Presented by المحاضر Abdulaziz S. Al-Yousefi, CVS –Life, FSAVE عبدالعزيز سليمان اليوسفي

1 Value Engineering

ALYOUSEFI

Value Engineering

ALYOUSEFI

للهندسة القيمية

اليوسفيللهندسة القيمية

ValueEngineering اليوسفي

ALYOUSEFI

ValueEngineering

ALYOUSEFI



ValueEngineering اليوسفي

ALYOUSEFI

ValueEngineering

ALYOUSEFI





اليوسفي

Presented by المحاضر Abdulaziz S. Al-Yousefi, CVS –Life, FSAVE عبدالعزيز سليمان اليوسفي

Organized & Sponsored by

T V M Total Value

Management The New innovative VE-TQM integration in

Project Management

2

Value studies are mandatory in …

All US federal projects > $ 2 M

All Japan projects > $ 2 M

All Saudi Government Project > $ 5 M

All RC of J&Y projects > $ 5 M

All Saudi Aramco projects > $ 10

also in UK, Germany, Francs, Australia, Korea, India, Malaysia, ..etc.

Why is that ?!!

3

VE Studies …. Done

More than 500 VE Studies More than 6,000 participants

Done at the rate of 80-100 /year Improved the Quality of our projects

Saved More than $ 3 billion Saving ranged from 5-30%

Rate of return is 1 : 100 7 official VE Program.

VE Accomplishments in the Gulf Area

4

Saudi Ministry Of Finance Mandate

Emphasis on Function, LCC and ROI

Perform VE during early design stages

Train employees on VE

Include VE Clauses in the Design contracts

Apply VE as follows …

Typical repeated projects that is > SR 5 M

Projects that are > SR 20 M (about $ 5 million)

O&M Contracts that are > SR 5 M

First three years was optional then became mandatory

October 2001

5

This 40-minut presentation is about What rather than

HowWhat is it?

Why we do it?

What makes it different?

TVM Benefits

Recorded results

6

The 7 Phases of The VE Workshop

Information Implementation

Follow up

Yes

VE Job Plan

DecisionFunction

Analysis

Presentation

Creativ

ity Evaluation

Development

ValueCircle

No

7

VEP VE2 DR

Cost

&

Effort

Planning&

Analysis

SchematicDesign

DesignDevelopment

WorkingDrawings

ConstructionDocuments Construction

Operation&

Maintenance

When to apply VE ?

Project Life CycleProject Life Cycle

Implementation

Saving

Acceptance level

Acceptance level

100

10

1

Goals, Objectives, Requirements

Design Criteria, Scope of work

Detailed VE Alternatives to the design,

Define Systems

Conformity to Code, standards, specs

Make sure that VEP of VE 2 are implemented

8

Who are the most influencers ?

Who are the Decision Makers ?

Technical, workers

Mangers

SM

TopCircle of SM influence

9

Where do senior managers invest their time …

61.0%

12.0% 15.0%

7.0%

5.0%

Actual

58.8%14.7%

11.8%

9.8%4.9%

What they Say ...Common Sense

is not always Common Practice

القيادة

اإلدارة العليا

اإلدارة الوسطى

التنفيذيين

According to a survey (In Saudi Arabia, Dubai & USA 1996)

1- Marketing 2- Human Resources 3- Projects4- Finance5- Quality

10

Reasons for unnecessary Costs (Poor Value)

How many How many projects do you projects do you know that know that have some of have some of these?these?

Shortage of time Misleading information Ambiguous goals, objectives, scope etc. Hasty decisions based on false assumption Lack of ideas Lack of funds Resistance to Change Unrealistic temporary circumstances Politics Bad habits and attitudes, beliefs Over design & Unrealistic safety factors Continues changing in the owner requirements Lack of communication coordination Using unsuitable standards & specification No LCC estimate …… and more….

11

Life Cycle Costing

34

27

21

12

6

0 5 10 15 20 25 30 35 40

%

Space distribution for a hospital in Riyadh

Circulation

Administration

Others

Medical Function

Services

Can you believe it? ……… It is true !!

