Free Engineers Value Engineering services

Establish for Value Engineering Departments

(Ministries/Authorities/Companies):

×        FEB has a cooperation agreement with international KIRK associates for Value Engineering, in the field of VE service and VE training

×        Where the Value Engineering as a new trend of construction projects has not yet wide use in the medal east, -Expect KSA Which has been applied And established a special departments for VE in Ministry of defense over 10 years ago -, and as well as our Bureau has a large specialized team in Kuwait for implementation of Value engineering applications

×        We are honored to submit our services to (ministries/Authorities/companies) to establish their own team for future and regular application of value engineering for their projects

§  Our offer contents:

1-        Visibility studies for the benefits of establish the VE department

2-          Creation of the department scope description and the administration communication channels with other departments

3-        Creation of the strategic plan and future expended for the department 

4-        The proper organization, the number and the required requirements for the department team

5-        Training courses and qualifying  the candidates department's staff

6-         Implementation of VE methodology at the initial phase of the establish the departments  with the participation of department's staff, as a practical training applications

ý Value engineering for organization's Departments (raise-up performance benefits)

×        One of the great application of VE, that it can help the organization's board to audit and enhance their Department's performance,

×        Contribute to improving an organization’s competitive position.

§  Our offer contents

1-        Check and enhance organization strategic plan

2-        Apply VE methodology for organization's charts

3-        Apply VE methodology for organization's department

4-        Apply VE methodology for organization's formats and communications channels

5-        Generate ideas for enhancing work performance

6-        Implementation of approved VE ideas

7-        Audit work performance and issued follow up reports      

 

ý Value Engineering consultancy (Investment Ideas/Concept & Design/Construction:

×        FEB has a large experience in project control systems of construction projects, Staring with the project idea, passing by the design and construction of the project, ending with the commissioning and maintenance of the projects

×        this experience with both construction projects and local market of construction in GCC, enabled us to gain a great database and information for the best practical solutions for construction industry and the local business need for the best investment ideas

§  Our offer contents:

1-        Review and check the VE recommendations for the ideas or concepts of the projects

2-        Enhancing the requirements of the project in order to get the invisible benefits of market opportunities

3-        Expert and trustful advices for project ideas and construction methodology

4-        Practical solutions and variations for under construction projects in order to get the maximum benefits of its end use product

ý Value Engineering Workshop's & report's:

×        FEB has  in-house qualifying staff's capable and expert to generate a multiple solutions to rise the functions of  the existing requirements of the projects

×        Our team is certified as an associated Value Specialist AVS, from International SAVE.

×        We have the advantage of the experience of local environment's in GCC, and the proper prices rather than the foreign specialists

§  Our offer contents:

1-        assigning the expert team for VE according to project criteria 

2-        Studying the projects Requirements and information

3-        Implementation of VE work Shop with the project Major Stakeholder

4-        Generate the ideas for enhancing the project functions

5-        Development the main ideas

6-        Present the recommended VE ideas

7-        The Final Report for VE study

8-        Follow up the implementation of Approved VE recommendations

ý Value Engineering Training course & certifications

×        The Certification Program is composed of two major elements: individual professional certification and educational program approval.

×        The highest level is the Certified Value Specialist (CVS), which is recognition of the individual who has met all certification requirements, both technical and experience, and whose principal career is value engineering.

×        The Associate Value Specialist (AVS) program recognizes those individuals who decided to become professional value engineers but who have not yet acquired all the experience or technical skills expected of a CVS.

×        The Value Methodology Practitioner (VMP) program was established to recognize those individuals who acquired the basic skills of value engineering/analysis but their principal career is not value engineering.

×        The CVS and VMP must recertify every four years. Although considered an entry level certification, the AVS may be maintained indefinitely as long as all certification maintenance fees are paid. Membership in SAVE is not a requirement for individual certification or for educational program approval.

 

ý Background:

×        Value engineering which for the remainder of this introduction will be referred to as VE is a relative newcomer to the construction industry. However it has been in use in other industries since the Second World War. In keeping with many management techniques VE started life in the USA. "L D Miles" one of the gurus in the subject introduced VE into GEC in the 1940s. In the mid-1950s the USA Department of the Navy began routinely to incorporate incentive clauses in procurement contracts. VE began as a method of overcoming shortages during and just after the Second World War and involved widespread substitution of goods

ý What is Value Engineering?

§  A systematic approach

§  A concentration on value and not cost

§  The removal of unnecessary cost without reducing value

VE is none of the following

§  An attack on the quality or appearance of the project

§  A cost cutting exercise

§  A criticism of the design professionals

×        The main objective is to improve the value of the end product or service whereby the clients receives more for their money. This could be defined as an organized approach to the identification and elimination of unnecessary cost without loss of function. Unnecessary cost means cost which provides neither use nor life nor quality nor appearance nor customer features.

