Showing papers on "Value engineering published in 2003"

Value-based software engineering: a case study

Abstract: The information technology field's accelerating rate of change makes feedback control essential for organizations to sense, evaluate, and adapt to changing value propositions in their competitive marketplace. Although traditional project feedback control mechanisms can manage the development efficiency of stable projects in well-established value situations, they do little to address the project's actual value, and can lead to wasteful misuse of an organization's scarce resources. The value-based approach to software development integrates value considerations into current and emerging software engineering principles and practices, while developing an overall framework in which these techniques compatibly reinforce each other.

Critical Success Factors for Value Management Studies in Construction

Abstract: Value management (VM) studies often face pressure caused by limited time and resources. The identification of key factors for value management success enables appropriate allocation of the limited time and resources in order to achieve better output. Most of the related past work only identified critical success factors for value management studies in general. This paper seeks to distinguish these factors according to their degrees of importance in relation to success. A questionnaire survey was conducted to gather views from experts with experience in value management practice. The findings of the survey reveal the relative importance of the nominated success factors. Two factors that had not been highlighted by previous research are identified as having a significant influence on the success of VM studies. In order to explore the underlying construction among the identified critical success factors (CSFs), factor analysis was adopted to investigate the cluster of the relationship. The results indicate that the success of VM studies requires a combined effort from all parties involved.

Estimating the cost of extremely large telescopes

Abstract: For future giant telescopes, control of construction and operation costs will be the key factor in their success. The best way to accomplish this cost control, while maximizing the performance of the telescope, will be through design-to-cost methods that use value engineering techniques to develop the most cost-effective design in terms of performance per dollar. This will require quantifiable measures of performance and cost, including: (1) a way of quantifying science value with scientific merit functions; (2) a way of predicting telescope performance in the presence of real-world disturbances by means of integrated modeling; and (3) a way of predicting the cost of multiple design configurations. Design-to-cost methods should be applied as early as possible in the project, since the majority of the life-cycle costs for the observatory will be locked in by choices made during the conceptual design phase. However, there is a dilemma: how can costs be accurately estimated for systems that have not yet been designed? This paper discusses cost estimating methods and describes their application to estimating the cost of ELTs, showing that the best method to use during the conceptual design phase is parametric cost estimating. Examples of parametric estimating techniques are described, based on experience gained from instrument development programs at NOAO. We then describe efforts underway to collect historical cost information and develop cost estimating relationships in preparation for the conceptual design phase of the Giant Segmented Mirror Telescope.

Addressing the subjective view of value delivery

Abstract: The construction industry has a limited understanding of its role in creating and delivering customer value. Existing responses to requests for value delivery focus on Value Management and Value Engineering. These approaches do not necessarily consider the subjective nature of the value judgements made by individuals as they experience their built environment. This paper suggests that designers and stakeholders should address the personal, organisational and societies values against which value judgements are formed. A continuous dialogue of value delivery is proposed. The Managing Value Delivery in Design project at Loughborough University is seeking to help both designers and stakeholders express and communicate their values so that subjective value judgements can be anticipated in design development. A “Framework of Value” is presented to illustrate the issues that value delivery should address. The Framework has been synthesised from review of literature and current industrial practice and has been validated by industrial partners. The future work required to broaden the construction industry’s approach to value delivery is outlined.

Predicting the Residual Value of Heavy Construction Equipment

Abstract: Heavy construction equipment is routinely used on construction projects that entail earthmoving operations. Owning and operating these machines may comprise a significant portion of the project costs. An important element of the owning costs is the residual value. However, the nature of the residual value of construction equipment is largely unknown. Ongoing research at Virginia Tech examines the residual value of different types of construction equipment to provide a better approach than the rules of thumb currently used by equipment managers. This paper argues that the residual value can be predicted accurately based on publicly accessible data from equipment auctions and publications by manufacturers and their distributors. Related research in agriculture and forestry is reviewed. Data collection and preparation and results from the multi-linear regression analysis are described. Statistical measures of the goodness-of-fit for different possible functional forms of the regression model are given and a sample calculation is presented.

