Showing papers on "Value engineering published in 2018"

Product-service systems business models for circular supply chains

Abstract: This work was supported by the EPSRC Centre for Innovative Manufacturing in Industrial Sustainability under Grant EP/I033351/1 and Europe-China High Value Engineering Network under Grant PIRSESGA-2011-295130.

Best Value Contractor Selection in Road Construction Projects: ANP-Based Decision Support System

Abstract: Based on the limitations of traditional procurement, this study uses analytical network process (ANP) for contractor selection. Using extensive literature review, best value (BV) contributing factors are identified. Experts are involved to get their feedback for shortlisting the identified factors. An ANP-based decision support system has been developed using data collected through a detailed questionnaire survey in the local construction industry for evaluating the selection process. Further, five case studies of completed road construction projects have been used to validate the decision support system. The findings indicate that in almost all the cases, the traditional procurement system, owing to its stringent prequalification measures, subliminally took into consideration the overall value proposition, and only one case study showed anomalies for which detailed reasoning is deliberated. This highlights the tendency of practitioners to overweigh the cost-based criteria, despite an established significance of other factors, treating the intangible value factors of quality, health and safety, environmental impact, etc. as less important. It reflects that the local construction industry attaches marginal value to qualitative factors. The construction industry will benefit from implementation of BV procurement system and a prolonged exposure may help improve its value system to realize the contribution of non-cost-based factors.

Value Engineering in building information modelling for cost optimization of renovation works: A case study

Abstract: Implementation of Value Engineering (VE) in the construction industry has become a proven technique for cost optimization. This paper presents a review of the implementation of BIM in construction industry. The factors that triggered and hinder the implementation of VE and BIM in the current industry and a case study of the application of VE using BIM for cost optimization of renovation works are also discussed. The project which was used for the case study is the renovation of shop lot units to be used as a student centre where student activities will be placed. 3D models of the project were developed as BIM model that provide strong visualization when creating alternatives for VE processes. The function analysis, risk analysis and life-cycle cost analysis were applied to determine the value index for each developed alternative. It shows that the implementation had successfully reduced the cost by approximately 27% and the value of the project increased after the process.

Decision support system for selecting optimal construction bid price

Abstract: Most important construction problems facing building operations are how to choose a contractor specialized in implementing major projects. In addition to that the increasing costs of raw materials, work force leading to the rise of construction costs. Therefore in this paper hierarchy method has been studied and it has been identified for organizations allowing them to minimize common risks of the decision-making process and management. Construction contractor can be prequalification using Analytical Hierarchy Process (AHP) as powerful management technique. Prequalification contractor aims at eliminating in competent contractors in the bidding process. This kind of prequalification helps both of the public and private project owners to successful achieve for required project tasks. The project will be completed with is estimated cost and time because of the contractor’s skill, capability and efficiency. Case study gathers a number of contractor’s or companies data. After studying Analytical Hierarchy Process (AHP) of a set of criteria, table of contractor’s technical evaluation was concluded all experience, financial situation and the contractor’s classification in the Union of Contractors. In addition labor’s progress, availability equipment for contractor is applied using Value Engineering (VE) to raise the performance level and reducing costs. Hence, value engineering will be demonstrated, where its goal is to raise the performance level and functionality with the ability to reduce costs. The case study of this paper is a construction project of a hospital, administration building, and staff housing building. It was applied the Analytical Hierarchy Process (AHP) and was extracted contractor’s evaluation table of a set of criteria (the previous experience, financial situation and the contractor’s classification in the Union of Contractors. Also labor’s progress, available equipment for the contractor and the contractor applying Value Engineering). The previous data are gathered through the contractor’s proposal, while (VE) is applied as process steps on a construction project case study.
2018 Faculty of Engineering, Alexandria University. Production and hosting by Elsevier B.V. This is an open access article under the CC BY-NC-ND license

Information Technology Value Engineering Model and Cost Efficiency in IT-Based Firms

Abstract: This paper aims to explore the improved business performance established on optimum costs. This structure rests on a proposed information technology (IT) value engineering model, which is an engineering process associated with IT inclusion in a business organization. Therefore, the methodology approach utilizes systems engineering to develop an engineering scheme procedure by stating the problem, creating alternate resolutions, deciding a resolution, specifying the scheme, and confirming the model. Additionally, this methodology works in cooperation with the resource-based view (RBV) and the partial adjustment valuation (PAV) theories. The RBV recommends that a firm worthy performance can rely on its own resources, whereas PAV reconstructs the input–output relationship of the system. The input consists of K = the regular capital, L = the labor expense, and I = the IT capital, whereas the output is y as the real output of a production process unit. Furthermore, three Indonesian Telco's firms (Telkom, Indosat, and XL) provided the model with data to experiment it. Furthermore, the results disclose the IT value engineering model has worked, and where the model has provided the firms with the improved performance at lower costs. In other words, this model has been effective numerically as well as logically.

