Advanced Tools for Value Engineering

Course

Value Engineering [4-5]

Dr. Hossam Mohamed Toma

Factors Affect Success the VE

Program
 A typical VE program is a defined set of
policies and responsibilities which will
ensure that VE discipline is integrated into
all elements of an organization. An
effective and sustained VE program will
have:

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Advanced Tools for Value Engineering
Course

Factors Affect Success the VE

Program
 Top management involvement to ensure
implementation and continuing emphasis
by middle management.

 A key individual to manage the VE

program. This individual should be well
versed in VE principles, techniques, and
appropriate acquisition regulations.

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Factors Affect Success the VE

Program
 A “master plan” to insure that actions
which may effectively contribute to a
successful program are considered and
acted upon.

 VE objectives, policies, responsibilities,

and reporting requirements firmly
established and implemented.

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Advanced Tools for Value Engineering
Course

Factors Affect Success the VE

Program
 The funds necessary for administrative
and operating expenses such as testing
and evaluating proposals.
 A comprehensive training and orientation
program, to acquaint Personnel with
policies, procedures, and benefits.
 “Crossfeed” mechanisms to communicate
information about successful application
to others who can benefit.
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Factors Leading to VE Changes

% total % total Factor Definition
actions savings
13.9 23.2 Advances in Incorporation of new materials,
technology components, techniques, or processes
(advances in the state-of-the-art) not
available at the time of the previous
design effort.
23.1 22.2 Excessive Prior design proved technically
cost adequate, but subsequent cost
analysis revealed excessive cost.
14.4 17.7 Questioning User’s specifications were examined,
specifications questioned, determined to be
inappropriate, out-of date, or
overspecified.
27.8 14.8 Additional Application of additional skills, ideas,
design effort and information available but not
utilized, during previous design effort.
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Advanced Tools for Value Engineering
Course

Factors Leading to VE Changes

% total % total Factor Definition
actions savings
5.2 11.8 Change in User’s modification or redefinition of
user’s needs mission, function, or application of
item.
6.8 4.0 Feedback Design modification based on user
from test/use tests or field experience suggesting
that specified parameters governing
previous design exaggerated.
4.6 3.8 Design Prior design proved inadequate in use
deficiencies (e.g., was characterized by inadequate
performance, excessive failure rates,
or technical deficiency).
4.2 2.5 Miscellaneous Other factors not included in
above.

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Early vs Late VE
 Early VE tends to produce greater; savings
or “cost avoidance” for two reasons.
 First, more units are affected by the savings
actions.
 Second, earlier changes lower
implementation costs such as testing,
modifications to production lines, retooling
expenses, and changes to operational
support elements (e.g., spares, manuals,
maintenance facilities, etc.).
 VE should be accomplished as early as
possible.
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Advanced Tools for Value Engineering
Course

VE Team Coordinator’s
Responsibilities
The Value Engineering Team Coordinator’s (VETC)
Responsibilities:
 coordination of all aspects of the studies
 final selection of VE team members for each study
 management of each study
 collection and organization of material before each
study
 preparation of required reports and presentations
 assistance in evaluating VE proposals and
implementing the results
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VE Team Qualifications
• Demonstrated competence and experience in value
engineering and related fields.
• Construction industry experience including familiarity
with design, construction and construction
management.
• Experience as a VETC on construction related
projects of a similar nature and complexity.
• Demonstrated skills in technical report writing and oral
presentation.
• Technical degrees in architecture or engineering and
related certifications such as cost estimating or
specifications should generally be considered as
Dr. Hossam minimum
Toma requirements. 10

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Advanced Tools for Value Engineering
Course

Timing of Studies
VE services generally are to consist of two
studies to be conducted at:

The completion of Concept Design

After completion of 20-25% of Design

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VE after Completion of
Design Concept Phase
The first study is intended to review basic
design decisions that pertain to areas such
as:
Sitting and building orientation
Building form, shape and massing
Layout
Occupiable to gross area relationships
Design criteria
Building systems selection options
Space program options
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Advanced Tools for Value Engineering
Course

VE after Completion of
Design Concept Phase
Building space/volume parameters
Vertical and horizontal circulation
Major Mechanical-Electrical-Plumbing
(MEP) considerations
Overall energy considerations
Site access/egress
Overall phasing/scheduling plans (as
appropriate)
Sub-soil conditions and geological data
Utility availability
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VE During the Design Phase

The second study will focus on more detailed
design decisions including (as applicable):
1. Specific building system design
2. Specification and performance requirements
3. Proposed design details
4. Layout options within overall building
geometry
5. Specific MEP system selections
6. Site paving, grading and utilities
7. Phasing and scheduling plans
8. Major constructibility issues
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Advanced Tools for Value Engineering
Course

Value Studies Stages

Job Plan

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Pre-VE Workshop Study Phase:

Activities
Activities of this stage:

 Obtain senior management concurrence

and support of the job plan, roles, and
responsibilities.
 Obtain project data and information.
 Obtain key documents such as scope of
work definition, drawings, specifications,
reports, and project estimate.
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Advanced Tools for Value Engineering
Course

Pre-VE Workshop Study Phase:

Activities
 Identify and prioritize strategic issues of
concern.
 Determine the scope and objectives of
the study.
 Develop the study schedule.

