T022 VM & VE

T022 VM & VE

1. Definition of VE

   • Value engineering
   • an organised approach aimed at providing the necessary functions at the lowest cost without a detri effect on qual, reliability, perform & delivery
   • VE: used 2 correct decision when things go wrong
   • Value = function/cost

2. Definition of VM

   • VM - concerned with making explicit what value means to a client
   • early stages of design e.g. 2 ensure the need 2 build is verified
   • VM ensures that the right decisions r made the 1st time

3. 6 step VE plan

   • Information Phase
     • Functional Analysis
       • Creativity Phase
         • Evaluation Phase
           • Development phase
             • Reporting Phase
               • Best solution identified and rec made - written/ oral report
             • detailed dev of remaining ideas - LCC techniques
           • Evaluate solutions (cost + feasibility) - list of options
             • Screen ideas for acceptance, score remaining ideas on a scale and group ideas into categories. Devel p design scenarios, and selection criteria. Rat
         • BRAIN STORMING
           • Brainstorm ideas on how to improve the high cost, broken, or inadequately performed key functions.
       • Diagram verifying correctness function definitions and showing interrelationships. identifies + separates in2 higher order
         • What must the project do? What are he functions and how are they related?
     • Identify problem(s) 2 b solved, & gather info on b.ground, functions & req. of project. complete a FAST diagram

4. Value

   • measure of worth; a relative measure of usefulness of something in relation to the cost paid for it.

5. What happens in the VE process?

   • design team brought 2gether
     • pool expertise
     • higher chance of identifying + solving problems
     • not a cost cutting exercise - as it would lead 2 a reduced qual + value

6. when doe VE/VM process occur?

   • 1. Concept - VM w.shop 1
     • 2. Feasibility - VM w.shop 2
       • 3. Scheme design - VE
         • Detailed design - VE
           • in practice VE studies occur when things go wrong & limits ability 2 make better & more effective design solutions
       • outline brief complete + costed - review schemes & score against weighted objectives
         • assess capital cost 2 determine options 4 best value
     • define if there is a need 2 build, set objectives in a value tree

7. VE workshop

   • can b 40hr w.shop or mini w.shops/ 2 day works shops
     • 40 hr entire team/ neutral venue/ intensively wk on design proposals
     • Mini: facilitator joins DT @ briefing stage & remains throughout.
     • 2 day: most common in UK

8. limitations of VE

   • assumes all parties have a common understanding being provided
   • assumes all feasible design alt provide the same level of funct perform

9. Why is VM needed?

   • provides a means 2 define the project clearly in relation 2 client objectives & business needs
   • support decision making
   • encourages innovative solutions
   • provides a means 4 measuring value + demo that optimum value 4 money is achieved

10. Value Tree

    • decision support tool: uses a tree-like graph/model of decisions & possible consequences, inc chance event outcomes, resource costs.
    • used to help in brainstorming stage
    • weighting can be applied to assist with scoring options

11. Advantages of VM

    • need 4 new investment is verified & prj goals clearly identified
    • obj & decisions: openly discussed
    • Evaluation & re-evaluation framework - structured/ rigorous/ rational
    • decisions supported by data
    • accountability increased
    • alt solutions - sought & considered
    • g8ter confidence in business decisions
    • potentially inc value 4 money