T022 VM & VE

T022 VM & VE

Definition of VE
1. Value engineering
2. an organised approach aimed at providing the necessary functions at the lowest cost without a detri effect on qual, reliability, perform & delivery
3. VE: used 2 correct decision when things go wrong
4. Value = function/cost
Definition of VM
1. VM - concerned with making explicit what value means to a client
2. early stages of design e.g. 2 ensure the need 2 build is verified
3. VM ensures that the right decisions r made the 1st time
6 step VE plan
1. Information Phase
  1. Functional Analysis
    1. Creativity Phase
      1. 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
      2. BRAIN STORMING
        Brainstorm ideas on how to improve the high cost, broken, or inadequately performed key functions.
    2. Diagram verifying correctness function definitions and showing interrelationships. identifies + separates in2 higher order
      1. What must the project do? What are he functions and how are they related?
  2. Identify problem(s) 2 b solved, & gather info on b.ground, functions & req. of project. complete a FAST diagram
Value
1. measure of worth; a relative measure of usefulness of something in relation to the cost paid for it.
What happens in the VE process?
1. design team brought 2gether
  1. pool expertise
  2. higher chance of identifying + solving problems
  3. not a cost cutting exercise - as it would lead 2 a reduced qual + value
when doe VE/VM process occur?
1. 1. Concept - VM w.shop 1
  1. 2. Feasibility - VM w.shop 2
    1. 3. Scheme design - VE
      1. Detailed design - VE
        in practice VE studies occur when things go wrong & limits ability 2 make better & more effective design solutions
    2. outline brief complete + costed - review schemes & score against weighted objectives
      1. assess capital cost 2 determine options 4 best value
  2. define if there is a need 2 build, set objectives in a value tree
VE workshop
1. can b 40hr w.shop or mini w.shops/ 2 day works shops
  1. 40 hr entire team/ neutral venue/ intensively wk on design proposals
  2. Mini: facilitator joins DT @ briefing stage & remains throughout.
  3. 2 day: most common in UK
limitations of VE
1. assumes all parties have a common understanding being provided
2. assumes all feasible design alt provide the same level of funct perform
Why is VM needed?
1. provides a means 2 define the project clearly in relation 2 client objectives & business needs
2. support decision making
3. encourages innovative solutions
4. provides a means 4 measuring value + demo that optimum value 4 money is achieved
Value Tree
1. decision support tool: uses a tree-like graph/model of decisions & possible consequences, inc chance event outcomes, resource costs.
2. used to help in brainstorming stage
3. weighting can be applied to assist with scoring options
Advantages of VM
1. need 4 new investment is verified & prj goals clearly identified
2. obj & decisions: openly discussed
3. Evaluation & re-evaluation framework - structured/ rigorous/ rational
4. decisions supported by data
5. accountability increased
6. alt solutions - sought & considered
7. g8ter confidence in business decisions
8. potentially inc value 4 money

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