Untitled Quiz

Engineering Specifications & Cost Built Up QSS 512

• This is a management technique, program, or concept for engineering specifications and cost buildup.

Value Engineering Introduction

• Value engineering (VE) is a proven management technique.
• It was first used in the 1940s.
• It aims to achieve a balanced cost, reliability, and performance of a product or project.
• It saves 50 dollars for each dollar spent on value engineering.
• VE is used by planners, designers, engineers, architects, operators, maintenance personnel, owners, utility companies, developers, investors, and contractors.
• Key advantages of VE include saving money, building more for less, increasing efficiency, reducing dependence on energy-intensive buildings, and fighting inflation.
• Lawrence D. Miles is considered the father of VE.

Definition

• Value engineering is a proven systematized approach to finding the best functional balance between cost, reliability, and performance of a product or project.
• The program aims to enhance management skills and promote changes by removing unnecessary costs.
• Value engineering uses several techniques as tools for value analysts.

Toolkits of VE Study/Area of Studies to be Addressed in VE Study

• The study outlines various tools and techniques for value analysis.
• Some examples include function analysis, creative thinking, VE job plan, cost models, life cycle costing, evaluation matrices, functional analysis systems, cost and worth, habits, roadblocks, attitudes, and the managing relationship between owner, designer, and value consultant.

Terminologies in Value Program

• Value engineering describes value study on developed projects, analyzing costs during the design phase.
• Value analysis describes value study on existing projects, aiming for improvements.
• Value management/VE study/value program defines the methodology and techniques for value work, encompassing the entire value endeavor applications.

Job Plan

• The job plan is the systematic approach of value engineering, acting as a roadmap for defining tasks and finding the most economical combination of functions.
• It helps identify high-cost areas within a design.
• The functional approach is critical to identify project requirements precisely.
• Two-word descriptions (e.g., house personnel, transfer oil) help define the project effectively.

Job Plan Steps

• The job plan comprises stages like information, creative, judgment, development, and recommendation phases.

Inventors VE Job Plan

• The information phase gathers background information and formulates patterns for ideas.
• The creative phase involves formulating ideas to reach optimal solutions.
• The judgment phase evaluates ideas, seeking the best combination of ideas.
• The development phase builds upon ideas, learning from failures and incorporating feedback.
• The recommendation phase presents the final product or solution to the project.

What VE Is and What Not

• Value engineering is system-oriented, multidisciplinary, and lifecycle-oriented, focused on function.
• It is a proven management technique and is not a design review, cheapening process, requirement check, or quality control process.

Reasons for Poor Value in Construction Projects

• Some common reasons include lack of time, lack of sufficient information, lack of ideas, misconceptions, unsustainable permanent conditions in the project, lack of dedication, attitude problems, policy influences, and inadequate compensation.

All Designs Have Unnecessary Costs

• Studies indicate that costs frequently exceed necessary amounts due to unavoidable design pressures, timelines, and variables.
• A significant goal of value consultants is to meet clients' demands within the reasonable constraints of the project life cycle.
• Value engineers use deductive reasoning, while designers usually rely on inductive reasoning.
• Value engineering teams start with existing plans, specifications and conceptualizations.

Reasons for Poor Value

• Time constraints, insufficient information, and inadequate ideas contribute to poor value in construction projects.

Lack Of Information

• Examples of lack of information include rock veneer finishes (broken stones) and slump block finishes (concrete blocks).

Lack Of Idea

• Examples of lack of idea include designs like metal strapping for bulkheads.

Value Engineering History

• Value engineering gained traction through papers, articles, word of mouth, and workshops, initially in the manufacturing industry and later government procurement, and finally construction and shipping industries.

Early Development in GE Company

• GE pioneered value engineering, focusing on cost reduction for their projects.
• Key figures like Lawrence D. Miles, an electrical engineer, played a crucial role.
• Miles implemented the functional concept in purchasing, aiming to reduce costs for GE products.

Material Shortage During War

• World War II material shortages prompted innovative use of alternative materials, maintaining function while reducing costs.

Development of Incentive Clauses

• The government's emphasis shifted from allowable costs toward avoidable costs for defense contracts.
• A crucial regulation (ASPR) was established defining standards for value engineering considerations in large-scale government contracts.

