Showing papers on "Value engineering published in 2015"

Value Engineering in Construction

Abstract: Value engineering is a methodology used to analyze the function of the goods and services and to obtain the required functions of the user at the lowest total cost without reducing the necessary quality of performance. Many a time, Value Engineering (VE) is confused with cost cutting exercises in construction industry. The essential difference between conventional cost cutting and VE is that it involves reducing the cost by improving the functionality through lesser consumption of energy in terms of manpower, materials and machines. In the initial stages VE was used by production engineers for reducing the cost of manufacture. However, it was found that the benefit of VE is much greater if multidisciplinary teams of engineers were involved which would also influence the design team that is normally the case in construction

Assessing the intermodal value proposition of shipping lines: Attitudes of shippers and forwarders

Abstract: Shipping lines generally offer their clients two main value propositions: port-to-port and door-to-door transport. In addition, some shipping lines offer a third value proposition in the form of transport up to inland terminals (ILTs). This third value proposition combines maritime and inland transport and is offered to two types of customers: shippers and forwarders. These two customer groups have different positions in the supply chain. It is therefore expected that shippers and forwarders have different attitudes towards the intermodal value proposition and the service offering of shipping lines in general. In this article we analyse how shippers and forwarders assess the value propositions of shipping through a survey among shippers and forwarders in the Netherlands. We found that shippers and forwarders differ in what they find important in the service offering of shipping lines, that they differ in the share of value propositions they source from the shipping lines and that for both shippers and forwarders the value proposition centred around an ILT is of added value.

Forecasting Private-Sector Construction Works: VAR Model Using Economic Indicators

Abstract: Accurately modeling and forecasting construction works completed by main contractors is pivotal for policymakers, who require reliable market intelligence to adjust or develop optimal labor and housing policies. Yet, despite its importance, limited research has been conducted to systematically develop approaches to investigating future trends of works completed in the private construction sector. Against this backdrop, this paper provides a study of the annual financial value of construction work in the private residential market. A vector auto-regression (VAR) model developed utilizes economic indicators (used by private financiers when making investment decisions) to estimate the value of annual construction work carried out by main contractors. Using data from the Hong Kong private residential market and constructing an accumulated impulse function, the developed model suggests that construction work completions in private residential markets can be explained by changes in economic indicators s...

VALUE ANALYSIS: Going into a Further Dimension

Abstract: Value Analysis (VA), as it was originally conceived, was defined and applied as a cost cutting tool, in order to make products more competitive. That short scope was early identified as limiting further developments and applications of the concept, by its initial pathfinder, if no extra effort was made to take the concept into other levels of management and, consequently, of business. The many different and alternative applications of the concept and of its original methodology have taken many professional practitioners and scholars to theorize and apply new concepts and methods. We can find a tremendous number of different learning exercises and theoretical evolution from that work, but that has not yet answered many aspirations regarding the initial concept of value and value analysis. This paper aims at bringing a new and more comprehensive understanding to professional practitioners, scholars, trainers and students, about some major concepts and applied methodologies in the disciplines of Value Management (VM), Value Analysis (VA) and Value Engineering (VE).

Forecasting demand on mega infrastructure projects: Increasing financial feasibility

Abstract: Indonesia is a country with large and dynamic economic activities reflected by an average economic growth reaching 6% per annum. Sunda Street Bridge (SSB) is one of the mega projects offered by the Indonesia government that would spend about US$ 25 billion. In line with the SSB main function as an efficient mean for transporting people and goods between two major islands in Indonesia, potential additional functions have been explored including installation of liquid and gas pipes, fiber optics, industrial area development and renewable energy utilization. This research establishes the approach to forecast demand in the case of conceptual design. The SSB is associated with innovations to determine the functions using value engineering methods. The approach involves forecasting demand with a System Dynamics simulation model that could provide a reliable estimate and generate scenarios to compare the financial feasibility of the project before and after the process involving innovation of project functions. Analysis involving demand forecasting with the System Dynamics Approach has confirmed that the Sunda Strait Bridge development with additional functions would increase the revenues of the overall project up to US$61.59 Million, in order to obtain an increased Internal Rate of Return (IRR) of the overall project up to 7.56% with a positive Net Present Value (NPV).

