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BBP 10402
CREATIVITY AND INNOVATION
GROUP ASSIGMENT
VALUE ENGINEERING & DRILL DOWN METHOD
SEKSYEN 7
NAME
NO MATRIC
NOR AFIZA BINTI TUMIJAN @ TOMICHAN
CB130002
NURUL ATIKA BINTI AMAT BADRI
CB130009
NUR ANIDAH BINTI MAT YASIN
CB130011
MOHAMMAD HUZAIRIE BIN SUHAIMI
CB130021
NUR ZULAIKHA BINTI ZULKIFLI
CB130052
MUHAMAD NOR SHAHRIN BIN SAID
CB130080
NAMA PENSYARAH :
ENCIK GHAZZALY BIN SPAHAT
BBP 10402 CREATIVITY & INOVATION
TABLE OF CONTENT
NO
TITLE
PAGE
1.0
INTRODUCTION OF VALUE ENGINEERING
1.1
THE CONCEPT OF VALUE
1.2
THE EQUATION OF VALUE ENGINEERING
1.3
WHEN VALUE ENGINEERING CAN USED
1.4
THE ASPECT OF VALUE CAN BE CONSIDERED
1.5
CHARACTERISTIC AND NOT CHARACTERISTIC OF VALUE
ENGINEERING
1.6
STRENGTHS AND LIMITATIONS OF VALUE ENGINEERING
1.7
STEPS VALUE ENGINEERING PLANS
1.8
EXAMPLE FOR CASE STUDIES
1.9
CONCLUSION OF VALUE ENGINEERING
14
2.0
INTRODUCTION DRILL DOWN METHOD
16
2.1
RULES
17
2.2
THE CAUSE AND EFFECT METHOD
18
2.3
PROCESS AND DETAIL IMPLEMENTATION
19
2.4
CASSE EXAMPLE
20
2.5
LIMITATION
21
2.6
THE DRILL DOWN METHOD IN CASE STUDIES
22
2.7
CONCLUSION OF DRILL DOWN METHOD
23
2.8
REFERENCES
24
2015
Page 2
TOPIC 1 :
VALUE ENGINEERING
2015
Page 3
1.0
INTRODUCTION OF VALUE ENGINEERING

Value engineering are a systematic and organized approach to provide the necessary
functions in a project at the lowest cost. Value engineering promotes the substitution of materials and
methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the
functions of various components and materials, rather than their physical attributes. It also called
value analysis. After that, in Japanese firm value engineering (VE) is an organized effort to analyse
the functions of goods and services in order to find ways to achieve those functions in a mange the
trade-off between functionality and cost, the two dominant characteristics of the survival triplet.
Next, in western firm the definition of VE based British Standard 3138 illustrates are
systematic inter-disciplinary examination of factors affecting the cost of a product in order to devise
means of achieving the specified purpose most economically at the required standard of quality and
reliability (emphasis added). Therefore from Yoshikawa et al 1993, 57 and J.Kaufmans 1990,1
definition of value engineering as an organized effort directed at analyzing the functions of goods and
services to achieve those necessary functions and essential characteristics in the most profitable
manner high lights the tendency of many western firms to minimize the costs of products without
setting a specific target.
Besides that, it could means Value Engineering (VE) is an intensive, inter disciplinary 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. VE is not primarily centered on
a specific category of the physical sciences it incorporates available technologies, as well as the
principles of economics and business management, into its procedures. When viewed as a
management discipline, it uses the total resources available to an organization to achieve broad
management objectives. Thus, VE is a systematic and creative approach for attaining a return on
investment (by improving what the product or service does in relation to the money spent on it).
Robin Cooper, When Lean Enterprises Collide: Competing Through Confrontation, publisher
Harvard business, page 165.
2015
Page 4
1.1
THE CONCEPT OF VALUE
The concept for value engineering is divided 2 types. The concepts are :
1.1.1
Concept of Value Desirable
Figure 1 : The Concept Of Value Desirable

1.1.2
Concept of Value Undesirable
Figure 2 : The Concept Of Value Underdesirable
2015
Page 5
1.2
THE EQUATION OF VALUE ENGINEERING
Value = function / cost
Perceived value = perceived benefits / price
Means for equation 1 and 2 :

