Value Engineering

• Value Engineering

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Project management Monitoring and controlling

1 Changes can be the result of necessary design modifications, differing site conditions, material availability, contractor-requested changes, value engineering and

impacts from third parties, to name a few.


Industrial engineering - Overview

1 The various topics concerning industrial engineers include management science,

work-study, financial engineering, engineering management, supply chain

management, process engineering, operations research, systems

engineering, ergonomics / safety engineering, cost and value engineering, quality engineering, facilities planning,

and the engineering design process


Engineering geology

1 Engineering geologic studies may be performed during the planning,

environmental impact analysis, civil or structural engineering design,

value engineering and construction phases of public and private works

projects, and during post-construction and forensic phases of

projects


Jabil Circuit - Design Engineering

1 Jabil also assisted Cisco with value engineering by placing RFID in circuit boards to store data about the host

board.


ISO 15686

1 Service life planning facilitates the making of well-informed decisions regarding value engineering, cost

planning, maintenance planning, and environmental impact


Risk management - Principles of risk management

1 create value – resources expended to mitigate risk should be less than the

consequence of inaction, or (as in value engineering), the gain should

exceed the pain


Planned obsolescence

1 Estimates of planned obsolescence can influence a company's decisions

about product engineering. Therefore, the company can use the

least expensive components that satisfy product lifetime projections. Such decisions are part of a broader

discipline known as value engineering.


Planned obsolescence - Obsolescence and durability

1 This is done through a technical process called

value engineering



1 These products could be built with higher-grade components, but they are

not because this would impose an unnecessary cost on the purchaser – see overengineering. Value engineering will reduce the cost of making the product and lower the price to consumers. A company will typically use the least

expensive components that satisfy the product's lifetime projections.



1 The use of value engineering techniques have led to planned

obsolescence being associated with product deterioration and inferior

quality. Vance Packard claimed that this could give engineering a bad

name, because it directed creative engineering energies toward short-term market ends rather than more

lofty and ambitious engineering goals.https://store.theartofservice.com/the-value-engineering-toolkit.html

Quality function deployment

1 Yoji Akao, who originally developed QFD in Japan in 1966, when the

author combined his work in quality assurance and quality control points

with function deployment used in value engineering.


List of management topics - Concepts

1 * Value engineering - (VE) is a systematic method to improve the value of goods and

services by using an examination of function. Value, as defined, is the ratio of function to cost. Value can therefore be increased by

either improving the function or reducing the cost. It is a primary tenet of value engineering that basic functions be preserved and not be reduced as a

consequence of pursuing value improvements.


Risk management - Principles of risk management

1 * create value (economics)|value – resources expended to mitigate risk should be less than the consequence

of inaction, or (as in value engineering), the gain should exceed

the pain


Value Engineering

1 It is a primary tenet of value engineering that basic functions be preserved and not be reduced as a

consequence of pursuing value improvements.[ http://www.value-

eng.org/pdf_docs/monographs/vmstd.pdf Value Methodology Standard]


Value Engineering

1 In the United States, value engineering is specifically spelled out in Public Law 104-106, which states “Each executive

agency shall establish and maintain cost-effective value engineering

procedures and processes. [ http://oecm.energy.gov/Portals/2/PL104

_106.pdf Text of Law Requiring Value Engineering in Executive Agencies]


Value Engineering

1 Value engineering is sometimes taught within the project management or industrial

engineering body of knowledge as a technique in which the value of a system’s

outputs is Optimization (mathematics)|optimized by crafting a mix of performance

(function) and costs. In most cases this practice identifies and removes

unnecessary expenditures, thereby increasing the value for the manufacturer

and/or their customers.https://store.theartofservice.com/the-value-engineering-toolkit.html

Value Engineering

1 In the screw driver and can of paint example, the most basic function would be blend liquid which is less

prescriptive than stir paint which can be seen to limit the action (by

stirring) and to limit the application (only considers paint.) This is the basis of what value engineering refers to as function analysis.


Value Engineering

1 Value engineering uses rational logic (a unique how - why questioning technique) and the analysis of

function to identify relationships that increase value. It is considered a quantitative method similar to the

scientific method, which focuses on hypothesis-conclusion approaches to

test relationships, and operations research, which uses model building to identify predictive relationships.


Value Engineering

1 Value engineering is also referred to as value management or value methodology (VM), and value analysis (VA).[ http://www.value-eng.org SAVE International - Value Engineering, Value

Analysis, Value Management and Value Methodology] VE is above all a structured problem solving process based on function

analysismdash;understanding something with such clarity that it can be described in two

words, the active verb and measurable noun abridgement


Value Engineering - Origins

1 Value engineering began at General Electric Co. during World War II. Because of the war, there were shortages of skilled labour, raw

materials, and component parts. Lawrence Miles, Jerry Leftow, and Harry Erlicher at G.E. looked for

acceptable substitutes. They noticed that these substitutions often

reduced costs, improved the product, or both. What started out as an

accident of necessity was turned into a systematic process. They called

their technique value analysis.