×        The value Engineering (VE), a systematic and structured approach, improves projects, products, and processes. VE is used to analyze manufacturing products and processes, design and construction projects, and business and administrative processes. VE helps achieve balance between required functions, performance, quality, safety, and scope with the cost and other resources necessary to accomplish those requirements. The proper balance results in the maximum value for the project.

Value = Function/Cost

ü Value is the reliable performance of functions to meet customer needs at the lowest overall cost.

ü Function is the natural or characteristic action performed by a product or service.

ü Cost is the expenditure necessary to produce a project, service, process, or structure.

1.         Information Phase: Gather information to better understand the project.

2.         Function Analysis Phase: Analyze the project to understand and clarify the required functions.

3.         Creative Phase: Generate ideas on all the possible ways to accomplish the required functions.

4.         Evaluation Phase: Synthesize ideas and concepts to select feasible ideas for development into specific value improvement.

5.         Development Phase: Select and prepare the “best” alternative(s) for improving value.

6.         Presentation Phase: Present the value recommendation to the project stakeholders.

×        The VE process produces the best results when applied by a multi-disciplined team with experience and expertise relative to the type of project to be studied. A Certified Value Specialist usually leads the VE team to ensure proper application of the methodology.

×        There are all too many examples of techniques masquerading as VE involving a hatchet job with the sole objective of reducing cost. Function must remain intact for true Value Engineering.

ý Example of how VE Saving for construction budgeted (http://www.fhwa.dot.gov/ve)

United States Department of Transportation - Federal Highway Administration

Summary Of Past VE Savings Federal-Aid and Federal Lands Highway Programs
	FY 2011	FY 2010	FY 2009	FY 2008	FY 2007
Number of VE Studies	378	402	427	388	316
Cost of VE Studies Plus Administrative Costs	$12.5 M	$13.6 M	$17.08 M	$12.47 M	$12.54 M
Estimated Construction Cost of Projects Studied	$32.3 B	$34.2 B	$29.16 B	$29.93 B	$24.81 B
Total No. of Proposed Recommendations	2950	3049	3297	3022	2861
Total Value of Proposed Recommendations	$2.94 B	$4.35 B	$4.16 B	$6.58 B	$4.60 B
No. of Approved Recommendations	1224	1315	1460	1323	1233
Value of Approved Recommendations	$1.01 B	$1.98 B	$1.70 B	$2.53 B	$1.97 B
Return on Investment	80:1	146:1	99:1	203:1	157:1

ý Timing of VE

×        It is generally accepted that the earlier the VE process is undertaken the more effective it is likely to be. The later in the construction process changes are made the more expensive they will become which in turn makes them less effective. There are however differing views on this matter. The ENR magazine published in the USA in its March 1990 edition states:

×        “The impact of a VE study on the design is often most evident when undertaken after the start of construction. For example a decision to change the originally specified square columns to less expensive round columns at Chicago’s Boulevard Tower South building saved $250,000”

×        Value Engineering the Search for Unnecessary Cost recommends that value engineering studies are not undertaken after 50-60 per cent of the design has been completed.

×        Others will often argue that the VE process is ongoing and it should not stop until the work has been completed.

ý Unnecessary Cost

×        Value Engineering provides five examples of unnecessary cost

1.        Cost of an unnecessary component

An example of this type of unnecessary thickness or types of foundations could be a higher than the necessary required but engineers are often accused of being over cautious when designing concrete elements.

2.        Cost of unnecessary material

This occurs where an expensive material is specified when a cheaper one would do the job just as well

3.        Excessive cost of build ability

Often the designer does not consider the manner in which the work is to be constructed. This can result in expensive plant being employed for longer periods than is really necessary or labor cost being well in excess of what would be incurred if more thought were given to the build ability of the project.

4.        Unnecessary opportunity costs

An example of this type of cost is a retail shopping mall where due to inefficient design the net let table area is less than could be achieved with a more efficient approach. This could affect the client’s rental income and the value of the building.

5.        Unnecessary life cycle cost

When comparing design alternative it is becoming common to include an exercise relating to the life-cycle performance of the alternative. Due to the uncertainties of future levels of interest and inflation the comparison can be distracting. However if appropriate the importance of life cycle costing can be reflected in the scoring system

ý Enhancing Value in Your Company

VE is embraced by a global spectrum of public authorities, Social Societies, businesses, industries, building designers, contractors, automobile manufacturers, chemical processors, pharmaceutical companies, etc. Benefits realized by those companies using VE far exceed the investment. Savings in time, cost, and quality contribute to improving an organization’s competitive position.

ý Projects Which Are Most Likely to Benefit From VE

All kind of projects can be learned from VE applications, especially those which are:

-            Costly

-            Complex

-            Repetitive

-            Unique with few precedents

-            Highly visible and subject to external audit.