12

What makes it different?Tools & Techniques

Value Engineering

13

VE Objective is …

Three issues

3 Financial

1 Technical

2 OperationalTo evaluate

14

QBS, Laptop Computer

Non-Monetary CriteriaHow Important

2 points for Major Preference

1 points for Minor Preference

1 point each for Same preference

Q CVWeightQualityLCCValue Index

% of the totalPointsSRQ / C

ThinkPad T42 Rates : (5) Excellent, (4) Very Good, (3) Good, (2) Fair, (1) Poor

= Q / C

A. Speed

B. HD Capacity

C. Cash Memory

D. Wireless, LAN

E. Warranty

AA/1 B

A/1 C/1 C

A/D B/D C/D D

A/1 E/1 C/E D/E E

5 5 5 4 5

125 60 95 100 95

TOSHIBA

Satellite M30-114

DELL

Inspiron 6000/2

IBM

5 5 5 5 4

125 60 95 125 75

5 5 5 4 5

125 60 95 100 95

475

480

475

7.79

4.99

8.99

61

96

53

4 2 3 4 3

25 12 19 25 19

Quantifying Quality

15

Quality Model ( Star Diagram for a Housing Project)

User Comfort Safety & Security

Engineering

Performance

Operation

Effectiveness

Environmental Impact

Flexibility

Image ( Site & Facility)

Schedule

Balance

Maximum

Minimum

Quality

Profile

10 5 0 5 10

Setting the priorities

16

VE Accomplishments in the Gulf Area

VE Training …We have two courses (offered by PMI-AGC)

- Module 1 (Basic, 5 days) = 40 PDUs

- Module 2 (Advanced, 3 days) = 21 PDUs

TVM Course

- More than 10,000 have trained - VE Training workshops are done at the

rates 60-80 per year

17

Certification in VE

AVS

VMPCVS

> 350

17

VE studies … > 80 / year

VE Training .. > 60 / year

Certified in the Gulf …10%

Total certified world wide about 3400

18

0

10

20

30

40

50

60

70

80

BPR TQM VE

Success rates – KFUPM Research

Team effort

It is Task oriented

It takes short time

It gets Quick results

Many new ideas

Acceptable Solutions

Why VE is successful

19

Future Top 10 Emerging trends

2000 and beyond … by AIA, 1999

14

19

20

23

29

32

32

33

43

52

0 10 20 30 40 50 60

Facility Managemnt

Sustainable Builidings

Project Web site

Virtual Reality

Value Engineering

Smart Growth

Design/Build

Construction MANAGEMET

Firm web site

Electronic Documenation

20

TVM Benefits

Value Engineering

21

Do not worry ….

We are going to finish in 5 minutes

please be patient

Feeling tired !!!

22

ImproveImprove your your projectproject performance. performance.

Come up with many Come up with many practical solutionpractical solution in short time. in short time.

ImproveImprove your project your project designdesign

CustomizeCustomize your project your project QualityQuality and scope and scope

Save Money, time and effortSave Money, time and effort (5-10%) (5-10%)

Avoid unnecessary costAvoid unnecessary cost during O$M during O$M

Minimize riskMinimize risk

SimplifySimplify complicated ad open ended issues complicated ad open ended issues

Benefits for your organization

23

Generate many ideas and alternative using scientific approach.

Define suitable solutions at the least possible cost.

Reduce cost in positive ways.

Maintain project life span, functions, goals and objectives.

Avoid phasing the project or deleting some of its components

Assure best investments for government resources.

Optimize cost of the government projects.

Benefits for your organization MOF circular

24

CertifyCertify in VE (AVS, VMP, CVS) … and in VE (AVS, VMP, CVS) … and PMPPMP..

increase your increase your decision makingdecision making ability. ability.

Differentiate Differentiate between alternatives using VE tools.between alternatives using VE tools.

EnhanceEnhance your your team workteam work participation. participation.

Gain new Gain new innovative managementinnovative management techniques. techniques.

Benefits for individuals

25

VE studies are mandatory in …

All US federal projects > $ 2 M

All Japan projects > $ 2 M

All Saudi Government Project > $ 5 M

All RC of J&Y projects > $ 5 M

All Saudi Aramco projects > $ 10

That’s Why

26

The EndIf you want a copy of this presentation, please

bring your flash memory For more information, please visit

www.alyousefi.com www.value-eng.org

www.pmi-agc.com

Thanks for sharing the knowledge