Showing papers on "Value engineering published in 2012"

Rethinking the Cost Estimating Process through 5D BIM: A Case Study

Abstract: This paper presents a comparative study of commercially available BIMbased estimating software, and an investigation of the changes in work practices and workflows incurred by the adoption of such software by a construction company. Due to the fragmentation of the construction industry and the linearity of the design process, cost estimating is typically performed at a time when the conceptual design is quite advanced or even completed, which is much too late in the design process to help the different stakeholders make informed decisions. Performing value engineering and cost estimation from the beginning of the design process would potentially enable a faster and more cost-effective project delivery process, higher quality buildings, and increased control and predictability for the owner. This research examines the changes in work practices and work flows within a construction company as they move towards adopting Building information Model (BIM) estimating process. To conduct this research, we: (1) tested several BIMbased cost estimating software tools to support different phases of design, (2) evaluated the benefits and challenges of working with this software, and (3) analyzed the work practices and workflows of a BIM-based estimating process within the firm. Finally, we propose a multi-stage technology adoption scenario. BACKGROUND Due to the fragmentation of the construction industry and the linearity of the design process, cost estimating is typically performed at a time when the conceptual design is quite advanced or even completed, which is much too late in the design process to help the different stakeholders make informed decisions. Oftentimes, this cost feedback highlights potential budget concerns and a cost engineering process will be performed to reduce construction costs, often at the expense of building performance and construction quality. Performing value engineering and cost estimating from the beginning of the design process would potentially enable a faster

Cost Controlling Using Earned Value Analysis in Construction Industries

Abstract: Most of the construction projects suffer from cost and time overruns due to a multiplicity of factors. Earned value management (EVM) is a project performance evaluation technique that has origins in industrial engineering, but which has been adapted for application in project management. The earned value analysis gives early indications of project performance to highlight the need for eventual corrective action. This study is to present and discuss the main parameters involved in the calculation of Earned Value Analysis (EVA) in the cost management of civil construction projects. The purpose of this dissertation is in 3-fold. Firstly, Earned Value Analysis software is developed in Visual studio 2008, SQL Server 2005, .Net (C# language). Next Comparison of selected parameters between M.S Project 2007, Primavera P6 and developed software is done. Therefore, it can be concluded that the software could be used in a wide range of projects for Earned Value Analysis calculation. Earned Value analysis is a method of performance measurement. Earned Value is a program management technique that uses "work in progress" to indicate what will happen to work in the future. Earned Value is an enhancement over traditional accounting progress measures. Traditional methods focus on planned accomplishment (expenditure) and actual costs. Earned Value goes one step further and examines actual accomplishment. This gives managers greater insight into potential risk areas. With clearer picture, managers can create risk mitigation plans based on actual cost, schedule and technical progress of the work. It is an "early warning" program/project management tool that enables managers to identify and control problems before they become insurmountable. It allows projects to be managed better - on time, on budget. Earned Value Management System is not a specific system or tool set, but rather, a set of guidelines that guide a company's management control system. In the case of cost overrun, project management team may execute a value engineering program for cost reduction either reducing scope and quality in some sections of project or providing additional budget to cover overrun cost. Similarly, for time overrun case, the may plan some program such as fast tracking or time crashing for time reduction. Therefore, the role of EVM as well as correct and on time forecasting is very important to achieve project goals. This research includes implementation and improvement on EV to achieve a forecasting EAC based on statistical and econometrics techniques and traditional EV indexes as well. This paper discusses effectiveness of developed software of Earned Value Analysis with MS Project and Primavera P6.

Complete fuzzy scheduling and fuzzy earned value management in construction projects

Abstract: This paper aims to present a comprehensive proposal for project scheduling and control by applying fuzzy earned value. It goes a step further than the existing literature: in the formulation of the fuzzy earned value we consider not only its duration, but also cost and production, and alternatives in the scheduling between the earliest and latest times. The mathematical model is implemented in a prototypical construction project with all the estimated values taken as fuzzy numbers. Our findings suggest that different possible schedules and the fuzzy arithmetic provide more objective results in uncertain environments than the traditional methodology. The proposed model allows for controlling the vagueness of the environment through the adjustment of the α-cut, adapting it to the specific circumstances of the project.