 Undertake competitive benchmarking

analyses.
 Identify Value team members.

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Pre-VE Workshop Study Phase:

Activities
 Estimate the Life Cycle Cost (LCC) of the
project.

 Gather appropriate customer/user information

about the project.

 If possible, invite customers or stakeholders to

participate in the VE study.

 Distribute information to team members for

review.
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Advanced Tools for Value Engineering
Course

Pre-VE Workshop Study Phase:

Activities
 Develop informational models and
diagrams about the project
 Determine the study dates, times,
location and other logical needs

 Clearly define, with senior management,

the requirements for a successful VE
study results.
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Pre-VE Workshop Study Phase:

Outcomes
 Clear understanding of what senior
management needs.
 Understanding what the strategic
priorities are, and how improvement will
increase organizational value.
 A view is formed as to whether
subsequent phases are likely to yield
sufficient value to justify the cost of the
study within the terms set.
 It may be appropriate to increase or
decrease study parameters at this time. 20
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VE Job Plan
VE job plan contains six phases

1. Information Phase
2. Function Analysis Phase
3. Creative Phase
4. Evaluation Phase
5. Development Phase
6. Presentation Phase

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VE Job Plan

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Advanced Tools for Value Engineering
Course

Advices for VE Team During

the Job Plan Phase
 In Fact-Finding: getting good information
from people requires their cooperation.
 In Creativity: good ideas come from
people who are properly motivated. Get
all team members involved. Don't let
anyone dominate the team.
 In Implementation: receptivity to ideas
has to be generated.
 Be a Good Listener.
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Advices for VE Team During

the Job Plan Phase
 Use Key Questions. The VE approach is
a QUESTIONING approach.

 Use Checklists. As an aid to the

practicing VE - Team, the key questions
of the VE Job Plan can be incorporated
into checklists.

 Record Everything. Don't trust your

memory.
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Job Plan – Information Phase:

Purpose

 Understand the current state of the

project and constraints that influenced
project decision.

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Job Plan – Information Phase:

Sources of Information
 Information should be obtained from
credible sources. There are two basic
principles in this area.
 First, is to seek information from multiple
sources;
 Second, to seek the best source for the
information desired.

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Course

Job Plan – Information Phase:

Sources of Information
 The client
 Project managers, design engineers,
operators, maintenance personnel,
contractors, fabricators, suppliers, expert
consultants.
 The end user or the costumer
 Codes, standards, and specifications
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Job Plan – Information Phase

 It is important to understand the background
and decisions that have influenced the
development of the project design.

 Owner and Designer present an oral overview

of the design. This presentation usually
includes:

 the history of the project;

 the rationale for the design;

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Advanced Tools for Value Engineering
Course

Job Plan – Information Phase

 project constraints;

 site conditions;

 factors influencing decision making;

 reasons for selecting the process equipment or

major materials or systems for the project.

 project costs and schedule data are discussed.

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Job Plan – Information Phase:

Activities
Obtain project data such as:
 scope of work definition,

 drawings,

 specifications,

 reports,

 detailed project cost information,

 quality data,

 marketing information,

 process flow charts

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Job Plan – Information Phase:

Activities
Project detailed data and information:
 Physical data, such as shape,
dimensions, material, skid resistance,
colour, weight, density, fire resistance,
weather resistance, sound absorption
capability, deflection resistance, and
horizontal and vertical alignment.

 Methods data, about how it is operated,

constructed, fabricated, developed,
installed, maintained, and replaced.
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Job Plan – Information Phase:

Activities
 Performance data, concerning present
performance requirements and actual
performance needs in areas of design,
operation, maintenance, safety, and
utility.

 Restrictions, (relating to detailed

specifications) concerning methods,
performance, procedures, operations,
schedule, and cost.
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Advanced Tools for Value Engineering
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Job Plan – Information Phase:

Activities
 Cost data, including a detailed
breakdown of costs of labour, material,
and markups for both construction and
other elements of life cycle cost.

 Quantity data, relating to the anticipated

volume or repetition of use for this project
and future uses.

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Job Plan – Information Phase:

Outcomes
 This phase brings all team members to a
common, basic level of understanding of
the project, including tactical, operational,
and specifics of the subject.

 The functional understanding establishes

the base case to identify and benchmark
alternatives and mismatches and set the
agenda for innovation.
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Advanced Tools for Value Engineering
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Job Plan – Function Analysis

Phase: Purpose

 Understand the project from a functional

perspective; what must the project do,
rather than how the project is currently
conceived.

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Job Plan – Function Analysis

Phase
 During the Function Analysis Phase of the
Job Plan, functions are identified that
describe the work being performed within
the scope of the project under study.

 These functions are described using two

word, active verb/measurable noun
pairings, for example one function of a
hammer is to apply force.

 The team reviews the project’s functions to

determine those that could be improved. 36
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Thank you for your attention

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