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VALUE ENGINEERING
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BACKGROUND
Philosophy with providing the productdesired 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 atan equal quality
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DEFINITION
An organised approach to providing henecessary functions at the lowest cost
An organised approach to theidentification and elimination of
unnecessary cost that provides neitheruse, life, quality, appearance, no customerfeatures
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WITHIN THIS DEFINITION
Utility Life
Quality
Appearance
Customer features
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JOB PLAN
Information
Creativity
Judgement
Development
Recommendation
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Information phase
Identified spaces, elements, componentsin terms of function
What is itelement or space
What does it doclients requirements, primaryfunctions
What else does it dosecondary functions
What does it costfinancial evaluation, monetary value
What is its valuevalue added to the element or project
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Creativity phase
Seeks to provide alternative technicalsolutions
Through brainstorming
Concentrate on performance or primary function
Should not harm to clients requirements
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Judgement phase
Review of alternatives generated increativity 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
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Develop[ment phase
Selected ideas analysed to determinetechnical feasibility and economical
viability
Technically viable options can be costed
QSs input Traditional estimating techniques and skills
New techniques life cycle costing, investmentappraisals, risk analysis
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Recommendation
VE team report their recommendation tothe 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
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TIMING
When should VE exercise take place
Early design stage
During cost checking QS can advice about costimplication and can request design team of VE
During tender stage VE proposals from tenderers to
reduce tender sum
During constructioncontractors change proposals,provision in contract to encourage contractors andcost saving distributed between client and contractor
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PROCEDURE
How is VE exercise conducted
5 days or 40 hrs workshop The Charette
Named after Canadian Value Engineer Bob CharetteAn inexpensive means of examining clients
requirements by use of functional analysis from whichoccurs facilities rationalisation together with full designteam briefing
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IDENTIFYING UNNECESSARY COST
Cost that contribute nothing to the valueof component or product
Unnecessary component
Unnecessary material
Buildability that connects with inefficient use of lablurand plant
Life cycle costs
Failure to identify opportunity cost
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PROBLEMS
Common problems
Duration of workshops Interruption of work
Effect on overall duration of project
Composition of VE team
Commitment to VE
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CONCLUSION
Competent VE team
Team work Design teams attitude on new
approaches
Accuracy of alternatives New direction to QSs