Defining a research agenda in Value Driven Design: Questions that need to be asked

Abstract: Value driven design is an innovative design process that utilizes the optimization of a system level value function to determine the best possible design. This contrasts with more traditional systems engineering techniques, which rely on satisfying requirements to determine the design solution. While ?design for value? is intuitively acceptable, the transformation of value driven design concepts into practical tools and methods for its application is challenging. This, coupled with the growing popularity of value-centric design philosophies, has led to a proposed research agenda in value driven design. This research agenda asks fundamental questions about the design philosophy and attempts to identify areas of significant challenge. The research agenda is meant to stimulate discussion in the field, as well as prompt research that will lead to the development of tools and methodologies that will facilitate the application of value driven design and further the state of the art.

Value Modeling and Calculation for Everything as a Service (XaaS) Based on Reuse

Abstract: Value is the premier pursuing which drives a service implementation and dominates service selection. Added value will help to maximize the business profiting from existing service system centering positive reuse or redundancy reducing. In view of absence of a general calculating mechanism of service value which focus on added value in the XaaS (everything as a service), we firstly model XaaS in a multiple semantics background. Then we identified the critical target object for value computation. Hence after we propose a calculation mechanism of service value and added value for situations including data as a service (DaaS), information as a service (FaaS), composition scenarios, optimization and their mix with usage explanations. Ongoing complicated implementation which centers service contracts is outlined.

A Novel Method to Enable Trade-offs across the Whole Product Life of an Aircraft using Value Driven Design

Abstract: The increasing need to understand complex products and systems with long life spans, presents a significant challenge to designers who increasingly require a broader understanding of the operational aspects of the system. This demands an evolution in current design practice, as designers are often constrained to provide a subsystem solution without full knowledge of the global system operation. Recently there has been a push to consider value centric approaches which should facilitate better or more rapid convergence to design solutions with predictable completion schedules. Value Driven Design is one such approach, in which value is used as the system top level objective function. This provides a broader view of the system and enables all sub-systems and components to be designed with a view to the effect on project value. It also has the capacity to include value expressions for more qualitative aspects, such as environmental impact. However, application of the method to date has been restricted to comparing value in a programme where the lifespan is fixed and known a priori. This paper takes a novel view of value driven design through the surplus value objective function, and shows how it can be used to identify key sensitivities to guide designers in design trade-off decisions. By considering a new time based approach it can be used to identify optimum programme life-span and hence allow trade-offs over the whole product life. There is an ever increasing need within the aviation industry for improved value from the next generation of aircraft. The number of decisions which must be taken to develop these vehicles is ever increasing due to the fact that engineers must address numerous conflicting requirements such as 'design for minimum cost' or 'design for minimum weight'. Given well defined objective functions engineers can carry out sophisticated optimisations to identify solutions for these complex problems, but the consideration of the whole life view for the vehicle remains a significant challenge. The main issue is the critical design parameters typically change with the design performance being assessed. For example, the key concerns for the manufacturing and maintenance phases are different from the key parameters related to the operational efficiency of the aircraft. This can be illustrated by considering some of the main costs accounted for during the design of an aircraft. The operational costs show that fuel is a main cost driver,

Structured Idea Creation for Improving the Value of Construction Design

Abstract: Value engineering (VE) is an effort to increase the value of a system through a creative and organized approach. Idea generation is the most important part in a VE job plan. Although the experts in a VE team can evaluate multiple alternatives that can replace the original idea, idea generation is usually on the basis of their knowledge and experience. A structured method will help to consider different functional perspectives and to create inventive ideas that could have been missed otherwise. This paper presents a construction value engineering inventive idea support (CVE-IIS) tool for structured idea generation in construction VE. In this study, previous VE reports were analyzed to understand the pattern of proposed ideas in highway construction design. These ideas were categorized according to the rules of advanced systematic inventive thinking (ASIT) to establish an idea breakdown structure (IBS). The IBS was then used to support the generation of construction ideas using idea-generation work...

