report cni.pdf

BBP 10402

CREATIVITY AND INNOVATION

GROUP ASSIGMENT

VALUE ENGINEERING & DRILL DOWN METHOD

SEKSYEN 7

NAME NO MATRIC

NOR AFIZA BINTI TUMIJAN @ TOMICHAN CB130002

NURUL ATIKA BINTI AMAT BADRI CB130009

NUR ANIDAH BINTI MAT YASIN CB130011

MOHAMMAD HUZAIRIE BIN SUHAIMI CB130021

NUR ZULAIKHA BINTI ZULKIFLI CB130052

MUHAMAD NOR SHAHRIN BIN SAID CB130080

NAMA PENSYARAH :

ENCIK GHAZZALY BIN SPAHAT

BBP 10402 CREATIVITY & INOVATION

2015 Page 2

TABLE OF CONTENT

NO TITLE PAGE

1.0 INTRODUCTION OF VALUE ENGINEERING 4

1.1 THE CONCEPT OF VALUE 5

1.2 THE EQUATION OF VALUE ENGINEERING 6

1.3 WHEN VALUE ENGINEERING CAN USED 6

1.4 THE ASPECT OF VALUE CAN BE CONSIDERED 6

1.5 CHARACTERISTIC AND NOT CHARACTERISTIC OF VALUE

ENGINEERING

7

1.6 STRENGTHS AND LIMITATIONS OF VALUE ENGINEERING 7

1.7 STEPS VALUE ENGINEERING PLANS 8

1.8 EXAMPLE FOR CASE STUDIES 9

1.9 CONCLUSION OF VALUE ENGINEERING 14

2.0 INTRODUCTION DRILL DOWN METHOD 16

2.1 RULES 17

2.2 THE CAUSE AND EFFECT METHOD 18

2.3 PROCESS AND DETAIL IMPLEMENTATION 19

2.4 CASSE EXAMPLE 20

2.5 LIMITATION 21

2.6 THE DRILL DOWN METHOD IN CASE STUDIES 22

2.7 CONCLUSION OF DRILL DOWN METHOD 23

2.8 REFERENCES 24


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TOPIC 1 :

VALUE ENGINEERING


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1.0 INTRODUCTION OF VALUE ENGINEERING

Value engineering are a systematic and organized approach to provide the necessary

functions in a project at the lowest cost. Value engineering promotes the substitution of materials and

methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the

functions of various components and materials, rather than their physical attributes. It also called

value analysis. After that, in Japanese firm value engineering (VE) is an organized effort to analyse

the functions of goods and services in order to find ways to achieve those functions in a mange the

trade-off between functionality and cost, the two dominant characteristics of the survival triplet.

Next, in western firm the definition of VE based British Standard 3138 illustrates are

systematic inter-disciplinary examination of factors affecting the cost of a product in order to devise

means of achieving the specified purpose most economically at the required standard of quality and

reliability (emphasis added). Therefore from Yoshikawa et al 1993, 57 and J.Kaufmans 1990,1

definition of value engineering as an organized effort directed at analyzing the functions of goods and

services to achieve those necessary functions and essential characteristics in the most profitable

manner high lights the tendency of many western firms to minimize the costs of products without

setting a specific target. 1

Besides that, it could means Value Engineering (VE) is an intensive, inter disciplinary 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. VE is not primarily centered on

a specific category of the physical sciences it incorporates available technologies, as well as the

principles of economics and business management, into its procedures. When viewed as a

management discipline, it uses the total resources available to an organization to achieve broad

management objectives. Thus, VE is a systematic and creative approach for attaining a return on

investment (by improving what the product or service does in relation to the money spent on it).

1 Robin Cooper, When Lean Enterprises Collide: Competing Through Confrontation, publisher

Harvard business, page 165.


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1.1 THE CONCEPT OF VALUE

The concept for value engineering is divided 2 types. The concepts are :

1.1.1 Concept of Value Desirable

Figure 1 : The Concept Of Value Desirable

1.1.2 Concept of Value Undesirable

Figure 2 : The Concept Of Value Underdesirable


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1.2 THE EQUATION OF VALUE ENGINEERING

Means for equation 1 and 2 :

Equation 1 reflects the perspective of the producer; equation 2 reflects that of the customers.

Cost and price play the same role in these equations that they do in the survival triplet. While in

equation 1 functionality captures what the product can do, in equation 2 perceived functionality (or

perceived benefits ) captures the value the customer attaches to the products functionality.

1.3 WHEN VALUE ENGINEERING CAN USED

1.3.1 to determine the best design alternatives for projects.

1.3.2 to reduce cost on existing projects.