Equation 1 reflects the perspective of the producer; equation 2 reflects that of the customers.
Cost and price play the same role in these equations that they do in the survival triplet. While in
equation 1 functionality captures what the product can do, in equation 2 perceived functionality (or
perceived benefits ) captures the value the customer attaches to the products functionality.
1.3
WHEN VALUE ENGINEERING CAN USED
1.3.1
to determine the best design alternatives for projects.
1.3.2
to reduce cost on existing projects.
1.3.3
to improve quality, increase reliability and availability, and customer satisfaction.
1.3.4
to improve organizational performance.
1.3.5
to improve schedule
1.3.6
to reduce risk
1.3.7
Value engineering is a power full tool used to identify problems and develop
recommended solutions.
1.4 THE ASPECT OF VALUE CAN BE CONSIDERED
1.4.1
Cost Value
1.4.2
Exchange Value
1.4.3
2015
is the price a customer is prepared to pay for the product, or service
Use Value
1.4.4
is the cost of manufacturing and selling an items
is the purpose the product fulfils
Esteem Value
Page 6
1.5
is the prestige a customer attaches to the product
CHARACTERISTIC AND NOT CHARACTERISTIC OF VALUE ENGINEERING
CHARACTERISTIC OF VALUE
NOT CHARACTERISTIC OF VALUE
ENGINEERING
ENGINEERING
Systematic Problem Solving Process
A Design Review
It is not intended to correct
Multi-Discipline Team Approach
omissions in the design, nor
Life-Cycle Cost Oriented
to review calculations made

by the design.
Value Oriented (Measurement Of

Scope Performance/Project Costs)
A Cost Cutting Process
It does not cut cost by

sacrificing needed quality,
Function-Based Analysis
Free Of Normal Design Restriction
reliability, or performance.
Routinely Done on all Designs
It is not a part of the normal

design process, but a formal
1.6
A Proven Management Technique
cost and function analysis
STRENGTHS AND LIMITATIONS OF VALUE ENGINEERING
STRENGTHS
2015
Optimization of quality/performance
Overall cost optimization
Appropriate technology
Sustainable ( Reduce, Reuse and
LIMITATIONS
VE team should be involved right

from the beginning
Reliance on creativity and lateral

thinking
Recycle )
Team work is a must
Enhanced reliability and safety
Can result in many intangibles
Risk mitigation (bad news upfront)
Initial cost ( time and effort )
Page 7
1.7
STEPS VALUE ENGINEERING PLANS

Value engineering uses intuitive logic (a unique how/why questioning technique) and
analysis to identify relationships that increase value. Value engineering is a quantitative method
similar to the scientific method (which focuses on hypothesis and conclusion to test relationship) and
operation research (which uses model building to identify predictive relationships).
The value engineering process follow a general framework commonly referred to as an eight-phase
job plan, with the following phases:
1.7.1
Selection phase: select the right projects, timing, team, and project processes an
elements.
1.7.2
Investigation Phase: Investigate the background information, technical input reports, field
data, function analysis, and team focus and objective.
1.7.3
Speculation Phase: Be creative and brainstorm alternative proposals and solutions.
1.7.4
Evaluation Phase: Analyze design alternatives, technical processes, life cycle costs,
documentation of logic, and rationale.
1.7.5
Development Phase: Develop technical and economic supporting data to prove the
feasibility of the desirable concepts. Develop team recommendations. Recommend longterm as well as interim solutions.
1.7.6
Presentation Phase: Present the recommendations. Prepare an implementation plan,

including response of the, managers and a schedule for accomplishing the decisions
based on the recommendations.
1.7.7
Implementation Phase: Evaluate the recommendations. Prepare an implementation plan,

including response of the managers and a schedule for accomplishing the decisions
based on the recommendations.
1.7.8
Audit Phase: Maintain a records system to track the results and accomplishments of the
value engineering program on a state wide basis. Compile appropriate statistical analyses
as requested.
The duration and assessment for these phases depend on the complexity of the project. By
performing the steps in these phases, the value engineering team will evaluate several
component of a project, such as designs, topographical implications, and environmental impacts,
and make recommendations for several feasible options along with the cost differences and their
impact on total project cost and schedule. These details are compiled into a value engineering
decision document for appraisal from concerned authorities.
Stuart D. Anderson, Keith Robert Nolenaar, Cliff J. Schexnayder, (2007) National Cooperative
Highway Research Program: Value Engineering Method, Transportation Research Board (page A
165)
2015
Page 8
1.8
EXAMPLE FOR CASE STUDIES

