Showing papers on "Value engineering published in 1999"

Quest for value mix

Abstract: This paper reexamines the traditional approaches to study value and quality, and suggests the need of linking these isolated approaches. A new concept called value mix which focuses on the customers’ perception of the value of a product or service in terms of function, quality and price is developed to provide a vehicle for an amalgamation of varied management thinking. Value is suggested to form the core of organisations’ strategic process of pursuing customer satisfaction. Leading edge can be forged by formulating and applying an appropriate value mix. Given that quality is the focus of total quality management (TQM) while value is that of value analysis/value engineering (VA/VE), researchers should explore the opportunity of integrating TQM and VA/VE tools and techniques to enhance product or service value.

Integral value engineering in design

Abstract: Construction industry clients demand certainty in project cost, quality and time. The inability of traditionally composed design teams to consistently deliver this suggests that their expertise is sometimes inadequate. As clients become more dynamic in the next millennium, they are likely to demand greater certainty when construction projects are implemented to support frequent revisions in their short term function. By establishing a collaborative working framework it is proposed that supply chains can be better managed to identify and design out potential problems using integrated, collaborative design processes. This proposal is being investigated by the Integrated Collaborative Design (ICD) research project, a collaboration of AMEC Construction, Loughborough University and eleven supply organisations, supported by the EPSRC and DETR through the IDAC Link programme. Focusing on one component of the ICD project, this paper reviews existing, reactive, value engineering methods and by identifying their inadequacies establishes the need for an integrated approach. A value management context is described which integrates value engineering into continuous design processes. The paper discusses the opportunities for utilising supplier design expertise by modelling design process information flows. It also identifies potential cultural barriers to the use of design processes incorporating integral value engineering techniques and describes the linkage to other ICD components that are addressing these issues.

Value engineering for managing the design process

Abstract: A number of techniques have been investigated (labelling and grouping, categorisation and importance level) to establish usable metrics for the quality management of the design process. The use of importance levels seemed to be the most effective method used with an adaptation of the value engineering technique but with the emphasis on worth rather than value (value being worth over cost). A partial validation of this technique has shown it to be useful in identifying the critical issues so that non‐value‐added processes can be eliminated.

On the subjective valuation of travel time savings

Abstract: The reassignment of time from one activity to another that is more pleasurable has indeed a value for the individual. This subject has been explored for more than thirty years by researchers from many different perspectives, including those with an interest in either the study of the labor market, the analysis of home activities, or the understanding of travel behavior. In this paper a critical synthesis is presented of the economic interpretation of the subjective value of time. In so doing, the theoretical results from what can be called the continuous approach to time assignment are compared with those obtainable from the discrete choice approach that is frequently used in transport demand studies. For this, it is necessary to expand the usual goods-leisure trade off framework in order to encompass all activities. Most important, the role played by the relations between goods consumption and activity time is also taken into account. Among the main analytical results, the continuous and discrete approaches are shown to yield consistent results, and the relation between goods and leisure (the fact that consumption might be limited by the size of uncommitted time) is shown to have a magnifying effect on the subjective value of time. For the covering abstract see ITRD E105584.

APPLYING VALUE ANALYSIS TO A VALUE ENGINEERING PROGRAM Paper for AAHSTO VE Conference 1999

Abstract: The Washington State Department of Transportation (WSDOT) has been performing value engineering studies on transportation projects since 1984. Our fifteen years of experience with value engineering has seen large variations in the success of the value engineering program. The variations of this program make it an ideal target for process improvement. What better way to prove the value of a process than taking that process and applying it to the program that governs it? This paper documents how a simple seven-point value analysis job plan (Investigation, Speculation, Evaluation, Development, Presentation, Implementation, and Audit) was applied to the WSDOT value engineering program. In less than one year, this exercise has helped yield our organization nearly 1.5 times more savings than the total from the entire previous history of the program. It is highly recommended that any organization with a formal value engineering program duplicate this exercise in an effort to achieve similar results within their own program.

Contingent valuation of landscape.

Abstract: Current methods for assessing the impact of road schemes do not incorporate a monetary value to the loss of landscape caused by a new road. The contingent valuation method (CVM) offers the opportunity to derive a value equal to the preservation benefits of alternative schemes which do not adversely affect the landscape. This study identifies the values attached, by those living within the former Newbury District, to the landscape affected by the Newbury bypass. The theoretical basis for CVM is explored and possible sources of bias are identified. The study demonstrates that, with careful survey design and delivery, bias can be minimized. The results of the study indicate that landscape preservation benefits can be significant (eg 8.71-13.74 million in the case of Newbury) and should be considered in the appraisal of scheme options. Evidence is presented to suggest that non-use values comprise an important part of landscape valuation. It is likely that, in the future, with increasing scarcity, environmental goods such as landscape will be valued more highly. This will increase the need to adopt assessment techniques that will improve the economic viability, and competitiveness, of more expensive engineering solutions which preserve the landscape - such as tunnels - in cases where there is an identifiable need for such new infrastructure. It may also lead to fewer but more environmentally friendly new road schemes. (A)

The Bateman approach towards achieving economic and financial requirements for feasibility studies

Abstract: Bateman, like other engineering contractors, carries out or participates in many studies of potential projects in the Minerals Industry. This paper aims to explain the contracting approach to feasibility studies as practiced by Bateman, particularly where this differs from a traditional mining company approach. A brief descriptionption is provided of the usual phases of a project and the types of estimate needed to proceed from one phase to the next. Possible organizational structures involving different forms of association between owner, contractor and consultants are then outlined. The bulk of the paper then demonstrates that the cost estimates prepared stem directly from the mining plan, metallurgical process design and engineering design philosophy. The steps to be followed in order to prepare a credible estimate which accurately reflects the design constraints are descriptionbed. The importance and the methodology of carrying out value engineering and of preparing contingency estimates based on a thorough risk analysis exercise are then discussed. Financial modelling techniques are descriptionbed briefly. The paper concludes with short summary case studies of two recent investigations of potential projects in Africa.