Value Engineering - The Job Plan

1 Value engineering is often done by systematically following a multi-

stage job plan. Larry Miles' original system was a six-step procedure

which he called the value analysis job plan. Others have varied the job

plan to fit their constraints. Depending on the application, there

may be four, five, six, or more stages. One modern version has the

following eight steps:https://store.theartofservice.com/the-value-engineering-toolkit.html

Value Engineering - The Job Plan

1 * Information gathering - This asks what the requirements are for the

object. Function analysis, an important technique in value

engineering, is usually done in this initial stage. It tries to determine what functions or performance

characteristics are important. It asks questions like; What does the object do? What must it do? What should it do? What could it do? What must it

not do?


Reverse engineering - Reverse engineering of machines

1 Value engineering is a related activity also used by businesses. It

involves de-constructing and analysing products, but the objective

is to find opportunities for cost cutting.


IDS Scheer - Technology

1 The ARIS platform is an integrated portfolio of software intended to

facilitate the improvement of business methodologies on an ongoing basis. It’s sold in four platform categories; the ARIS

Strategy, Design, Implementation, and Controlling. ARIS is used to describe IDS Scheer’s suite of products, as well as the ARIS framework and ARIS Value Engineering methodology.


Construction management - Agency CM

1 The agency CM can represent the owner by helping select the design

and construction teams and managing the design (preventing

scope creep), helping the owner stay within a predetermined budget with

value engineering, cost-benefit analysis and best-value comparisons


Cambridge - Economy

1 Today Cambridge has a diverse economy with strength in sectors such as research development, software consultancy, high value engineering, creative industries, pharmaceuticals and tourism. Described as one of the most

beautiful cities in the world by Forbes in 2010, tourism generates over

£350 million for the city's economy.https://store.theartofservice.com/the-value-engineering-toolkit.html

Larnaca Airport - History

1 The design was later used as a base for the BOT projects of both Larnaca

and Pafos International Airports though significant changes were

made mainly on value engineering grounds


Glossary of project management - V

1 It is a primary tenet of value engineering that basic functions be preserved and not be reduced as a

consequence of pursuing value improvements.[ http://www.value-

eng.org/pdf_docs/monographs/vmstd.pdf Value Methodology Standard]


Design–bid–build - Bid (or tender) phase

1 *Select a general contractor, such as the lowest bidder, or an experienced cost estimator to assist the architect with design changes aimed at cost

reduction. This process is often referred to as value engineering. The revised bid documents can then be

issued again for bid (or re-tendered).


Design for X - Production/operations phase

1 ** Design to cost (Pahl and Beitz, 1996: 467-494; VDI2234; VDI 2235), see Target costing, Value engineering


Methods engineering - Presentation and methods implementation

1 The best overall method is chosen using selection criteria and concepts

involving value engineering, cost-benefit analysis, crossover charts,

and economic analysis


Architect-led design–build - Benefits to owners

1 * “Value Engineering” at conceptual stages rather than too late, after project

design is complete


Industrial systems engineering - Overview

1 The various topics concerning industrial engineers include

management science, work-study, financial engineering, engineering

management, supply chain management, process engineering,

operations research, systems engineering, ergonomics / safety

engineering, cost and value engineering, quality assurance|

quality engineering, facilities planning, and the engineering design

process


Project development - Monitoring and Controlling

1 Changes can be the result of necessary design modifications, differing site conditions, material availability, contractor-requested changes, value engineering and

impacts from third parties, to name a few


Concrete recycling - Benefits

1 * Keeping concrete debris out of landfills saves landfill

space.[http://www.concreterecycling.org/economics.html Value

Engineering Benefits], ConcreteRecycling.org. Retrieved

2010-04-05.


Cost reduction - Main cost reduction strategies

1 * Function analysis / Value analysis / Value

engineering


Overengineering

1 Overengineering can be desirable when safety or performance on a

particular criterion is critical, or when extremely broad functionality is

required, but it is generally criticized from the point of view of value

engineering as wasteful


Stata Center - Lawsuit

1 Gehry said that value engineering—the process by which elements of a project are eliminated to cut costs—

was largely responsible for the problems


Vector Engineering - Operations

1 Lastly, the APAC/Africa business line comprises several project execution

centres, including a high value engineering centre, to deliver a complete and seamless solution

offering.


Larnaca International Airport - History

1 The design was later used as a base for the BOT projects of both Larnaca

and Pafos International Airports though significant changes were

made mainly on value engineering grounds


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Value Engineering