Showing papers on "Value engineering published in 2016"

The Influence of Value Engineering and Sustainability Considerations on the Project Value

Abstract: Value engineering is a powerful approach for cost saving and quality improvement; especially that the construction industry holds a significant weight with respect to the worldwide economy. Currently, value engineering does not influence just project costs and quality, but also it proved to have positive impacts on the environment and the worldwide trend of green construction. Value engineering takes into consideration both the initial and life-cycle costs. Sustainability is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. The sustainability approach deals with all the surrounding resources such as water, energy, material lifecycle from its beginning as raw materials till their salvage cycle. This paper presents a case study of value engineering applications in the aforementioned sustainability disciplines in a real large-scale residential project. In this case study, the methodologies and calculations of the value engineering and sustainability studies are presented. The overall estimated savings of the project resulting from the full value engineering study ranged between 20% to 30% percent of the element cost; hence a significant reduction in the overall project cost as well as the saving in energy consumption that reached about 7%. The paper provides a good example on how value engineering and sustainability are inter-related; and how they have compounded economic and environmental impact when studied in parallel.

The Methodology of Using Value Engineering in Construction Projects Management

Abstract: Construction projects are implemented in different countries with heavy costs and some of the projects have been relatively or absolutely unsuccessful and even faced with irreversible losses after construction. Maybe, it is due to complexities related to projects or other social-economic phenomenon. The present study revealed that value engineering can be used as a helpful tool from the beginning of studies to the end of designing, constructing, exploiting, and maintaining processes and overcome civil designs’ challenges and complexities. Value engineering is a method experienced in management that has an organized approach. Value engineering has a systematic and cooperative mechanism to analyze function and systems with the aim of achieving desirable function with the least costs. This study has attempted to briefly introduce concepts and executive process of value engineering in construction projects. Also, the study has attempted to investigate conventional methods of evaluating projects function and compare them convergence with value engineering to improve projects. Based on the research findings, it can be found that if we can expect to achieve projects objectives by spending the least cost and ensure the efficacy of investment in construction projects management sector as a main challenge of development plans in the third world countries through using engineering in appropriate time periods and in different phases.

The value of design:an issue of vision, creativity and interpretation

Abstract: What is the value of design? Why should firms invest in design? The paper aims at clarifying the value of design, its dimensions and its variables (qualitative and quantitative) throughout a literature review and analysis. The premise is that firms invest in design to create value. Design has evolved, becoming closely related to innovation, and the need to clarify its dimensions and relationships to value within firms and society rises. Despite the global growing interest in design, it is not fully understood how it brings benefits to the company. The concept of value is found in a fragmented literature including economics, marketing, business, management, value engineering, design domains, social and environmental sustainability. In conclusion, the value of design still is under-researched and new dimensions emerge. It is shaped by designers and companies visions, creativity and interpretations. Better crossfertilization is required to identify the mechanisms of value creation by design.

The Possibility of Applying the Value Engineering: Case of Municipality of Al-Salt

Abstract: The study is aimed at investigating the possibility of applying the value engineering in the municipality of Al-Salt. The study proposes the value engineering for implementation in Jordan. The sample consisted of 132 employees derived from a population that had a sufficient knowledge of value engineering in the municipality of Al-Salt team. The data collection tool used was a self-administrated questionnaire. The study revealed the existence of a strong correlation between. Furthermore, the study sample agreed that value engineering is a widespread organizational practice. The study concluded that the utilization of value engineering is related to proper planning and follow-up of the applications for the value engineering in Al-Salt. In addition, the study recommended the spread of the culture of value engineering which was supported by the senior management at Al-Salt municipality.

Research on lease and sale of electric vehicles based on value engineering

Abstract: Electric vehicles (EVs) acknowledged as potential means of transportation tools in the near future are widely accepted as the development trend of automobile industry due to its environment protection and fuel energy saving properties. As a product containing new technologies and concepts with little market experience and consumer identification, studying its life cycle operation modes will help to figure out an optimal approach to conduct EVs manufacturing and service. The two common operation modes, lease and sale of EVs, have their own advantages and weaknesses under different scenarios and consumer psychological status. Research and comparisons on the function, cost and value of two operation modes in full life cycle will simulate the rapid development of EVs forming a mature and dynamic operation mechanism. This paper utilised approaches in value engineering, putting forward customer requirements and technical elements of EV lease and sale based on quality assessment and customer-perceived value, pro...

