1-Value Engineering Methodology in Construction by Mr. Fadi Elayache
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Transcript of 1-Value Engineering Methodology in Construction by Mr. Fadi Elayache
Value Engineering Methodology In Construction
Fadi Elayache, Dubai 2010 Fadi Elayache, Dubai 2010 1
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Alliances
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What is Value Engineering?How Do we Apply VE?When is it used?Value Engineering Six Steps Plan?VE Case Studies
Overview
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Originally called Value Analysis by its inventor, Larry Miles, an engineer in GE's purchasing operation in 1947, VA/VE uses a value equation that says value is equal to function divided by cost. If, for example, the buyer wants to get more item value, he/she needs to either increase the item's functionality at the same time he/she is containing cost; or he/she needs to reduce cost while holding or improving its functionality. Either way, the result is more value for the customer
Ref: Purchasing Magazine - "Value Analysis makes a comeback," Jim Morgan, November 20, 2003.").
Value Engineering the Forgotten Technique
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Value Engineering (VE) is an intensive, interdisciplinary problem solving activity that focuses on improving the value of the functions that are required to accomplish the goal, or objective of any product, process, service, or organization.
VALUE METHODOLOGY“The systematic application of recognized techniqueswhich identify the functions of the product or service, establish the worth of those functions, and provide the necessary functions to meet the required performance at the lowest overall cost.”
Ref: John M. Bryant, VM Standard, Society of American Value Engineers, Oct. 1998
What is Value Engineering?
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VALUE =
FUNCTION
COST
Concept of Value
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Ideal Good Acceptable Passable
Value = Function
Cost
FunctionCost
Concept of Value Desirable
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Value = Function
Cost
FunctionCost
Undesirable but Passable
(cheapening the product)
Concept of Value Undesirable
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When Value Engineering is Used
Value Engineering is used to determine the best design alternatives for Projects.Value Engineering is used to reduce cost on existing Projects.Value Engineering is used to improve quality, increase reliability and availability, and customer satisfaction .Value Engineering is also used to improve organizational performance.Value Engineering is used to improve scheduleValue Engineering is used to reduce riskValue Engineering is a powerful tool used to identify problems and develop recommended solutions.
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Net Savings from VE
Total Cost of VE Implementation
Concept DesignConstruction Dwgs Release Construction
Drawings Released Design Changes
Re-Test Feasibility
VE Implementation beyond this point results in a net loss.
Potential Saving from VE
Cost
TIME
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Value Study Diagram
Information Phase
Information Phase
Creativity Phase
Creativity Phase
Evaluation Phase
Evaluation Phase
Development Phase
Development Phase
Reporting Phase
Reporting Phase
* Clearly identify the problem(s) to be solved, and gather information on the background, functions and requirements of the project.
* Clearly identify the problem(s) to be solved, and gather information on the background, functions and requirements of the project.
* Brainstorm ideas on how to improve the high cost, broken, or inadequately performed key functions.
* Brainstorm ideas on how to improve the high cost, broken, or inadequately performed key functions.
* Screen ideas for acceptance, score remaining ideas on a scale and group ideas into categories. Develop design scenarios, and selection criteria. Rate and rank ideas.
* Screen ideas for acceptance, score remaining ideas on a scale and group ideas into categories. Develop design scenarios, and selection criteria. Rate and rank ideas.
* Plan how to sell ideas to management, identify key recommendations, plan management presentation.
* Plan how to sell ideas to management, identify key recommendations, plan management presentation.
* Give oral presentation to management, or develop written report.
* Give oral presentation to management, or develop written report.
Functional AnalysisFunctional Analysis
* What must the project do? What are the functions and how are they related?
* What must the project do? What are the functions and how are they related?
Six Steps VE Plan
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Information Phase Facts Finding
What do you need to know about the problem that you don’t know now?
What facts are known?
What are the requirements of the system?
Are these facts, opinions, assumptions, or prejudices?
Where or how can information be obtained?
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Functional Phase
Functions - Describe what something doesFunctions - Use active verb and measurable nounFAST (Function Analysis System Technique) - A logic diagram to describe how a system works.Examples :
Secondary Functions1 Plan Finishing Material2 Magnify Living Room Area3 Reduce Wall Thickness4 Design Exposure5 Minimize Defect6 Design Finishing
Key Function :Satisfy Tenant
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Function Analysis
Secondary Functions1 Design Unit Plan2 Put Cavity Wall3 Control Temperature4 Minimize Exterior Surface5 Execute Natural Ventilation6 Maintain Cleanliness7 Supply Air Conditioner8 Keep View9 Install Insulation10 Control Humidity
Key Function :Maintain Facility
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Secondary Functions1 Supply Pipeline Space2 Design Ventilation Space3 Provide Elec. Pipe Space4 Add Sewage Space
Secondary Functions 1 Arrange Wall2 Collect Opinion3 Install Art
Function Analysis
Key Function :Install Equipment
Key Function :Design Interior
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Creativity Definition
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Creativity is the art of bringing something new into existence.