Value engineering practices in infrastructure projects: a case study of Ilam Gas Refinery's water transmission system at Reno Mountain, Iran

Abstract: Construction projects play an important role in the economic development of every country. Nevertheless, review of projects documents indicates that in most cases, particularly in developing countr...

Analysis Model of Cost-Effectiveness for Value Evaluation of Building Elements

Abstract: As various building materials have been developed, the combination of materials that make up the building elements has also increased exponentially. The materials making up the elements of the building will affect the performance of the building and the LCC. In order to improve the value of buildings in Korea, value engineering has been mandated in public construction projects with a project cost of over 10 billion won since 2000. The value index for systems (materials, elements, facilities, etc.) constituting buildings is calculated. However, the method for calculating the value index has not yet been normalized. The performance evaluation of the building systems (materials, elements, facilities, etc.) used in the current work and the method of calculating the value index for converting the LCC into a grade may vary depending on how the range of the grade is set. Even if the objects being evaluated are the same, there arises a problem that the results change depending on the value evaluation method. Therefore, this study tried to develop a value evaluation method that could draw consistent value evaluation results. For this purpose, this study presents a cost-effectiveness analysis model for the physical performance of the building elements and the value evaluation of LCC. Since the various physical performances of the building elements have different properties, normalization is required for comparison of physical performance values. In order to normalize the LCC and the 14 different physical performances of the building elements, a numerical model was designed using a linear transformation method and a vector normalization method. The cost-effectiveness analysis model proposed in this study was applied to two types of floor elements applicable to apartments in Korea, in order to evaluate the value and verify the consistency of this study’s model. The cost-effectiveness analysis model proposed in this study can help to derive reliable results when it comes to value evaluation for various existing building element compositions.

Extent of Implementing Target Costing and Value Engineering Approach to Reducing Costs: A Survey in Jordanian Shareholding Companies for Food Industries

Abstract: This Study aims at identifying the extent of implementing Target Costing and Value Engineering approach to reducing costs of Jordanian public shareholding companies for food industries. To achieve the study objectives, the researcher distributed personally a questionnaire to a random sample of (145) accountants in the Hashemite kingdom of Jordan. (100) questionnaires were returned. The response rate was 69%. In addition, the survey sought to verify the five basic hypothesis of the study. In order to analysis the data, the researcher used means, standard deviations and T-test. The results of the survey revealed that availability of the components of application of target cost, as well as companies have awareness, concepts, principles and the importance of applying target costs to managing costs so as to improve profitability, and the companies are using value engineering to achieve a cost to reach the target costs. The results also showed that there were some difficulties to hinder the application of target costs and value engineering in Jordanian shareholding companies for food industries. The most important difficulties were: The lack of sufficient knowledge to manage the company on how to implement the target cost and value engineering. The lack of research and publication related to the benefits target cost and value engineering. Application costs greater than the expected benefits.

Value engineering application in a high rise building (a case study in Bali)

Abstract: Finding affordable alternatives material to replace the initial design of the architecture work of a commercial high rise building project without reducing the value of the material itself. Then analysing the cost saved from applying the value engineering in the architecture work of a high rise building. Calculation through the value engineering process was conducted. A commercial high rise building in Bali was chosen as a case study to implement the value engineering process in the design stage. The value engineering stages included calculating the cost/worth function, analysing through Function Analysis System Technique (FAST), innovation and creativity stage, evaluation of the life cycle cost, decision analysis and last the decision making. The research found that by applying value engineering through several items of work in a commercial high rise building it could save up to up to 8% of the total cost of the architecture work. The architecture work that was analysed through value engineering were the wall work, the door work, the floor work and the sanitary work. These were found to be the most effecting result from the Pareto calculation. The application of value engineering is this research was only done in one commercial high rise building in Bali. The work analysed was also only the architecture work. Therefore other types of construction project might result in different value of cost saving. This research identifies the cost saved through the application of value engineering in a commercial high rise building in Bali, which emphasizes on high quality materials in the architecture work. This research will contribute to the study literature of value engineering with a case study of commercial high rise building.