Value Co-creation in the Interface between City Logistics Provider and In-store Processes

Abstract: This paper develops a framework for understanding how city logistics service co-creates value with users. The users’ perspective in city logistics research is limited, and value added services are rarely emphasized. The framework developed is based on literature on value in business markets, and in-store processes. Two case stores and their use of city logistics demonstrate how value is co-created when changes in delivery patterns and value added services affect especially the use of store employees. Further, we show that there is a barrier to the co-creation of value when services get close to core activities in-store operations.

Value Engineering for Roadway Expansion Project over Deep Thick Soft Soils

Abstract: A roadway expansion that takes place on soft ground is susceptible to differential settlement because of the high consolidation of soft soils. Therefore, steps must be taken to lessen the risk of such settlement; yet, this often only results in costly drainage solutions. In that, applying a systematic value engineering (VE) process can be beneficial to develop cost-effective design alternatives. However, VE studies specifically targeting for this problem are absent from the field. Thus, the goal of this study is to supplement this knowledge gap by applying a systematic VE process to an expansion project on soft ground to demonstrate the benefits of performing VE. A case study was performed on an expansion project over a soft soil layer approximately 50 m thick. Through the VE process, the original design was reviewed, problems were discussed, and three alternatives were proposed. Then value analysis techniques were applied to evaluate these alternatives in terms of cost saving, function improvemen...

Value engineering in residential house construction

Abstract: The current construction practices require a great effort to balance the factors such as money, time and quality. Comparing with other industries it seemed that construction industry remains the toughest one to deal with. It is proven that certain modern t...

Toward big data value engineering for innovation

Abstract: This article articulates the requirements for an effective big data value engineering method It then presents a value discovery method, called Eco-ARCH (Eco-ARCHitecture), tightly integrated with the BDD (Big Data Design) method for addressing these requirements, filling a methodological void Eco-ARCH promotes a fundamental shift in design thinking for big data system design -- from "bounded rationality" for problem solving to "expandable rationality" for design for innovation The Eco-ARCH approach is most suitable for big data value engineering when system boundaries are fluid, requirements are ill-defined, many stakeholders are unknown and design goals are not provided, where no architecture pre-exists, where system behavior is non-deterministic and continuously evolving, and where co-creation with consumers and prosumers is essential to achieving innovation goals The method was augmented and empirically validated in collaboration with an IT service company in the energy industry to generate a new business model that we call "eBay in the Grid"

A Novel Innovative Design Improvement using Value Engineering Technique: a Case Study

Abstract: Manufacturers around the globe are competing for the identification of innovative value propositions to survive in the competitive and complex market. This paper is intended to investigate implementation of Value Engineering (VE) technique into the product design concept for necessary changes in design of the humidifier system in order to lower unnecessary costs and to increase quality of the product. Humidifiers are used for ventilation and cooling the air at most houses in cities located in hot and dry areas. Value Engineering as a systematic attempt is used to increase efficiency of the product, and optimize the life cycle cost. This leads to a shift from traditional design towards new efficient designs. For this study, an 8 stage job plan is used for VE job plan. In this article, different components of humidifier were analyzed thoroughly and then numerous suggestions were made at the brainstorming sessions. Function Analysis System Technique (FAST) was also utilized at the first stage. Main findings lead to a conclusion that there were more suggestions at the brain storming session. Main findings lead to a conclusion that best suggestion for improved design of the humidifier is change the material of fan cover from galvanized iron to hard plastic or fiber plastic.

Where Lean Construction and Value Management Meet

Abstract: The lean construction (LC) community’s key vision and goal is to provide value, yet they are increasingly challenged with understanding and dealing with the concept of value, with reports that value is one of the weakest points. Regardless of the previous studies and contributions already made on the concept of value in LC, the absence of a consistent understanding of value has resulted in misperceptions and indistinct boundaries with other construction value-related disciplines. Without a consistent understanding of value, the full potential of applying value-established concepts will not occur. Thus, the study of different concepts in construction will open new opportunities to deliver value in the future. Literature reviewed only revealed a small number of interdisciplinary comparisons of Lean manufacturing and LC with value management (VM)/value engineering (VE) on value. Secondary data was used to present an in-depth comparison of the principal points of the current practice and theories of LC and VM, which are seen as ways to improve the delivery of value to clients and building users. The study revealed a range of similarities at a high level, which could easily point to an early conclusion that LC and VM are interchangeable, leading to the same goal of value delivery and shared misapplication of cost reduction techniques. However, a more detailed examination indicates significant differences in the philosophy and scope in different areas, including project timing, practitioner duties, and areas of practice which could complement each other. Also the study identified that LC is a broader philosophy which covers more aspects than VM, it is evident that LC has advanced over the years towards discussions on the concept of value. The current work in LC on value relies less on other construction value-related disciplines such as VM, VE and partnering. Furthermore, LC literature still views value as a confusing concept associated with different interpretations, forming the basisof its understanding. The study established that value plays a central role in both LC and VM. Their combination could offer great synergy regarding the concept of value.

