Showing papers on "Value engineering published in 2011"

Value management in the South African manufacturing industry: exploratory findings

Abstract: Purpose – This paper seeks to investigate the nature and extent of value management (VM) practice in the South African manufacturing industry. It aims to explore engineers' and designers' awareness and understanding of VM and the nature and extent of the use of VM techniques within their companies.Design/methodology/approach – A web‐based, online questionnaire survey is employed to establish value management practice within the manufacturing sector. Descriptive statistics are used to analyse the survey response data.Findings – The results suggest that, while VM (and more particularly its value engineering antecedent) is generally known among engineers and designers in the manufacturing sector in South Africa, it is less widely practised. VM is seen predominantly as a cost reduction tool. This misperception, and the lack of awareness of the potential benefits of VM, must be remedied if the South African manufacturing industry is to remain competitive. The industry needs to adopt best practice VM techniques...

Developing a Capability Function Relating Aircraft Systems Cost Overruns to Aircraft Design Parameters

Abstract: Cost overruns and delays are threatening the economic stability of aerospace programs. In order for programs to be successful overruns in cost and time must be eradicated or managed effectively through realistic Life Cycle Costing methodologies. Being aware of their impact at the earliest stage of development ensures that realistic budgets can be assigned and potential problems can be identified and planned for before they major issues. Using Life Cycle Costing methodologies, the basis of a new capability function aimed at accounting for cost overruns and delays upfront within life cycle management procedures will be introduced. Using gathered data, the main drivers of cost and delay will be identified and their effect on Life Cycle Cost assessed before being included within the new function which aims to achieve the highest economically valuable aircraft and program through the application of value engineering principles.

An Empirical Study on the Dimensions of Consumer Perceived Value in Green Hotels

Abstract: Consumer perceived value has become increasingly important for hotel marketers and operators due to the highly competitive environment. This paper attempts to answer the following questions: (1)What dimensions do consumer perceived value involve in hotel context? (2)What's the relationship between these dimensions? A total of 202 samples were analysed with exploratory factor analysis(EFA) and confirmatory factor analysis (CFA). SPSS 18 and AMOS 17 were used as data analysis tools. Findings indicate that consumer perceived value comprise of functional value(performance/quality), functional value(price/value for money), social value, emotional value, epistemic value dimensions, and correlations between these value dimensions are tested. Implications and suggestions for future research are discussed in the end.

Impact of cost constraints on aesthetic ranking following Target Value Design exercises

Abstract: PURPOSE: Target Value Design (TVD) is a project delivery subset that shares methodologies with Target Costing and Value Engineering, but is performed within the context of lean construction. TVD has been shown to generate first cost savings of approximately 20% on case study projects. A concern voiced by some architects, however, is that TVD may produce aesthetically inferior designs. Addressing this concern, we explore whether there is a relationship between cost and aesthetics.

Value distilled: A framework based approach to establish the trace of technology value in the context of engineering management

Abstract: The view that has been taken in this paper towards technology value is that of a stakeholder perception of value and how this value can be traced and realized and be made to accrue to the stakeholders in an assured manner. Is there a way to trace value of technology, from its origins thru to its realization? Here we present a framework that is based on the concept of x-matrix. Technology is an enabler and the means to realize the outcome of design. The discipline of engineering design derives value from technology, while the projects set the scope and context for management discipline. The project sponsors and the stakeholders are the ones who are supposed to experience value that translates from technology thru the discipline of engineering management. Thus these elements form the critical dimensions of an x-matrix, using which the value trace can be established. Since the topic is about technology value, the discussion in this paper is centered on how engineering and management has been able to harness the technology and transform it into value. The paper talks about how to establish this trace towards realization of technology value so that one can clearly monitor it and assure the outcomes of it.