Weighted Product Method in the Value Engineering Process for Construction Project

Abstract: Value engineering (VE) as a strategic multidisciplinary methodology involves application of techniques that can provide project owners with the needed value in construction projects. Arriving at this value may require different evaluation tools such as goal programming, weighted product method, utility function, among others. These tools have merits and demerits that may prescribe their respective usages in projects. This research utilized the weighted product method in the evaluation of alternatives for a construction project after considering the project owners’ requirements. The method was selected because of its ease of use and ability to turn qualitative data into quantitative information. It was hypothesized that it would provide the project owner with the needed value in the project. Different alternatives were developed and evaluated to select the preferred one. The results showed good outcome that was accepted by project owner. It was concluded that weighted product method would be worthwhile inclusion in the VE methodology to evaluate alternative systems developed to meet project goals; which also supported the hypothesis. Difference in preference by project owners was noted as a potential limitation in the use of the method and so it was recommended that further research be conducted that employ other evaluation techniques such as goal programming, utility function, or analytical hierarchy process to validate the method.

Improving Feasibility of High-Speed Train Project: Creating Added Value

Abstract: Infrastructure plays a significant role in increasing economic development by providing access of transportation and improving connectivity. High-speed train (HST), one of mega infrastructure projects, has a positive impact on economic development of a nation. However, the project feasibility requires the maximum value for money and an acceptable risk to attract private investors. This study aims to improve the feasibility of the project by producing a conceptual design of Jakarta-Surabaya high-speed train in Indonesia. Value engineering will be used to evaluate both technical and financial aspects of the project. The methodology uses both qualitative and quantitative approaches through a case study, indepth interviews, and life-cycle cost analysis. The result shows an optimum route sketching for the project and potential added value to the project. It consists of the solar cell, fiber optic, tourism, and transit-oriented development. The output also generates the division of responsibility between the government and business entity during the project lifecycle regarding the project financing. The institutional scheme will regulate the position and roles for each related stakeholder that was involved in the HST project development.

Value engineering approach for construction materials selection of irrigation drainage

Abstract: In this globalization era, many alternative choices of construction materials. The limited funds available make engineers have to think creatively to choose materials used in order to obtain the cost as efficiently as possible. There are many ways to do the cost efficiency of the project, one of them by doing value engineering. The construction design selection is very important to do because it can show the project quality, as well as produce the development with an efficient and optimal cost. The value engineering approach in the construction field is an organized and creative approach aimed at identifying unnecessary costs. These unnecessary costs are costs that do not provide quality or USAbility/functionality. The value engineering application is to construct projects has considerable potential savings from the project budget. This study aims to obtain cost savings made during the design phase and irrigation drainage project implementation. The scope of the study in the present study is the wall project on the DAS irrigation drainage improvement at Cengcengan River in Sukawati, Gianyar. This analysis uses the steps of value engineering plan, i.e., information, creative, analysis, development, and recommendation steps. Whereas, the criteria used to evaluate the components/systems included aspects of cost, quality, implementation time, methods, mobilization, availability, and aesthetics.

Engineering design and innovation in a global context

Abstract: This chapter provides insights into how open innovation and global product development can add value in a high value engineering environment, and how the impacts can be monitored and managed effectively. The chapter begins by introducing engineering design in a global context, and how open innovation approaches can support value creation and capture for high value engineering. It then highlights the importance and impact of strategic decision-making in global product development, utilising insights from global engineering companies to provide recommendations for managerial decision support. Finally, building on well-established concepts from performance measurement, a framework to support the development of key performance indicators in global engineering design projects is developed with its application exemplified in industry.

Implementation of Value Engineering for Construction Efficiency

Abstract: Currently building construction project still has many problems in implementation when seen cost, quality, time and occupational health and safety remains a constraint both in the planning and implementation of building construction. Cost components were analyzed as cost efficiency value engineering on the structure of part of beams, columns and slabs, architectural wall. The study is based on the method SAVE, 2007 at the analysis stage phases of project information, analysis phase function of these components, then the stage of development which provide some alternative methods or materials renewable materials, after getting value cost efficiency seen from the cost / worth every component. The magnitude of the efficiency obtained in the project to calculate the value engineering of those components are respectively: beams with efficiency value of Rp. 1125013901 or equal to 29% of the initial value, a column with efficiency value of Rp. 1,494,028,557 or 16% of the initial value, wiremesh plate 1 layer and floordeck with efficiency value of Rp. 379 803 436 or 5% of the initial value, with a brick wall efficiency value of Rp. 566 440 559 or 8% of the initial value. beam with efficiency value of Rp. 1125013901 or equal to 29% of the initial value, a column with efficiency value of Rp. 1,494,028,557 or 16% of the initial value, wiremesh plate 1 layer and floordeck with efficiency value of Rp. 379 803 436 or 5% of the initial value, with a brick wall efficiency value of Rp. 566 440 559 or 8% of the initial value. beam with efficiency value of Rp. 1125013901 or equal to 29% of the initial value, a column with efficiency value of Rp. 1,494,028,557 or 16% of the initial value, wiremesh plate 1 layer and floordeck with efficiency value of Rp. 379 803 436 or 5% of the initial value, with a brick wall efficiency value of Rp. 566 440 559 or 8% of the initial value.