Lessons Learned from Applying the Individuals Control Charts to Monitoring Autocorrelated Project Performance Data

Abstract: The well-known earned value technique measures and evaluates project performance. It uncovers schedule and cost deviations from the baseline plan. However, it is not established to determine acceptable levels of deviations from the baseline. This study applies the Shewhart individuals control charts to overcome this limitation; the charts monitor trends in the project performance behavior and allow them to be detected before the project deviates much from the baseline plan. The study statistically monitors several well-known earned value indexes of a construction project, where the data are autocorrelated and nonnormally distributed. The investigated case showed that the individuals control charts enhance capability of the earned value technique. The authors concluded that implementing the developed tool together with the traditional tools noticeably improves the project controlling scheme and provides more information on project progress. The study extends a previous study in which only independe...

Assessing Hotel Cost Control Through Value Engineering: A Case Study on the Budget Hotels in a Middle-sized City in China

Abstract: This study employed a value engineering approach to identify and evaluate the factors integral to the efficiency of operation and management of the budget hotel sector in China. A combination of qualitative panel judgments and quantitative statistics was applied in the analysis of a Chinese budget brand which is publicly listed in the USA. Findings reveal that out of the six categories of costs identified, the two items of standard room cost and energy & maintenance achieved the ideal value, while lease rental and human resources are overvalued, with franchise fee and refurbishment cost being undervalued. The implication for hotel investors as well as operators is that for the budget sector to fully realize its potential, a delicate balance needs to be obtained so that resources can be more evenly distributed and customer experiences enriched.

Does Superior Service Performance Provided to Shipping Lines Improve the Perceived Value of a Port

Abstract: Port authorities strive to provide value to port users to maximise user satisfaction and loyalty to the port over the long term. This assumes superior performance adds utility to the port service and this will be reflected in the perceived value of the port services offered. There is a lack of empirical evidence that the relationship between port service performance and perceived value exists. This paper examines this issue using a sample of 93 assessments of seven North American ports by shipping line representatives. Exploratory Principal Components Analysis of 17 service performance criteria identified four dimensions of port performance and examined their influence. Performance did not influence perceived cost of using the port but did influence both value and value-added supplied by the port. This suggests that ports that have difficulty competing in terms of port costs can compensate with superior performance, providing guidance for both investment and marketing.

The Utilization of Target Costing and its Implementation Method in Iran

Abstract: Target costing is one of the most effective methods in cost management. As a useful and efficient management tool, it has a comprehensive approach for managing costs, reducing prime cost of products in the initial stage of product planning and design, and achieving long-term profit. The present study attempts to investigate the use of target costing and its implementation method in Iran. For this purpose, the study has been conducted through the methods of field and library studies. The results suggest that identifying competitive price and customers’ needs, entering the global competition, reducing prime cost of products, motivation and teamwork of the staff, using value engineering and activity-based costing are necessary for the successful implementation of target costing.

Integrated value engineering - implementation of value optimization potentials

Abstract: The creation of valuable products requires high functionality and quality for low costs, which results in additional challenges in the design process of products. The relatively new approach of integrated value engineering uses matrices to combine target costing and value engineering in a structural model to deduce value optimization potentials. The objective of this publication is to support the implementation of these potentials and to allow a value optimization by a combination of either increasing the functionality for the customer or reducing the product's costs.

Advanced phase powertrain design attribute and technology value mapping

Abstract: Purpose – The purpose of this paper is to focus on how the concept design stage of a powertrain system can be improved by using a purely objective driven approach in selecting a final concept design to progress further. This research investigation will examine the development of a novel test-bed to assist in the selection of powertrain technologies during the concept design phase at Ford Motor Company Ltd, serving as the main contribution to knowledge. Design/methodology/approach – The objectives of this research were achieved by carrying out a literature review of external published work related to concept design evaluation methods within product development and value engineering techniques. Empirical studies were conducted with a supporting case study used to test the application of a new test-bed to improve the concept design decision process. Findings – A quantitative new tool “Product Optimisation Value Engineering” (PROVEN) is presented to critically assess new and evolving powertrain technologies a...