Value Engineering Master Mind: From Concept to Value Engineering Certification

Abstract: Value Engineering Master Mind: From Concept to Value Engineering Certification By Anil Kumar Mukhopadhyaya Sage Publications, New Delhi, 2009, Pages: 153, Price: 295 ISBN: 978-81-321-0062-1The book "Value Engineering Master Mind: From Concept to Value Engineering Certification", is positioned as a "jargon free" book which demystifies critical concepts related to Value Engineering (VE). Most of the concepts are presented very crisply but in comprehensive detail. The objective of this book is biprog: to deliver concepts related to value engineering with specific emphasis to syllabus related to various INVEST (Indian Value Engineering Society) certification programs; secondly to give insight about various societies (and their corresponding certifications) that relate to promoting value engineering philosophy. The end of the chapter exercises make this book akin to a comprehensive text book on value engineering concepts. This book is divided into ten chapters. First four chapters delve about the back drop of value engineering, its historical origins and its proliferation into various societies that promote value engineering practices across the globe. Rest of the book details various concepts relating to value engineering.For the ease of comprehension, the author of this review intends to focus on theoretical concepts relating to value engineering first which are eloborated from chapter five onwards and then detail about professional aspects that are presented from chapter one to four. Chapter five describes elementary concepts of VE. According to VE discipline, every attribute/part of the product is designed to perform a specific function. The author defines function as combination of active verb with a measurable noun. To illustrate function of electric wire is to "conduct current". Accordingly, value engineering is defined as "a function oriented cost improvement technique". This means to state that VE procedures aim at reducing unnecessary cost without detoriating the "overall quality or life or customer features or appearance" of the product. To achieve this end, VE oriented product engineer should use both creative, scientific and management procedures and techniques which are described in good detail in this book.While value is term that has social, ethical and various other discipline specific connotations, it is limited to economic value within the gamut of VE theory. The book further identifies economic value ramifications as esteem, exchange, use and cost value respectively. Esteem value relates to those attributes which make a person choose a particular product over its competitors. Exchange value is the price put on product during its sale. Use value is the value contributed by the product to consumer over its life time. Cost value which is also described as life cycle value is the cost incurred by the customer during acquisition, operation, maintenance, repair and salvage. Author describes various reasons for poor value and describes methods of calculating life cycle cost in chapter five.Chapter six details concepts from finance related to VE. The author presents and contrasts four critical financial techniques pertaining to VE decision making namely, Break Even Point (BEP), Payback Period (PP), Return On Investment (ROI) and Discounted Cash Flow (DCF). The author favors discounted cash flow method to choose between product alternatives considering its strategic advantages over other methods since only DCF takes time value of money into consideration. Author adeptly illu strates each of these concepts using example pr oblems replete with detailed calculations.VE implementation teams generally constitute people from multiple functional departments who are not acquainted with each other closely. …

Value Engineering in System of Cryoline and Cryo- distribution for ITER: In-kind Contribution from India

Abstract: System of Cryoline and Cryo-distribution for ITER has matured to a stage of preliminary design with the advent of industrial associates. Starting from the cold power source, the system of Cryoline and Cryo-distribution transfers the controlled cold power through a large network to the superconducting magnets and cryopumps. The functional responsibility also includes very high reliability and availability with respect to the operation of the ITER machine. Following the completion of conceptual design, it was necessary to perform a detailed engineering study of the complete network of distribution system in totality, before entering in to the industrial phase. This is to ensure the functional responsibility of the system. Value engineering in the area of distribution boxes including interfacing Cryolines has been performed in order to access the integrated reliable performance with respect to the overall cryogenic system, reducing the risk transferred to the industrial partners. These include technical risk assessment, analysis, mitigation plan and implementation with the industrial partners. The paper describes the methodology of technical risk management, value engineering performed to ensure fulfilment of licensing and regulatory obligations, functional reliability, testing and manufacturability by standard industrial processes, so that highly reliable integrated distribution system is delivered for the project.

Value Engineering Application in the American Transportation Industry

Abstract: Value Engineering is systematic application used by multi-disciplined team focused on the functionality identification at the possible lowest overall costs. The paper presents research findings concerning benefits resulting from Value Engineering applying in American transportation industry within highway improvements programmes. The research aim is to determine economic benefits of VE projects using for highway organization improvements.

