Presented by المحاضر Abdulaziz S. Al-Yousefi, CVS –Life, FSAVE عبدالعزيز سليمان اليوسفي
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1 Value Engineering
ALYOUSEFI
Value Engineering
ALYOUSEFI
للهندسة القيمية
اليوسفيللهندسة القيمية
ValueEngineering اليوسفي
ALYOUSEFI
ValueEngineering
ALYOUSEFI
للهندسة القيمية
اليوسفيللهندسة القيمية
ValueEngineering اليوسفي
ALYOUSEFI
ValueEngineering
ALYOUSEFI
للهندسة القيمية
اليوسفيللهندسة القيمية
اليوسفيللهندسة القيمية
اليوسفيللهندسة القيمية
اليوسفي
Presented by المحاضر Abdulaziz S. Al-Yousefi, CVS –Life, FSAVE عبدالعزيز سليمان اليوسفي
Organized & Sponsored by
T V M Total Value
Management The New innovative VE-TQM integration in
Project Management
2
Value studies are mandatory in …
All US federal projects > $ 2 M
All Japan projects > $ 2 M
All Saudi Government Project > $ 5 M
All RC of J&Y projects > $ 5 M
All Saudi Aramco projects > $ 10
also in UK, Germany, Francs, Australia, Korea, India, Malaysia, ..etc.
Why is that ?!!
3
VE Studies …. Done
More than 500 VE Studies More than 6,000 participants
Done at the rate of 80-100 /year Improved the Quality of our projects
Saved More than $ 3 billion Saving ranged from 5-30%
Rate of return is 1 : 100 7 official VE Program.
VE Accomplishments in the Gulf Area
4
Saudi Ministry Of Finance Mandate
Emphasis on Function, LCC and ROI
Perform VE during early design stages
Train employees on VE
Include VE Clauses in the Design contracts
Apply VE as follows …
Typical repeated projects that is > SR 5 M
Projects that are > SR 20 M (about $ 5 million)
O&M Contracts that are > SR 5 M
First three years was optional then became mandatory
October 2001
5
This 40-minut presentation is about What rather than
HowWhat is it?
Why we do it?
What makes it different?
TVM Benefits
Recorded results
6
The 7 Phases of The VE Workshop
Information Implementation
Follow up
Yes
VE Job Plan
DecisionFunction
Analysis
Presentation
Creativ
ity Evaluation
Development
ValueCircle
No
7
VEP VE2 DR
Cost
&
Effort
Planning&
Analysis
SchematicDesign
DesignDevelopment
WorkingDrawings
ConstructionDocuments Construction
Operation&
Maintenance
When to apply VE ?
Project Life CycleProject Life Cycle
Implementation
Saving
Acceptance level
Acceptance level
100
10
1
Goals, Objectives, Requirements
Design Criteria, Scope of work
Detailed VE Alternatives to the design,
Define Systems
Conformity to Code, standards, specs
Make sure that VEP of VE 2 are implemented
8
Who are the most influencers ?
Who are the Decision Makers ?
Technical, workers
Mangers
SM
TopCircle of SM influence
9
Where do senior managers invest their time …
61.0%
12.0% 15.0%
7.0%
5.0%
Actual
58.8%14.7%
11.8%
9.8%4.9%
What they Say ...Common Sense
is not always Common Practice
القيادة
اإلدارة العليا
اإلدارة الوسطى
التنفيذيين
According to a survey (In Saudi Arabia, Dubai & USA 1996)
1- Marketing 2- Human Resources 3- Projects4- Finance5- Quality
10
Reasons for unnecessary Costs (Poor Value)
How many How many projects do you projects do you know that know that have some of have some of these?these?
Shortage of time Misleading information Ambiguous goals, objectives, scope etc. Hasty decisions based on false assumption Lack of ideas Lack of funds Resistance to Change Unrealistic temporary circumstances Politics Bad habits and attitudes, beliefs Over design & Unrealistic safety factors Continues changing in the owner requirements Lack of communication coordination Using unsuitable standards & specification No LCC estimate …… and more….
11
Life Cycle Costing
34
27
21
12
6
0 5 10 15 20 25 30 35 40
%
Space distribution for a hospital in Riyadh
Circulation
Administration
Others
Medical Function
Services
Can you believe it? ……… It is true !!