“Oops” Simulation: Cost–Benefits Trade-Off Analysis of Reliable Planning for Construction Activities

Abstract: “The Oops Game” explores the question, how much should be invested in planning? The simulation offers the opportunity to reduce the risk of an “Oops” by collecting more information or to go ahead and make the choice with the information at hand. There are two extreme strategies. Nothing is invested in planning in the so-called Guts-ball approach, but this increases the likelihood that an “Oops” will occur and thus increases the cost to complete the project. The second strategy is to invest in planning before attempting to build. This will increase the cost of planning upfront, but may reduce the risk and cost of an “Oops” in building. In reality, the cost and value of planning depends on the complexity level of the project, the amount of uncertainty that we need to deal with it, and the cost of an “Oops.” We used computer simulation to show how the value of planning is sensitive to those factors. The results showed that the project with the reliable planning strategy had a 35% higher productivity ...

Optimisation of Public Building Projects in the Design Phase

Abstract: Currently, as a result of the recession, governments are deeply involved in public investment projects to promote economic growth. Public building projects (museums, universities, theatres), compared with private investments, have a range of specialist requirements. Among others, public project should serve political, cultural, social and urban interests. In the preparation phase, those interests are dominant, and overall cost-efficiency is only a secondary level decision factor. However, this factor must be taken into account and together with all other requirements, is an essential part of the project design phase. This process must be a part of a well-established feedback mechanism, which incorporates public requirements, building cost calculation, and other decision making factors related to the public investment project.A number of methods are well known for operational cost optimisation such as LCC analysis, Value Engineering, and benchmarking. After close investigation of the scientific literature, the author will describe potential organisational models, which incorporate evaluation and optimisation of building operational costs. The article suggests further research directions.

Research on Cost Management of Real Estate Project Construction Phase Based on Value Engineering: The Observatory World Project of China State Construction Property Company as an Example

Abstract: Combined with the cost management present situation of construction stage of the observatory world project, the cost management method and factors affecting cost of construction stage were analyzed by using the value engineering theory and methods to search for the optimal scheme of project construction stage, improve the cost management level of construction stage, and ensure the ascension of project function and value.

The Case Study on Performance Measurement Weighting for Efficient Value Engineering Study of Sewage Treatment Facliity

Abstract: Recently, the demand of sewage treatment facilities have increased by growing the population growth of city and industrialization. However, most of public sewage treatment facilities lack the preparations of design criteria by increasing sewage water amount in the future. In order to respond to this situation, the government has consistently promoted the sewage treatment construction project. This study conducted a survey targeting residents and sewage treatment facilities, civil engineering a VE project professionals for effectively operating the sewage treatment facilities and improving its value to be built in the future. Based on this survey, this study will introduce the list of performance measurements which can not only save cost but also reflect opinion of users and residents. In addition, using Multi-Level Performance Measurement and AHP analyzed the weights of performance measurement which is more objective than existing things for applying efficient VE process

Application of Value Engineering to Rework Reduction in Ship Building Project

Abstract: Value engineering is an organized creative technique to analyze the function of a product or a system for achieving the required function at minimum cost along with required performance, reliability, maintainability, appearance, safety etc. Value engineering has been proved to be a very effective tool of materials management and cost reduction in modern industry. It proceeds with the analysis of the value or the utility of the product and then to investigate as to how the value can be improved or if the part can be eliminated or replaced by any other part of the same value (utility) or lesser cost. The paper presents the application of value engineering to minimize rework in ship construction and reduction of cycle time of a project.

Integrated value engineering: Consideration of total cost of ownership for better concept decision

Abstract: National and international competition demands companies to sell products with maximum value for the customer, which is reflected by high functionality for the customer for low costs within the company. Approaches in cost management support practitioners in developing valuable products and to reduce costs. The relatively new approach of integrated value engineering (IVE) uses matrices to combine target costing and value engineering in a structural model. The approach currently uses manufacturing costs to find optimization potentials in the product's value and to valuate different concepts of new products. However, the customer's utilization costs during the use phase of the product play an important role on the decision for buying a new product. The amount of these costs can be already influenced during the development of the product. Therefore this publication discusses an approach to extend the concept of IVE by utilization costs. Several concepts from the field of lifecycle costing and total cost of ownership are presented in a literature review. Main ideas are integrated in the structural model of the IVE approach to allow for a better decision on most valuable concepts for the customer. The benefits and limitations of the resulting approach are shown in a case study.

