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Value Engineering

Project management Monitoring and controlling

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

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

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

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

ISO 15686

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

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

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

This is done through a technical process called value engineering

Planned obsolescence – Obsolescence and durability

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.

Planned obsolescence – Obsolescence and durability

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.

Quality function deployment

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

* 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

* 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

It is a primary tenet of value engineering that basic functions be preserved and not be reduced as a consequence of pursuing value improvements.[ www.value-eng.org/pdf_docs/monographs/vmstd.pdf Value Methodology Standard]

Value Engineering

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. [ oecm.energy.gov/Portals/2/PL104_106.pdf Text of Law Requiring Value Engineering in Executive Agencies]

Value Engineering

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.

Value Engineering

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

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

Value engineering is also referred to as value management or value methodology (VM), and value analysis (VA).[ 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

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

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:

Value Engineering – The Job Plan

* 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

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

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

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

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.

Larnaca Airport – History

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

It is a primary tenet of value engineering that basic functions be preserved and not be reduced as a consequence of pursuing value improvements.[ www.value-eng.org/pdf_docs/monographs/vmstd.pdf Value Methodology Standard]

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

*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

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

Methods engineering – Presentation and methods implementation

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

* “Value Engineering” at conceptual stages rather than too late, after project design is complete

Industrial systems engineering – Overview

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

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

* 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

* Function analysis / Value analysis / Value engineering

Overengineering

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

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

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

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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