Evaluating design decisions in real-time using operations modelling

Abstract: Contemporary design processes of large aerospace products are rigidly focused on customer specifications in order to meet their expectations. Life cycle costs, design space exploration and value engineering are neglected, often leading to substantial cost overruns and delivery delays. Moreover, customer specifications are not scrutinized and design decisions are made ignoring potential operational knowledge. Value-driven design suggests a new approach using flexible customer specifications in order to find optimal designs by exploring the solution space. One aspect of this optimization is the simulation of the anticipated operational life of a product in order to gain operational knowledge and analyse customer specifications. This paper suggests that an operational simulation can be used actively or reactively by designers during the design process to improve a product. It is investigated how an operational simulation can act as a design decision support tool and how it can react to customer specifications. Answers are presented by means of a simulation model recreating the operational life of a Search-and-Rescue Unmanned Air Vehicle developed in parallel at the University of Southampton. The simulation's ability for acting as a decision support tool is explored by conducting a fuel tank size optimization. Reactive capabilities are explored by calculating the surplus value of using UAVs. This exemplifies the derivation of product specifications as the simulation reveals the value and hence usefulness of given customer specifications. It is shown that operational simulations benefit designers and overall product value by analysing product specifications and guiding designers to more informed design decisions

Value Operations Methodology (VOM) applied to medium-range passenger airliner design

Abstract: This paper gives insight in the development of a Value Operations Methodology (VOM) that can be used to support Value Driven Design (VDD). The VOM establishes expressions for operational value levers that are incorporated into a weighted value function. This value function is then used to optimize the design variables that are incorporated into it so that the design process is actively driven by value assessments that provide design decision metrics. However, the VOM is generic in nature and has a much wider range of influence to the design process for any engineering product. The methodology is verified by means of a case study, analyzing the value difference between the Boeing 737-200, Boeing 737-800, Embraer ERJ-145 and the Airbus 319 as part of a use-case study. In fact, the fundamental conclusion from the work presented is actually that VDD simply promotes the sustained application of the main utility values that were originally recognized but which, due to the complexity of the product and enterprise, tends to be disaggregated into isolated requirements. Ultimately, this leads to optimization at a sub-system level and that is especially unacceptable for a complex system (with many sub-systems), whereas the re-focus of VOM helps to significantly shift the design effort back to creatively solving the main goal, rather than simply and somewhat robotically making sure the requirements are satisfied. The verification and validation work presented is recognized as indicative but the authors believe that it is extremely significant in pointing towards the potential gains from sustaining a more holistic appraisal and approach through-out the design process. Notwithstanding, the key message of the paper is the need for value modeling within engineering so that we are in control of the consequences of what we are actualizing, where value is realized through operational delivery and excellence. This paper has presented a broad methodology in opening up a significantly different approach to aircraft design that is both performance and economics driven while also incorporating other crucial drivers of a much more holistic nature, proactively rather than reactively.

Cost control method and its application for construction project in the design phase

Abstract: Design phase is very critical in controlling investment of construction projects. The method of cost control mainly focuses on selecting and optimizing the design plan, implementing quota design and improving design budgetary estimate and construction drawing budget checkup in the design phase. This paper applies value engineering principle to selecting and optimizing design plan with a real case, which indicates that this method is practical and valuable for effectively control engineering cost in design phase.

Availability and sustainability as value elements in assessing customer value of an industrial service

Abstract: For a customer of industrial maintenance solution providers, purchasing a solution is an asset management option that needs to be justified, preferably in economic terms, e.g. by achieving energy savings or increasing the availability of a production system. Therefore, the value elements of maintenance service solutions should be identified and quantified wherever possible.

