Showing papers on "Value engineering published in 2007"

Value Engineering: Analysis And Methodology

Abstract: Part I Value methodology (introduction) - managing value objectives using the value methodology: discovering the certification process cost overrun trends meeting project objectives users of managing value objectives value objectives methodology improving value value project analysis criteria prestudy work plan the job plan team makeup A live MVO study MVO study examples phase 1 - information gathering procedures phase 2 - creative brainstorming people skills during MVO study makingeffective presentations managing conflicts phase 3 - evaluation techniques phase 4 - development of best ideas presenting and reporting findings getting best results future followup/implementation blank sample study format exam midterm. Part IIadvanced-team leader training techniques: managing project objectives letting the job plan work tips project analysis creativity process types of functions problem solvers adding value value mismatch managing time financial breakdown contracting methods/decisions life cycle cost components cost and worth per function financially important decisions team building skills function analysis alternative ideas evaluating best alternatives presentations for management MVO programmeenhancements technical problem solving breaking problem down customer focus leading a session discussion groups overall component analysis specific component analysis summarizing study results exam review.

Integrating Value Analysis and Quality Function Deployment for Evaluating Design Alternatives

Abstract: This paper presents a hybrid framework that integrates value analysis and decision making for eliciting and evaluating design alternatives. Value analysis approach relies on the integration of the functional analysis through the systematic use of the functional analysis system technique and quality function deployment. This value analysis methodology enables customer requirements to be linked to specific design alternatives during the project design stage. The degree of project complexity will affect the number of design alternatives to be evaluated. As such, the data envelopment analysis (DEA) is incorporated as a decision support tool to evaluate the degree to which each design alternative satisfies the customer requirements. DEA is used to calculate a customer requirement efficiency index for each alternative. This index is a measure of how well a particular alternative achieves the requirements taking into account its overall cost. The framework was successfully used on a high-tech research facility construction project.

Avoiding Change Orders in Public School Construction

Abstract: Increased student enrollment and the current poor state of the educational infrastructure require the construction of more school buildings and the renovation of many of the existing ones. The large number and magnitude of change orders in these projects constitute an impediment to the rapid and economic delivery of these projects. A total of 6,585 change orders filed in a school district’s projects in the 5 1/2 year period from 1999 to 2004 were analyzed in five categories including owner-directed changes, code compliance issues, errors/omissions in contract documents, discovered or changed conditions, and others. The results of the study indicate that the dollar value of change orders relative to the original contract can be reduced if preventive measures are taken. These measures include choosing the right construction management firm, emphasizing the definition of project scope early in the project, and effectively managing the precontract activities by conducting value engineering and constructabilit...

Impacts of value engineering on five Capital Arts projects

Abstract: More than £1 billion of public funding has been spent by the Arts Council of England (ACE) Lottery Fund on capital projects for the Arts. Many of these projects were completed late and over budget. Results from the incremental cross-case analysis of five contemporary Capital Arts projects are discussed to explore the potential for a more reliable delivery of Arts clients' ‘visions’. The findings revealed continuous conflict arising out of the application of strictly linear project management, reinforced by the sequencing of funders' awards to match the industry's custom and practice work stages. Contemporary ‘re-engineered construction’ presents value engineering as an important tool for managing financial out-turn. The impact of ‘traditional’ value engineering on the design and delivery of the case study ‘visions’ is investigated. Stakeholders' behaviours in managing value are compared with the industry's idealized models of cost control and client behaviour. The conclusions drawn indicate the necessity ...

The value of transport information

Abstract: Information value has been mostly discussed in business and information economics. Now, due to the fast development of communication technologies, a new interesting field of research has emerged, transport telematics. The objectives of this research were to identify the attributes affecting the value of transport information, and to specify the valuation methods applied. This study also includes discussion on three case studies concerning transport telematics. A further objective was to identify the relevant information attributes and the feasible assessment methods for each case. The study was carried out at VTT Technical Research Centre of Finland with co-funding from Tekes, the Finnish Funding Agency for Technology and Innovation. The first part of the study, a literature survey resulted in a general framework for information value assessment. This framework can be used when evaluating various transport information to analyse which information characteristics need to be taken into account, and which assessment methods should be applied. This framework can be presented in two tables, where the first one identifies the information quality attributes, and the second one attaches these to the appropriate value assessment methods in each case. The second part of the study deepens the first part by applying the general framework to real-life information by studying three transport information service cases on the basis of available data. In each case, the relevant information value characteristics are identified and the appropriate assessment methods specified. The case studies proved that the evaluation framework was useful for evaluating information value. The evaluation framework was created from the perspective of transport information. Hence, it is most suitable for evaluating the value of information provided by the transport service sector. In addition to the theoretical valuation of information, this framework can, however, be used as a basis for deeper and more detailed investigation, and also in research more empirical than the cases studied here. It is also likely, that the framework could be applied to other kinds of information, but in this case the valuator needs to carefully adapt the framework to suit the type of information in question. This report may be found at http://www.vtt.fi/inf/pdf/tiedotteet/2007/T2394.pdf

