Value Engineering

Engineering Management
Principles
 Definition
Value Engineering is a set of procedures
designed to seek out optimum value for both
initial and long-term investment.

 First utilized in the manufacturing industry

during World War II, it has been widely used in
the construction industry for many years.
 Role of value engineering
Identifying the main elements of product , service
or project.
Developing alternative solutions for delivering the
function.
Assessing the alternative solutions .
Improve decision making.
Develop realistic budget.
Identifying and remove unnecessary cost.
 Stages
1. Gathering Information : During the initial phase, the
project team seeks to gather information about the project thus
far including important details about the owners’ objectives,
key criteria, and definition of value.
 Stages
2. Speculation : The team studies the data and
brainstorms as many ways as possible to reduce initial or
lifecycle cost while still maximizing function.
 Stages
3. Evaluation: The team evaluates ideas produced
during brainstorming. Some ideas become part of the
final solution while others are deemed inefficient or
unworkable.
 Stages
4. Development: Many of the ideas that passed the
evaluation phase are further developed into workable
proposals. Each recommendation will be accompanied by a
short narrative with a list of the positive and negative aspects
of each proposal along with cost comparisons.
 Stages
5. Presentation: Lastly, the team makes a formal written presentation
of their findings accompanied with an oral presentation to clients, users,
and designers. In this final stage, the client can determine which value
management proposals will be incorporated into the project in order to
reduce costs and increase overall value
 Real-life Example
Recommended product is “A” for installation as part of your new
home construction
Product “B” is 30% cheaper and as good as “A”.
By choosing Product “B”, savings then:
 1. goes directly to your pocket
 2. Is used to offset an unexpected expense
 3. Gives you the option to add something else to the
project
 4. Allows you to upgrade another item
 Real-life Example
 Another example, What if you specifically want product “A”
but it is not available at that time and you have to wait for it’s
delivery.
 Knowing that Product “B” is available when you need it and
both products “A” and “B” are of the same price.
 Would you choose product “B” to keep construction moving or
wait for product “A” to arrive??
 Product “B” at no material cost savings will be the better value
if its your intent to keep construction moving and on schedule.
 Real-life Example
Putting into consideration:
1. the designer has experience particularly with product “A” and
stays with what they are comfortable with.
2. The designer works with specific manufacturers gaining
benefit and potential business by using them.
3. The contractor has a preferred list of suppliers they have
established relationships with. Using suppliers outside their
core group my impact the relationships with the ones they
have.
PRESNTED BY:
1) Hazem Emam
2) Hossam Sabry Hemida
3) Mariem Jalal Awad
4) Merna Alaa ElDin
5) Nourhan Sameh Sakr
6) Ahmed Sherief Atef
7) Alaa Yasser Hussien