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8/11/2019 Value Engineering example
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MWCI-MWSIEd Bausa
Dom DalanginPhilip BalingitMark Calura
June 20, 2014
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Scope of Study The group focused on the existing design of the
pumping station.
Architectural / Building LayoutsCivil Layouts
Equipment Selection
Piping SystemElectrical System
Instrumentation
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Objective of the Study To continuously innovate the design of the
pumping station to reduce the cost without
affecting the quality of the facility.
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Information Phase To assist the VE team to understand the background
and decisions that have influenced the development ofdesign engineer presented an overview of the project
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Initial Drawings
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Initial Drawings
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Cost SummaryItem Major Unit Original Estimate(in Millions) % Weight(Cost)
1 General Requirements 1.1 2.6%
2 Site works 1.2 2.8%
3 Concrete 4.9 11.5%
4 Building works 2.6 6.1%
5 Mechanical Equipment 8.3 19.4%
6 Mechanical piping 16.2 37.9%
7 Electrical 7.6 17.8%
8 Instrumentation 0.8 1.9%
Total 42.7 100.0%
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Functional AnalysisSub Component
FunctionAction
Verb Noun
Site work Provide Access B
Electrical Distribute Energy B
Instrumentation Control Process B
Mechanical Piping convey water B Develop
Building Works House Equipment B Develop
Control room/office support process S Develop
Flow metering measure Flow B Develop
B - Basic function,S - Secondary function
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Potential for cost savings, initial only
Enhances operations and maintains mobility
Meets needs and satisfies desires of users, owners and
stakeholders
Safety, including work zone safety
Feasibility and constructability
Potential for implementation
Engineering judgment and experience
Performance measures are clear and well defined in the
advantages and disadvantages
Criteria for Evaluation
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Creative Phase / Evaluation Phase
CREATIVE EVALUATION
NO. IDEA ADVANTAGE DISADVANTAGERATING
S
1Relocate valve near the SAV
chamberReduce cost in civil works None 8
2 Remove Manual Butterfly ValveReduction in cost without
effect in operations
No isolation during
replacement of
motorized valve
6
3 Replace Fittings from Tee toElbow
Reduction in cost withouteffect in operations
No room for
expansion on one
side8
4Removal of 3 units of pressure
gauge and transducer
Reduction in cost,
monitoring can be done on
one unit of pressure gauge
and transducer since the
line is gravity fed.
No individual
monitoring6
5Lower ceiling height from 4m to
3mReduce cost in civil works None 10
6Replace roof deck to truss roofing
and insulationReduce cost in civil works None 10
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CREATIVE EVALUATION
NO. IDEA ADVANTAGE DISADVANTAGE RATINGS
7 Remove guard house Reduce cost Security issues 6
8Replace Guard house to Guard
PostReduce cost
Mobility of security
personnel6
9 Add CCTVSecure facility;
OPEX reductionAdditional cost 8
10Reduce number of parking
from 6 slots to 4 slotsReduce cost None 7
11Change monorail to A- frame
during maintenanceReduce cost Ease of maintenance 8
12 Remove ACU Reduce costIncrease risk indamaging the
equipment
1
13 Change type 1 to type 2 Reduce cost Security Issue 6
Creative Phase / Evaluation Phase
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Item No. Description
Cost
Reduction
(in Million)
Addition
(in Million)Total Cost
1Relocate valve near the SAV
chamber-0.4 -0.4
2
Replace Fittings from Tee to
Elbow -0.15 0.05 -0.1
3Lower ceiling height from
4m to 3m-0.3 -0.3
4Replace roof deck to truss
roofing and insulation-4.0 2.0 -2.0
5 Add CCTV 0.2 0.2
6Reduce number of parking
from 6 slots to 4 slots-0.07 -0.07
7Change monorail to A-
frame during maintenance-0.15 -0.15
Total -5.07
2.25
-2.82
Cost of Proposed Changes
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Item No. Description
Cost Savings
Original Cost
Proposed
cost
Total Cost
Savings
1General
Requirements1.1 1.1 0
2 Site works 1.2 1.2 0
3 Concrete 4.9 2.13 2.77
4 Building works 2.6 2.6 0
5Mechanical
Equipment8.3 8.15 0.15
6 Mechanical piping 16.2 16.1 0.1
7 Electrical 7.6 7.8 (0.2)
8 Instrumentation 0.8 0.8 0
Total 42.7
39.88
2.82
Cost Summary
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SUMMARY The VE team used the model to identify areas of high
potential initial cost savings. The VE team identified 13ideas and 7 of which are identified for
implementation with a potential cost savings ofapproximately 2.82 million based on evaluatingperformance and cost.
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SUMMARY
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SUMMARY