Costs, quality and scalability: Impact on the value chain of electric engine production

Abstract: Recent years have seen an increasing attention in electric vehicles. But due to high prices, there is only a moderate customer acceptance and market penetration. Companies need to build up new competencies to be able to develop and produce competitive electric vehicles. Moreover, a concentration on either cost or quality will not be sufficient to make electric mobility attractive to customers and to obtain sustainable success. Therefore, companies in the field of electric mobility production have to lead in both: cost and quality. This paper focuses on the electric engine production, the emerging costs, the influences on the customer value and the scalability of production processes.

A cross-disciplinary approach to product development and design through quality function deployment, target costing and value engineering

Abstract: Increased competition, spiralling costs and vocal customers have made it imperative that every organisation should upgrade its processes constantly to stay ahead of the competition. Product design and development (PDD) is a techno-economic process, hence there is always a trade-off between design goals and cost constraints. Quality function deployment (QFD) is becoming a widely used customer-oriented approach and tool in product design. Target costing (TC) is a strategic tool for planning that takes a holistic view of products and their sub-assemblies, and identifies the opportunities for cost reduction and product improvement. Value engineering (VE) is essentially a process which uses function-cost analysis to reduce cost. This paper attempts to merge these diverse tools of customer-orientation, financial consideration and value creation, thus integrating TC and VE into QFD framework. The suggested methodologies aim at facilitating cross-functional PDD, integrating both organisational and functional aspects of the development process so as to maximise value creation. A case study has been discussed and issues of implementation of this cross-disciplinary approach from the perspective of an entrepreneur by selecting a consumer product are highlighted.

Value management in Malaysia : past, present and future

Abstract: Value management (VM) encapsulate the other related terms such as value planning, value engineering, value analysis, and value review where it was used interchangeably. The introduction of VM can play vital roles as a specific management tool in putting together the problems encountered in the construction industry from the technical, managerial, and also human aspects. VM has been brought into the construction industry since 1960s to attain the best value for money. However, the level of acceptance, development and to what extent the applications are varies throughout the world. Particularly in Malaysia, VM was introduced since 1986 but the take up is relatively low by various stakeholders due to several reasons. Since it was introduced, not so much development in term of applications until recently, VM seems to be a new phenomenon within the Malaysia construction industry (MCI) when the government instructed mandatory applications for the public projects. With limited explicit, tacit and embedded knowledge, expertise, and experience, the VM applications seen to be received various feedback, which is yet to be discovered. This paper reviews relevant works on the development and applications of VM within the MCI. To achieve this, a thorough literature review and document analysis has been conducted on journal articles, conference papers, government circulars and guidelines, supported by an informal discussion with stakeholders in Malaysia. It reviews and synthesises the relevant and critical information and highlights major milestones to provide clear and better understanding of VM development in the past, current, and future applications. The future of its applications focuses more on the initiatives to promote the applications of VM. Several issues such as the awareness, knowledge, training, certification, procurement and focus toward to place VM ahead in the future are also discussed. The work described in this paper provides a sound foundation for the author to understand and explore further. This is part of the ongoing doctoral research which focuses on performance management of the VM studies based on the international practices.

Unveiling Supply Chain Integration and Its Value in Container Shipping

Abstract: This article presents a modeling approach for estimating supply chain value in container shipping. The authors present multivariate ordered probit/logit models and the empirical results of their work. They propose a normative model for managing container shipping supply chains designed for better synchronization and value maximization (i.e., profit in the commercial setting). The authors use a survey instrument to empirically validate their model with data from the world’s top thirty container shipping lines. Results showed that the level of supply chain integration is positively related to the supply chain value and profit. Overall, customer service activities are the most influential factor in affecting the supply chain value. The authors conclude with a section of recommendations that include promoting supply chain collaboration, and upgrading customer service activities.

