Value Engineering Management Executive Summery Construction Essay

prize Engineering circumspection Executive Summery Construction EssayValue centering is structured and systematic process of aggroup establish decision do and professional team may involve to the shop class by decision making as per the current government agency, condition or issue.VE is a speculated cost control techniques performed by an independent group of experienced professionals. The technique involves an intensive, systematic and creative study to reduce cost while enhancing reliability and performance. close of investors enthusiastic to have best value for their investment by implementing Value management/ engine room process, through life cycle of the projects.As a issue of unstable world economy and political conditions, Al Maya Resident Complex project (Including with 25 no stories and car park in three novel basement) client was unable to find essential funds c every last(predicate) for for the project. so the cost of construction should reduce as much as p racticable.Hence it is necessary to carry come forth a value engineering workshop to find out possible ways to reduce the cost of construction by maintaining the infall(a)ible level of quality, performance and functional requirement.ACKNOWLEDGMENTINTRODUCTIONValue Management is well established methodology which can single-valued function for maximizing the value for money. Value management strategies can apply at any coiffure of the life cycle (project from inception to the demolition) of a project. By applying value management strategies since the conception leg of a project, the client will be able to achieve a better value for his investment (money) by providing required level of quality, performance and exclusively necessary functions. The client can carry out Value management / engineering work shops while construction is ongoing also by considering mart conditions, economy conditions, political conditions, environmental conditions etc to seek better value for money by f inding substitute methods, do miscellanys as necessary etc. main BODY DISCUSSIONWhat Is the Value Engineering/ Value Management?Concept of Value EngineeringWhen study closely concept of VE, Lawrence Miles who is the founder of VE in forties a purchase engineer with theGeneral Electric Company(G. E. C). Miles observed that many of the alternates were providing equal or better performance at a frown cost and from this changed the first definition of value engineering, as per the article of WBDG National Institute of Building Sciences by Scott Cullen (12-15-2010).Value Management ProcessValue Management is structured and systematic process of team based decision making and professional team may involve to the workshop by decision making as per the current situation, condition or issue.There ar few stages in decision making such asInformation cast.Objective anatomy. working(a) analysis chassis.Creativity phase.Evaluation phase.Development phase.Reporting and recommendation phas e.What Is the different of VE and VM?VE Consider from a tactical point of view, VM consider from the strategic point of view. In simple terms VM address WHY? And VE address HOW?What Is the Value Engineering?The Value Engineering for Wastewater Treatment Works of USA- EPA, state in it, VE is a speculated cost control techniques performed by an independent group of experienced professionals. The technique involves an intensive, systematic and creative study to reduce cost while enhancing reliability and performance.why Is it used?To establish the best design alternatives for sees.To reduce unnecessary cost on the Projects.To improve quality, increase reliability and availability, and customer satisfaction.To improve schedule.To reduce risk.To recognize problems and develop recommended solutions.Generally value engineering process can be apply at any point/ phase in a project,However, normally if use in early stage of the project life cycle, will have sufficient benefits on investme nt.There ar three main stages of VEs industry, those are describing as below.Planning sortPlanning stage is pre-study preparation phase of VE there are surplus benefits to be resulted from a Value Engineering Workshop. Therefore independent team can beReview the program.Perform a functional analysis of the facility.Obtain the owner/users definition of value.Define the key criteria and objectives for the project. bank/validate the proposed program.Review master plan utility options, Offer alternative solutions.Verify if the budget is adequate.Graph showing the potential relieves from VE applicationsGraph 1.1 VE applicationThis graph shows very clear VE benefits of VE application furthermore. (Extracted from Value Engineering for Wastewater Treatment Works of USA- EPA)VE Workshop PhaseThis is the most important phase of the VE process, generally address as VE workshop, required at least one workshop, typically 40- hour workshop