ý Client Types

When undertaking VE it is essential to have a thorough understanding of the client’s objectives. Clients fall into different categories which include the following:

-            The ministries and authorities who participating at state's development plans

-            The experienced corporate client who undertakes construction projects frequently and has a good understanding of how the construction industry works.

-            The inexperienced corporate client who rarely procures construction projects

-            Private clients who are often inexperienced and naïve.

 

ý Client Priorities

Clients have varying reasons for undertaking construction work which includes:

-            For investment

-            To carry out their business

-            To meet social needs such as roads and schools

-            To make a statement and demonstrate confidence such as a company headquarters

-            For private occupation

Clients have differing priorities in relation to the following:

-            Function and performance of the facility

-            Time and cost

-            Quality and sustainability

-            Flexibility

-            Risk

It is essential that the VE team is fully aware of all these factors which should be taken into account when undertaking the VE process.

ý The Team

-            It is the norm in the UK for VE to be undertaken by a team with skills which cover design, constructability, cost and time. It would be normal for the team to include representatives from the Architect or Engineer, contractor’s construction and buying departments, quantity surveying and input from specialist sectors of the construction process which may be affected. It is also often essential to have input from the user of the facility

The tasks undertaken by the team comprise:

-            Gathering information about the present design determining the needs, requirements  and constraints of the owners/users/stakeholders

-            Establishing design criteria

Developing a cost model, breaking down the project into functions and performing a functional analysis

ý VE Team

The Team of VE should has the ability and experience in using the value engineering methodology and techniques, by training courses and regular workshops, and certified as a VE specialist's

The ideal VE team, Numbers may vary from five to twenty five depending on the projects complexity. While the VE team for a high rise building would include an architect, structural engineer, a wind engineer, a mechanical engineer, a cost expert and programming, a VE team for a hospital or power plant would require a larger team with a greater number of specialists. There can be a case made out for the employment of a team independent of the original design team. This however could lead to them and us situation which may operate contrary to team working. In the USA the Society of Value Engineers promotes the idea of using an independent value engineer on most projects. This has been met with resistance by some employers as they consider that the existing team should be capable of operating VE. Care should be taken when devoting time to VE and costs carefully monitored to ensure that the cost of the team is not out of proportion to the benefits derived from the VE.

ý Team Objectives

The team work together to develop the VE process to achieve the following:

-            Provide in detail the alternatives with the greatest potential value

-            Establish costs and backup documentation needed to individually convey the

         Alternative solutions

The Team will normally present a written report to the management together with a verbal presentation. After the accomplish of VE workshop

ý VE Workshops

the VE process to involve workshops. For large and or complex projects it is usual for there to be three major workshops involving the whole team. Smaller and/or less complex projects may require less than three. It is common for there to be an external facilitator. The profession of value engineer however has not developed in the UK to the same extent as in the USA. The workshops comprise the following:

VE 1 Information gathering

VE 2 Brainstorming/evaluation

VE 3 Development of chosen ideas

VE 4 Formulation and presentation of recommendations.

These workshops produce the best results if held outside the normal working environment and should be spread over 4 or 5 days.

ý Five Phases

VE be undertaken in five phases

1.         Information Phase:

The initial task for the VE team during this phase is to identify the elements of the project which can benefit most from the process. Prompt questions can be useful in providing a structure to this process

-            What is it?

-            What does it do?

-            What else does it do?

-            What does it cost?

-            What is its value?

2.         Speculation Phase

In this phase the object is to generate alternative design ideas. It is essential that any ideas to be considered are creative.

3.         Evaluation Phase

Once ideas have been identified and selected they need to be fully evaluated and either accepted or rejected. The advantages and disadvantages of each idea will be properly considered. A criteria against which each idea is to be judged is established at the outset of this phase. Each design alternative can be assessed against each of the performance criteria in order to produce an overall point score. At the end of this phase there should be a list of feasible options which should be listed in order of merit with the option gaining the highest score at the top.

4.         Development Phase

The option selected in the Evaluation Phase is then more fully developed including costing. Full life-cycle costing together with energy use should be employed as far as possible. A decision is then made as to the options which are to be recommended.

5.         Presentation Stage

The purpose of this stage is to convince the original design team and the client of the merit of the chosen options.

 

 

ý Essentials of VE

The essentials of VE may be summarized as follows:

-            The overall objectives of the project and performance standards must be clearly defined and prioritized and understood by all stakeholders as early as possible in the project development process.

-            It is essential that evaluation criteria for considering each idea is established at the outset. Evaluation criteria will differ for each project depending upon the client’s corporate/project objectives. A school for example would have a very different VE evaluation criteria than that of a chemical plant. It is usually good practice to link the evaluation criteria to the  Strategic Brief which contains the  objectives for the project.

-            Sufficient energy, time and creativity is spent in developing a range of solutions.