Whole Process Engineering Consulting

Abstract: The whole process engineering consulting is to carry out project management with planning as the guide, investment management and control as the main line and value-added as the goal. Traditional construction mode is to design, construction and supervision of construction projects, such as phase separated, each unit is responsible for different stages and different professional work, this not only increases the cost, and the division of the construction project internal relations, in the process because of a lack of whole industry chain of the overall control, the flow of information is cut off, it is easy to cause all sorts of problems in the process of construction project management, and bring the hidden danger of safety and quality makes it hard for the owner to get the complete building products and services.

Principles of Engineering Economics with Applications

Abstract: Covering detailed discussion of fundamental concepts of economics, the textbook commences with comprehensive explanation of theory of consumer behavior, utility maximization and optimal choice, profit function, cost minimization and cost function. The textbook covers methods including present worth method, future worth method, annual worth method, internal rate of return method, explicit re-investment rate of return method and payout method useful for studying economic studies. A chapter on value engineering discusses important topics such as function analysis systems techniques, the value index, value measurement techniques, innovative phase and constraints analysis in depth. It facilitates the understanding of the concepts through illustrations and solved problems. This text is the ideal resource for Indian undergraduate engineering students in the fields of mechanical engineering, computer science and engineering and electronics engineering for a course on engineering economics/engineering economy.

Design Innovation Path Model of Product Aesthetic Value

Abstract: With the development of social economy, product aesthetic design has become an indispensable part of commodity competition. Firstly, this paper divides the innovation dimension of aesthetic value of products into three dimensions: the beauty of modelling sense, the beauty of functional experience and the beauty of image connotation. Then the three dimensions are taken as coordinate axes to construct the dimension selection model of design innovation of product aesthetic value. On the basis of value engineering, aiming at the different characteristics of existing products and new products, this paper puts forward a variety of design Innovation paths of product aesthetic value. Enterprises should choose suitable design innovation entry model according to the development situation and competitive edge.

An Analysis of Expectations in Industrial Value Engineering Projects

Abstract: This exploratory study addresses the need to identify specific and holistic upfront expectations into industrial value engineering projects for best tailored preparation of an efficient project execution. The analysis includes a total base population of 90 projects, which were conducted between 2010 and 2018 in 16 different industries. Out of those, 63 projects had a narrower value engineering context and have been analyzed with the support of a CAQDAS tool (Computer Assisted Qualitative Data Analysis Software). Analytical results show that participants' expectations in value engineering projects vary depending on their industrial environments, but cope with existing studies on critical success factors for project management. Based on the findings the author recommends further research on fast project execution, closing the gap between trainingand project content as well as emphasizing the necessity of rigor with regards to the utilization and application of terminology, which includes sharpening the correct interpretation of value engineering, its tools and contents.

Optimising Facilities Provision in Retirement Villages - A Case Study in Australia

Abstract: Facilities are very essential components that support the living requirements of residents in terms of quality of life, independence, security and sound health in both for-profit and not-for-profit retirement villages (RV). In contrast to the for-profit RV, the operation of the not-for-profit RV is mainly characterised by budget constraints, which poses significant challenges for the not-for-profit RV developers to provide facilities that can satisfy the living requirements of residents. Therefore, this study aimed to explore optimal strategies on facilities provision for the not-for-profit RV developers. Based on the theoretical framework of value engineering (VE) that defines the concept of value as the ratio of the function to cost of facilities to RV residents, this report first develop a value engineering model (VEM) to operationalise this relationship. After that, the VEM is demonstrated in a case study of a not-for-profit RV in Queensland, Australia. The case study grouped facilities into high value, low value, and zero value categories. This study further reveals that the value of the facilities in RV are experienced by the residents in terms of religious participation, care, social interaction, physical engagements and mobility. This reinforces the need of providing appropriate housing option for older people that satisfies their living requirements of independence, socialisation, health care, and improved quality of life. Finally, the VEM can be employed to effectively identify the facility requirements of old people in not only retirement villages, but also other housing options, thus contributes to the improvement of accommodation quality for older people.