Conceptualising value for construction : experience from social housing projects in Chile

Abstract: Through the years, the concept of Value has been widely discussed covering diverse fields of knowledge, such as marketing, business management, strategy, engineering, design, and the like. Within the construction industry field, highly praised management approaches have been used to deliver Value such as Value Engineering, Value Management and Lean Thinking. As a result of the complex nature of this concept, different definitions, equations and models have been proposed to mainly deliver Value from a customer focused perspective. Therefore, the potential of the construction industry has been usually limited by the fulfilment of individual requirements. Thus, environmental and social issues have been generally managed from a bill payer perspective. During the course of this research, Chilean experience in Social Housing Projects was investigated. Initial author observation, analysis of governmental policies and data collected from three case studies allowed to evidence an emergent phenomenon in developing countries such as Chile and in the construction sector experience in general. This phenomenon considers Value as an oscillating concept, which means Value delivered by a particular construction project continuously impacts society in a wide sense, and provides a legacy for future generations. In the same way, Value delivered for particular projects affects in turn those judgments concerning future projects and contribute with the permanent improvement of the construction sector s performance (learning from experience). Consequently, the construction industry contributes to the development of society through the alleviation of environmental & society issues such as drug consumption, social risk, public safety and so forth. Along the time, the decisions and activities of the construction industry have influenced more than a reduced set of customers. Therefore, there is no reasoning against the fact that the human species depends on many sorts of building and infrastructure projects to perform their activities and that the more developed a society or country is, the more such structures are needed. This is an absolute matter of fact. Consequently, building projects as the outcome of build environment could be considered as the physical reflection of our current decisions. They represent major investments in the future delivery, where several human, natural, monetary and technological resources are devoted. Those projects provide a legacy to future generations based on what we have valued today, and how much we care about tomorrow and the stability of our ecosystem. Therefore, the concept of Value in the construction management field should be visualised from a wider perspective towards the consideration of universal environmental & social issues. The consideration of this phenomenon is even more important in developing countries, where opportunities still exist to create a well-balanced built environment that supports society. In an attempt to conceptualise a wider view of Value in the construction industry, different approached to manage Value were investigated. As a result, Lean Thinking arose as a potential philosophy to expand common customer focused Value perspectives. Additionally, different features and multidimensional attributes of the concept of Value were identified. To aid the visualisation of Value in the construction industry, a conceptual model was developed and named the First and Last Value Model FL Stakeholders perspective; and Social perspective. From this interaction, four central perspectives are included towards a wider visualisation of Value: Technological, economic, environmental and political. Moreover, this model considers Value as an objective, subjective, dynamic, context dependent, relative, and oscillating concept. Finally, the F&LVM was evaluated under the criteria of both researchers and practitioners from Lean Construction, whose potential contributes to a sustainable development. Evaluator s feedback demonstrated that this model contributes to a wider conceptualisation of Value in the construction industry.

Improving project performance and waste reduction in construction projects: A case study of a government institutional building project

Abstract: The construction industry plays an important role in establishing the infrastructure required for socio-economic development and directly contributes to economic growth. On the other side, it also generates severe impacts on the environment. The construction industry is one of the biggest environmental polluters and it also consumes large quantities of raw materials. Value Engineering originates from the manufacturing industry in order to deliver higher value and quality to a product by means of an increase in efficiency. ‘Lean Construction’ (LC) concepts emerged as a consequence of the application of VE philosophy, specifically for construction industry. LC extends from the objectives of a lean production system – to maximize value and to minimize waste – in relation to specific techniques and then applies them conceptually in a new project delivery process. The aims of this paper are to present practical examples of the application of Value Engineering and Lean Construction concepts within a green building construction project and to qualitatively assess its benefits in terms of environmental impact and waste minimization. A detailed case study was conducted for project execution of a new multi-storey government institutional building in the Jakarta central business district. This project adopts a Green Building and a Green Site concept in order to reduce potential environmental impact during the construction phase itself and during the occupancy phase of the building. The case study primarily concerns issues such as water consumption, power usage, etc. This project is a perfect example for the application of Value Engineering and Lean Construction philosophies in order to deliver better quality, faster completion, environmentally friendly practice, and less waste generation. The adoption of environmental awareness in the context of building design, the application of alternative and/or recycled/environmentally friendly materials, along with a number of “green” technologies and building systems featured in this building concept will deliver greater value without jeopardizing the ecology. Meanwhile, the adoption of prefabrication construction methods, intelligent excavation works, ‘Reduce- Reuse-Recycle’ principles, and simple ‘environmentally-aware’ on-site practices can minimize the waste produced and the local environmental impact emitted during project execution.

