Structured optimization for improved Value

Value EngineeringWelcome

AFAQUE USMAN

What Value Engineering is Not!

Cost Cutting1

Design Review2

Risk Elimination3

Scope Reduction4

Quality Reduction5

Redesign6

Detailed Cost Estimation7

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An organized study of FUNCTIONS to satisfy the USER’S NEEDS with a QUALITY PRODUCT at the LOWEST LIFE CYCLE COST through APPLIED CREATIVITY

What is Value Engineering

Valuemax =Performancemax

Costmin

Value is the reliable performance of functions to meet customers needs at the lowest overall cost

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Value engineering (VE) is a systematic and structured method for improving the “Value" of projects, products and services by using an examination of function.

Value Engineering helps achieve an optimum balance between function, performance, quality, safety, and cost

Value may also be increased by providing superior performance, Latent needs if the customer is willing to accept it with an added expense

Understanding Value Engineering

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Reasons for Poor Value

• Gap in User expectation and the product or service

• Design based on habitual thinking or faulty beliefs

• Not enough time for project formulation and/or design

• Lack of and/or poor coordination amongst designers

• Failure to utilize all available resources at disposal or available solutions

• Not using standardised products where feasible

• Negative attitudes

Types of User Needs

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Examples

Integrated chassis and powertrain of BMW R1100S bike where Powertrain itself acts as a structural member.

Example of a Performance Optimization

Biolite cooking stove. Latent needs adding value to community

Shimano bicycle cranks, available in several quality levels.Example of variety in quality

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The Job plan consists of the following sequential phases:

Value Engineering Methodology

Information Phase1

Function Analysis Phase2

Creative Phase3

Evaluation Phase4

Development Phase5

Presentation Phase6

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The Job plan consists of the following sequential phases:

Value Engineering Methodology

Information Phase1

The team reviews and defines the current conditions of the project and identifies the goal of the study.

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The Job plan consists of the following sequential phases:

Value Engineering Methodology

Function Analysis Phase2

The team defines the project functions using a two-word active verb/ measurable noun context. The team reviews and analyzes these functions to determine which need improvement, elimination, or creation to meet the project’s goals.

Function analysis is the foundation of a value methodology.

Function analysis can be enhanced through the use of graphical mapping tool known as the Function Analysis System Technique (FAST)

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The Job plan consists of the following sequential phases:

Value Engineering Methodology

Creative Phase3

The team employs creative techniques to identify other ways to perform the project’s function(s).

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The Job plan consists of the following sequential phases:

Value Engineering Methodology

Evaluation Phase4

The team follows a structured evaluation process to select those ideas that offer the potential for value improvement while delivering the project’s function(s) and considering performance requirements and resource limits.

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The Job plan consists of the following sequential phases:

Value Engineering Methodology

Development Phase5

The team develops the selected ideas into alternatives (or proposals) with a sufficient level of documentation to allow decision makers to determine if the alternative should be implemented.

AFAQUE USMAN

The Job plan consists of the following sequential phases:

Value Engineering Methodology

Presentation Phase6

The team leader develops a report and/or presentation that documents and conveys the adequacy of the alternative(s) developed by the team and the associated value improvement opportunity.

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Value Study Process Flow Chart

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Value Study Qualification

A

The Value Study Team follows an organized Job Plan that includes, at a minimum, the six phases identified above.

B

The Value Study Team is a multi-disciplinary group of experienced professionals and project stakeholders

C

The Value Team Leader is trained in value engineering techniques and is qualified to lead a study team using the Job Plan.

In order to qualify as a Value Study, the following conditions must be satisfied.

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Range of ApplicationConstruction Projects

VE could help by identifying improveme-nts for various project phases: concept deve-lopment, preliminary design, final design, procurement and construction

Mfg. Products

VE can be used with a focus on design or manufacturing process or both for a product. A product may be subjected of vlaue study at any time during the products life.

Business Process

VE may be used to study many elements of an organization for improvement. This may be from the develop-ment of business plans and organizational studies to improving existing business process.

Service Organizations

Service organizations can benefit from the use of value engin-eering. VE has been used in medical industry as well as govt. agencies to improve processes.

By. AFAQUE USMAN

Execution & Follow Up$