1.8.1 Replacing Piles With Footings
Worjed Performed:
Replacing 43 piles with isolated
1. Cost saving = 1119000 AED

Outcome
footing
2. Time Saving = 2 months

3. Easier,
tidier
and
construction
1.8.2 Resizing & Relocating Water Tank
2015
Page 9
safer
Worked Performed:
1. Reducing size from 14384
to 7000m
1. Cost Saving = 7,,930,000 AED
2. Time Saving = 3 months
2. Remove 100 piles
3. Easier,
3. Minimize depth to avoid

excessive
excavation
in
Outcome
tidier
and
safer
construction
4. Regain Land space
sandstone layer
4. Relocate
WT
Under
footprint of Bldg.
2015
Page 10
1.8.3
Lagoon Depth, Walls & Liners
Worked Performed:
1. Reducing
50000m
depth
by
1.25
about
1. Cost saving = 8,338,600
2. Replace CIP Reinforced Concrete walls
AED
with Pre-cast panels

3. Incorporate underwater theming within
Outcome
2. Time saving = 2months

3. Easier constraction
pre-cast panels
4. Use Double liners instead of concrete
floor with 2 stages installation
5. Introduce leakage detection system in
lagoon bottom and behind wall
1.8.4
Lagoon Depth
Five pits were used instead of one to reduce lagoon depth by

1.25m and achieve more effective collection of sediments
2015
Page 11
1.8.5
Lagoon Walls
Recommendations for the 1675m long lagoon perimeter:

1. To use gravity precast panels instead of CIP reinforced concrete
walls.
2. To use 6 Deg tilted wall instead of vertical walls to reduce footing
sizes
3. Incorporate theming in underwater precast panels to reduce cost
1.8.6
2015
Floor Liners
Page 12
Recommendations for the 40000m floor 2 liners instead of one liner and concrete floor:
1. To use double liners, one 1.5mm and 2
nd
0.5mm thick separated with granular layer
2. To provide leakage detection system as shown
1.8.7
40 M Dome Structure
Recommendations for the 30 and 40m LH

Domes
1.
1. To use PT concrete curve Roof instead
Cost Saving of 4385065 + 2,466,600

for
of steel
the
40
and
30m
respectively
Outcome
2. Eliminate fire proofing

3. Reduce Thermal Insulation
2.
No time impact
3.
Similar construction risk
4. Reduce Suspension system of false

ceiling
1.8.8
Displaced Cooling
Recommendations for Air Displacement

System
1. To
use
Conventional
Ventilation
Instead
Outcome
1. Cost saving of 891,65
2. To reduce interference among trades

3. To manage risk of potential scheduling
conflict
2015
Page 13
Domes
1.9
CONCLUSION OF VALUE ENGINEERING

VE which plays a critical role in tying the cost and functionality dimensions of the survival
triplet is used at many firms to help them achieve their target costing objectuves. Its primary objective
is to increase the value of the firms products, when value is defined as the functionality of a product
divided by its cost. After that, VE like a target costing is an adaptive, not monolithic approach is a
multifunctional discipline that analyses products in terms of their basic and secondary function. A
basic function is the principal reason for the existence of a product and secondary function are
outcomes of the way the designers chose to achieve the basic function. Next , the ways in which firms
increase the value of their product using VE can be quite complex, and developed numerous
variations of VE technique.
2015
Page 14
TOPIC 2 :
DRILL DOWN METHOD
2015
Page 15
2.0
INTRODUCTION OF DRILL DOWN METHOD