A Novel Approach for Collaborative Interaction With Mixed Reality in Value Engineering

Abstract: Design and engineering in real-world projects is often influenced by reduction of the problem definition, trade-offs during decision-making, possible loss of information and monetary issues like budget constraints or value-for-money problems. In many engineering projects various stakeholders take part in the project process on various levels of communication, engineering and decision-making. During project meetings and VE sessions between the different stakeholder’s, information and data is gathered and put down analogue and/or digitally, consequently stored in reports, minutes and other modes of representation. Results and conclusions derived from these interactions are often influenced by the user’s field of experience and expertise. Personal stakes, idiosyncrasy, expectations, preferences and interpretations of the various project parts could have implications, interfere or procrastinate non-functionality and possible rupture in the collaborative setting and process leading to diminished prospective project targets, requirements and solutions. We present a hybrid tool as a Virtual Assistant (VA) during a collaborative Value Engineering (VE) session in a real-world design and engineering case. The tool supports interaction and decision-making in conjunction with a physical workbench as focal point (-s), user-interfaces that intuit the user during processing. The hybrid environment allows the users to interact un-tethered with real-world materials, images, drawings, objects and drawing instruments. In course of the processing captures are made of the various topics or issues at stake and logged as iterative instances in a database. Real-time visualization on a monitor of the captured instances are shown and progressively listed in the on-screen user interface. During or after the session the stakeholders can go through the iterative time-listing and synthesize the instances according to i.e. topic, dominance, choice or to the degree of priority. After structuring and sorting the data sets the information can be exported to a data or video file. All stakeholders receive or have access to the data files and can track-back the complete process progression. The system and information generated affords reflection, knowledge sharing and cooperation. Redistribution of data sets to other stakeholders, management or third parties becomes more efficient and congruous. Our approach we took during this experiment was to [re]search the communication, interaction and decision-making progressions of the various stakeholders during the VE-session. We observed the behavioral aspects during the various stages of user interaction, following the decision making process and the use of the tool during the course of the session. We captured the complete session on video for analysis and evaluation of the VE process within a hybrid design environment.Copyright © 2011 by ASME

The Use of Probalistic Cost Estimating, CEVP ® , in the Management of Complex Projects to Defined Budgets

Abstract: Summary In the late 1990s significant underestimation of cost and schedule for major infrastructure projects became a signature issue. Numerous projects including London’s Jubilee Line, the Channel Tunnel and Boston’s Central Artery/Tunnel Project experienced very large cost and schedule overruns that were highly visible and broadly criticized. Studies of individual projects and histories, showed that overly optimistic estimating was not a new problem and identified several fundamental issues that needed to be corrected. A central theme of the more successful of these new methods was the explicit consideration of uncertainty (risk and opportunity) in the estimating process. An early leader in developing risk-based approaches to cost and schedule estimating in the US was the Washington State Department of Transportation (WSDOT) which, in 2002, developed its Cost Estimate Validation Process (CEVP ® ). CEVP was registered by WSDOT to recognize the Agency as the developer of this specific process and to require that use of CEVP would adhere to WSDOT Guidelines (www.wsdot.wa.gov/Projects/ProjectMgmt/RiskAssessment). Key principles of CEVP have now been broadly incorporated in policies, procedures and requirements of other Agencies. This paper deals with the application of key management principles, as informed by the CEVP method, to the Alaskan Way Viaduct replacement project in Seattle. The preferred alternative, a bored tunnel, will replace an existing elevated viaduct, damaged in an earthquake, with 4 lanes of traffic in the largest TBM driven soft-ground tunnel to date. Management principles included: developing and communicating a clear, quantified understanding of the project with a strategy for delivery; definition and management of potential risk and opportunity; use of value engineering; managing to budget and; clear communication with the public and stakeholders. These are addressed in this paper.

Selection of Maintenance Practice through Value Engineering

Abstract: In this study the techniques of value engineering have been studied for finding the suitable maintenance practice. Value engineering is a one of the most powerful decision making techniques which depends upon factor. The VE process identifies; opportunities to remove unnecessary costs while assuring that quality, reliability, performance, and other critical factors will meet or exceed the customer's expectations. The improvements are the result of recommendations made by multidisciplinary teams representing all parties involved. VE is a rigorous, systematic effort to improve the value and optimize the life cycle cost of a facility. Using factor comparison study has been made between different maintenance practice .and finally select best maintenance practice based of value engineering.