1.3.3 to improve quality, increase reliability and availability, and customer satisfaction.

1.3.4 to improve organizational performance.

1.3.5 to improve schedule

1.3.6 to reduce risk

1.3.7 Value engineering is a power full tool used to identify problems and develop

recommended solutions.

1.4 THE ASPECT OF VALUE CAN BE CONSIDERED

1.4.1 Cost Value

is the cost of manufacturing and selling an items

1.4.2 Exchange Value

is the price a customer is prepared to pay for the product, or service

1.4.3 Use Value

is the purpose the product fulfils

1.4.4 Esteem Value

Value = function / cost

Perceived value = perceived benefits / price 2

1


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is the prestige a customer attaches to the product

1.5 CHARACTERISTIC AND NOT CHARACTERISTIC OF VALUE ENGINEERING

CHARACTERISTIC OF VALUE

ENGINEERING

NOT CHARACTERISTIC OF VALUE

ENGINEERING

Systematic Problem Solving Process

Multi-Discipline Team Approach

Life-Cycle Cost Oriented

Value Oriented (Measurement Of

Scope Performance/Project Costs)

Function-Based Analysis

Free Of Normal Design Restriction

A Proven Management Technique

A Design Review

It is not intended to correct

omissions in the design, nor

to review calculations made

by the design.

A Cost Cutting Process

It does not cut cost by

sacrificing needed quality,

reliability, or performance.

Routinely Done on all Designs

It is not a part of the normal

design process, but a formal

cost and function analysis

1.6 STRENGTHS AND LIMITATIONS OF VALUE ENGINEERING

STRENGTHS LIMITATIONS

Optimization of quality/performance

Overall cost optimization

Appropriate technology

Sustainable ( Reduce, Reuse and

Recycle )

Enhanced reliability and safety

Risk mitigation (bad news upfront)

VE team should be involved right

from the beginning

Reliance on creativity and lateral

thinking

Team work is a must

Can result in many intangibles

Initial cost ( time and effort )


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1.7 STEPS VALUE ENGINEERING PLANS

Value engineering uses intuitive logic (a unique how/why questioning technique) and

analysis to identify relationships that increase value. Value engineering is a quantitative method

similar to the scientific method (which focuses on hypothesis and conclusion to test relationship) and

operation research (which uses model building to identify predictive relationships).

The value engineering process follow a general framework commonly referred to as an eight-phase

job plan, with the following phases:

1.7.1 Selection phase: select the right projects, timing, team, and project processes an

elements.

1.7.2 Investigation Phase: Investigate the background information, technical input reports, field

data, function analysis, and team focus and objective.

1.7.3 Speculation Phase: Be creative and brainstorm alternative proposals and solutions.

1.7.4 Evaluation Phase: Analyze design alternatives, technical processes, life cycle costs,

documentation of logic, and rationale.

1.7.5 Development Phase: Develop technical and economic supporting data to prove the

feasibility of the desirable concepts. Develop team recommendations. Recommend long-

term as well as interim solutions.

1.7.6 Presentation Phase: Present the recommendations. Prepare an implementation plan,

including response of the, managers and a schedule for accomplishing the decisions

based on the recommendations.

1.7.7 Implementation Phase: Evaluate the recommendations. Prepare an implementation plan,

including response of the managers and a schedule for accomplishing the decisions

based on the recommendations.

1.7.8 Audit Phase: Maintain a records system to track the results and accomplishments of the

value engineering program on a state wide basis. Compile appropriate statistical analyses

as requested.

The duration and assessment for these phases depend on the complexity of the project. By

performing the steps in these phases, the value engineering team will evaluate several

component of a project, such as designs, topographical implications, and environmental impacts,

and make recommendations for several feasible options along with the cost differences and their

impact on total project cost and schedule. These details are compiled into a value engineering

decision document for appraisal from concerned authorities.2

2 Stuart D. Anderson, Keith Robert Nolenaar, Cliff J. Schexnayder, (2007) National Cooperative

Highway Research Program: Value Engineering Method, Transportation Research Board (page A 165)


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1.8 EXAMPLE FOR CASE STUDIES

1.8.1 Replacing Piles With Footings

1.8.2 Resizing & Relocating Water Tank

Worjed Performed:

Replacing 43 piles with isolated

footing

Outcome

1. Cost saving = 1119000 AED

2. Time Saving = 2 months

3. Easier, tidier and safer

construction


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Worked Performed:

1. Reducing size from 14384

to 7000m3

2. Remove 100 piles

3. Minimize depth to avoid

excessive excavation in

sandstone layer

4. Relocate WT Under

footprint of Bldg.

