VALUE ENGINEERING CONCEPT-A BRIEF IN CONSTRUCTION INDUSTRY

CONCEPT OF VALUE ENGINEERING

Guidance:Sri P.G subramanya

LecturerDepartment of Civil Engineering

SJM Vidyapeetha (R)

SJM INSTITUTE OF TECHNOLOGY NH 4 Bypass

CHITRADURGA -5775022013-14

by:AKSHAY R MANOHAR8th semester

Aff. to VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM

CONTENTS

• Defining value engineering• Value methodology• Concept of value• Process• Application• Conclusion

What is Value Engineering?

• Value Engineering (VE) is an intensive, interdisciplinary problem solving activity that focuses on improving the value of the functions that are required to accomplish the goal, or objective of any product, process, service, or organization.

• Function oriented focus on reasonable cost while maintaining same performance.

• Value Engineering is a function oriented, systematic team approach and study to provide value in a product, system or service. Often, this improvement is focused on cost reduction; however other important areas such as customer perceived quality and performance are also of paramount importance in the value equation.

• Value Engineering techniques can be applied to any product process procedure system or service in any kind of business or economic activity including health care, governance, construction, industry and in the service sector.

• Value Engineering focuses on those value characteristics which are deemed most important from the customer point of view.

• Value Engineering is a powerful methodology for solving problems and/or reducing costs while maintaining or improving performance and quality requirements.

• Value Engineering can achieve impressive savings, much greater than what is possible through conventional cost reduction exercise even when cost reduction is the objective of the task.

VALUE METHODOLOGY

• “The systematic application of recognized techniques which identify the functions of the product or service, establish the worth of those functions, and provide the necessary functions to meet the required performance at the lowest overall cost.”

Concept of Value

FUNCTIONVALUE = ----------------

COST

FUNCTION

• 1. What is the purpose of the project or element?

• 2. What does it do? • 3. What does it cost? • 4. What is it worth? • 5. What else could do the job?

VALUE

1. Cost Value – Cost of Manufacturing a product / component.

2. Use Value – Functional value / Service rendered

3. Esteem Value – Appearance value

4. Exchange Value – It is exchanged for something else.

COSTA comprehensive list of five specific causes of unnecessary costs.

1. Cost -Unnecessary attributes Failure to examine attributes which cause no useful function

2. Cost -Unnecessary specification Failure to examine specifications due to needlessly expensive materials/components .

3. Cost -Poor build ability ,Failure to consider construction implications during design

4. Cost – Lifecycle Failure to consider future operational costs

5. Cost – Opportunity Failure to consider the cost of losing potential revenue

PROCEDURE

1. BLAST

Identify the problem

Collect the relevant information

Define different functions

2. CREATE

Create different alternatives

Critically evaluate the alternatives

3. REFINE

Develop the best alternatives

Implement the alternatives

Value Engineering helps you to learn how to :

• Improve your career skills• Separate "Symptoms" from "problems"• Solve "root cause" problems and capture

opportunities.• Become more competitive by improving

"benchmarking" process.• Take command of a powerful problem solving

methodology to use in any situation.

APPLICATION OF VALUE ENGINEERING IN DIFFERENT CONSTRUCTION PROJECTS OF INDIA

conclusion

• Cost, performance, better quality, production can be increased with VE technique.

• Step by step process made simple.• Satisfaction that best alternative is chosen.• Can be applied to all aspects......• Economy of the country can be increased.

References:

• value engineering : A how to manual by s.s.Iyer.• A REVIEW ON VALUE ENGINEERING TECHNIQUES IN INDIAN CONTEXT:NEETU B.

YADAV1, RAKESH KACHA2, NEERAJ D. SHARMA3 & HIREN A. RATHOD4• 1,2M.E.Student (Construction Management), S.N.P.I.T. & R.C, Umrakh, Bardoli,

Gujarat, India.• Value Engineering in Government and Private Sector Construction: William J.

Simpkins UNIVERSITY OF FLORIDA• VALUE ENGINEERING FOR SMALL TRANSPORTATION PROJECTS :byJennifer Anne

Clark.• Case study: An Introduction to VALUE ANALYSIS AND VALUE ENGINEERING for

Architects, Engineers, and Builders By Muthiah Kasi, C.V.S. Senior Vice President Alfred Benesch & Company Chicago, Illinois.

• CASE STUDY: Value Engineering Report Ordot Dump Closure, Guam TG Engineers, P.C. and Value Management Strategies, Inc.

Thank you