MODEL BASED CONSTRUCTION PROCESS MANAGEMENT Model based construction process management

Abstract: The purpose of this research was to study how the data management of a main contractor can be improved, in order to provide better client value and more costefficient production. The research focused on methods for reengineering the information management using product modelling as an enabling technology. The methods were tested in pilot tests in which the developed cost and value engineering prototype application was used. This paper demonstrates an integration of design and production planning based on the product model approach. The final outcome is that the main contractor can utilise information coming from designers as input in its own tendering and cost estimation applications. The key methodology used for describing the information management process throughout the building process life-cycle was IDEF0. The analysis of the current process (as-is), in the form of an IDEF0 model, helped in identifying the main problems of current practice. The target process (to-be) definition was based on product model utilisation and takes into account the possibilities for process reengineering supported by product data technology. One specific requirement was deemed important in view of the anticipated developments in the area of data exchange; the target system should be structured in such a way that it could easily be adapted to receive data according to the emerging Industry Foundation class (IFC) core model schemas. The overall result of the research reported in this paper is that the product model approach can be used for a substantially reengineered information management process of a main contractor, especially in design and constructdesign/build type contracts.

Implementation of Earned Value Management Into The Software Acquisition Process

Abstract: : The objective of this study was to determine the usefulness of Earned Value Management as a program management tool for the Department of Defense acquisition community In making this determination, the study sought to uncover information about Earned Value Management from the contractor's perspective as well as the government administrator's perspective It also sought to determine the usefulness of Earned Value Management during the different phases of the software acquisition process The study utilized a structured questionnaire to acquire the data necessary for analysis This data was analyzed to compare perceptions of the government and contractor communities in regard to the use of Earned Value Management as a program management tool It also compared perceptions in regard to using Earned Value Management during different stages of the software program life cycle

Valuation of the human cost factor of traffic accidents

Abstract: This report studies the methods for valuing human welfare costs of accidents and describes the best method according to the welfare theory of economics. The report describes the present valuation method used in Finland and proposes it to be replaced by the willingness-to-pay method. The policy implications of this operation are assessed. The report also examines risk behaviour generally and provides a description of methods used for assessing welfare changes in the health sector. Valuation experiments and transport safety appraisals are illustrated by examples. The value of a statistical life or a state of health can be can be derived indirectly from market values, e.g. from risk wages, safety products or material production and consumption, or by examining individual subjective risk preferences and people's willingness to make economic sacrifices. According to welfare theory, the latter approach is recommended. In assessing the welfare impact of traffic safety, one examines the marginal rate of substitution between income or wealth and the level of risk exposure. Valuation of accident cost serves first and foremost public resource allocation. When scarce resources are allocated, it is useful to know where they improve well-being best. Accident costs are also used for estimating the social costs of transport, and also pricing transport. the current method used in Finland, and so called social willingness-to-pay, should be replaced by the individual willingness-to-pay method. The former does not measure individual preferences or changes in risk as theory would imply. The willingness-to-pay method has been found to be the best known method for measuring subjective risk values. Also it is in use in several countries and the methodology for estimating the values exist.

Success factors in process based mass customization/value engineering projects : a case study

Abstract: Mass Customization (MC) has been a relatively recent phenomenon, introduced in Management circles as a new frontier in business competition for both manufacturing and service industries. Value engineering (VE), on the other hand has been around since as early as World War II, and has established itself as a powerful tool for cost reduction as well as for product and service improvements. The focus of this thesis is to study the success of implementing these two initiatives together, specifically related to their employment at a leading specialty chemical company in Northeastern USA. MCNE projects are playing an impbrtan~ role in helping this company to lower its costs and , shorten delivery times for its diverse system offerings. What are the parameters of success of an MCNE project, i.e. what are some of the conditions that foster a positive result in them? More importantly, what are the measures of success of an MCNE undertaking? What underlying organizational, logistical, and "human" issues does management need to be aware of before applying MCNE techniques? How can the Company ensure success in future MCNE efforts? These are some of the questions tackled in this paper. The author has researched these projects as they have been executed in the organization's Electronics Engineering , Division. Informa!ion related to the MCNE projects, as employed in the improvement of the design and manufacturability of three of the Division's product lines, has been gathered via surveys, interviews, and company records, in order to try and test the propositions put forward by the author. The results of this study indicate that the organization's MCNE projects are indeed successful, as defined by the researcher..The researcher has identified two .,,;.....~,:-' ..

A trial on comprehensive value judgment of industrial product

Abstract: The author proposes to evaluate values of industrial products comprehensively by life cycle value (LCV). LCV consists of the market value of the traditional meaning, "global value" to be given to the efforts to reduce environmental loads, and "social value" to be given to the social incentives to the environmental efforts. The author describes the three values in product specifications with the same weight on each value and presents them to customers as criteria of their selection. As for the product designs, the author proposes to exercise life cycle value engineering (LCVE), broadening value engineering (VE). LCVE intends to achieve the improvement of the "global value" of the product as well as the cost reduction of each unit function.