Implications of technology transfer in the design and construction of load-bearing masonry buildings

Abstract: Load-bearing or structural masonry is a method of construction where the elements of a structure are built using masonry (bricks or blocks). Due to its technological and economic advantages, in western countries the system is widely used particularly for residential and low-rise buildings. Despite the advantages and excellent track record overseas, the system has not found its avenue in the local construction scene. Not many new buildings have been built using the system. Previous studies revealed that engineers, architects, developers, and builders lacked knowledge and experience on the design and construction using the system. A programme has been formulated for a consulting firm’s staff and their business partners to transfer the state-of-the-art knowledge on the design, detailing, costing, and construction of structures using load-bearing masonry. Additionally, value added topics on supply chain, value engineering, and strategic planning were also included. The programme involved two phases: (i) a series of seminars and workshops covering a duration of 6 months and, (ii) continuous site supervision (monitoring) for another 6 months. An auditing scheme to measure the company’s performance before and after the programme using the balance score-card technique is under formulation. The technology transfer programme has been completed covering 9 modules whereby the company managed to save further on profits by utilising value engineering concepts in its relevant projects.

Integrated Value Engineering - adapted approach to assess different concepts of a jet engine

Abstract: A jet engine is defined by several system properties like weight, production costs or the specific fuel consumption which all play a significant role in the lifecycle costs of an airplane These system properties can be converted into each other With rising fuel costs, the reduction of the specific fuel consumption is a key focus in the development of new jet engines In this work, the view of specific fuel consumption in the development was adapted into a new structure based cost management approach called Integrated Value Engineering (IVE) The idea of this work was to assess newly generated solutions for an interface of two jet engine subsystems in terms of several system properties, which influence the lifecycle costs of the system Therewith the approach supports industry in the assessment of alternative concepts and conceptual decisions

Indirect Solar Desalination: Value Engineering and Cost Benefit Analysis

Abstract: This study examines the feasibility of indirect solar desalination in oil producing countries in the Middle East and North Africa (MENA) region. It relies on value engineering (VE) and costbenefit with sensitivity analyses to identify optimal coupling configurations of desalination and solar energy technologies. A comparative return on investment was assessed as a function of water costs for varied plant capacities (25,000 to 75,000 m/day), project lifetimes (15 to 25 years), and discount rates (5 to 15%) taking into consideration water and energy subsidies, land cost as well as environmental externalities in the form of carbon credit related to greenhouse gas (GHG) emissions reduction. The results showed reverse osmosis (RO) coupled with photovoltaic technologies (PVs) as the most promising configuration, robust across different prices for Brent oil, discount rates, as well as different project lifetimes. Environmental externalities and subsidies analysis revealed that a 16% reduction in existing subsidy on water tariffs would ensure economic viability. Additionally, while land costs affect investment attractiveness, the viability of RO coupled with PV remains possible for a land purchase cost <$ 80/m or a lease rate <$1/m/yr. Beyond those rates, further subsidy lifting is required. Keywords—Solar energy, desalination, value engineering, CBA, carbon credit, subsidies.

Applying of Value Engineering in EZGELEH Dam with Focus on Rock Slopes Stabilization and Underground Support

Abstract: In this research we try to propose a new method for rock slopes stabilization and underground structures support of a real project that uses mesh reinforced shotcrete to improve value index of it. For this we applied value engineering technique on a real project of IRAN (EZGELEH dam) to help us use specific and accurate data. Also we used a laboratory research in same field to evaluate effect of project on quality and efficiency of final result. At the end we constructed a part of tunnel by suggested method of value engineering and similar part by old method to compare these methods together based on time, cost and quality. Final result of research has three major parts that has been reached by studying on major parameters of project (time, cost, quality). Final result has been presented by specific data and statistics. The results of our investigation show that using polypropylene fiber reinforced shotcrete instead of mesh reinforced shotcrete for rock slopes stabilization and underground structures support upgrade value index of this project significantly. Also it can be used in similar development projects.