Toward an Understanding of Cost and Aesthetics: Impact of Cost Contraints on Aesthetic Ranking Following Target Value Design Exercises

Abstract: PURPOSE: Target Value Design (TVD) is a project delivery subset that shares methodologies with Target Costing and Value Engineering, but is performed within the context of lean construction. TVD has been shown to generate first cost savings of approximately 20% on case study projects. A concern voiced by some architects, however, is that TVD may produce aesthetically inferior designs. Addressing this concern, we explore whether there is a relationship between cost and aesthetics.

Implementation of Value Engineering for strategy formulation (case study: fisheries sector).

Abstract: This paper analyzes the results of implementing Value Engineering (VE) into SWOT methodology undertaken in Yazd province of Iran. This is the first time that these techniques have been undertaken for fisheries sector in Iran. The study mainly aims at applying Value Engineering and SWOT techniques to achieve the best out of decision-making, and also of management issues as a whole, through the consideration of creative ideas for improvement. The analyses use scientific trawl data and standardized analysis techniques. Based upon the analysis of fisheries issues, findings indicate that the optimized policy is to introduce new sea food chain restaurants into the studied province. Moreover, other suggestions could be as follows: advertising and good standard packaging for export, building facilities for processing and refrigeration by investors, producing Salmon for export in good packaging, producing crabs and other new species, encouraging people to consume more fish, paying great attention to research works, government supporting for transportation, loan, and subsidies, and finally encouraging investors.

An integrated value management (IVM) for construction projects in Malaysia

Abstract: Of late, the concept of Value Management (VM) is becoming vital in the implementation of construction projects. Value Management is a systematic and innovative methodology with multi-disciplinary approach targeted to achieve better value of construction products. However, VM is criticized for the fact that it focused solely on value for money, lack of creativity and fails to include the concept of risk management at the early project stage. Therefore, this paper intents to propose a new conceptual framework of Integrated Value Management (IVM) concept as an alternative to VM framework for construction projects in Malaysia. IVM is a combination of three (3) key components namely: Value Engineering (VE), Risk Management (RM) and Partnering to be incorporated in the development of construction projects. The study is purely based on literature review. It reviews the involvement of partnering in a project environment; value engineering approaches to ensure lowering cost while maintaining technical competence; and risk management for risk avoidance to project outcomes. Various models of VM are reviewed across the globe for the development of the framework. The development of an alternative Integrated Value Management framework throughout project phases is expected to give a more value added for both clients and project stakeholders.

Application of Value Engineering in Construction Building

Abstract: Saving money and, at the same time, providing better value is a concept that everyone can support. The benefits of spreading our invested rupee, building more for less money, increasing efficiency and cutting down our dependency on energy-intensive buildings and plant facilities need to be recognized today and pursued in the future. Value Engineering (VE) is not just "good engineering", it is not a suggestion program or a routine plan review, but it is a new, fresh look at problems starting from basic functional requirements - an independent approach to the project. Value Engineering is a methodology used to analyze the function of the goods and services and to obtain the required func- tions of the goods and service of the user at the lowest total cost without reducing the necessary quality of performance. The program seeks to improve the management capability of people and to promote progressive change by identifying and removing unnecessary cost. I. INTRODUCTION 1.1 BACKGROUND The construction sector is one of the main players in econom- ic growth. In India it is the second highest employer, after ag- riculture, employing over 32 million people. The construction sector in India accounts for 5% of the gross domestic product and 38% of the gross domestic investment. The construc- tion sector is broadly divided into four areas; infrastructure (54%), industrial (36%), residential (5%) and commercial (5%). According to estimates, the construction business volume is about Rs. 2400 billion. Earlier the industry was growing at over 10%, which decelerated due to the economic slow- down. Now it is looking up again. Construction industry is an index of growth of a nation. To- day, the construction industry is the second largest employ- ing skilled and semiskilled labour after agriculture and plays an important role in our nation's economy. Due to increase in business opportunity and migration of labour, the demand for commercial and housing spaces has also increased. Ac- cording to the tenth five year plan (July, 2003), the estimate of shortage in urban housing is assessed to be 8.89 million units. As of now, the housing and construction industry em- ploys 30nmillion people and about 250 industries are associ- ated with construction industry directly or indirectly. Keeping costs low with traditional methods has been a com- mon practice to improve competitiveness. Saving money and, at the same time, providing better value is a concept that everyone emphasizes. Value Engineering is a practice whose goal is, always, to achieve value for money. Value Engineering aims to deliver measurable value improve- ments through cost reduction and or improve quality and enhance design features for the customer. These disciplines cannot be ignored if a company is to continue meeting the rising expectations of its customer, who will always take their business to where they can get the highest quality at the low- est possible price.