Outcome

1. Cost Saving = 7,,930,000 AED

2. Time Saving = 3 months

3. Easier, tidier and safer

construction

4. Regain Land space


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1.8.3 Lagoon Depth, Walls & Liners

1.8.4 Lagoon Depth

Worked Performed:

1. Reducing depth by 1.25 m about

50000m3

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

1. Cost saving = 8,338,600

AED

2. Time saving = 2months

3. Easier constraction

Five pits were used instead of one to reduce lagoon depth by

1.25m and achieve more effective collection of sediments


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1.8.5 Lagoon Walls

1.8.6 Floor Liners

Recommendations for the 1675m long lagoon perimeter:

1. To use gravity precast panels instead of CIP reinforced concrete

walls.

2. To use 6 Deg tilted wall instead of vertical walls to reduce footing

sizes

3. Incorporate theming in underwater precast panels to reduce cost


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Recommendations for the 40000m2 floor 2 liners instead of one liner and concrete floor:

1. To use double liners, one 1.5mm and 2nd

0.5mm thick separated with granular layer

2. To provide leakage detection system as shown

1.8.7 40 M Dome Structure

1.8.8 Displaced Cooling

Recommendations for the 30 and 40m LH

Domes

1. To use PT concrete curve Roof instead

of steel

2. Eliminate fire proofing

3. Reduce Thermal Insulation

4. Reduce Suspension system of false

ceiling

1. Cost Saving of 4385065 + 2,466,600

for the 40 and 30m Domes

respectively

2. No time impact

3. Similar construction risk

Outcome

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

1. Cost saving of 891,65 Outcome


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1.9 CONCLUSION OF VALUE ENGINEERING

VE which plays a critical role in tying the cost and functionality dimensions of the survival

triplet is used at many firms to help them achieve their target costing objectuves. Its primary objective

is to increase the value of the firms products, when value is defined as the functionality of a product

divided by its cost. After that, VE like a target costing is an adaptive, not monolithic approach is a

multifunctional discipline that analyses products in terms of their basic and secondary function. A

basic function is the principal reason for the existence of a product and secondary function are

outcomes of the way the designers chose to achieve the basic function. Next , the ways in which firms

increase the value of their product using VE can be quite complex, and developed numerous

variations of VE technique.


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TOPIC 2 :

DRILL DOWN METHOD


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2.0 INTRODUCTION OF DRILL DOWN METHOD

Creative problem-solving, a type of problem solving, is the mental process of searching for a

new and novel creative solution to a problem, a solution which is novel, original and not obvious. Drill

down method is one of the tools for creative problem solving. The drill down is an approach used to

take a broad idea or topic and continue to build and enhance on what it is, or why it is important, until

there is a very detailed and specific explanation. It works by starting with a broad idea and continually

asking for more detailed questions. Once the questions end, the result is a very broad idea drilled

down into a more enhanced defined result. In data visualization drilling down is the name given to

the epistemic action whereby more information is obtained about a symbolically displayed entity

(Shneiderman called this "details on demand". Drill down is useful in almost all visualizations. In cases

where there are many symbols on a screen it is important that symbols represent as much information

scent as possible otherwise the analyst may have to drill down and view a great deal of irrelevant

information. Scent consists of a set of graphical attributes or words that represent a summary of the

information referenced by the symbol. 3

In information technology to drill down means to move from one place to

another, information to detailed data by focusing in on something. In a GUI-environment, "drilling-

down" may involve clicking on some representation in order to reveal more detail. To drill down

through a series of notebooks, for example, on a desktop means to move through the hierarchy of

folders (from the top downwards) to find a specific file or to click through drop-down menus in a GUI.

Clicking on an item moves you to a level of greater detail. When an online user accesses more and

more pages of the website, he or she may delve deeper into the content of the site. As a web-surfer

goes further into a website, he or she goes deeper into the back pages and thus deeper into data. (Of

course, he or she could also begin. For example via an external search engine at a detailed view, and

drill up to the front page of the site.)

Drilling down through a database involves accessing information by starting with a general

category and moving through the hierarchy: from category to file/table to record to field. When one

drills down, one performs de facto data analysis on a parent attribute. Drilling down provides a

method of exploring multidimensional data by moving from one level of detail to the next. Drill-down

levels depend on the data granularity. The field of managerial economics uses the term "Drill Down"

to explain exciting but technical aspects of operations research and regression analysis. For an

alternative data-extraction metaphor, see data mining.

Drill Down is a simple technique for breaking complex problems down into progressively smaller parts.

3 R Pressler, T Hanna, (2008) Contact Centre Operations L3, Publisher Pearson Education, page

157.


