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Value Engineering: An effective and efficient

tool for sustainabletool for sustainable Irrigated Agriculture

Kamran Emami

Kuritkara Consulting Engineers

IRNCID, Oct 2011

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IMAGINATION

Imagination is more gimportant than

knowledge» Albert Einstein

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Changing our lives ….

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Abbassi Historical dam for flood Detention

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1111

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Surcharge Elv.

Outlets

Outlets

(A)

Surcharge Elv.

Outlets

Outlets

(A)

Surcharge Elv.

Outlets

Outlets

(A)

(B)(B)(B)

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OutletOutletOutlet

Value Engineering

Creative, Systematic and Synergic teamwork

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Synergic teamwork

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Value Engineering

Value Engineering (VE) is an intensive,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, project or organization.

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Why use Value Engineering?

Save TimeSave MoneyBuild TeamworkImprove QualitySatisfy Customer

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Value Engineering

The main Function of VE is identifying and removing unnecessary cost.

VE is :• System Oriented• Multidisciplined Team Approach utilizing the

Synergy of Teamwork• A proven management technique encouraging

Creativity

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Creativity • Function Oriented (relates the function to value

received)• A short-term activity involving the Users and the

Operation personnel

Reasons for unnecessary Costs (Poor Value)

Shortage of timeMisleading informationAmbiguous goals, objectives, scope etc.Hasty decisions based on false assumptionHasty decisions based on false assumptionLack of ideasLack of fundsResistance to ChangeUnrealistic temporary circumstances PoliticsBad habits and attitudes beliefs

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Bad habits and attitudes, beliefsOver design & Unrealistic safety factorsContinues changing in the owner requirementsLack of communication coordinationUsing unsuitable standards & specificationNo LCC estimate …… and more….

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Value Analysis Development in GE

VE Timeline

Larry

VE adopted by NASA ofc of facilities.

Larry Miles assigned to cost reduction at GE

VE a success, training of employees and

Navy adds VE incentive clause

SAVE formed in Wash DC

Army Corps of Engineers

VE included in ASPR for military procurements

First VE incentive

Larry Miles takes VE to Japan.

DOE Order 4010.1

19701947 1952 1955 1959 1962 1964 1969 1988 1990 1993 Today1985

Larry Miles dies.

OMB circular A-131

OMB circular A-131

2020

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employees and suppliers begins

Wash. DC on Oct.22, 1959

Engineers begins VE training

clause published in Fed. Register, GSA staffs for VE.

131 published requiring all Federal Agencies to use VE to identify and reduce non-essential costs.

131 passes “Sunset Review”

Charles Bytheway invents FAST Modeling

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Proven Technique

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A i d t d VE tAgencies adopted VE to:• Save money and ensure cost-

effectiveness,• Improve quality,• Eliminate unnecessary design elements,

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Eliminate unnecessary design elements, and

• Foster innovation and improve productivity.

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A Summary of Value Engineering Studies in US Highways

1997-2009 2009200820072006200520042003200220012000199919981997

4663427382316242300324344377378388385431369# of VE Studies

11817121281078988775Cost of VE

Studies ($m)

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18352170025301970165031801115101610438651128846769540

Benefits of VE Studies

($m)

153100211164206318159127116108141121110108B/C of VE Studies

Rock Line – Original Grade

Rock Line – Original Grade

Standard Rock Excavation Face

Earth Fill Over Rock Face

10M Clear Zone

10M Clear Zone

VE Proposed Rock Excavation Face

Original Design and VE Proposed Design (Net Savings $4 Million – Accident Loss Reduction)

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Value studies are mandatory in … All US federal projects > $ 2 M

All Japan projects > $ 2 MAll Saudi Government Project > $ 5 MAll Saudi Government Project > $ 5 MAll RC of J&Y projects > $ 5 MAll Saudi Aramco projects > $ 10 also in UK, Germany, France, Australia, Korea, India,

Malaysia, ..etc.

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International Value Organizations

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VE Studies …. Done

VE Accomplishments in the Arabian Countries (Persian Gulf)

More than 500 VE Studies More than 6,000 participants Done at the rate of 80-100 /yearImproved the Quality of our projects

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p y p jSaved More than $ 3 billion Saving ranged from 5-30% Rate of return is 1 : 1007 official VE Program.

EMAAR, KING ABDULLAH ECONOMIC CITY EMAAR, KING ABDULLAH ECONOMIC CITY RESORT RESORT COVECOVE

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EMAAR, KING ABDULLAH ECONOMIC CITY RESORT COVE

• Savings & Benefits:Estimated Construction Cost $900 m

• Initial Cost Savings $213 m (24%)• Stronger Image• Greater Flexibility• Energy Savings

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• Construction Simplification• Quality Improvement

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• The VE process and procedures are well-defined and generally well-understood at most g ylevels within an STA, including senior management. VE is recognized as an effective way to improve the performance of a project and/or reduce unnecessary capital and operating costs.

• A key ingredient to the success of the VE program is the quality (qualifications and

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program is the quality (qualifications and experience) of the team leader and specialists.

