VALUE

ENGINEERING
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 Engineering-Constructability

Value Engineering (VE) has been defined as:

the systematic effort directed at analyzing the
functional requirements of:
➢ systems
➢ equipment
➢ facilities
➢ procedures
➢ and supplies for the purpose of achieving
the essential function at the lowest total
(life-cycle) cost.
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:

FUNCTION
VALUE = ----------------
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 / Servicerendered

3.Esteem Value – Appearance value

4. Exchange Value - It is exchanged forsomething else.

❖ Also, all the efforts are focused on meeting
needed issues such as:

➢ Performance;
➢ Reliability;
➢ quality, maintainability;
➢ aesthetics,
➢ Safety;
➢ fire resistance;
➢ while, at the same time, achieving lowest
life-cycle cost.
Implementation of value engineering involves
several steps:

1. Information;
2. functional analysis;
3. creative mind;
4. Evaluation;
5. planning & proposal;
6. Implementation;
7. follow-up.
Value Engineering

❖ The creative step involves a brainstorming session

where life-cycle cost alternatives, for design
components are considered.
❖ Value engineering may be performed in two ways:
(1) Proactively
(2) Reactively
A proactive approach focuses on eliminating problems before
they have a chance to appear.
a reactive approach is based on responding to events after they
have happened
❖ Value Engineering (V.E.), also known as Value Analysis,
is a systematic and function-based approach to improving the
value of products, projects, or processes.

❖ VE involves a group of people following a structured process.

The process helps team members communicate better across
boundaries, understand different perspectives, innovate, and
analyze.
What does Value Engineering do?

❖ Value Engineering improves value. ❖ The use of Function Analysis

❖ On a major road development, differentiates Value Engineering
improvements to value might include: from other problem solving
❖ Reducing the life cycle cost of an approaches.
interchange, enhancing safety in a ❖ VE focuses on delivering the
design; product or service at the best
❖ or reducing impacts to the public by price.
shortening the duration of a ❖ This is achieved by incorporating
construction project. those value characteristics
❖ uses a combination of creative and deemed most important by the
analytical techniques to identify customer.
alternative ways to achieve objectives.
How does V.E. work?

❖ V.E. follows a structured thought ❖ Analyse Functions -What must

process to evaluate options. be done? What does it Cost?
❖ Generate Ideas
❖ Every V.E. session goes through (Brainstorming) -What else will
a number of steps: do the job?
Gather information -What is ❖ Evaluate and Rank Ideas -
being done now? Which Ideas are the best?
Measure Performance -How will ❖ Develop and Expand Ideas -
the alternatives be measured? What are the impacts? What is
the cost? What is the
performance?
❖ Present Ideas Sell Alternatives
People involved in VE should be able of establishing the
following:

❖ effective challenge to design criteria and accepted

standards;
❖ access and evaluation of operational and maintenance
cost;
❖ focus on high cost areas and replace with lower;
❖ selection of effective alternatives.
There are four important steps most be taken in modified VE job plan.
They are as follow:

1. Information Phase
➢ Briefing by the Client 3-Speculative Phase
➢ Feasibility study with client ➢ Team review of project-
presence, idea listing
➢ Outline proposals ➢ Development of final
➢ Scheme design idea listing.

2. VE Steps Validation or preparation of cost estimate

➢ Familiarisation and breakdown of data into elements-cost models
➢ Functional evaluation of areas to isolate high cost, poor value
areas,
4-Analytical Phase

➢ Evaluation of ideas listing

➢ Selection of high cost areas for in-depth
study,
➢ Team brainstorming for generation of
possible alternatives suitable for in-
depth analysis
➢ Investigate alternatives
➢ Team review of analysis
➢ Preparation of proposal drafts.
Value Engineering Proposal Phase

❖ Review of results from analytical phase with client

to gain additional information and enhance
implementation.
❖ Review and revision of proposal
❖ Preparation of final proposals
❖ Report, including cost estimate review
What are the benefits of V.E.?

❖ Value Engineering is a tool that will

improve Mangers ability to manage
projects; solve problems; Innovate;
communicate.

❖ VE program in an organization will

give the organization a definitive tool
to improve value in any product,
project or process.
The advantages of carrying out a VE are:

❖ Cost savings;
❖ risk reduction;
❖ schedule improvements;
❖ improved designs and better collaboration have been
the outcomes of investment in VE studies.
❖ The return from the investment in VE normally exceeds
10:1.
References:

VALUE ENGINEERING [email protected]

htt://www.construction-productivity.co.uk

https://www.academia.edu/6982272/CONCEPT_OF_VALUE_ENGINEE
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