Professional Documents
Culture Documents
Methodology In Construction
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Overview
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Value Engineering the
Forgotten Technique
Originally called Value Analysis by its inventor, Larry
Miles, an engineer in GE's purchasing operation in
1947, VA/VE uses a value equation that says value is
equal to function divided by cost. If, for example, the
buyer wants to get more item value, he/she needs to
either increase the item's functionality at the same time
he/she is containing cost; or he/she needs to reduce cost
while holding or improving its functionality. Either
way, the result is more value for the customer
Ref: Purchasing Magazine - "Value Analysis makes a
comeback," Jim Morgan, November 20, 2003.").
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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.
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.”
Ref: John M. Bryant, VM Standard, Society of American Value
Engineers, Oct. 1998
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Concept of Value
FUNCTION
VALUE =
COST
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Concept of Value Desirable
Function Function
Value =
Cost
Cost
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Concept of Value
Undesirable
Function Function
Value =
Cost
Cost
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When Value Engineering is
Used
Value Engineering is used to determine the best design
alternatives for Projects.
Value Engineering is used to reduce cost on existing Projects.
Value Engineering is used to improve quality, increase
reliability and availability, and customer satisfaction .
Value Engineering is also used to improve organizational
performance.
Value Engineering is used to improve schedule
Value Engineering is used to reduce risk
Value Engineering is a powerful tool used to identify
problems and develop recommended solutions.
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Potential Saving from VE
Re-Test Feasibility
Drawings Released Design Changes
VE Implementation
beyond this point
results in a net loss.
Construction
Concept Design Dwgs Release Construction
TIME 10
Value Study Diagram
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Six Steps VE Plan
Information ** Clearly
Clearlyidentify
identifythe
theproblem(s)
problem(s)to
tobe
besolved,
solved,and
and
Information
Phase gather
gatherinformation
informationon onthe
thebackground,
background,functions
functionsand
and
Phase
requirements
requirementsof ofthe
theproject.
project.
Functional
Functional ** What
Whatmust
mustthe
theproject
projectdo?
do?What
Whatare
arethe
thefunctions
functions
Analysis
Analysis and
andhow
howare
arethey
theyrelated?
related?
** Brainstorm
Brainstormideas
ideason
onhow
howtotoimprove
improvethe
thehigh
highcost,
cost,
Creativity
Creativity broken,
broken,or
orinadequately
inadequatelyperformed
performedkey
keyfunctions.
functions.
Phase
Phase
** Screen
Screenideas
ideasfor
foracceptance,
acceptance,score
scoreremaining
remainingideas
ideas
Evaluation
Evaluation on
onaascale
scaleand
andgroup
groupideas
ideasinto
intocategories.
categories. Develop
Develop
Phase
Phase design
designscenarios,
scenarios,and
andselection
selectioncriteria.
criteria. Rate
Rateand
and
rank
rankideas.
ideas.
Development
Development ** Plan
Planhow
how to
tosell
sellideas
ideasto
tomanagement,
management,identify
identifykey
key
Phase
Phase recommendations,
recommendations,planplanmanagement
managementpresentation.
presentation.
Reporting ** Give
Giveoral
oralpresentation
presentationtotomanagement,
management,or
ordevelop
develop
Reporting
Phase written
writtenreport.
report.
Phase
Information Phase
Facts Finding
What do you need to know about the problem
that you don’t know now?
What facts are known?
What are the requirements of the system?
Are these facts, opinions, assumptions, or
prejudices?
Secondary Functions
1 Design Unit Plan
2 Put Cavity Wall
3 Control Temperature
4 Minimize Exterior Surface Key Function :
5 Execute Natural Ventilation Maintain Facility
6 Maintain Cleanliness
7 Supply Air Conditioner
8 Keep View
9 Install Insulation
10 Control Humidity
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Function Analysis
Secondary Functions
1 Supply Pipeline Space
Key Function :
2 Design Ventilation Space
Install Equipment
3 Provide Elec. Pipe Space
4 Add Sewage Space
Secondary Functions
1 Arrange Wall Key Function :
2 Collect Opinion Design Interior
3 Install Art
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Creativity Definition
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Creativity & Innovation
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Imagination
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Thought of the Day
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IDEAS Vs Solutions
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Information for Skeptics
¾INNOVATION
¾"... after a few more flashes in the pan, we shall hear very
little more of Edison or his electric lamp. Every claim he
makes has been tested and proved impracticable."