-            The range of potential solutions is properly and objectively evaluated to influence final choice of the preferred solution

-            Chosen solutions are validated at appropriate intervals both during and after project development

-            All of the implications of preferred solutions (costs , risks and other commitments) have been properly considered and are understood, accepted and agreed by all stakeholders

-            Preferred solutions are successfully implemented at  minimum cost without detriment to required quality and performance standards

-            It is normal for a design freeze to be placed on new ideas at some stage in the process, as late design changes tend to cause delays and additional cost.

 

ý Examples of VE

Successful Value Engineering improves the value of the building by reducing the costs of construction and long term maintenance without sacrificing the original intent of the design.

1.        Lime house Link Tunnel London

This is a major relief road which provides access to Canary Wharf. The contract comprised a 1.1 mile stretch of road and tunnel employing cut and cover. VE was employed to good effect.  One example relates to the omission of 150,000 square meters of roof waterproofing and substituting concrete crack control which prevents the moisture from reaching the rebar. The diameter of rebar was also reduced to eliminate the need for a crane. Both of these changes produced a significant saving in both cost and time.

2.        City Place Chicago

This is an example of VE which was successfully carried out when the work on site was well advanced. The work comprised a 40 story reinforced concrete tower. Work was well underway when a redesign took place. However a $475k saving was effected by replacing a steel arch roof with a space-frame assembly. The mechanical penthouse was also replaced by a prefabricated metal building.

3.        Commercial Building in the City of London

This example is included in Value Engineering the Search for Unnecessary Cost where the VE took place after the initial cost estimate produced from the initial design made the project barely financially feasible. The facility was a commercial office development on a congested site which was intended to be let on completion. A major construction company was requested to provide a team to VE the design down to an acceptable level. The team comprised a chair, two structural engineers, project manager, cost engineer and quantity surveyor. Several design changes were suggested which increased the let table area from 75% to 80% and concentrated the location of the main plant items in the basement. The team met for 70 hours costing £30,000 and resulted in the design producing a more financially viable scheme.

4.        Residential Premises Peoria USA

This case serves to illustrate that not all VE exercises prove to be successful. It became necessary to reduce cost and the insulation was identified as a possible source of saving. The domestic and hydraulic systems were insulated with fiberglass and it was decided that a rubberized closed cellular type of insulation would achieve the required reduction in cost. Unfortunately the heat trace hot water maintenance system in the domestic system was incompatible with the rubberized insulation and extensive cost was incurred in correcting the fault. It was obvious in hind sight that when undertaking the VE the whole process should have been considered and not just the component. This perhaps is a good example of a cost cutting process masquerading as VE.

 

 

 

 

 

KEY TEAM MEMBERS

Eng. Sameh Ibrahim, B. Civil, Engineering Arbitrator, AVS

-            Has a diversified background in value engineering, sustainability, facility economics, administration of VE programs and evaluation of business and technological projects. He has over 20 years of experience devoted exclusively to Construction Projects including many projects in Egypt and Kuwait.

DR. Stephen J. Kirk, PhD, FAIA, FSAVE, CVS, LEED AP

-            has a diversified background in value engineering, sustainability, facility economics, administration of VE programs and evaluation of business and technological projects. He has over 25 years of experience devoted exclusively to VE including many projects in the Middle East. The American Institute of Architects (AIA) recognized Steve for his contributions to architecture and VM by electing him to the prestigious College of Fellows. He is also a Fellow of SAVE International and is a Director and Vice President of Education for the Miles Value Foundation. Dr. Kirk, a life certified value specialist, a LEED Accredited Professional and a registered architect, is also Past President of SAVE International.  He received his doctorate in architecture from the University of Michigan specializing in VM gaming and computer simulation.

-            He received the prestigious Gold Award highest engineering award in Michigan in 2010.

-            Author of 9 books on VM, including the text for this course, Dr. Kirk has also taught courses at Harvard University, Catholic University, University of Michigan, Lawrence Technological University, King Saud University and Yamouk University as a Senior Fulbright Scholar in Jordan.

-            He has personally led over 400 VM studies of corporate office and research facilities, retail stores, hospitals, manufacturing plants, military installations and projects involving environmental, transportation and civil engineering issues.

-            Examples of Dr. Kirk’s experience in the Middle East include:

-            VM studies: Kuwait Oil Company Headquarters

-            VM program: SCECO Electric Utility Company

-            VM study: New Kuwait University, (several projects)

-            VM program: 6.5 Ring Road, Kuwait

-            VM study: Wastewater Treatment Facility, Kuwait

-            VM study: Shopping Center, Qatar

-            VM study: Hotel Resort, Kuwait

-            VM study: The World, Dubai, UAE

-            VM studies: Ministry of Defense, Saudi Arabia

-            VM study: Abu Dhabi Airport Infrastructure