Development Value engineering modeling in construction transportation

Abstract: Problem statement Value engineering focuses on function analysis of research objects and strives to achieve the required function reliably at the lowest life cycle cost to gain the best integrated benefits. Approach: Value Engineering seeks optimizing and improving decision making to realize the optimal expenditure of owner funds while meeting required function at the lowest cycle cost. Results: VE, transportation construction applying value engineering to evaluate the schemes include identifying research object, object functions analysis, object cost analysis, scheme evaluation and analysis. VE can play a boarder role to support effective decision making for transportation projects to increase project performance and quality, balance project objectives, and manage community expectation. Conclusion: This study achieved to the model Value Engineering in transportation Construction (VETC) which cause decrease time, decrease cost and increase quality, Using Human Resource specialist and reduce Construction Materials in transportation it has been.

Integrating Value and Lean Management in Manufacturing Processes

Abstract: In this paper a model for an integrated application of Lean Management and Value Management in manufacturing processes is proposed. Its purpose is to reduce some gaps that have been pointed out to Lean Management, namely, lack of ability to understand customer value, potentially negative impact on innovation capability and inability to eliminate waste in small processes. To do so, concepts from both management approaches were integrated as well as some of their most relevant tools, namely, Value Stream Mapping and Function Analysis. The implementation test done to the proposed model indicates that it can improve the understanding of customer value allowing waste to be highlighted and eliminated. The paper briefly reviews both Lean and Value Managements concepts as well as the major tools that were included in the model. The model is then exposed and discussed, the test implementation of the model is briefly displayed and the main conclusions exposed.

Using Value Engineering to Reduce Life Cycle Cost

Abstract: : VE is defined as "a systematic effort directed at analyzing the functional requirements of DoD systems, equipment, facilities, procedures, and supplies for the purpose of achieving the essential functions at the lowest total cost, consistent with the needed performance, safety, reliability, quality, and maintainability," according to DoD Handbook 4245.8-H, Value Engineering. Public Law 104-106 requires all government agencies to establish and maintain VE procedures and processes. The Federal Acquisition Regulation requires a VE clause to be included in all contracts exceeding a specified threshold. DoD objectives state its net savings and cost avoidances for VE will be at least 1.5 percent of the total obligation authority. The VE process is typically conducted in eight phases: orientation, information, functional analysis, creative, evaluation, development, presentation, and implementation. Although the greatest potential for cost control when applying VE exists in the research and development stage of a new capability, opportunities for the application of VE techniques exist in every stage, especially when considering new available technologies and the experience of actual system deployment and user feedback. There are times when a problem in reliability or maintenance may become the greatest opportunity. Crane Army Ammunition Activity recently used VE principles to great success in a cooperative joint redevelopment with the Naval Surface Warfare Center. CAAA is colocated with Code WXR, the Navy design agent for countermeasure flares, at the NSWC installation at Crane, Ind. The effort turned unusable inventory into good materiel, supporting the warfighter, saving dollars, and easing the environmental impact of the flares.