Creative problem-solving, a type of problem solving, is the mental process of searching for a
new and novel creative solution to a problem, a solution which is novel, original and not obvious. Drill
down method is one of the tools for creative problem solving. The drill down is an approach used to
take a broad idea or topic and continue to build and enhance on what it is, or why it is important, until
there is a very detailed and specific explanation. It works by starting with a broad idea and continually
asking for more detailed questions. Once the questions end, the result is a very broad idea drilled
down into a more enhanced defined result. In data visualization drilling down is the name given to
the epistemic action whereby more information is obtained about a symbolically displayed entity
(Shneiderman called this "details on demand". Drill down is useful in almost all visualizations. In cases
where there are many symbols on a screen it is important that symbols represent as much information
scent as possible otherwise the analyst may have to drill down and view a great deal of irrelevant
information. Scent consists of a set of graphical attributes or words that represent a summary of the
information referenced by the symbol.
In information
technology to drill
down means
to
move
from
one
place
to
another, information to detailed data by focusing in on something. In a GUI-environment, "drillingdown" may involve clicking on some representation in order to reveal more detail. To drill down
through a series of notebooks, for example, on a desktop means to move through the hierarchy of
folders (from the top downwards) to find a specific file or to click through drop-down menus in a GUI.
Clicking on an item moves you to a level of greater detail. When an online user accesses more and
more pages of the website, he or she may delve deeper into the content of the site. As a web-surfer
goes further into a website, he or she goes deeper into the back pages and thus deeper into data. (Of
course, he or she could also begin. For example via an external search engine at a detailed view, and
drill up to the front page of the site.)
Drilling down through a database involves accessing information by starting with a general
category and moving through the hierarchy: from category to file/table to record to field. When one
drills down, one performs de facto data analysis on a parent attribute. Drilling down provides a
method of exploring multidimensional data by moving from one level of detail to the next. Drill-down
levels depend on the data granularity. The field of managerial economics uses the term "Drill Down"
to explain exciting but technical aspects of operations research and regression analysis. For an
alternative data-extraction metaphor, see data mining.
Drill Down is a simple technique for breaking complex problems down into progressively smaller parts.
R Pressler, T Hanna, (2008) Contact Centre Operations L3, Publisher Pearson Education, page
157.
2015
Page 16
2.1
RULES
Drill Down helps you to break a large and complex problem down into its component parts, so that
you can develop plans to deal with these parts. It also shows you which points you need to research
in more detail. It can be used in conjunction with the 5 Whys Techniques to ensure that you
investigate each aspect of the problem systematically.
2.1.1
Define the Problem
One simple statement.
Beware! Dont pre-determine a solution:
Wrong: There is too little shelter for stray dogs.
Right: There are too many homeless dogs.
Wrong: There are too many young drivers on the roads.
Right: There are too many highway deaths.
2.1.2
Assemble Some Evidence
Think! Dont just gather.
Consider like data, information.
Ask: what do the experts think?
2.1.3
Construct the Alternatives
Four typical options: liberal, conservative, moderate, status quo
Focus on causes
Consider politic
2.1.4
Select the Criteria
How will you choose the best solution?
Be specific:
Biggest reduction in vehicle miles traveled
Highest cost to benefit ratio
Most likely to reduce cases of violence
2.1.5
The hardest step!
Consider ranges of outcomes.
2.1.6
2015
Project the Outcomes
Confront the Trade-offs
Rarely is one solution obvious choice
Review criteria
Page 17
2.1.7
2.1.8
2.2
Decide!
Too tough? Revisit prior steps
Tell Your Story
This could be the first step!
Skip the blow by blow. Get to the good part first.
THE CAUSE AND EFFECT METHOD
Cause and effect diagrams helps you to think through the causes of a problem throughly. The good
thing about this tool is that it encaourages you think of all possible causes of the problem, rather than
just the ones that are most obvious. Follow these step to solve a problem with a cause and effect
diagrams:
2.2.1
Identify the problem.
Write down the problem you face, in detail. If you can do so, identify who is involved, what the
problem is and when or where it happens. Write the problem in a box on the left hand side of
a large sheet of paper. Draw a line across the paper horinzontally from the box. This
arrangement, which looks like the head and spine of a fish, gives you space in which to
develops ideas.
2.2.2
Work out the major factors involved.
Now work out the factors that may contribute to the problem. Draw lines off the spine for each
factor and label it. These may be people who are involved with the problem, systems,
equipment, materials, outside forces, and so on. Try to draw out as many possible factors as
possible. If you are trying to solve the problem as part of a group, then this may be a good
time for some brainstorming.
2.2.3
Identify possible causes.
For each of the factors that you thought of in stage 2, brainstorm possible causes of the
problem that may be related to the problem. Show these as smaller lines coming off the
bones of the fish. Where a cause is large or complex, then it may be best to break it down
into sub-causes. Show these as lines coming off each cause line.
2.2.4
Draw the diagrams and stage the causes of your problem.
Depending on how complex the problem is, you can now investigate the most likely cause
further. This might involve setting up investigations, carrying out surveys and so on.
2015
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2.3
PROCESS AND DETAIL IMPLEMENTTION
Drill Down is a simple technique for breaking complex problems down into progressively
smaller parts. To use the technique, start by writing the problem down on the left-hand side of a large
sheet of paper. Next to this, on the right-hand side, write down the points that make up the next level
of detail on the problem. These may be factors contributing to the problem, information relating to it,
or questions raised by it. This process of breaking the problem down into its component part is called
drilling down. For each of these points, repeat the process. Keep on drilling down into points until you
fully understand the factors contributing to the problem. If you cannot break them down using the
knowledge you have, then carry out whatever research is necessary to understand the point.
Drilling into a question helps you to get a much deeper understanding of it. The process helps
you to recognize and understand the factors that contribute to it. Drill Down prompts you to link in
information that you had not initially associated with a problem. It also shows exactly where you need
further information.
The two methods to identify and understand the root causes of problems that hold up a
growing business. Both have the advantage of being simple and easy to use. Neither will require you
to spend time drawing complex diagrams or remembering counter-intuitive strategies. The Five Whys
can create results that are too disorganized to point usefully to solutions and may suggest false trails.
The Drill Down Technique helps to lay out the causes of problems clearly so that issues can be
addressed but it doesnt always help to uncover those causes. Used together, however, the two
methods can both identify the causes of problems and plan a path for their resolution.
Geek Preneur, (2012), Solve Problems by Combining the Five Whys with the Drill Down Technique
in web site : http://www.geekpreneur.com/solve-problems-by-combining-the-five-whys-with-the-drilldown-technique
2015
Page 19
2.4
CASE EXAMPLE
Figure 1
2.4.1
A problem analyzed using the Drill Down Technique might look something like this:
Causes
Problem
Too busy to send emails.
Clients complain of a lack
of responsiveness
Failure to get the work