What is a life worth?: methodological issues in estimating the value of a statistical life

Abstract: This thesis addresses methodological issues in estimating the value of a statistical life (VSL). Two main approaches have been used to estimate the VSL, the indirect and direct methods; the indirec ...

Context-Sensitive Solutions, Value Engineering, and Asset Management: Creating and Maintaining Value, Improving Accountability, and Reaching for Sustainability

Abstract: Context-sensitive solutions, value engineering or value analysis, and asset management systems are all strategic processes or systems with common objectives, even if they have different emphases. All place a high value on customer satisfaction, stakeholder values, and the delivery or maintenance of safe facilities. All stress the efficient and effective use of resources and the alignment of investments to produce the best outcomes or the most quality for the money. All are open to a broad interpretation of the word "best," but they are challenged by the measurement of performance in areas that are more difficult to quantify. They share an emphasis on transparency, multidisciplinary teams and perspectives, and analytical, evidence-based decision making. They use processes that examine multiple alternatives to finding consensus on ultimate decisions. Especially when they are used together or in tandem, these tools and systems can be used as part of strategic and systematic approaches that have a significant...

Integrating Value Engineering and Context-Sensitive Solutions: The St. Clair Avenue West Transit Improvements Project

Abstract: The designers of transportation infrastructures are increasingly using the term "context-sensitive design" (CSD) or the broader term "context-sensitive solutions" (CSSs) to refer to a design process that strives to be more cognizant of its surrounding environment. Transportation infrastructures, especially in urban environments, are part of a much larger urban ecology that consists of a complex set of natural and human-made systems. As such, design guidelines that solely address engineering and safety considerations have proved themselves incapable of delivering street designs that respond to the functional requirements of the multitude of stakeholders within urban environments. Analysis of these requirements is a necessary first step for any successful CSD-CSS. In this regard, value engineering has been identified as a successful tool for product functional analysis. Several phases of value engineering overlap with the guiding principles of CSD-CSS. As such, this paper presents a value engineering framew...

Proposal of a Measuring Method of Customer’s Attention and Satisfaction on Services

Abstract: Now a day, with the emerging growth of the service industry, manufacturing companies are convinced that their products must be strengthened with service. Thus, we have developed a new discipline called Service Engineering that aims to produce a novel method to design service from an engineering viewpoint. In this paper, the authors propose an evaluation model that enables service designers to measure receivers’ satisfaction. The authors proposed the “Satisfaction — Attribute Value Function” as an evaluation model that suits man’s behavior. Applying to an example, the result of our method had richer information than the result of conjoint analysis.

Research on Supply Chain Information Classification Based on Information Value and Information Sensitivity

Abstract: Information plays a very important role in supply chain management. Through effective information management, the operational efficiency and competitiveness of supply chain can be improved. Classifying information reasonably can improve information management, maximize the role of information, and reduce the difficulty and cost of information management. This article, on the basis of the in-depth analysis of the major factors influencing information value and information sensitivity, has built a V-S Axis Information Classification Model based on information value and information sensitivity. This model includes the value engineering model for evaluating information value and the grey clustering model for evaluating information sensitivity. It can perform quantitative analysis to supply chain information. In addition, the article has also provided examples of algorism for the above-mentioned models.

Performance Appraisal on Supply Chain Based on Value Engineering and Multistage Fuzzy Comprehensive Evaluation

Abstract: As a new management model, supply chain is an effective way that the enterprise can obtain a competitive advantage and improve economic benefit. Performance evaluation of supply chain plays an increasingly important role as a comprehensive feedback control activity in the business management. So, how to evaluate the performance of supply chain has become the hot research topic in the supply chain enterprise. In this paper, Value Engineering (VE) is introduced, on which basis new index systems of performance evaluation of supply chain are worked out, and then AHP-multistage fuzzy comprehensive appraisal method is adopted to analyze them, in order to offer the basis for evaluating the supply chain and improving its management level.

