

Cost that contribute nothing to the value of component or product

Unnecessary component Unnecessary material Buildability that connects with inefficient use of lablur and plant Life cycle costs Failure to identify opportunity cost

PROBLEMS

Common problems

Duration of workshops Interruption of work Effect on overall duration of project Composition of VE team Commitment to VE

CONCLUSION

Competent VE team Team work Design teams attitude on new approaches Accuracy of alternatives New direction to QSs