Assessment method of value distribution for product family deployment

Abstract: This paper proposes an assessment method for value distribution across a series of products within a product family. The maturation of society makes the life styles of individuals diverse. Such change demands the manufacturing firms the distributed integrity of a family of products from simple models to luxurious ones. The method aims to facilitate the establishment of product definitions over a product family. In the method, first the variety of customer’s requirements is translated into a chained definition of required worth of respective modules and parts across products through value engineering techniques and quality function deployment, which are based on categorization of customer attributes, the standardized patterns of their distribution and switching mechanism in value propagation. Second the manufacturing cost is estimated on respective modules and parts across products through systematic utilization of design-for-X methodologies, in which the scale and cost of functional modules are assumed using the similarity laws of physical systems. Then the absolute levels of both worth and cost of all modules over different products are contrasted over the cost-worth graph. Tendency of their balances and expansion patterns reveals the controversial points of a chained product definition of a product family. The method is applied to the design analysis of three refrigerators with different capacities.

Practical Application of Life-Cycle Cost Effective Design and Rehabilitation of Civil Infrastructures

Abstract: The demand on the practical application of life-cycle cost effectiveness for design and rehabilitation of civil infrastructure is rapidly growing in civil engineering practice. In the 21st century it is almost obvious that life-cycle costs together with value engineering will become a new paradigm for all engineering decision problems in practice. However, in spite of impressive progress in the research on LLC, most of the research has focused on the theoretical point and has not fully incorporated the critical issues for the practical implementation. This paper intended to suggest a systematic integrated approach to the practical application of various LLC methodologies for the design and rehabilitation of civil infrastructure.

Environmental Value Engineering: An Environmental Life Cycle Assessment Methodology For Comparing Built Environment Alternatives

Abstract: Engineering education should prepare graduates to properly consider the environmental impact of their decisions toward sustainable development. Built environment alternatives compete for inputs of environment, fuel energy, goods, and human services (labor). Current assessment methodologies for comparing built environment alternatives only consider money related to labor or embodied energy in terms of fuel energy. Environmental life cycle assessment methodologies are being developed that consider all inputs and related environmental impacts.

Photovoltaics as a distributed resource - making the value connection

Abstract: Photovoltaics, the modular, versatile, market-ready distributed generator, is gaining share in the electric service market. The grid-connected distributed resource (DR) application is the fastest growing market for photovoltaics (PV). PV may be the ultimate distributed resource (DR) due to its modularity, resource availability and independence on fossil fuel. As a distributed resource, PV attributes include the usual values of being near the load, and offsetting generation, distribution, and transmission losses and capacity requirements. PV-DR also has unique values of modularity, independence on fossil fuel price volatility, no environmental emissions or noise, and a generation profile caused by the same resource as the system load peaks. However, these tangible values are often spread out several stakeholders and it is difficult for the PV system investor to collect the full value potential for the investment. This paper presents the PV value analysis using PV value matrix that focused on both individual value attributes and stakeholder perspective.

Design/Build In Transportation From the Research Perspective

Abstract: Design/build project delivery is an emerging methodology in the transportation industry, and its successful adoption will necessitate a transfer of lessons learned from those agencies with experience to those that are about to try it for the first time. The research community is seen an excellent catalyst for capturing data regarding design/build projects, appropriately analyzing those data, and distilling them into useful information of value to the industry as a whole. It is noted that the potential for cost savings through design/build is less on transportation projects than on construction projects, but the potential for time savings appears to be greater. Research on topics of immediate use to the transportation industry is seen as vital to the successful implementation of this project delivery system. There is a pressing need for reliable project performance metrics and a matrix of project characteristics that will make it possible to determine which projects are the best candidates for design/build.

Survey on the evaluation methods of design schemes in a complicated engineering system

Abstract: The engineering background of this paper is the layout optimization design problem of an aircraft cabin. So several practical layout optimization algorithms have been developed, from which a variety of design schemes with different layout performances are got. Aircraft cabin is a complicated engineering system. At the stage of conceptual design, whether a correct and objective evaluation can be made on these design schemes will ultimately decide a good or bad system performance, even its success or failure. Therefore, evaluation of design schemes is a very important task. Based on these considerations, the theories and characteristics of some evaluation methods in common use at home and abroad are studied. These evaluation methods include analytic hierarchy process, fuzzy decision, gray system theory, matter-element analysis, cluster analysis, value engineering, neural network and synthetical evaluation methods. For each method, some engineering application examples are briefly introduced. At last, some problems that are yet to be studied are presented.