Environmental Impact Evaluation of Aircraft at System-of-Systems Level

Abstract: Next generations of civil transport aircraft will need to be evaluated not only against their behaviour as an aircraft system but also as a part of the larger air transport system. In addition to this are the sustainability issues related to for instance noise and emissions, represented by environmental impact. Both issues mandate the incorporation of complex stakeholder behaviour in the design and evaluation of future aircraft. A framework is proposed in extension of existing Design and Engineering Engines to perform such evaluations. For this extension a combination of agent based modelling and simulation approach, value engineering and multi-level optimization is suggested to quantitatively implement quality function deployment. As an illustration of the complexity in evaluating new aircraft concepts, the Prandtl Plane study case is used. From this study case it is found that, when evaluated using the current DEE, the Prandtl Plane shows a potential for alternative use at systems level. But no conclusion can be drawn on the environmental impact effect on the air transport system without addressing the system-of-systems considerations. This includes the unknown stakeholder response with respect to the new opportunities provided by the Prandtl Plane. One of the great challenges for future design is the increasing complexity, not only in the proposed solutions, e.g. Prandtl Plane, but also in the measures of desirability, e.g. global emissions. This requires the integrated approach addressing the complexities at both system-of-systems and system level, proposed in extension to the current design and engineering engine.

The analysis on the value drivers of agriculture high-tech companies based on the balanced scorecard

Abstract: Based on the principle of Balanced Scorecard, this paper identified key value drivers of agriculture high-tech companies from the aspects of financial, customer, internal operation, innovation and learning. Then, we built the index system for evaluating agriculture high-tech companies' value comprehensively. And we selected 40 listed agricultural high-tech companies from Shenzhen Exchange and Shanghai Exchange range from the year 2007 to 2009. We got 82 the effective samples data and use regression analysis to verify the existence of correlation of mutual influence between certain indicators of key value driver and the value of companies, and make arrangement analysis of value drivers by its impact on enterprises' value. The results show that the key value drivers do have certain correlation with the value of agricultural high-tech companies. The collusion will provide some significant clues for improving the value of agricultural high-tech companies.

The appliance of value engineering in great amman municipality

Abstract: During the last decade, waste management have become increasingly popular interest. In the present paper, the appliance of value engineering in Great Amman Municipality was investigated by using the Traveling salesman module. The concord software used for solving the problem and An AutoCAD map is given to highlight the garbage collection containers and all possible routes to these locations. A mathematical model was developed to show how the actual collection is being carried out, Finally, the optimal solution is estimated by each routing optimization algorithm.

Development of Pre-workshop Phase for the VE application at the Early Planning Stage of the Mega Project

Abstract: In Korea, many mixed-used development projects(MXD) in mega project size are currently active. As these mega projects require long-term construction and execution and involve by different subjects in different fields, their completion breeds various problems, such as conflicts among project participants due to their complicated interest relationships and inaccuracy in predicting the economic performance of the projects due to inappropriate facility capacity planning. To solve these problems, it is essential to apply value engineering (VE) at the planning phase of the project, which can result in the best possible cost reduction and improvement of project performance. However, not many projects are actually implementing VE because of the lack of available information, as well as the limitations due to uncertainty in the early period of project execution. Therefore, this study aimed at proposing VE Team Building, Quality Model Performance Indexes, Space Model so as to resolve common mega project problems and overcome VE application limitations at planning stage. The result of this study is expected that the data can be utilized as basic data to apply VE at the planning phase of the large complex projects.

Development of Function Breakdown Structure of Building Element based on Performance for Idea Connection in Design VE

Abstract: Design value engineering (VE) has been performed in many construction projects according to the changes in the construction for most of the VB function analysis that performed, are problems that focus on function analysis and generating ideas based on individual experience of VE team member than generating ideas and value improvement of systematic function analysis. This may be due to the quotation of previously performed function analysis data, general function analysis, and abstract function definitions that do not cite the concrete characteristics of each facility. Therefore, in this study, the proposed cases from the existing design VE workshops, the current conditions of the connection between functions and ideas and of the idea categorization by building part were studied to determine why functions and ideas are not connected, and to propose pertinent improvement directions. on a performance-based function categorization system by building part that can provide the logical connection between functions and ideas in the function definition/categorization and function arrangement phases in the function analysis phase, the most important phase in VE activities, was developed by reflecting the required performance and functions for each part of the facility.