Bridge Asset Valuation and the Role of the Bridge Management System

Abstract: Today, most if not all transportation agencies or Departments of Transportation (DOT) are moving towards implementing asset management systems or components of asset management systems. Asset management systems for bridges generally answer fundamental questions about ownership, location, and condition, and most also address the cost of preservation and improvement needs, as well as the forecasting of future performance. But so far there are few tools to estimate the economic value of bridge assets and the effect of agency policy on this valuation. This question has become especially important to many agencies in response to the US Government Accounting Standards Board's Statement 34 (GASB 34), and it is also a useful performance measure for management decision support. In this paper, methods to determine the asset valuation of structural assets are discussed, and means to carry out these calculations are shown which can be implemented in a bridge management system. Different GASB 34 compliant methods are shown which can be used depending on the agency preference. For the covering abstract of this conference see ITRD number E

Strategies of Developing Deep Ocean Water Industry - Cluster and Value Network Views

Abstract: Deep ocean water is a special resource which has been emphasized by the government in recent years. This resource is clean, low temperature, nutritious, and is stable which makes it useful in a wide range of applications such as tourism, agriculture, fishery, energy and culture. This paper focuses on the cases study of Japan and U.S. and experts' opinion to offer some conclusions. This paper proposes four suggestions for policies, based on the cluster and value network views: 1. respect international connections of a value network; 2. foster human resources and research teams; 3. integrate the local economy and sustainable development; 4. create job opportunities across industries.

The Use of Value Engineering in the Evaluation and Selection of Digitization Projects

Abstract: Objective - The authors describe a simple and effective tool for selecting digitization projects from competing alternatives, providing decision makers with objective, quantitative data. Methods - The paper adopts the value engineering methodology for the selection, evaluation and ranking of digitization project proposals. Project selection steps are described. Selection criteria are developed. Digitization costs are presented as an equation. Project value is determined by calculating projected performance of digital collections based on the established criteria over cost. Results - Scenarios are presented that evaluate and rank projects based on an evaluation of performance criteria and cost. The communication and use of rating criteria provides selectors with information about how proposed collections are evaluated. The transparency of the process output is easily communicated to stakeholders. Conclusions - Value engineering methodology provides a tool and a process that gives decision makers a set of objective, quantitative data upon which selection of digitization projects is based. This approach simplifies the selection process, and creates transparency so that all stakeholders are able to see why a decision was made.

Target Costing as an Effective Tool for Retail Pricing: An Exploratory Research

Abstract: Retail Pricing is a key issue of concern to Retailers. In order to sustain the existing market share and to face the new emerging challenges, which is inevitable. This paper tries to find out the effectiveness of Target Pricing Techniques in the arena of Indian Retail Industry. An attempt is made to work backwards from traditional cost plus method of pricing to Target Pricing Technique. This paper is based on what the customer is willing to pay on his perceived product attributes. An attempt is made to study the cost structure by the process of Value Engineering and a model is suggested to work upon minimising or eliminating the non value added costs in the overall Retail Pricing System.

Reconsidering value engineering : The rhode island school of design library project

Abstract: The recent addition of critical library space at the Rhode Island School of Design afforded the opportunity to firmly establish the importance of value engineering in assisting the architect and the owner in significantly improving a facility's function, in fully respecting budget constraints, and in effecting a library structure of the highest quality.

Constructability innovation in piperack design for refinery project

Abstract: Increased competitiveness in the construction industry requires the improvement of a construction company’s capabilities to combine quality with economic and schedule aspects Many studies and procedures in quality improvement focus on project quality improvement techniques and efficiency such as total quality management, value engineering, designability, contractability, constructability, operability, maintainability and other quality improvement techniques This research focuses on constructability, which is the optimum use of construction knowledge and experience in planning, engineering, procurement and field operation to achieve overall project objectives A case study was performed at an Indonesian refinery project, which applied the design and build type of contract The case study aims to discuss and analyse the implementation of constructability innovation in the planning and design stage of the refinery project, focusing on optimization and improvement of pipe rack structure The case study shows that the implementation of constructability during the planning and design stage increased the project performance and reduced the project cost

