Value engineering

About: Value engineering is a research topic. Over the lifetime, 1231 publications have been published within this topic receiving 10882 citations. The topic is also known as: VE.

Notice of Retraction Life cycle cost management of construction projects based on value engineering

Abstract: Due to the characteristics of construction projects such as only one time establishment, big investment scale, complicated structure and high energy consumption in operation process, the cost management theories and methods of construction projects are different from other general products. This paper proposes to apply VE to the total life cycle of construction projects, and also proposes a dynamic life cycle cost management model, which pays attention to function analysis in investment decision phase and combines cost management methods such as supply chain management and Kaizen costing based on objective cost management in implementation phase. The model provides a new thought for best realizing the value of construction projects with minimum life cycle cost.

Method for processing multi-level performance measurement of value engineering for supporting multilateral decision making

Abstract: The presented invention maximizes the reliability of a return value by the value engineering (VE) analysis according to the characteristics of VE workshop, and it provides a value engineering multi-phase performance evaluation processing method supporting a multilateral decision making process which can further induce active participation through intensified communications among multiple team members in order not to receive any one-sided result caused by minor participation. [Reference numerals] (AA) Yes;(BB) No;(S210) Collect information step in an analysis process;(S211) Team mate devices and team leader device input data;(S212) Team leader device automatically processes and analyzes the data;(S213) Team leader device checks out data (weighted average, arithmetic mean, median value, mode, minimum value, and maximum value) to be analyzed;(S214) Did the team leader device confirm the data;(S215) Team leader device and team mate devices discuss analysis results;(S216) Analysis data is corrected or delected;(S217) Results of data collection are reflected

Evaluation of Building Projects Using Earned Value Technique

Abstract: This study evaluates building construction projects using the Earned Value Analysis technique, the Experimental Approach, and Value Concept Analysis. The aim was to compare the cost incurred for an identified amount of work done on a project with the cost budgeted for the same work. The results were used to calculate the Cost Performance Index (CPI) for each project. The experimental approach was used to detect the true cost-effect relationships, while the value concept analysis was used to estimate the value of selected projects as they relate to cost. Two methods were adopted in collecting the empirical data for the study. The first involves the review of relevant literature to provide a sound background to the study. The other method involves the collection and analysis of data obtained from records of the construction firms sampled. Data obtained from each method was calculated, analyzed and presented in tables. It was discovered from analyses that projects that were abandoned for some time before completion has radios that indicate a low level of Value Engineering in their design and construction. For example, projects like the Adamawa Plaza and the Eagle square in Abuja show favorable ratio of 1 and 0.9 respectively, which is less than 1. The results further show that for Adamawa state stadium in Yola, the CPI is far much greater that 1.0 it shows a value of 5.3. This denoted that only about 20 percent of the total contract work was done. The value of money spent is far greater than the work done. Other projects like the Federal University of technology entrance road gave a value rating of unity (1.0) this implies that the project is fully completed and the cost completely paid hence the value of 1.0. On the other hand, it was observed that the total cost of the Eagle Square in Abuja was increased by 14% before the completion of the project. This increase in cost affected the value of the project as the cost performance index reduced to 0.8 instead of 1.0 as the case would have been. Finally, the study revealed that the cost of a project is tied to its function. Abandoned projects always lead to increase in the cost of completion whereby the Cost Performance Index (CPI) of such projects increases. The implication of this is that there is gross misuse of money. Keywords; Value engineering, Value analysis, Value concept, Function Analysis, Cost performance index.

Using real option techniques in appraisal to value the options provided by transport networks

Abstract: Those involved in transport modelling and appraisal are accustomed to assuming that users of transport networks choose between modes based on theirrelative generalised costs. Introducing a new mode, or enhancing an existing one changes this balance, and generates benefits, and it is the task of appraisal to seek to capture the expected value of these benefits. However, in a world of uncertainty, the costs of using particular modes may vary, and in these circumstances the existence of modes provides value, even if users do not expect to use them. In addition, since journey patterns over time are uncertain, a regular user (eg, a commuter) of a mode values its operation outside of normal usage times (eg, at the weekends). Only six stated preference studies have been carried out to estimate transport option and/or non-use values, and of these only two distinguished between option and non-use values. Furthermore, the evidence base is mostly focused onthe option and non-use values associated with bus or rail services, from the perspective of the household. So, options provided by roads, diversionary routes for rail freight, and taxi services for example, were not valued. This study examines the feasibility of using techniques developed to value financial and real options in transport appraisal. Financial options are derivative securities traded on financial markets, which give the bearer the right, but not the obligation to buy or sell an underlying asset at a point in the future. Real options (so called because they relate to 'real' situations or decisions, as opposed to financial assets) have become animportant element of the economics of investment appraisal, and recognisethe flexibility inherent in many assets, and the insurance this provides against uncertainty. Just like real options, transport networks give usersthe right, but not the obligation to use them at some point in the future, at a given generalised cost. With data on the generalised costs of the two modes, and on the variability of generalised cost of the preferred mode, the value of the option provided by the alternative mode can be valued using real options techniques. Similarly, since there is uncertainty about how often a user will need to travel, transport networks provide option value through enabling unexpected trip making. For leisure journeys, for example, there is a range of values of expected benefits associated with a particular destination, and with data on these values, and the generalised cost of the transport link to that destination, an option value can be generated using real options techniques. For the covering abstract see ITRD E145999