completed in the expected time.
Bad timekeeping.
Unrealistic scheduling.
Table 1
2.4.2
The owner of a windsurfing club is having complaints from its members about the
unpleasant quality of the water close to the clubhouse. This seems like a huge
problem. She carries out the
2015
Page 20
Analysis in Figure 2
This gives her a starting point in which to begin thinking about the problem. It highlights where
she does not fully understand the problem, and shows where she needs to carry out further
research.
2.5
LIMITATION
Breaking problem into a smaller ones.
In case you have no further info to drill down it shows you which points you need to
research in more detail.
Recognize and understand the factors that contribute to a problem, by prompts you to
link in information that you had not initially associated with a problem.
2015
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2.6
THE DRILL DOWN METHOD IN CASE STUDIES

2.6.1
Coverage
The first step of the Drill Down Method is coverage. As you might expect coverage refers to
gaining a general understanding of what you want to learn, before delving deeper into its
contents. Having an overview of a subject is extremely helpful as you cant plan an attack if
you dont have a map of the terrain.
For NCEA subjects at school, this will involve reading parts of the textbook or notes your
teacher has given you to gain a general overview of what the subject contains. You may be
tempted to skim through a book and highlight what you think might be important, but a much
more effective way to gain understanding is to write brief notes as you go, or write short
summaries about each major section shown in the contents of your textbook. Coverage is the
least important of the three steps in the Drill Down Method so it is something to be done
quickly so you can focus on the latter steps.
2.6.2
Practice
Practicing problems is a big part of The Drill Down method and is a great way to increase ant
to gain immediate feedback when doing this as practice without feedback will hinder the
effectiveness of the process. What we mean by immediate feedback is knowing if your
answer was correct immediately.
his means going through question by question with the answers at hand so you can check
yourself against the provided solution. Practicing problems will allow you to find the areas
where you need to develop a further understanding, as it will be immediately obvious what
you dont know.
Applying the practice step of The Drill Down Method may seem to be difficult for some
subjects, especially when you are being assed on understanding and applying knowledge,
rather than simply solving problems, but you can still test your understanding with flashcards,
or your application with practice questions or past exams.
2.6.3. Insight
The goal of Coverage and Practice is to get you to the point where you know what you dont
understand, which is where Insight comes into play. Insight allows you to narrow down the
gaps in your knowledge and gives you the tools to fill the gaps. Insight serves a dual purpose
as even when you do understand an idea it gives you opportunities to create more
connections so you can develop a deeper understanding.
2015
Page 22
The Feynman Technique is a great tool for filling gaps in your knowledge as it helps you to
break down ideas you dont understand into smaller chunks, and by learning these chunks
you can eventually fill in the gap. The technique is very simple and also involves three steps:
Get a piece of paper
Write at the top the idea or process you want to understand
Explain the idea, as if you were teaching it to someone else
The third step is the most crucial in this process as once you have gotten to a point where you
cant explain an idea, you have discovered the exact gap that you need to fill. You can then
go on to do this by researching or asking your teacher or tutor. Once you have narrowed
down your misunderstanding it becomes easier to find the precise answer. The Feynman
technique may seem difficult to apply at first but once it has been mastered it can be applied
to a wide variety of learning situations.
2.7
CONCLUSION OF DRILL DOWN METHOD