Urban rail investments and property value gains in Athens: a case for alternative funding sources

Abstract: In many local contexts there exists evidence that urban rail investments induce around stations distinct property value gains. The main aim of the paper is to investigate the existence and magnitude of such premiums in the case of the new Athens LRT system, operating since the 2004 Summer Olympics and covering the southern suburbs of the agglomeration. The focus is on the city line section connecting the coast with the city centre. The market segmentation refers to residential as well as commercial properties. The comparison pertains to the 1.5-year periods before and after the LRT opening. The pooled data comprise 719 real asked prices for sale of properties close to LRT stops. Note that for tax evasion reasons, the nominal contractual prices seriously underestimate the market prices achieved by successful transactions. Offers are adjusted to consider the mean 2003-to-2005 property price changes in the southern suburbs due to factors other than rail accessibility. Note that in Athens, owners dominate the occupation of residential properties to 79% and of commercial ones to 53%. Several specifications of a price gradient have been tested as functions of the proximity to the nearest LRT stop. The chosen decay function predicts for residential properties an 8% premium within 250m from a LRT stop and a 2% premium within the range of 250 to 500m. Commercial properties display a 13% premium and a 1% discount respectively. Aggregated property value gains have been compared with model-estimated travel time savings from/to the 250m zone, the latter capitalised with the Value-of-Time figures of the multi-modal Metro Development Study conducted by ATTIKO METRO. The resulting positive difference may be ascribed to wider benefits beyond the direct accessibility savings.The paper examines further new ways of funding an LRT extension to Piraeus and the western suburbs through the conversion of property value gains into additional revenue generating opportunities. Revenue mechanisms based on land value gains are investigated in depth. Value recapture taxes applied on beneficiaries of public investments in urban rail infrastructure internalize some of the external benefits to private parties. A fair surplus portion corresponding to the unique contribution of the rail investment on the property value is suggested, given a mix of tax instruments. The allocation problem of an efficient taxation of relevant stakeholders is introduced. The instruments considered refer to (a) location benefit taxes paid on a recurring basis by property owners within 250m of LRT stops. It is calculated as a percentage increase on property ownership tax and is justifiable in terms of improved accessibility to employment or shopping opportunities, (b) business taxes paid on a recurring basis by larger commercial occupiers of properties within 250 m of LRT stops. It is calculated as an increment on business income tax and is defendable in view of an improved accessibility for employees, customers and visitors, (c) planning gains as one-off charge paid by property owners or developers in case of a hand-over or of granting planning permissions around LRT stops. A scaled fee is set in relation to the value of the transaction or of the project to be developed. The methodology and the results are considered to be of wider interest for planning agencies, transit authorities and policy makers. For the covering abstract see ITRD E137145.

Option and non-use values and rail project appraisal

Abstract: Option and non-use values have received a significant amount of attentionin the field of environmental economics, but to date their application within the transport economics field, and transport appraisal in particular,has been scarce. In fact to date we are unaware of a transport appraisal that included monetised option and non-use values. Advocates of public transport argue that this exclusion biases the appraisal process against public transport provision whether that is introducing evening bus services oropening or closing a rail line. The purpose of this paper therefore is toreview the role of option and non-use values in rail project appraisal, review international evidence on their scale and through the use of case studies identify the impact that option and non-use values may have on a schemes appraisal as well as to set out the difficulties associated with including them within an appraisal. Finally, future research needs are identified. Option and non-use values exist because under certain conditions the value individuals and businesses place upon the availability of a transport service exceeds the benefit that they expect to receive from using it. Option values reflect the additional amount people may be willing to pay toreduce the risk that there is no service available when they need it. Theservice may hold a stand-by value for when their main mode of transport is suddenly unavailable or if they were forced to seek work in a nearby town or city, to which they cannot easily commute by another mode. Economic theory indicates that option values are always additional to the economic benefits included in a cost benefit analysis. Individuals may hold non-use values for a number of reasons - the benefit of other people using the service to visit them, reduced congestion and environmental costs, increased house prices. Non-use values may - depending on the motive giving rise to the value double count elements of benefit already included in the appraisal. Indirect evidence for the existence of such values may be given by a willingness of people to vote for local taxes for the provision of public transport, or to pay more for housing close to public transport, if these values exceed expected use values. Direct evidence on option and non use values is restricted to six exploratory studies, five in Europe and one in the US. These studies identify a very substantial range of values from US$56 to 190 per household per annum. However, once the studies are adjusted to a common price base the range narrows. Additionally, the range can be qualitatively rationalised in terms of mode of transport, transport quality,whether the values represent household or individual valuations and whether the values are incremental values against other services or are absolute values. The different studies therefore give each other a degree of qualified support and lend some confidence in determining the likely range in which option and non-use values lie. Three case studies of changes in local rail services in the UK and the Netherlands will be presented. The case studies clearly identify the necessary assumptions regarding population affected, incremental values between different packages of public transport and treatment of growth over time. The contribution of option and non-use values to the present value of benefits over the lifetime of the project is very sensitive to these assumptions and also to the split between optionand non-use values. The main contribution of the case studies, however, is to illustrate the relevance of including option and non-use values in practical appraisal, including the types of schemes for which they form a significant element of the benefits/costs. For the covering abstract see ITRD E137145.