Value Engineering Society Found

• The Electronic Industries Association created the SAVE (Society of American Value Engineers).
• Other significant value engineering societies emerged globally, including entities in Japan and India.

Introduction into Construction Field

• Value engineering was integrated into construction contracts (specifically, starting from 1963 to 1965).
• This focused on contractor sharing clauses, incentives and improving project value during project stages.
• The General Services Administration (GSA) promoted value engineering by standardizing practices and training certified specialists to carry out these procedures.

Habits, Roadblocks, and Attitudes

• Habits often lead to the continuation of old design or manufacturing processes.
• People resist new ideas due to the influence of attitudes and roadblocks.
• Examples of roadblocks include the need for higher approvals, overambitiousness of proposed ideas, long times required for review, and the resistance of the drafting rooms to change.

Attitude Screen

• Attitudes toward new ideas evolve with experience.
• Unclouded attitudes are often apparent in younger individuals while tempered experience leads to more conservative choices.

FIDIC Conditions of Contract - Clause 13.2 - Value Engineering

• Contractors can propose changes to accelerate projects, reduce costs, improve efficiency, or otherwise benefit the employer.

Job Plan Steps (repeated)

• The job plan comprises information, creative, judgement, development, and recommendation phases.

Reasons for VE Study (Job Plan Study)

• A structured, organized approach focusing on purpose and high-cost areas is key.
• The process encourages further thinking to exceed basic habit solutions.

Versions of Job Plan

• Several versions of job plan templates exist (EPA, Standard, and GSA job plans).

Information Phase

• The information phase involves defining the project, gathering background information, documenting design rationale, detailing specifications, evaluating cost limitations, and identifying high-cost areas.
• The project constraints and information needed from designers and owners, also form part of the study.
• Visits to the project site are crucial for gathering information.
• Analyzing and validating the project's cost information is mandatory.
• The analysis based on the life cycle cost is mandatory to compare projects and ensure proper evaluation.
• Cost models need to be built to aid in the process.

Cost Model

• A cost model is a valuable tool for analyzing costs associated with projects.
• Models can be used in determining resource types or trades for all projects.

Creative Phase (repeated)

• Ideas emerge within a creative phase, drawing upon group and individual creative efforts.
• Creative techniques foster a free-flow atmosphere.
• Ideas are recorded promptly to avoid loss.
• Judgments are held in check throughout the creative phase.

Creative Process Toolkit

• Imagination, inspiration, and illumination are crucial elements in the creative process.

Creative Process in VE Study

• The importance of embracing ideas and suspending judgements for a productive creative phase is stressed.

Judgement Phase (repeated)

• The judgement phase evaluates the feasibility of previously listed creative ideas.
• Criteria for screening include assessing cost-benefits, functional suitability, and design requirements.
• The assessment of the idea's impact on project schedule, redesign needs, improvements, past use, and aesthetic effect are crucial.

Creative and Judgement Phase

• Work through creative ideas and assess them through the judgement phase.

Creative Phase - Example

• The document details comparisons (positive and negative) of different types of foundations for buildings.

Development Phase (repeated)

• This stage further refines the workable solutions from the judgement phase.
• Expert technical knowledge is vital in this phase.
• Team members' roles and tasks should be clearly outlined.

Judgement Phase (Table)

• A table is presented showing criteria, assigned weights, scores, rankings, and scores pertaining to different types of foundations for buildings.

Development Phase (Form)

• A template/form is presented for tracking and development from initial concepts to changes for the development phase.

VE Steps

• A systematic approach is outlined in the Value Engineering steps starting with identification of structures with substantial cost implications.
• This involves a detailed functional analysis to solve the intended project function.
• It involves listing alternatives, scrutinizing them based on pros/cons (strengths and weaknesses) which generates further insights for project-related functions.

FAST Technique

• The technique helps define project steps (purpose and goals) to produce a viable solution using "how," "why," concurrent and sequential steps in functional analyses.

FAST Example - Warehouse Foundation

• Steps to avoid liquefaction, control settlement, and improve soil bearing capacity are outlined.

FAST Example - Improve Profitability

• Steps for improving profitability within a company are detailed.

FAST Technique (repeated)

• The process focuses on identifying project goals and systematically achieving them.

Class Exercise

Creative Phase (repeated)

Judgement Phase (repeated)

Development Phase (repeated)