ي ف س و ي ل ا ي ف س و ي ل ا ي ف س و ي ل ا ي ف س و ي ل اValue E ngineering ALYO USEFI Value E ngineering ALYO USEFI ةي م ي ق ل اسة د ن ه ل ل ي ف س و ي ل ا ةي م ي ق ل اسة د ن ه ل ل ي ف س و ي ل ا ةي م ي ق ل اسة د ن ه ل ل ي ف س و ي ل ا ةي م ي ق ل اسة د ن ه ل ل ي ف س و ي ل اPresented by ر ضا ح م ل اAbdulaziz S. Al-Yousefi, CVS –Life, FSAVE ي ف س و ي ل اان! م ي ل س ز يز ع ل دا+ ن عOrganized & Sponsored by T V M Total Value Management The New innovative VE-TQM integration in Project Management
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Presented by المحاضر Abdulaziz S. Al-Yousefi, CVS –Life, FSAVE عبدالعزيز سليمان اليوسفي
T V M T otal V alue M anagement The New innovative VE-TQM integration in Project Management. Organized & Sponsored by. Presented by المحاضر Abdulaziz S. Al-Yousefi, CVS –Life, FSAVE عبدالعزيز سليمان اليوسفي. - PowerPoint PPT Presentation
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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….