It has the art of making, inventing, or producing something new and different.
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You must blast before you can create. Blow apart the misconceptions, skeptics, and naysayers. Blow-up the preconceived ideas and common theories of how things should be done. Rather, focus on possibilities.
J. R. Wixson - 2004
Creativity & Innovation
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Imagination
Imagination is more important than knowledge, for knowledge is limited, while imagination embraces the entire
world.Albert Einstein
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Thought of the Day
When you always do what you have always done - you always get what
you have always gotten.Socrates
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IDEAS Vs Solutions
A solution requires justification & validation, and idea needs no justification.A solution is an end point, an idea is just the beginning.A solution is solid and self supporting, an idea is tender and must be built upon.
DON’T KILL IDEAS WITHROADBLOCKS!!
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INNOVATION"... after a few more flashes in the pan, we shall hear very
little more of Edison or his electric lamp. Every claim he makes has been tested and proved impracticable." [New York Times, January 16, 1880]
AEROSPACE"Heavier-than-air flying machines are impossible."
[Lord Kelvin, president, Royal Society, 1895] "Airplanes are interesting toys but of no military value."
[Marechal Ferdinand Foch, Professor of Strategy, Ecole Superieure de Guerre]
Information for Skeptics
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Information for Skeptics
COMPUTATIONAL SYSTEMS"I think there is a world market for maybe five
computers.“, [Thomas Watson, chairman IBM, 1943]
"There is no reason anyone would want a computer in their home." [Ken Olson, Chairman and founder Digital Equipment Corp., 1977]
"640K ought to be enough for anybody." [Bill Gates, 1981]
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Counter Skepticism
Tilt-up Construction is an innovative construction method that will replace traditional construction of low and mid rise buildings in the Middle East within few years
Fadi Elayache 2010
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Aluminum Honeycomb System is an Innovative Solution for Stone Cladding of High Rise Buildings
Vincenzo Portciello, 2010
Counter Skepticism
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Mateen-bar will replace steel reinforcement in structures exposed to aggressive environmental conditions in the
Middle-East , Fadi Elayache 2010
Counter Skepticism
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Rules of Brainstorming
Generate a large number of ideas - quantity, not quality.Free-wheeling is encouraged - Listen and improve on the ideas of others.Don’t criticize - No evaluation of ideasEncourage everyone to participateRecord all ideas presentedTime to let ideas “incubate” should be allowed.Select an appropriate meeting place
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More Creativity
Creative Ideas & Innovative Solutions Will
be covered in the VE Case Studies
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Evaluating Ideas
GO - NO GO−Scratch ideas that hold no interest.
CHAMPION−Who will speak for the ideas and support them?
GFI (Gut Feel Index)−Discuss pro/con and vote. GFI is team average.−Combine ideas; add new ideas.−Record all assumptions when voting.
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Performance Comparison
Performance Comparison Matrix
Criteria Option A Option B Option C Option D
Roof StructureConstructability 1 2 3 3Weather Resistance & Durability 1 2 3 3
Thermal Resistance 1 1 3 3
Fire Resistance & Safety 2 2 3 3
Flexibility in Applying Finishes 1 2 3 3Score 6 9 15 15
Roof FinishesMaintenance 2 2 2 2
Aesthetics 2 2 2 3Ease of Installation (skilled labor requirement) 2 2 2 1
Score 6 6 6 6
Total Score 18 24 36 36
1= Acceptable2= Good3= Excellent
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Cost Comparison
Option A Cost Estimate - Curved Steel Beam + FRP Cladding
Description Unit Quantity
Unit Cost
(AED)
Total Cost (AED)
Roof Structure: Curved Steel Beams + Purlins + Intermediate Steel Members
ton 120 28,000 3,360,000
Metal Deck sqm 1,520 350 532,000
CIP Concrete (150mm) sqm 1,520 80 121,600
Waterproofing + Rigid Insulation Boards + Protection
sqm 1,520 85 129,200
FRP Panels sqm 1,520 400 608,000
F.C. Suspension System ton 30 28,000 851,200
F.C. Gypsum Board sqm 1,194 100 119,400
Sub Total 5,721,400Total (including 15% Contractor's Prelims, Overhead & Profit)
6,579,610
Option D Cost Estimate - PT Concrete Slab + FRP Cladding
Description Unit Quantity
Unit Cost (AED)
Total Cost (AED)
Roof Structure: Post Tension Concrete Roof Slab
cum 389 3,100 1,205,900
Waterproofing + Polyurethane Foam Insulation + Protection
sqm 1,520 85 129,200
FRP Panels sqm 1,520 400 608,000
F.C. Suspension System sqm 1,194 100 119,400
F.C. Gypsum Board sqm 1,194 100 119,400
Sub Total 2,181,900Total (including 15% Contractor's Prelims, Overhead & Profit)
2,509,185
Cost Saving of 4 million AED
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Development Phase
PlanningWhat is recommended?Who has to approve it?What is the implementation plan?Are mockups or prototypes required to verify final decisions?What are the cost, schedule, and deliverables?ROI?
