lec 7

• Value Engineering


  A systematic and organized approach to provide the necessary functions in a project at the lowest cost. It promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality.
• Value Engineering is used in construction projects to provide a clear and detailed analysis of how best to meet the goals of the construction project
• Value Management (VM)


  The full range of value techniques available. It is a higher order title and is not linked to a particular project stage at which value techniques may be applied.
• Value Planning (VP)


  Value techniques applied during the planning phases of a project.
• Value Engineering (VE)


  Value techniques applied retrospectively to completed projects to analyse or audit the projects performance.
• Value engineering should start at project inception where the benefits can be greatest, however the contractor may also have a significant contribution to make as long as the changes required to the contract do not affect timescales, completion dates, or incur additional costs that outweigh the savings on offer.
• Values Engineering involves


  1. Identifying the main elements of a product, service or project

  2. Analyzing the function of those elements

  3. Developing alternative solutions for delivering those functions

  4. Allocating costs to the alternative solutions

  5. Developing in more detail the alternatives with the highest likelihood of success
• The project manager must take a pro-active role in both giving direction and leadership in the value engineering process, but must ensure that time and effort is not wasted and does not have a detrimental effect on the progress of the project.
• Value engineering is concerned with maximizing value, not just reducing costs, it seeks optimum solutions to remove unnecessary waste and reduce life cycle costs while improving function, quality and sustainability.
• Unnecessary waste might include; unnecessary cost, materials, resources, energy, water, time, plant, lead in times, transportation, maintenance, replacement and disposal activity.
• Value Methodology (VM)


  A systematic and structured approach for improving projects, products, and processes. It is also known as value engineering.
• Value


  The reliable performance of functions to meet customer needs at lowest overall cost
• Planning


  1. Review the program

  2. Perform a functional analysis of the facility

  3. Obtain the owner/users definition of value

  4. Define the key criteria and objectives for the project

  5. Verify/validate the proposed program

  6. Review master plan utility options

  7. Offer alternative solutions

  8. Verify if the budget is adequate for the developed program
• This is the stage that most VE participants are used to becoming involved, when the design has at least made it to schematic stage. This require at least one VE session at the design stage on projects over a certain amount size.
• During the construction phase, value engineering is still possible through the use of Value Engineering Change Proposals.