Generic PSV systems and their engine models

Abstract: This paper describes a new concept of product-service-value (PSV) systems and their engineering process. Our engineering approach uses an engine paradigm to create valuable systems. In this paper, we argue that PSV-S is the most generic valuable system encompasses modern product, service, and value systems. The paper describes PSV-S variants and discusses their smart engineering using computing technologies.

Value engineering analysis for the educational buildings in egypt

Abstract: General Authority for Educational Buildings (GAEB) in Egypt is responsible for new construction and maintenance of the educational building [1]. According to the Sixth FiveYears Plan in Egypt, the program of educational structures includes new construction of about 2915 schools, with 39.8 thousand classes. Also, maintenance works for buildings about 1250 schools. These works needs a high budget but the available budget is less than the required budget. Therefore, GAEB should apply optimization techniqes to save cost and optimize the benefit from the avaliable budget with the same quality level or more. This paper aims to apply value engineering technique on educational building to maximuize the utiltization of the available constructuion and maintenace budget. In this paper value engineering technique, is applied on a model of primary school. The paper suggested that GAEB should construct a value engineering department included in its organization structure. Finally it draws overall conclusions about the application of value engineering (VE) in the GAEB in Egypt. Also, to get the optimum set of activities, alternatives for cost saving and maximize the utilization of the available funds for new construction and maintenance works. The value engineering technique application is based on data collected from GAEB.

Evaluating Business Models: Evidence on User Understanding and Impact to BPM Correspondence

Abstract: Representation and formalization of value models and constellations do not only affect companies' strategies. Even within the process level, the contribution of activities to the value chain has to be obvious to enhance understanding. One important aspect to reach correspondence between the strategic value-oriented business model level and business process level is consistency in modeling. Therefore, the quality of value models to users' perception and perceived impact to business processes has become obvious. Therefore, the paper's contribution is to evaluate the perceived quality of two value models, i.e. e^3 value and the Resource Event Agent (REA) model to a consistent modeling. Based on an experiment, it is shown that both models show a high user understanding. Understanding is not only limited to business models, but also on business processes. In conclusion, the results contribute to an integration of value models in current enterprise models.

Decision support system approach for construction materials selection

Abstract: The objective of this paper is to implement a decision support system for materials selection for projects under design or construction by consultants and owners. The paper focuses on issues of materials approval, selection criteria and materials information management. The proposed system includes database and decision support components. The database can enhance the functionality of the selection process as it provides a source of information to feed into the decision support component. The decision support component relies on the quantitative methods of value engineering. Construction involves processes that deal with materials in all stages of a project. Decision making in project meetings requires the application of knowledge from many disciplines, by all parties in the project teams to select materials and avoid delays for the project under construction. Acquiring and recording information (in a database) regarding material quality, durability, specifications, and maintenance requirements is a vital part of good project management practice. It is anticipated that using such a system for materials selection will provide an improved tool that systematically enhances the selection process and enables upgrading the system during project life cycle.

A Numerical Value Evaluation Model for the Optimum Design Selection

Abstract: While VE in South Korea must be performed according to law, there is no standard evaluation method for the design values and value indices, and few studies have been conducted on this topic. The me...

Value Engineering Application in Construction Project Management

Abstract: Value engineering is a combination of technical and economic subjects. It is committed with the lowest life cycle cost and reliable completion of the functions required by the user. It has an important influence and function to promote the traditional product value innovation, cultivate and develop the enterprise's core competitiveness, and promote national economic and social sustainable development. This paper analyzes the current situation of construction project management and problems based on an overview of relevant theory of value engineering and construction project management. It Points out the importance of value engineering. Finally analyzes the application of value engineering to construction projects in various stages of the life cycle.