Risk management of earthworks using geoq

Abstract: This paper describes how large budget overruns within infrastructure projects seems to have become common practice over the last decades. In the Netherlands and also world-wide these overruns of public funds have become less and less acceptable. Within the construction industry awareness grows that failure costs have to be decreased significantly. Studies to assess failure costs conclude with figures of 4 to 9 billion Euro annually for a small country as the Netherlands only. Approximately 50% of these failure costs are directly or indirectly related to sub-surface conditions. The question was raised whether one should speak of a crises of the underground or of a managed risk. In answer to this question, GeoDelft has developed a general approach named GeoQ to deal with sub-surface risks and thus control total project costs. Very often, cost overruns during the construction of some large infrastructure project can be back traced to little or no attention for subsurface related risks in the early plan or design phase of the project. To enable a fair discussion on subsurface related risks in every phase of the project, the GeoQ approach strives to bring transparency in the many implicit decisions taken in a project. The first cornerstone of the GeoQ approach is a cyclic, risk based approach of design, and construction in every phase of a project. The second cornerstone is to mobilize all relevant information and knowledge to enable continuity of information between the various project phases. This will lead to an improvement of the total quality of the project and a related strong decrease of unexpected cost. Stimulated by a new, experimental contractual relation between client and contractor, construction of the Sliedrecht-Gorinchem section of the Betuweroute freight railway demonstrates that awareness of subsurface risk enables value engineering resulting in significant optimizations. In this project the GeoQ approach, supported with some state-of-the-art design and monitoring tools, formed the basis for savings up to 10 % of the total project costs (e.g. 20 million Euro). This success was realized within a very tight contractual time frame, in an area known for its extremely soft soil conditions.

Safety as a value in engineering and construction

Abstract: The author explores the foundations of the values one embraces as an adult and discusses safety as such a value.

Analysis on Proportion of Effectiveness and Life Cycle Cost of Weapon Equipment

Abstract: In this paper, Value Engineering (VE) method is applied to analyze weapon equipment It can be also called proportion of effectiveness and life cycle cost as value According to American Dupuy's opinion, we can convert effectiveness of weapon equipment into "Combat Effectiveness Value" (OLI), calculate life cycle cost of weapon equipment and contrast them Thus, optimal combination of effectiveness and life cycle cost is obtained At the same time, quantitative analysis method of choosing weapon equipment system is put forward These are significant and offer some guidance and references for improving national defense economic benefit of our country

Research on analysis and application of consumer value

Abstract: From the angles of the marketing, the consumer value is fully expounded and a conclusion has been made that though the concept which Total Consumer Value is made up of several factors, the detailed description and evaluation for it is actually unpracticable. As a solution, a new method is suggested that the consumer's perceived interests is analyzed by the way of value engineering which has been proved to be superior to the way of Total Consumer Value in its decomposable and quantifiable degree. The consumer value chart is also made which can clearly and conviently show both the product and the enterprise's orientation and the changes of them.

The systematic evaluation of different approaches in modelling functions to achieve cost-oriented design of engineering products

Abstract: To achieve success-oriented design, one must be able to compare cost and benefit for the whole product and for individual product elements. The role played by function modelling will be of great importance to this comparison. Only in respect of the functions of the product can the cost and benefit be represented simultaneously and thus render direct comparisons possible. A number of approaches to assist in the modelling of product functions are described in the literature on value analysis and design method. This paper assembles these approaches into a systematic scheme, examining how (and whether) they can support successoriented design. A rough evaluation of the various approaches is first made, and those which prove suitable are put to exemplary use on a transformer. Then a fine evaluation, which includes a score model, provides more detail on the evaluation scheme, so that the approaches investigated can be given a rank order.

Implementing the Service Concept through Value Engineering.

Abstract: As products have become commoditised and technology knowledge made available to all, the possession of customers has become crucially dependent on the service content of what is delivered. Initially service was seen as an add-on aspect of business and to be highly personalised to customers and employees alike. But the significance of service to justify price, to support brand, to enrich the product, even to learn about the customer, means that the service concept and the service delivery must be managed even if such management is much less well defined than physical product and process management. This paper sets out to establish the possibility of designing both the content of service value and the service system which is needed to provide it. Following the analysis of service itself, the paper identifies the tools needed to engineer the service system to inspect it and position it within the commercial scheme. The McDonald’s operation and others will be used to illustrate the concepts and their application. The principle of effective design and evaluation will be stated and defended as the fundamental means of achieving the value of service to both clients and the providing company. The conditions for successful adoption of the principles will be identified.