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.

Financial Management of Construction Contracts (Constructability and its Relation with TQM, Cost Shifting Risk And Cost/Benefit)

Abstract: Financial Management, Book Keeping and Recognition of Construction contracts is now considered as a unique professional job due to its recognition by IASB (International Accounting Standard Board) through IAS (International Accounting Standard) 11. IAS 11 specifically deals with Construction Contracts. This very standard has provided the basis for Constructability. Constructability has received considerable attention from researchers and practicing engineers and other professionals. This is a fact that Constructability has been associated with Total Quality Management (TQM) and Value Engineering. This paper attempts to conceptually describe Cost shifting Risk, Cost/Benefit analysis as well as the evolution of constructability in relation to IAS 11.In addition, the paper presents a framework to measure recognition of Cost and revenues related to Construction Contracts.By providing professionals with this framework, the parameters will be visible and defined, thus removing skepticism as to the financial management as well as enable more consistent and uniform results to be obtained. Additionally, this paper will provide Framework for the Preparation and Presentation of Financial Statements to determine when contract revenue and expenses in the income statement.

Value Operations Methodology (VOM) applied to medium-range passenger airliner design

Abstract: This paper gives insight in the development of a Value Operations Methodology (VOM) that can be used to support Value Driven Design (VDD). The VOM establishes expressions for operational value levers that are incorporated into a weighted value function. This value function is then used to optimize the design variables that are incorporated into it so that the design process is actively driven by value assessments that provide design decision metrics. However, the VOM is generic in nature and has a much wider range of influence to the design process for any engineering product. The methodology is verified by means of a case study, analyzing the value difference between the Boeing 737-200, Boeing 737-800, Embraer ERJ-145 and the Airbus 319 as part of a use-case study. In fact, the fundamental conclusion from the work presented is actually that VDD simply promotes the sustained application of the main utility values that were originally recognized but which, due to the complexity of the product and enterprise, tends to be disaggregated into isolated requirements. Ultimately, this leads to optimization at a sub-system level and that is especially unacceptable for a complex system (with many sub-systems), whereas the re-focus of VOM helps to significantly shift the design effort back to creatively solving the main goal, rather than simply and somewhat robotically making sure the requirements are satisfied. The verification and validation work presented is recognized as indicative but the authors believe that it is extremely significant in pointing towards the potential gains from sustaining a more holistic appraisal and approach through-out the design process. Notwithstanding, the key message of the paper is the need for value modeling within engineering so that we are in control of the consequences of what we are actualizing, where value is realized through operational delivery and excellence. This paper has presented a broad methodology in opening up a significantly different approach to aircraft design that is both performance and economics driven while also incorporating other crucial drivers of a much more holistic nature, proactively rather than reactively.

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.

Value engineering awareness study for sustainable construction in Malaysia

Abstract: Construction process has often been described as a highly complex process because of the number of disciplines involved during the conceptual, design and construction stage. With the emergence of latest technology and concern for environment, increasing attention in construction industry is given on sustainability. Balance in quality and sustainability has become a major challenge to the construction industry. This paper presents a study that has conducted to determine the acceptance and application of Value Engineering (VE) and Life Cycle Cost Analysis (LCCA) in Malaysia construction industry. A set of questionnaire have distributed to different practitioners in construction industry and the result has reflect the fact that the application of VE and LCCA are still very low.

Application of Value Engineering in Construction Job Sites – A Case Study

Abstract: Value Engineering (VE) is a function-oriented technique that has proven to be an effective management tool for achieving improved design, construction, and cost-effectiveness in various transportation program elements. 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. In this study, a questionnaire survey was conducted for Tamilnadu State, India. The questionnaire survey mainly focuses on how effectively value engineering is applied in construction industry and how much the employees are aware of the concept of value engineering and its effectiveness. It is observed that at the initial stage the employees have very good awareness and in due course of project the awareness has gradually reduced. It is concluded that 20 percentage of them are not following specific procedure for implementing value Engineering and remaining 80 percentage following Value Engineering. Keywords—Value Engineering, Construction Projects, Cost Saving, Effeciveness