Value Engineering-Based Method for Implementing the ISO14001 System in the Green Supply Chains

Abstract: Numerous green regulations currently require companies to be responsible for their effect on the natural environment, in addition to achieving their economic goals In view of this, many companies have implemented the ISO14001 system in their supply chain to comply with green regulations However, implementing such a system involves technical and communication efforts; hence, an effective method is needed to support the implementation In this paper, the authors propose a value engineering VE-based model with quality tools to support the implementation of the ISO14001 system in the Green Supply Chains In it, they applied the framework of VE with the quality engineering tools Fishbone Analysis and Failure Mode Effect Analysis for the qualitative and quantitative analysis of green issues in supply chains to cover quality, risk, and value of the system The proposed method was applied to a global electronics manufacturing company in Taiwan, and the application results showed positive outputs in terms of CO2 emission, power consumption, water consumption, and waste water recovery Based on the evidence, academic and industrial implications are discussed

Evolution of modern mega-buildings in China: innovations and sustainability

Abstract: China’s construction boom over the past few decades has led to growing demand for high-rise and ‘mega-scale’ buildings. Such structures feature sophisticated building services, unique elevations, seamless connection to infrastructure and high safety levels. Design and construction challenges include hazard mitigation against extreme actions and environments, integrated structural frameworks and facades, complex connections and overall constructional efficiency. Civil and structural engineers add value, enhance engineering efficiency and achieve overall environmental and cost-effectiveness for modern mega-buildings in China. This paper introduces the design and construction of four of such projects. It reviews the evolution of modern mega-buildings, including aspects of integrated engineering design, construction technology, value engineering and overall sustainability.

Cost Reduction of Arm Cross Bar of Wheel Loader through Value Engineering

Abstract: This paper presents a methodology that can be used for cost reduction of any product using the fundamental principles of Value Engineering. The paper specifically focuses on assembly called Arm Cross Bar (ACB) which is a sub-assembly of earth moving equipment called Wheel Loader. Wheel loader is a heavy equipment often used in construction and mining application, primarily used to transfer material from stockpiles to trucks, or transport material around job sites. Using value analysis tools, ACB was analysed and design alternatives were identified, that can reduce the weight as well as cost of the assembly without compromising the functional parameters. This will help the company to offer the product at a very competitive price [i, ii]. This will enhance customer delight, increase in sales of product and very importantly reduce the carbon foot print.

Application of Value Engineering in Construction Projects

Abstract: Value Engineering is a proven management technique that can make valuable contributions to value enhancement and cost reduction in construction industry. Value Engineering is one of the most effective techniques known to identify and eliminate unnecessary costs in product design, testing, manufacturing, construction, operations, maintenance, data, procedures and practices. The methodology is composed of three main stages. The first stage is the Pre-Study of the Value Engineering. The purpose of this stage is to plan and organize the value study. Value Engineering is the systematic application of recognized techniques that identify the functions of the product or service, creatively establish the worth of those functions, and provide only the necessary functions to meet the required performance at the lowest overall cost. Value Engineering focuses on accomplishing the required functions at the lowest overall cost. It helps in eliminating or minimizing wastage of material, time, and unnecessary cost, which improves value to the customer. The second stage is the Value Study which is the core of Value Engineering study and it is composed of five phases, the Information phase, Function Analysis Phase, Creative Phase, Evaluation Phase and the Presentation phase. All phases and steps perform sequentially. Such sequence of the methodology is expected to assist in logical and systematic flow of the process to achieve the targets of the VE study. The third stage is the Post Study. The objective during post-study activities is to assure the implementation of the approved value study change recommendations. In this study, how the principles of Value Engineering are applied in construction projects is explained, and by taking case study on residential building as the sample project, practices of Value Engineering in this project are described.

Value Engineering and Profitability of Public Limited Companies in Nigeria

Abstract: In view to reduce cost and increase profitability, without sacrificing the value derived, this study empirically examines the impact of value engineering on profitability of selected public limited manufacturing firms in Rivers state. Profitability can be attained by increasing per unit revenue, decreasing unit cost or a mix of both. So there is a need for value engineering as a management tool, which aims at providing an improved product design that will not reduce the value derived by the customers. This means that Value engineering as a technique involves the identification of new alternatives to product design at a reduced cost. The research design utilized was quasi-experimental research design (survey). The sampling method used was the purposive sampling technique. Spearman’s rank correlation coefficient, simple regressions was used to test the postulated hypothesis at 0.05 level of significance computed within the SPSS software. The study reveals that there is significant impact of product design on earnings per share. Based on the findings, the following recommendation were raised: that Manufacturing companies should endeavour to identifying improved product designs that reduces the product’s cost without sacrificing functionality so as to be profitable and finally, Value engineering should be inculcate in the organization culture of companies so as enable them effectively put value engineering job plan into use for improved profitability without sacrificing the value to be derived by the customers. Keywords: Value Engineering, profitability, product design, function analyses and Value