• VE is more effective and influential on the performance, quality, and cost of a project when performed relatively early in the development of the project schedule.

Conclusions

• Training is necessary to maintain VE programs and the corporate enthusiasm to allocateand the corporate enthusiasm to allocate resources to VE. However, training initiatives are typically influenced more by the overall funding of transportation programs.

• VE can effectively be integrated with or into other technical or management improvement

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other technical or management improvement approaches, such as asset management, road safety audits, context-sensitive design, and accelerated construction technology teams.

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Potential Savings from VE

Re-Test/Re-qualification

No engineeringChange Revision

Document Revision

Net Savings from VE

Total Cost of VE Implementation

Drawings Released Tooling Changes

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Concept Design

Engineering &Production

Release Production

VE Implementation beyond this point results in a net loss.

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VE Task Team/Quality Process Improvement Team

Core TeamSupport SupportSupport

SupportSupport

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Support Support

The Synergistic Effect ofValue Analysis/Value Engineering

INFORMATION HELD BY ONEINFORMATION HELD BY ONE MEMBER ONLY

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INFORMATION OR EXPERIENCE COMMON TO ALL

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Thought for the day:

When you always do what you have always d l t h t hdone - you always get what you have

always gotten.» Socrates

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How?

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Tools for Promoting Creativity in VE

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The Technical FAST Model

HOW? WHY?

ACTIVITY 1

INDEPENDENT FUNCTION

(SUPPORTING)

DEPENDENT FUNCTION

INDEPENDENT FUNCTION

(concept)

(concept)

OUTPUT INPUT

OBJECTIVES OR SPECIFICATIONS

MINOR CRITICAL PATH

(AND)

ACTIVITY

MISSION, OBJECTIVE, OR HIGHER ORDER

FUNCTIONBASIC

FUNCTIONDEPENDENT FUNCTION

D EA

LOWEST ORDER

FUNCTION

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C

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WHEN

HIGHER ORDER FUNCTIONSLOWER ORDER FUNCTIONS

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SCOPE OF THE PROBLEM UNDER STUDY

MAJOR CRITICAL PATH

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The 7 Phases of The VE Workshop

Information ImplementationFollow up

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Decision

FunctionAnalysis

Development

ValueCircle

No

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VE Job Plan

Presentation

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VE study of VE study of Mashhad Mashhad

MetroMetro

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The value study of Saadat Abad 400/230/63 KV substation

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VE Team of Gharehsoy Zaringol irrigation project

LPAD• Benefits:

– Lesser pumping stations using current gravity potential– Lower Energy Consumption– Lower Construction and Life Cycle Cost– Higher Water Productivity and Higher Income

Base CaseLPAD55007077.66Quality Factor

1 731 364 289 0001 784 120 964 000I

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1,731,364,289,0001,784,120,964,000Income1.00901.5720)B/C(

1,715,921,000,0001,134,937,000,000Cost-33.86%Saving (Percent)

6,0966,525Water Productivity

1.00002.0825Value Index

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Khoda-Afarin Irrigation and Drainage VE Study

Consultant: KuritKara Co. Ltd.

Client: East-Azerbaijan province Water Management Corporation

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Selected ProposalsQuality

ImprovementLCB*

IncrementLCC*SavingProposalCodeRan

k++36.6-.1Changing the cultivation patternDAP0071

++80.3+3.4Using More Intensive Cultivation Patterns in Flat and

Steady Slope Lands and Leaving Highly Slanted Lands

DAP0372

* Million $

Lands

++16.8-3.5Using 3 Different Cultivation Patterns for Humid, Normal and Arid YearsDAP0453

+??Replanning the Operation Process Assuming Tribes System as DefaultPOS0014

+??Developing the Operation Process Based on the POS0136

++31.0-19.0Constructing Local ReservoirsSIS0287

+0+9.8Concentrating the Pumping Stations in Each Reclamation Region AreaSIS0358

00+4.3Reducing the Canal Coating LayerSIS0939

+??Attracting Individual Financers Besides Governmental CapitalFP00110

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Value Planning Study of MoghanWater resources

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صفحه قبل

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99% of trainees were enthusiastic

about VE

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ICID mission: Achieving sustainable irrigated agriculture

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Conclusions:

• Value engineering is aneffective and efficient tool foridentifying and removingunnecessary cost in Irrigationand Drainage Projects and

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and Drainage Projects andensuring SUSTAINABLEIRRIGATED AGRICULTURE

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More Information ……

• Books and Handbooks On VE• A Value Story: Providing a Smoke & Heat,

Detector System for an Historic Mansion• Creative Sustainability (A documentary on

Abbassi Historical Dam)SAVE W b it l• SAVE Website: www.value-eng.org

• As mentioned in thispresentation, application of VEmethodology in many militaryprojects in U S DoD has savedprojects in U.S. DoD has savedtens of Billions of Dollars, now itis time to use the technique formuch more humane cause:Ensuring flood Security for

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Ensuring flood Security forbillions of people all over theworld.