Appraisal of Value Engineering Application to Construction Industry in China

Abstract: The concept of value engineering has existed for more than half a century. Its application in construction is credited with some success notably in construction in many countries. Nevertheless, value engineering is rarely applied in the China construction industry. At present, the technical competence of construction industry is at a relatively low level in general. Since value engineering is still in its in its infancy, it hasn’t been well-accepted by corporations in the construction industry. A survey among industrial practitioners has been conducted to identify possible causes for the dire status and highlight the real concerns among industrial practitioners in China. Generally, there is a lack of understanding in value engineering concepts among industrial practitioners and it is important for the government to take the lead in promoting value engineering practices in domestic projects. Moreover, the scope of value engineering can be broadened to many fields in construction.

Reducing Process Costs with Lean, Six Sigma, and Value Engineering Techniques

Abstract: A company with effective cost reduction activities in place will be better positioned to adapt to shifting economic conditions. In fact, it can make the difference between organizations that thrive and those that simply survive during times of economic uncertainty. Reducing Process Costs with Lean, Six Sigma, and Value Engineering Techniques covers

Advances in manufacturing and materials engineering

Abstract: This collection of peer-reviewed papers is the fruit of a forum where institutions and industries could share ideas, innovations and problem-solving techniques. The 180 papers are grouped into: Material Removal Process; Forming Processes; Casting and Joining; Materials; High-Energy Beam Processing; Precision Engineering and Nanotechnology; Surface Engineering; Computer-Aided Engineering; Environmental Issues and Management in Manufacturing; Manufacturing Systems and Engineering; Value Analysis and Value Engineering; Fatigue and Fracture Mechanics

Value-based portfolio scoping: an industrial case study

Abstract: Customization is considered as a promising way for better satisfying diversity of customer needs. In organizations short of resources, it is a frequent challenge to get balance between development and customization workload in order to ensure product success as well as customer satisfaction. In this paper, we proposed a value-based product portfolio scoping approach to determine optimal product scale for planning software product line adoption. The approach blends existing methods in domain analysis, requirements clustering, and valuation theory. An industrial case study is presented to demonstrate the application of the approach and its effectiveness.

A new optimization scheme based logistics cost for plant facility layout

Abstract: As an important component of production process, logistic performances make great effect on production system. And logistic cost also takes significant position in production cost which is affected directly by plant facility layout of the enterprise. A method using SLP is given to systematically analyze the problem of actual facility layout of a manufacturing company. Then an optimized scheme is put forward to reducing logistics cost. Finally, comparison experiments are performed and the results show the advantages of the new scheme.

EOQ principle analysis of benefit consistency of supply and demand based on comprehensive cost of quality

Abstract: This paper presents a conceptual framework for economics of quality (EOQ) principle analysis based on comprehensive cost of quality (CCQ) which improved the traditional cost of quality (COQ) model. Firstly, the paper establishes the CCQ model. Then, relationship schemes between quality level and relevant costs are given. At last, the value engineering is introduced into the process of EOQ principle analysis and the mathematical model of EOQ principle analysis is established by compositing the value orientation from both enterprise and customer. The most appropriate quality level interval can be gotten by the EQQ model which is helpful for enterprises to select the most suitable quality level in market competition environment, and maximise revenue for both sides of supply and demand.

Value Analysis in Galvanization Process: A Cost Reduction approach

Abstract: In a free enterprise system, with competition at full play, success in business over the long term hinges on continually offering the customer the best value for the price. Competition, in other words, determines in what direction one must go, in setting the value content in order for a product or a service to be competitive. This best value is determined by two considerations: performance and cost. Value analysis helps in identifying unnecessary costs of any product by focusing on the product function. Using creative ideas invariably minimizes unnecessary costs even if it does not eliminate them totally. This paper addresses the application of value analysis concepts for cost reduction in the galvanization process. By this paper we can see that how we can use value analysis concept for solving the problem of any type with the best suitable option of reducing the cost of galvanization to the best possible extent. In short, Value analysis is versatile and a systematic way solve to many problems related to any aspect of manufacture, such as quality, production, maintenance, parts availability and many others. It directly contributes to improvement of operating performance and reduced costs.