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.

Learning curves: accuracy in predicting future performance

Abstract: Many repetitive construction field operations exhibit a phenomenon known as the learning or experience effect. A learning curve is generated when the time or cost required to complete one cycle of an activity is plotted as a function of the cycle number. For practicing construction engineers and managers, the greatest potential value of learning curves lies in their ability to predict future performance, instead of fitting historical data. This paper presents a new method for using learning curves to predict the time or cost to complete the remaining cycles of an activity in progress, to assess the accuracy of this method, and to compare the accuracy of this method with the standard forecasting technique used in construction cost reporting. Using the proposed method, the accuracy of predicting the time or cost required to complete an ongoing activity improves dramatically for about the first 25-30% of the activity and then levels off to within 15-20% of the actual value. Compared to the standard method using the cumulative average, the new learning curve method is shown to be more accurate. The analysis quantifies the trade-off between accuracy of predicting future performance and the timeliness and potential value of such a prediction.

Design productivity: a quality problem

Abstract: The question of design productivity is approached by reviewing work carried out in construction and manufacturing. Principles of productivity improvement are denned and applied to design. The design process is examined as part of the project life cycle to draw the conclusion that the quality of design is a vital factor in determining total life cost and other measures of project success. Since design cost is a small percentage of total costs, an increase in design expenditure can frequently reduce total life costs, but this is discouraged by the structure of the industry; especially the system of payment for consultants, and the tendency of clients to sub‐optimize the design costs. Competitive bidding by consultants also has undesirable effects. It is concluded that attention should be given to the procedures for consultant selection, the basis of fee payment and the question of professionalism and standards. Better and earlier communication with the contractor is needed. Further research should be conduc...

Best-Value Model Based on Project Specific Characteristics

Abstract: Best-value becomes a well known procurement practice in many states in the country. The objective of this transformation from the old practice of lowest bid to best-value is to increase the value added to the project for each dollar added. This paper discusses a new concept of best-value modeling that is unique and tailored to each project. The model uses records of past projects to obtain specific evaluation criteria, from which a best-value score is determined for each contractor. Primary parameters that impact contractor selection are identified and analyzed based on which best-value model is designed. Data are collected from groups of experts in the Minnesota Department of Transportation. Two application methods are used to assess the best-value: (1) the weighted average method; and (2) the analytic hierarchy process. Although the paper is written to assist government agencies in selecting the best contractor(s), the research results shared in this paper are relevant to both academics and practitioners. The paper provides practitioners with a tool for ranking contractors based on best-value and provides academics with selection parameters, a model to evaluate this best-value, and a methodology of quantifying the qualitative effect of subjective factors.

Constructability related to tqm, value engineering, and cost/benefits

Abstract: Recently, constructability has received considerable attention from researchers and practicing engineers. Constructability has been defined as the optimum use of construction knowledge and experience in planning, design, procurement, and field operations to achieve overall project objectives (“Constructability” 1986). This paper discusses the evolution of constructability and how programs have been developed to bring design and construction closer to the level of integration once achieved by the master builder. There is a great deal of discussion among industry professionals as to how constructability is related to total quality management and value engineering. This paper conceptually describes these interrelations. In addition, the paper presents a framework to measure costs and benefits related to constructability. By providing owners with this framework, the parameters will be visible and defined, thus removing skepticism as to the measurement process as well as enabling more consistent and uniform re...