Cost Control Application Research of Value Engineering in the Design Phase of Construction Project

Abstract: At abroad, the construction industry is the main area applying value engineering. In China, apart from industry business, the construction industry is the most important area involving the application of value engineering. But a study made by Guangdong construction industry shows that many enterprise managers don't have a clue about the value engineering. At present, the value engineering in construction industry is still at quite a low level. The popularization and application of value engineering in construction industry will make it easier for the construction industry eradicate the problems of long construction period, large waste, poor quality and high cost. Value engineering can make up for the shortcomings of these methods, for it studies allocation of product’s properties and its cost based on its functions, and it emphasizes the organic combination of the improvements of products’ function and the reduction of the cost. As long as the value engineering is practically popularized, the appearance of construction industry is bound to change. Introduction Value engineering, a subject about technology and economy dedicated to improve the function of product or system, and reduce the cost of product or system, therefore with the lowest life cycle cost to meet customers’ requirements about function. The application of value engineering focuses on the design phase of the research of development of the product, which is an important characteristic of value engineering. Compared with other countries, there is certain disparity in both the theoretical research and practical application of value engineering in the construction industry in our country. Therefore we have to catch up. So using value engineering methods to control cost in the most productive phase of value engineering—design phase bears great practical significance. Characteristics of Value Engineering Application in the Design Phase of Construction Project As a kind of productive and creative activity, value engineering is not only used in machinery manufacturing industry to guide the design, but also is needed in basic construction and the construction industry to guide the design. Although there are many similarities of the application of value engineering used respectively in construction design and the industrial products’ design, due to the fact that the production activities and product of basic construction and the construction industry bear their own characteristics, so on the one hand, it increases the difficulty of the engineering application of value engineering, on the other hand, it forms the characteristics of engineering application of value engineering which are different from industrial product design. (1)Application of value engineering in engineering design is different that of product design. In general, the research object of value engineering in the product design is the product, the function refers to the product’s function that the user requires, the cost refers to the production cost and use-cost, and its aim is to reliably meet the user's request with the lowest life cycle cost. And in engineering design, the research object is a portion of the project or structure, such as factories, buildings or a certain component etc. Function refers to the operating function of the country or the users about the project. In general, in addition to the function, quality of the project, there are time requirements about project delivery. Cost refers to the construction cost and maintenance cost after use in the entire project or some part of the project. The purpose of value engineering application is International Conference on Economics, Social Science, Arts, Education and Management Engineering (ESSAEME 2015) © 2015. The authors Published by Atlantis Press 390 to develop a low cost, high function scheme with the lowest cost to realize of nation or users’ requirements of the project. (2)When value engineering application used in engineering design, its designed cost goal is different from the value engineering application used in product design. The prices of industrial products are generally stipulated by the state. Based on the given price to deduct tax, profits and some circulation cost, we can calculate out the social cost of a certain kind of product. Application of value engineering in product design can based on the above information and the enterprise's specific circumstances to apply the appropriate methods to set cost targets, so as to guide and control product program. Yet, due to the fact that the construction products bears oneness characteristic, the production is not fixed in a certain place and there is long production process and numerous links, which make the building products must pass a special design program, namely, determine the price by using the separate programming budget in basic construction. Specifically speaking, it is based on the construction drawings and budget quota to calculate the quantity of divisions and departments; Select a set of budget unit price, then calculate direct fee; then based on the direct fee or artificial cost to calculate the indirect fee; and then according to the feeing standard to calculate independent cost and planned profit; finally, calculate the unit project budget cost in general. Clearly, this method of defining price is different from general industrial product pricing method. The determination of the cost target while applying value engineering in the engineering design can be only based on the engineering budget and according to the specific circumstances with appropriate method to achieve a reasonable result. The General Procedure of Value Engineering Work The process of value engineering is a process of discovering analyzing and solving problems. Value engineering work procedures are shown in table 1. Table 1 the general procedure of value engineering work General process Basic steps Detailed steps Problems to be tackled analysis The process of define and sort out the function 1. choose an object (1)what the research object of value engineering? 2.gather and sort out materials 3.define the function (2)The function? 4.sort out the function Evaluation of the function 5.analyze the cost of function (3)The cost? 6.evaluation of the function (4)The value? 7.determine the scope of object generalize 8.create a scheme (5)Are there any other methods to achieve the same function? evaluation Stipulate improvement solution 9.examine and approve (6)The cost of new plan? (7)Does the new plan meet the requirements? 10.implement and inspect 11.identify the results 12.make proposals From table 1 we can know that: the working process of the value engineering is in essence aims at the research object of value engineering to carry out seven basic issues, and the seven issues determines the basic steps and working process of value engineering. 4. Cost Control of Construction Project The cost control of construction project mainly lies in the investment decision-making stage, design stage and the implementation stage during construction. It aims to control the project investment within the approved cost quota and correct the deviation at any time, thus to ensure the implementation of project investment management objectives can be achieved, finally, to achieve maximum investment benefit by rational use of manpower, material resources and financial resources. Investment control mainly includes the following five aspects: first, in the feasibility study stage, the cost control can accurately estimate investment, thus guarantee the control of total investment