[New York Times, January 16, 1880]
¾AEROSPACE
¾"Heavier-than-air flying machines are impossible."
[Lord Kelvin, president, Royal Society, 1895]
¾"Airplanes are interesting toys but of no military value."
[Marechal Ferdinand Foch, Professor of Strategy, Ecole
Superieure de Guerre]
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Information for Skeptics
COMPUTATIONAL SYSTEMS
¾"I think there is a world market for maybe five
computers.“, [Thomas Watson, chairman IBM, 1943]
Tilt-up Construction is an
innovative construction
method that will replace
traditional construction of
low and mid rise buildings
in the Middle East within
few years
Fadi Elayache 2010
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Counter Skepticism
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Counter Skepticism
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Rules of Brainstorming
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Evaluating Ideas
GO - NO GO
−Scratch ideas that hold no interest.
CHAMPION
−Who will speak for the ideas and support them?
GFI (Gut Feel Index)
−Discuss pro/con and vote. GFI is team average.
−Combine ideas; add new ideas.
−Record all assumptions when voting.
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Performance Comparison
Performance Comparison Matrix
Roof Structure
Constructability 1 2 3 3
Weather Resistance &
1 2 3 3
Durability
Thermal Resistance 1 1 3 3
1= Acceptable
Fire Resistance & Safety 2 2 3 3 2= Good
Flexibility in Applying Finishes 1 2 3 3 3= Excellent
Score 6 9 15 15
Roof Finishes
Maintenance 2 2 2 2
Aesthetics 2 2 2 3
Ease of Installation (skilled
2 2 2 1
labor requirement)
Score 6 6 6 6
Total Score 18 24 36 36
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Cost Comparison
Option A Cost Estimate - Curved Steel Beam + Option D Cost Estimate - PT Concrete Slab + FRP
FRP Cladding Cladding
Unit Unit Total
Quantit Total Cost Quantit
Description Unit
y
Cost
(AED)
Description Unit Cost Cost
(AED) y
(AED) (AED)
Roof Structure: Curved Roof Structure:
Steel Beams + Purlins + Post Tension
ton 120 28,000 3,360,000
Intermediate Steel cum 389 3,100 1,205,900
Members Concrete Roof
Slab
Metal Deck sqm 1,520 350 532,000 Waterproofing +
Polyurethane
CIP Concrete (150mm) sqm 1,520 80 121,600
sqm 1,520 85 129,200
Foam Insulation
Waterproofing + Rigid
+ Protection
Insulation Boards + sqm 1,520 85 129,200 FRP Panels sqm 1,520 400 608,000
Protection
F.C. Suspension
FRP Panels sqm 1,520 400 608,000 sqm 1,194 100 119,400
System
F.C. Suspension System ton 30 28,000 851,200 F.C. Gypsum
sqm 1,194 100 119,400
Board
F.C. Gypsum Board sqm 1,194 100 119,400 Sub Total 2,181,900
Total (including
Sub Total 5,721,400
15% Contractor's
Total (including 15% 2,509,185
Prelims, Overhead
Contractor's Prelims, 6,579,610
Overhead & Profit)
& Profit)
Planning
¾ What is recommended?
¾ Who has to approve it?
¾ What is the implementation plan?
¾ Are mockups or prototypes required to
verify final decisions?
¾ What are the cost, schedule, and
deliverables?
¾ ROI?
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Action Plan
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Plan for Roadblock
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Reporting
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Follow –up Activity
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Case Studies
Replacing Piles with Footings
Worked Performed:
Replacing 43 piles
with isolated footings
outcome
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Case Study- Resizing &
relocating Water Tank
Worked Performed:
1- Reducing size from 14,384 to 7000 m3
2-Remove 100 piles
3- Minimize depth to avoid excessive
excavation in sandstone layer
4- Relocate WT Under footprint of Bldg
outcome
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Case Study- Lagoon Walls
outcome
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References
Thanks 46