Engineering Value Chain Simulation and Innovation

Abstract: This chapter provides a systematic method to understand the innovation implications of complex engineering systems through value chain simulation. Particularly, we explore the usefulness of agent-based simulation for studying engineering value chains, a field of inquiry that has attracted increasing research interests. Essentially, given the network character of engineering value chains, we discuss why an agent-based simulation approach is particularly suitable for studying engineering value chains by reviewing related literature and discussing the state of the art in the field. A case of using agent-based simulation to study innovation diffusion (i.e. firm–customer relationship) in an engineering value chain is presented to demonstrate the value of the approach in studying high value engineering networks. We finally discuss opportunities and challenges of adopting agent-based simulation for future high value engineering network study.

Developing Post-Occupancy Evaluation using Value Engineering in the Higher Education Buildings

Abstract: The research studies the evaluation of the higher education buildings after operating and using because the periodic maintenance works that are being conducted on these buildings, which are being carried out without reviewing the functional performance or following a scientific methodology the post-occupancy evaluation. Therefore, the research aims to conclude and formulate a methodology for developing and improving post-occupancy evaluation and trying to increase its efficiency after linking with value engineering to improve development plans. Consequently, during applying the post-occupancy evaluation framework that will depend on value engineering to benefit from the functional analysis stage as the most significant stages for analysing and improving functions. Then the field and practical study of the deduced methodology that will be investigated by the maintenance and development teams and specialists to measure and evaluate the significance of the methodology elements and the appropriateness of its mechanism in developing the higher education buildings. In addition to it will be applied in these projects as a practical study to show the new potentials of the deduced methodology. Therefore, the deduced methodology will improve the functional performance of the buildings and the educational spaces and be involved in development plans.

Cost premiums for green buildings in Qatar

Abstract: The aim of this paper is to start a conversation about the cost premium for green buildings in Qatar. It examines what Qatar has achieved over the last decade and explores the root cause of green building cost premiums, why they exist, what can we do about them, and why should we accept them. For the purposes of this paper, the term green building specifically refers to buildings pursuing certification under USGBC's “LEED” or GORD's “GSAS” rating system, which are most commonly used in Qatar. However, lower oil prices have led to tighter spending and a greater focus on value engineering and cost savings. It is assumed that the environmental benefits of green buildings are understood and taken as given. Accordingly, here we aim to shift the conversation toward how to maximize value from implementing green building rating systems. We analyze the costs and benefits of the main GB rating systems currently used in Qatar, such as GSAS and LEED. By identifying the costs of constructing a green building, in this ...

Value and quality in architecture: a study of the principles of value engineering

Abstract: Value Engineering is an analytical study of a specific method. Its processes are conducted by a multidisciplinary working groups in order to come out with a certain product, design, project, or service, with the aim of identifying and classifying functions performed by that product, project, or service. All that is for the purpose of the betterment of the execution of those functions, or the reduction of the total cost, or both, through the search for innovative alternatives without compromising the basic requirements, on the bases of the principles of functional budget between the three elements of production; performance, quality and cost, Cooper, R. et al (1997). This methodology has proved highly efficient in solving problems based on its ability of functional analysis, and makes the best investment out of the available resources in a way that does not affect the purpose or function of the project, besides that it rapidly helps in giving results and proposals. All what mentioned above makes Value Engineering to be able to improve the tasks and actions, and the generation of creative ideas, and upgrading products or projects, as well as increasing its functional and aesthetical aspects. This improvement relies on a work methodology or a roadmap, where such approach boots its performance and productivity development based on the idea of ​​combining the targeted investigation productivity and the savings in costs without compromising quality and basic functions expected by customers and producers on the other hand. The qualitative upgrading of projects and services is possible and available, that could be achieved by raising its value by improvement and development, while reducing their total cost, without affecting the necessary requirements and needs, and the optimal exploitation of resources is as well increasingly demanded day after day, since they are mostly considered as depleted resources. For the application of Value Engineering production processes, the execution of projects and other aspects Value Engineering urgently demands the survival in a severe global competition. In areas related to the applications of architecture, the achievement of quality is not only limited to design processes, construction and the trial of transforming the design into reality. With respect to the quality of equipment and materials employment the achievement of quality extends to include all of the above in addition to trying to achieve quality through the way the building is used and the quality of the method of operation and maintenance. hence the significance of Value Engineering in achieving a comprehensive quality through the stages of design and execution, as well as the achievement of that during the operation phase, an issue which the study is aiming to explain, Donald E. Parker,(1998).