This means drilling down to break problems down into manageable parts. It is an easy to use
technique to break difficult, complex problems down into progressively smaller parts. Start by writing
the problem down on the left hand side of a large sheet of paper. Next, write down the points that
make up the next level of detail on the problem a little to the right of this. These may be factors that
contribute to the problem, information relating to it or questions raised by it. This process of breaking
the problem down into its different parts called drilling down. The principle of the Drill Down
Technique is similar to that of the Five Whys, which is why the two methods work so well together.
The aim is to break a problem down to its constituent parts so that a solution can be planned for each
of the problems elements.
2015
Page 23
2.8
REFERENCES
1. R Pressler, T Hanna, (2008) Contact Centre Operations L3, Publisher Pearson Education,
page 157.
2. Geek Preneur, (2012), Solve Problems by Combining the Five Whys with the Drill Down
Technique in web site : http://www.geekpreneur.com/solve-problems-by-combining-the-fivewhys-with-the-drill-down-technique
3. Robin Cooper, When Lean Enterprises Collide: Competing Through Confrontation, publisher
Harvard business, page 165
4. Stuart D. Anderson, Keith Robert Nolenaar, Cliff J. Schexnayder, (2007) National Cooperative
Highway Research Program: Value Engineering Method, Transportation Research Board
(page A 165)
5. Value engineering, in the web site,

http://www.vcn.bc.ca/pmprof/presentations/pd45/ValueEng-SukumarPD45.PDF
2015
Page 24

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BBP 10402

CREATIVITY AND INNOVATION

NOR AFIZA BINTI TUMIJAN @ TOMICHAN

NURUL ATIKA BINTI AMAT BADRI

NUR ANIDAH BINTI MAT YASIN

MOHAMMAD HUZAIRIE BIN SUHAIMI

NUR ZULAIKHA BINTI ZULKIFLI

MUHAMAD NOR SHAHRIN BIN SAID

BBP 10402 CREATIVITY & INOVATION

INTRODUCTION OF VALUE ENGINEERING

THE CONCEPT OF VALUE

THE EQUATION OF VALUE ENGINEERING

WHEN VALUE ENGINEERING CAN USED

THE ASPECT OF VALUE CAN BE CONSIDERED

CHARACTERISTIC AND NOT CHARACTERISTIC OF VALUE

STRENGTHS AND LIMITATIONS OF VALUE ENGINEERING

STEPS VALUE ENGINEERING PLANS

EXAMPLE FOR CASE STUDIES

CONCLUSION OF VALUE ENGINEERING

INTRODUCTION DRILL DOWN METHOD

THE CAUSE AND EFFECT METHOD

PROCESS AND DETAIL IMPLEMENTATION

THE DRILL DOWN METHOD IN CASE STUDIES

CONCLUSION OF DRILL DOWN METHOD

BBP 10402 CREATIVITY & INOVATION

BBP 10402 CREATIVITY & INOVATION

INTRODUCTION OF VALUE ENGINEERING

BBP 10402 CREATIVITY & INOVATION

THE CONCEPT OF VALUE

Concept of Value Desirable

Figure 1 : The Concept Of Value Desirable

Concept of Value Undesirable

Figure 2 : The Concept Of Value Underdesirable

BBP 10402 CREATIVITY & INOVATION

THE EQUATION OF VALUE ENGINEERING

Value = function / cost

Perceived value = perceived benefits / price

Means for equation 1 and 2 :

WHEN VALUE ENGINEERING CAN USED

to determine the best design alternatives for projects.

to reduce cost on existing projects.

to improve quality, increase reliability and availability, and customer satisfaction.

to improve organizational performance.

1.4 THE ASPECT OF VALUE CAN BE CONSIDERED

is the price a customer is prepared to pay for the product, or service

is the cost of manufacturing and selling an items

is the purpose the product fulfils

BBP 10402 CREATIVITY & INOVATION

is the prestige a customer attaches to the product

CHARACTERISTIC AND NOT CHARACTERISTIC OF VALUE ENGINEERING

NOT CHARACTERISTIC OF VALUE

Systematic Problem Solving Process

It is not intended to correct

Multi-Discipline Team Approach

omissions in the design, nor

Life-Cycle Cost Oriented

to review calculations made

Value Oriented (Measurement Of

A Cost Cutting Process

It does not cut cost by

Free Of Normal Design Restriction

Routinely Done on all Designs