Considerations To Application Of Ve

Published Date: 02 Nov 2017

In brief, the VE is an organized methodology applied during the design / engineering phase of a project as to identify the key functionalities and remove redundant cost. Concurrently, it maintains these essentials needed by the client and end-users and applies to the completed project for auditing and refining the desirable performances.

Objectives of Applying VE to JCEB2

In consider the value of functions from a building / product is determined by the user / customer acceptance of each of those functions, a research to the JCEB1 is launched out to pinpoint the fundamental functions as well as the products failed to match the users' needs and wants. From these researches, unnecessary costs and / or functions mismatch are erased and value added to the functionalities of JCEB2. Further, applying VE technique to JCEB2 building serves to attain the benefits of improved definition and expression of value, enhanced value and benefits for end-users, improved affordability / value for money, achieved consensus / integrate a variety of proposals from stakeholders with client's own objectives, reduced wastes and defects, earlier management involvement and benefits realised where previous methods failed.

Considerations to Application of VE

Before the launching out of VE to this project, a series of considerations should be integrated. These include the survival triplet, target cost and profit management, associated risks, life cycle costing, re-engineering and particularly, the application of VE at the planning stage is more important over other stages of projects.

To consider as a whole, survival triplet namely functionality, quality and cost are critical to the VE. The key is to select the proper rating of improvement for each of the three dimensions based upon the users / customers' needs. In applying the theory of risk management to value management, this report has taken into account the associated risks to the proposed alternatives. Again, as risks and value management are interrelated, the project team should repeat in parallel the exercises of associated risks to the preferred options from value engineering until the optimal balance is reached. Life cycle costing (LCC) techniques is, undoubtedly, crucial to VE, when carrying out cost effectiveness studies and benefit-cost analysis, LCC techniques must be included or it may lead to poor decision making. To obtain innovative ideas from VE, re-engineering concept is also one of the important substances as it provides brilliant ideas to the alternatives. Eventually, it is worthy to incorporate target cost issues / profit management techniques to value engineering processes since it is proven that when VE is integrated with a target costing system could help to increase the functionalities of the project while maintaining the target costs.

Basis of VE System

At around 1970's, the VE begin used in the United States for construction projects. It consists of a 40-hour workshop structured around a job plan for the function analysis and it is carried out at 35% design by an external team.

The job plan generally starts in various phases from preparation to presentation with use of FAST diagram to analyze the needed and wanted ingredients from client and users. These function analysis are the processes of defining & evaluation of functions, generation of alternatives and it is the basic technique to forms the basis of value engineering.

Case Studies of VE

For the ease of realize VE technique to this project, the case studies of Open University in UK and the five capital arts projects in UK is hereby quoted for highlighting the benefits and associated alternative changes. With adoption of alternative from traditional procurement route to partnering approach with regular value management reviews, the client's and end-users' expectations met in full and costs reduced by 20% to remain within budget. As revealed from the case studies, the returned saving from the VE exercise also confirmed that it is around 10 times the amount of investment to apply VE methodology.

Digest of VE technique to JCEB2

The trend towards utilizing more VE methodology in the construction industry should not be underestimated as it improves projects' effectiveness. Outlining a model of knowledge flow in VE could cultivate more efficient studies in the industry. Thus, in any VE exercise, the engagement of client and stakeholders along with highly experienced professionals to bring out promising results is necessary. Accordingly such contributions is significant to the efficiency of the study, as these valuable information capable to recall the memory of previous experiences from VE team would in turn put in more bright ideas to this project.

Value Engineering Analysis of JCEB1 Building

The application of VE to JCEB2 is primarily concentrate on cutting unnecessary costs from mismatched functions. In general, a job plan comprising several distinct stages shall be organized for the accomplishment of value engineering studies:

Preparation Phase

The value engineering studies of JCEB2 are based on the features of existing JCEB1 and the preparation phase involves selecting members to form the workshop team. The personnel for the workshop team including architect, structural engineer, building services engineer, contractor, quantity surveyor, related specialists, client / stakeholders, facilities manager and value engineer.

Information Phase

The function of JCEB1 elements are defined and grouped into basic and primary functions. On identifying the primary supporting or basic functions and taking into account the measurement of user / customers' acceptance, the acceptances of function definition are summarized for onward FAST processes at analytical phase.

Creativity phase

At this phase the function analysis will be used as a foundation for generating alternatives that meet the functions as defined in the analytical phase. Brainstorming is also needed to workout problem-solving method to them as well.

Judgment phase

All the potential alternatives that meet the functions are assessed and the feasibility of the ideas or concept is verified. The estimates for economic consequence with regard to establishment cost, lift cycle cost and any possible cost deduction are also carried out in this phase.

Development phase

Shortly after the judgment phase, the last phase is to make decisions and fill in supporting data of proposed product / process on value analysis proposal form. The ideas that worth considered are selected and scheduled to further develop.

Conclusion

After taken above into conclusion, we clearly can defined that the Value Management is an approach which aim to establish, at the start of the project, the strategic plan by which it should develop. This is partly achieved through the use of series of workshop at key stages of the project; and is complemented by Value Engineering techniques. These also make use of workshop techniques, but are concerned with obtaining value-for-money through an organized systematic approach, placing emphasis upon whole-life costing. The value engineering also consideration of the low maintenance cost and environmental, speed up the construction process, as well as advantageous 'value for money' ratings. Furthermore the value management can compromised in terms of technical suitability, cost, time, safety, quality, installation, construction and minimize the long-term maintenance.