Formalizing Over Design and Under Design of Value Engineering for Context-Aware Cloud Service Development

Abstract: Context-aware Cloud services, which may significantly enhance usability of the future Internet-based information infrastructure, also brings in new challenges to Cloud system development. In this paper, we investigate application of value engineering, a systematic method for achieving optimal system design, to address the challenges introduced by the complex computing and networking systems required for context-aware Cloud services. We particularly study the Under Design (UD) and Over Design (OD) problems in bridging business planning and technical implementation of Cloud services. We propose a cognitive conceptualization of UD/OD from a knowledge introduction perspective and show effectiveness of the formalization through simulations.

Evaluation of Cost Management Controlling System in Petroleum Enterprise

Abstract: In this paper , for the implementation and supervision of the strategic management, we proposed a model that will evaluate cost management controlling system under various market scenarios in petroleum enterprises. The outlined model classified cost controlling methods into five grades In the different strategy. These methods includes origin man- agement, activity improvement, activity chain optimization, value engineering, cost variance analysis, budget manage- ment, performance evaluation system and incentive mechanism, quality cost management, funds operation and human capital operation. The model assigned a value to each grade by expert scoring method, and calculated the score of cost management controlling system by formulas. It is the conclusion that if the score > 0, cost management controlling system made positive contribution to strategy; If the score < 0, negative contribution to strategy. The use and benefits of the pro- posed model are illustrated on a case of The Fourth Oil Extraction Plant of Daqing Oilfield Company Limited..

State of the Art Review On Application ofValue Engineering On ConstructionProjects: High Rise Building

Abstract: Value Engineering (VE) concept does not mean a cost reduction only, but it extends beyond. VE is a powerful problem-solving tool that can reduce costs while maintaining or improving performance and quality requirements. It's a function- oriented, systematic team approach to providing value in a product or service. Construction project as a product or service is generally considered to have good value if this product or service has appropriate performance and cost. The construction product's characteristics differ than those in manufacture in many aspects such as immobility, complexity, durability, cost lines, and high degree of social responsibility. These characteristics are highly affected by the construction technology. Where, adopting these new technologies and working method in proper work environment can maximize the product with a working time reduction by 25% and cost reduction by 20% in average. Slip Form (S.F) is considered one of these common methods of construction. An assessment of the S.F includes productivity, appropriate speed in addition to auxiliary resource combinations. This research aims at create awareness of VE, and demonstrated the benefits gained when it applied to construction projects.

Value Engineering Study of Low-Cost Governmental Housing Projects in Egypt

Abstract: Value Engineering (VE) techniques are usually implemented in construction industry to determine the project required function with lowest overall cost and/or increased performance which indicates highest possible value. In the present study, the concept of Value Engineering was discussed; its job plan and the effective implementation of its procedures through a case study were presented. VE study is applied to the first phase of a national low-cost housing project in PortSaid Governorate, Egypt. The study comprised of three stages: First stage is to investigate on VE merits and possibility of application in such projects via a questionnaire to collect such data from specialist's respondents. Second stage focusing on the analysis of the applied phases of Value Engineering job plan in order to reduce the estimated cost and/or increase project performance. Third is to propose a computer model for recommendation phase in order to calculate the total potential savings and the percentage of savings in an organized systematic way similar to physical VE studies. As a result of the present study, applying five phases of the VE job plan to the first phase of a national low-cost housing project in Port Said Governorate and replacement of selected items, led to a potential cost saving of