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Action Plan
“What needs to be done?”“Who should be assigned the action?”Assign a team member.Assign a completion date for the action.“When should the task be completed?”Plan regular team status meetings.Anticipate 4-6 weeks to complete the actions.
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Plan for Roadblock
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Reporting
Give oral presentation.Support it with written executive brief.Be clear, concise, and positive.Anticipate roadblocksUse good human relations.
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Follow –up Activity
Recognize the participants.Publicize the results.Audit the performance of the implemented actions.Close out the project.
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Case StudiesReplacing Piles with Footings
1- Cost Savings = 1,119,000 AED
2- Time Saving = 2 months
3- Easier, tidier and safer construction
Worked Performed:
Replacing 43 piles
with isolated footings
outcome
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Case Study- Resizing & relocating Water Tank
1- Cost Savings = 7,930,000 AED
2- Time Saving = 3 months
3- Easier, tidier and safer construction
4- Regain Land space
Worked Performed:
1- Reducing size from 14,384 to 7000 m3
2-Remove 100 piles
3- Minimize depth to avoid excessive
excavation in sandstone layer
4- Relocate WT Under footprint of Bldg
outcome
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Case Study- Lagoon Depth, walls & liners
1- Cost Savings = 8,338,600 AED
2- Time Saving = 2 months
3- Easier constrction
Worked Performed:
1- Reducing depth by 1.25 m about 50000 m3
2- Replace CIP Reinforced Concrete walls with Pre-cast panels
3- Incorporate underwater theming within pre-cast panels
4- Use Double liners instead of concrete floor with 2 stages installation
5- Introduce leakage detection system in lagoon bottom and behind wall
outcome
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Case Study- Lagoon Depth
Five pits were used instead of one To reduce Lagoon Depth by 1.25 m and achieve more effective collection of sediments
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Case Study- Lagoon Walls
Recommendations for the 1675 m long lagoon perimeter:
1- To Use Gravity Precast panels Instead of CIP reinforced concrete walls
2- To use 6 Deg tilted walls instead of vertical walls to reduce footing sizes
3- Incorporate theming in Underwater precast Panels to reduce cost
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Case Study- Floor Liners
Recommendations for the 40000 m2
Floor 2 liners instead of one liner and concrete floor:
1- To Use double liners, one 1.5 mm and the 2nd 0.5mm thick separated with granular layer
2- To provide leakage detection system as shown
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Case Study- 40 m Dome Structure
Recommendations for the 30 and 40 m LH Domes
1- To use PT Concrete curved Roof instead of Steel
2- Eliminate Fire Proofing
3- Reduce Thermal Insulation
4- Reduce Suspension System of False Ceiling. outcome
1- Cost Saving of 4,385,065 + 2,466,600 for the 40 and 30 m Domes respectively
2- No Time impact
3-Similar construction Risk
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Case Study – Displaced Cooling
Recommendations for Air Displacement System
1- To use Conventional Ventilation Instead
2- To reduce interference Among trades
3- To manage risk of potential scheduling conflict
outcome
1- Cost Saving of 891,625
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Our VE Services
We Partner With Consultants & Developers to provide: Value Engineering Services for all project Phases,
Conceptual, Design, & constructionIn House Training of Project Team for Value Engineering
Analysis
We partner with Contractors for:Preparation of value Engineered alternatives
proposals at the tender stageProposing Value Engineered alternatives during
construction.
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References
1. “Value Standard and Body of Knowledge “; Save International, June 2007
2. J.R. Wixon, “ Value Engineering The Forgotten Lean Technique”, University of Idaho, Industrial Technology Program.
3. J.Jerry Kaufman & Jimmie L. Carter “ Evaluating Brainstorming Ideas”1994
4. Chi-Sung in et al, “Hierarchical Concept Modules for improving Function Analysis of Construction VE Process,”
5. Fadi Elayache, “ work Experience with Parson Brinkerhoff ME, Sr. PM Theme Park”, 2008
Thanks