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2.1 RULES

Drill Down helps you to break a large and complex problem down into its component parts, so that

you can develop plans to deal with these parts. It also shows you which points you need to research

in more detail. It can be used in conjunction with the 5 Whys Techniques to ensure that you

investigate each aspect of the problem systematically.

2.1.1 Define the Problem

One simple statement.

Beware! Dont pre-determine a solution:

Wrong: There is too little shelter for stray dogs.

Right: There are too many homeless dogs.

Wrong: There are too many young drivers on the roads.

Right: There are too many highway deaths.

2.1.2 Assemble Some Evidence

Think! Dont just gather.

Consider like data, information.

Ask: what do the experts think?

2.1.3 Construct the Alternatives

Four typical options: liberal, conservative, moderate, status quo

Focus on causes

Consider politic

2.1.4 Select the Criteria

How will you choose the best solution?

Be specific:

Biggest reduction in vehicle miles traveled

Highest cost to benefit ratio

Most likely to reduce cases of violence

2.1.5 Project the Outcomes

The hardest step!

Consider ranges of outcomes.

2.1.6 Confront the Trade-offs

Rarely is one solution obvious choice

Review criteria


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2.1.7 Decide!

Too tough? Revisit prior steps

2.1.8 Tell Your Story

This could be the first step!

Skip the blow by blow. Get to the good part first.

2.2 THE CAUSE AND EFFECT METHOD

Cause and effect diagrams helps you to think through the causes of a problem throughly. The good

thing about this tool is that it encaourages you think of all possible causes of the problem, rather than

just the ones that are most obvious. Follow these step to solve a problem with a cause and effect

diagrams:

2.2.1 Identify the problem.

Write down the problem you face, in detail. If you can do so, identify who is involved, what the

problem is and when or where it happens. Write the problem in a box on the left hand side of

a large sheet of paper. Draw a line across the paper horinzontally from the box. This

arrangement, which looks like the head and spine of a fish, gives you space in which to

develops ideas.

2.2.2 Work out the major factors involved.

Now work out the factors that may contribute to the problem. Draw lines off the spine for each

factor and label it. These may be people who are involved with the problem, systems,

equipment, materials, outside forces, and so on. Try to draw out as many possible factors as

possible. If you are trying to solve the problem as part of a group, then this may be a good

time for some brainstorming.

2.2.3 Identify possible causes.

For each of the factors that you thought of in stage 2, brainstorm possible causes of the

problem that may be related to the problem. Show these as smaller lines coming off the

bones of the fish. Where a cause is large or complex, then it may be best to break it down

into sub-causes. Show these as lines coming off each cause line.

2.2.4 Draw the diagrams and stage the causes of your problem.

Depending on how complex the problem is, you can now investigate the most likely cause

further. This might involve setting up investigations, carrying out surveys and so on.


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2.3 PROCESS AND DETAIL IMPLEMENTTION

Drill Down is a simple technique for breaking complex problems down into progressively

smaller parts. To use the technique, start by writing the problem down on the left-hand side of a large

sheet of paper. Next to this, on the right-hand side, write down the points that make up the next level

of detail on the problem. These may be factors contributing to the problem, information relating to it,

or questions raised by it. This process of breaking the problem down into its component part is called

drilling down. For each of these points, repeat the process. Keep on drilling down into points until you

fully understand the factors contributing to the problem. If you cannot break them down using the

knowledge you have, then carry out whatever research is necessary to understand the point.

Drilling into a question helps you to get a much deeper understanding of it. The process helps

you to recognize and understand the factors that contribute to it. Drill Down prompts you to link in

information that you had not initially associated with a problem. It also shows exactly where you need

further information.

The two methods to identify and understand the root causes of problems that hold up a

growing business. Both have the advantage of being simple and easy to use. Neither will require you

to spend time drawing complex diagrams or remembering counter-intuitive strategies. The Five Whys

can create results that are too disorganized to point usefully to solutions and may suggest false trails.

The Drill Down Technique helps to lay out the causes of problems clearly so that issues can be

addressed but it doesnt always help to uncover those causes. Used together, however, the two

methods can both identify the causes of problems and plan a path for their resolution.4

4 Geek Preneur, (2012), Solve Problems by Combining the Five Whys with the Drill Down Technique in web site : http://www.geekpreneur.com/solve-problems-by-combining-the-five-whys-with-the-drill-down-technique


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2.4 CASE EXAMPLE

Figure 1

2.4.1 A problem analyzed using the Drill Down Technique might look something like this:

Table 1

2.4.2 The owner of a windsurfing club is having complaints from its members about the

unpleasant quality of the water close to the clubhouse. This seems like a huge

problem. She carries out the

Problem

Clients complain of a lack

of responsiveness

Causes

Too busy to send emails. Bad timekeeping.