Alternative Evaluation Method of GFI-based Construction Value Engineering

Abstract: Value engineering (VE) of the construction project is classified into design phase value engineering and construction phase value engineering. Design phase value engineering must apply to over 10 billion public construction projects by government law. Therefore, the design value engineering apply to actively in construction projects. In contrast, the construction value engineering apply to a limited certain construction project. The reason is that construction value engineering process can not reflect practical demands quality. The construction value engineering can implement to positive impact through the feasibility verification for constructability. In this research, we propose a method of construction value engineering that reflect the practical demands. This method is experts alternative evaluation of using by GFI-based. And, this study was applied to the practical cases to verify the applicability of the proposed method. As a result, proposed alternative evaluation method were analyzed highly efficient in terms of applying the process as well as the method compare to the conventional method.

Implementation of Enterprise Resource Planning Using the Value Engineering and System Dynamics Methods

Abstract: The Enterprise Resource Planning (ERP) system is an integrated software package applied by many enterprises as an operations platform over the past years However, according to an industrial survey, the failure rate of ERP system implementation is relatively high because of high implementation costs and long implementation time, incapable implementation teams, process misfits, resistance to change and inadequate training This paper proposes a Value Engineering (VE)-based framework that combines the System Dynamics (SD) method to support implementation of ERP systems Within the framework, VE is a systematic, functionally oriented method for generating decision alternatives, whereas SD can simulate the possible outcomes in terms of the generated decision alternatives so that a suitable strategic decision for the ERP implementation can be evaluated and selected The proposed method is applied to a SAP R/3 implementation case in the manufacturing industry The application case shows that the method can achieve a positive result indicating the high value-added output of ERP systems implementation

Value engineering in developing countries

Abstract: Conservation in Civil Engineering Construction is a familiar phenomenon, so most of the Civil Engineers prefer to reduce the unnecessary cost whenever possible without affecting the system. To achieve this, value engineering is the most economical and penetrating tool. Value engineering is a philosophy implemented by the use of a specific set of techniques, a body of knowledge and a group of learned skills; it is an organized creative approach of identification of unnecessary cost.

Potential and dynamic value measuring

Abstract: The present work explores the value creation and co-creation like a system. The work proposes a co-creation model with systemic archetypes that allow the capture and measure of both potential and dynamic value. According to Service Dominant Logic, value creation in a collaborative way is based on the customer's experience, value in exchange and value in use, key aspects in this approach. A phenomenological analysis is used in this work for the value creation both from designers and customers. This approach broadens the scope of value creation and measure beyond designer proposition emphasizing on value co-creation in a social context, where service as a skill and knowledge transmission, transform those last aspects in fundamental operant resources for value creation in use. Results show that the methodology ADES allows not only the value capture and measure but also a profound comparison between potential and dynamic value to support future strategies on the service design.

Effectiveness of Value Engineering in Reducing Delay in Urban Projects

Abstract: Because of misappropriate design, technology complications, excessive number of organizations and involving people in the project, variation of needed qualifications and extensive number of activities, development projects don’t execute within primary determined cost and time constraint. Therefore presence of a regular system for optimizing investment in development and urban plans is needed. Optimization methods causing project implementation within primary cost and time constraint work are effective to eliminate negative effects of mentioned factors. The objective of this research is to investigate the effect of using value engineering in order to eliminate causes of delays in the urban projects of country. Regarding the results of this research, the most and least effect of value engineering are in order to eliminate delay causes arising from integration and human resource mismanagement. Moreover, value engineering must be employed for refinement and optimization of processes before and during project execution in order to decline time delay and costs and to increase value of projects. Value engineering studies, specifically whenever strategic decisions should be taken, could affect positively on the project execution. Finally, employing value engineering technique and compounding these methods to project management science can increase the value index of urban projects.

Implementation of functional analysis using value analysis value engineering (VAVE)

Abstract: This paper presents one of the tools used in Value Analysis Value Engineering (VAVE) methodology; Functional Analysis and its implementation during New Product Development (NPD) phase. Current vehicle outer door handle has been redesigned through its functions in order to meet customer requirements of having higher value vehicle, by increasing performance while trying to decrease the cost without scarifying the quality, saleability and maintainability. An analysis has been made and discussed using Function Analysis System Technique (FAST) diagram to achieve product optimization. Finally, results obtained are discussed.