Application study of complex value engineering in optimization of expressway tunnel construction

Abstract: Based on complex value engineering(CVE) theory and methods,the optimization methods on expressway tunnel construction and its CVE application model are firstly analyzed.Then the functions and costs and their relations are discussed.Thirdly,a case,the Kuigang tunnel of Meizhou—Heyuan expressway is systemically analyzed.Through applicationt,he construction period is drastically shortened,and its cost is reduced while keeping its construction quality.

Service Innovation and Value Chain Re-Engineering in Manufacturing Firms

Abstract: Service has become an important value-created and competitive instrument in manufacturing industries under the background of knowledge-economy and globalization of economics. It is manufacturers and their customers together in the interactive value-creating processes who create the service value, not manufacturers themselves in their factories. Contrarily to traditional manufacture stream, service value creation processes start with customers' satisfaction and their willing-to-paid value and trace back to arrange or organize the value activities again. In this paper, we delineate customers' value structure and manufacturers' service value activities, and then we discuss how the current manufacture value chain structures affect service value- creating processes. In order to capturing more service profit, manufactures must redesign their service value chain. It is composed of relative basic and auxiliary activities that interact and form a circle close chain. The most important tache in the transformation from traditional manufacture managing patterns to service management patterns is the joint of push and pull, which also is the connection of two different orientations activities. Manufacturing firms must link series of inside value activities into an organic integrated body and aim for servicizing. Finally, we set an example of service innovation and value stream re- engineering in a manufacturer of power generating equipment in China and expatiate how they create and appropriate serve value in the new value structure.

Research on investment decision for extension projects based on value project

Abstract: At present,the extensive management pattern of Chinese enterprises is being substituted by the intensive management pattern and the enterprise's production structure must be optimized and promoted so as to avoid being eliminated by the market.Therefore,the implementation of extension projects is an important approach for enterprises to carry out the technological transformation and enhance the economic benefit.In terms of the value engineering,this article establishes the investment decision-making model of extension projects based on the value engineering and analyzes the investment decision-making problems of extension projects in combination with AHP and fuzzy comprehensive evaluation method.The result indicated: the investment decision-making method based on the value engineering can more comprehensively and objectively reflect the economic effect of the extension projects,and can provide decision-making basis for extension projects.

Application of Value Engineering in Packaging Optimum Design

Abstract: Based the basic idea of packaging value engineering,the relationship among packaging product value,the function,and the cost was explained.It was put forward that applying value engineering in packaging optimum design was an effective way to enhance the packaging function,reduce the packaging cost,and realize maximal economic efficiency.The application of value engineering theory in the packaging optimum design was introduced by taking the wooden packaging optimum design as an example,and according to the value engineering working routine.

First Person: Reconsidering Value Engineering: The Rhode Island School of Design Library Project

Abstract: The recent addition of critical library space at the Rhode Island School of Design afforded the opportunity to firmly establish the importance of value engineering in assisting the architect and the owner in significantly improving a facility’s function, in fully respecting budget constraints, and in effecting a library structure of the highest quality.

On the application of value engineering in construction cost control

Abstract: The following paper introduces the concept of cost control and value engineering,illustrates general procedures to apply value engineering in project management,combined with the project example,it discusses the application in construction cost item management,in order to make technology and economy combined optimally.