12
What makes it different?Tools & Techniques
Value Engineering
13
VE Objective is …
Three issues
3 Financial
1 Technical
2 OperationalTo evaluate
14
QBS, Laptop Computer
Non-Monetary CriteriaHow Important
2 points for Major Preference
1 points for Minor Preference
1 point each for Same preference
Q CVWeightQualityLCCValue Index
% of the totalPointsSRQ / C
ThinkPad T42 Rates : (5) Excellent, (4) Very Good, (3) Good, (2) Fair, (1) Poor
= Q / C
A. Speed
B. HD Capacity
C. Cash Memory
D. Wireless, LAN
E. Warranty
AA/1 B
A/1 C/1 C
A/D B/D C/D D
A/1 E/1 C/E D/E E
5 5 5 4 5
125 60 95 100 95
TOSHIBA
Satellite M30-114
DELL
Inspiron 6000/2
IBM
5 5 5 5 4
125 60 95 125 75
5 5 5 4 5
125 60 95 100 95
475
480
475
7.79
4.99
8.99
61
96
53
4 2 3 4 3
25 12 19 25 19
Quantifying Quality
15
Quality Model ( Star Diagram for a Housing Project)
User Comfort Safety & Security
Engineering
Performance
Operation
Effectiveness
Environmental Impact
Flexibility
Image ( Site & Facility)
Schedule
Balance
Maximum
Minimum
Quality
Profile
10 5 0 5 10
Setting the priorities
16
VE Accomplishments in the Gulf Area
VE Training …We have two courses (offered by PMI-AGC)
- Module 1 (Basic, 5 days) = 40 PDUs
- Module 2 (Advanced, 3 days) = 21 PDUs
TVM Course
- More than 10,000 have trained - VE Training workshops are done at the
rates 60-80 per year
17
Certification in VE
AVS
VMPCVS
> 350
17
VE studies … > 80 / year
VE Training .. > 60 / year
Certified in the Gulf …10%
Total certified world wide about 3400
18
0
10
20
30
40
50
60
70
80
BPR TQM VE
Success rates – KFUPM Research
Team effort
It is Task oriented
It takes short time
It gets Quick results
Many new ideas
Acceptable Solutions
Why VE is successful
19
Future Top 10 Emerging trends
2000 and beyond … by AIA, 1999
14
19
20
23
29
32
32
33
43
52
0 10 20 30 40 50 60
Facility Managemnt
Sustainable Builidings
Project Web site
Virtual Reality
Value Engineering
Smart Growth
Design/Build
Construction MANAGEMET
Firm web site
Electronic Documenation
20
TVM Benefits
Value Engineering
21
Do not worry ….
We are going to finish in 5 minutes
please be patient
Feeling tired !!!
22
ImproveImprove your your projectproject performance. performance.
Come up with many Come up with many practical solutionpractical solution in short time. in short time.
ImproveImprove your project your project designdesign
CustomizeCustomize your project your project QualityQuality and scope and scope
Save Money, time and effortSave Money, time and effort (5-10%) (5-10%)
Avoid unnecessary costAvoid unnecessary cost during O$M during O$M
Minimize riskMinimize risk
SimplifySimplify complicated ad open ended issues complicated ad open ended issues
Benefits for your organization
23
Generate many ideas and alternative using scientific approach.
Define suitable solutions at the least possible cost.
Reduce cost in positive ways.
Maintain project life span, functions, goals and objectives.
Avoid phasing the project or deleting some of its components
Assure best investments for government resources.
Optimize cost of the government projects.
Benefits for your organization MOF circular
24
CertifyCertify in VE (AVS, VMP, CVS) … and in VE (AVS, VMP, CVS) … and PMPPMP..
increase your increase your decision makingdecision making ability. ability.
Differentiate Differentiate between alternatives using VE tools.between alternatives using VE tools.
EnhanceEnhance your your team workteam work participation. participation.
Gain new Gain new innovative managementinnovative management techniques. techniques.
Benefits for individuals
25
VE studies are mandatory in …
All US federal projects > $ 2 M
All Japan projects > $ 2 M
All Saudi Government Project > $ 5 M
All RC of J&Y projects > $ 5 M
All Saudi Aramco projects > $ 10
That’s Why
26
The EndIf you want a copy of this presentation, please
bring your flash memory For more information, please visit
www.alyousefi.com www.value-eng.org
www.pmi-agc.com
Thanks for sharing the knowledge
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