Failure to get the work

completed in the expected time. Unrealistic scheduling.


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Analysis in Figure 2

This gives her a starting point in which to begin thinking about the problem. It highlights where

she does not fully understand the problem, and shows where she needs to carry out further

research.

2.5 LIMITATION

Breaking problem into a smaller ones.

In case you have no further info to drill down it shows you which points you need to

research in more detail.

Recognize and understand the factors that contribute to a problem, by prompts you to

link in information that you had not initially associated with a problem.


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2.6 THE DRILL DOWN METHOD IN CASE STUDIES

2.6.1 Coverage

The first step of the Drill Down Method is coverage. As you might expect coverage refers to

gaining a general understanding of what you want to learn, before delving deeper into its

contents. Having an overview of a subject is extremely helpful as you cant plan an attack if

you dont have a map of the terrain.

For NCEA subjects at school, this will involve reading parts of the textbook or notes your

teacher has given you to gain a general overview of what the subject contains. You may be

tempted to skim through a book and highlight what you think might be important, but a much

more effective way to gain understanding is to write brief notes as you go, or write short

summaries about each major section shown in the contents of your textbook. Coverage is the

least important of the three steps in the Drill Down Method so it is something to be done

quickly so you can focus on the latter steps.

2.6.2 Practice

Practicing problems is a big part of The Drill Down method and is a great way to increase ant

to gain immediate feedback when doing this as practice without feedback will hinder the

effectiveness of the process. What we mean by immediate feedback is knowing if your

answer was correct immediately.

his means going through question by question with the answers at hand so you can check

yourself against the provided solution. Practicing problems will allow you to find the areas

where you need to develop a further understanding, as it will be immediately obvious what

you dont know.

Applying the practice step of The Drill Down Method may seem to be difficult for some

subjects, especially when you are being assed on understanding and applying knowledge,

rather than simply solving problems, but you can still test your understanding with flashcards,

or your application with practice questions or past exams.

2.6.3. Insight

The goal of Coverage and Practice is to get you to the point where you know what you dont

understand, which is where Insight comes into play. Insight allows you to narrow down the

gaps in your knowledge and gives you the tools to fill the gaps. Insight serves a dual purpose

as even when you do understand an idea it gives you opportunities to create more

connections so you can develop a deeper understanding.


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The Feynman Technique is a great tool for filling gaps in your knowledge as it helps you to

break down ideas you dont understand into smaller chunks, and by learning these chunks

you can eventually fill in the gap. The technique is very simple and also involves three steps:

Get a piece of paper

Write at the top the idea or process you want to understand

Explain the idea, as if you were teaching it to someone else

The third step is the most crucial in this process as once you have gotten to a point where you

cant explain an idea, you have discovered the exact gap that you need to fill. You can then

go on to do this by researching or asking your teacher or tutor. Once you have narrowed

down your misunderstanding it becomes easier to find the precise answer. The Feynman

technique may seem difficult to apply at first but once it has been mastered it can be applied

to a wide variety of learning situations.

2.7 CONCLUSION OF DRILL DOWN METHOD

This means drilling down to break problems down into manageable parts. It is an easy to use

technique to break difficult, complex problems down into progressively smaller parts. Start by writing

the problem down on the left hand side of a large sheet of paper. Next, write down the points that

make up the next level of detail on the problem a little to the right of this. These may be factors that

contribute to the problem, information relating to it or questions raised by it. This process of breaking

the problem down into its different parts called drilling down. The principle of the Drill Down

Technique is similar to that of the Five Whys, which is why the two methods work so well together.

The aim is to break a problem down to its constituent parts so that a solution can be planned for each

of the problems elements.


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2.8 REFERENCES

1. R Pressler, T Hanna, (2008) Contact Centre Operations L3, Publisher Pearson Education,

page 157.

2. Geek Preneur, (2012), Solve Problems by Combining the Five Whys with the Drill Down

Technique in web site : http://www.geekpreneur.com/solve-problems-by-combining-the-five-

whys-with-the-drill-down-technique

3. Robin Cooper, When Lean Enterprises Collide: Competing Through Confrontation, publisher

Harvard business, page 165

4. Stuart D. Anderson, Keith Robert Nolenaar, Cliff J. Schexnayder, (2007) National Cooperative

Highway Research Program: Value Engineering Method, Transportation Research Board

(page A 165)

5. Value engineering, in the web site,

http://www.vcn.bc.ca/pmprof/presentations/pd45/ValueEng-SukumarPD45.PDF

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