session. As well as, client and designer whom they are set the location as convenient of them.The first step is prepare of agenda including display,Briefing of value engineering, foundation of Project design by project designer, scheme of the project Constrains,Question by VE team members for the designer,Methodology and ApproachThere are particular identify five-step during the actual Workshop of job plan of the VE study, as prescribed by article of Value Engineering by Scott Cullen in WDBG program.Information PhaseThe Value management facilitator gives brief explanation to all participants about the value management process, project and study objectives roles and rules of the exercise. Information about the project objectives, critical issues and constraints identified at the Strategic Diagnosis meeting, etc.Speculation (Creative) PhaseCollecting of creativity ideas from each team member and analyze them to identify which idea is chargey, which one should improve to use, which one not worthy or additional study required to evalu ate, etc. shrewdness (Evaluation) PhaseBy evaluating all creativity ideas with cost benefits etc the decision making team will take the final examination decision about each idea / intent to incorporate to the final report.Development Phase (Value Management Proposals)In this phase VE team prepare alternative designs with capital and life cycle cost comparison of original design and proposed alternative. And all recommendation supplements with written descriptions, sketches, basic technical information and cost summaries.Presentation Phase (Report/Oral Presentation)In this phase VE team present the summery of it s finding to the owner and designers, explaining the basic ideas of alternatives.Post Work shop phaseThe Value management Facilitator prepares and presents a report for key stake holders of the project which includes Summary of each phase, decisions do and actions to be taken, alternative methods and materials etc. which provide a complete audit trail. Then client and des igners will consider the VE recommendations.Value Engineering Workshop Report of Al Maya Residential Complex ProjectIntroductionThis Dubai base multi story residential Complex project Client is a one of the reputed experienced person in the Construction industry. According to the requirement of the client, he anticipate to reduce the unnecessary cost in the project if available, without touching or disturbing to the original quality, value of the project that planned at the began.This workshop was held in client office and all expenditure bared by client as own budget. Hence Value management and value engineering workshops are conducted harmonize to the following principlesThe workshop is held to reduce the cost of the project.All participants are stakeholder of the project.All participants take part and are able to put earlier ideas and suggestions.The study was facilitated by Mr. Susan Ali and Mr. Smith De Silva of Sullivan of PMP Pty Ltd in accordance with the requirements of AS /NZS 41831994 (Value Management).Project detailsType of the projectAl Maya Resident Complex including with 25 no stories and car park in three story basement.ParticipantsClient Mr./Ms Al Suwahdi MohomadCivil Engineer (Contractor) ASCON Construction LLCProject Manager- ALEC Project Management LLCArchitect- Design Group LLCMEP Designer- ASCON Construction LLCQuantity Surveyor- TEAMS Consultant LLC synthetic rubber Manger- ASCON Construction LLCValue Engineer Team- PMP Value Management LLCLocation of the ProjectZone 452/5, frustrate no(prenominal)115, Emirate garden, Al Kahweenj, DubaiDuration of Construction24 Months (18 Months remaining for Construction)Agreed Cost of the ContractAED 30.5 million agreed sumCurrent Issue diminution of supernumerary construction cost of the Proposed Resident Complex project through without touching or disturbing the required level of quality, functions and value due to lack of allocated finance. order of business of Value Engineering WorkshopProjec t Al Maya Resident Complex including with 25 nos stories and car park in three story basement.Subject Reduction of Unnecessary construction cost of the Project due to lack of allocated finance.Location On 12th Nov. 2012 at the Park Building, Dubai. One day basisNo.EventsPersonFromTo1.IntroductionClients representative9.00 am9.15am2.Briefing of VEVE Team leader9.15 am9.45am3.Presentation of the Project detailsDesigners9.45am10.15am4.Tea Break10.15am10.30am5.Outline the Project constrainProject Manager10.30am11.00am6.Questions by Value MangerVE member11.00am12.00pm7.Lunch12.00pm12.30pm8.Information PhaseVE member12.30pm1.30pm9.Speculation PhaseVE member1.30pm2.00pm10.Judgment PhaseAll Individual members (VE members)2.00pm3.00pm11.Development PhaseVE member3.00pm3.30pm12.Tea Time3.30pm3.45pm13.Presentation Phase3.45pm4.30pmThe VE workshopThis Value Engineering Workshop occurred according to the five-stage of job plan that recommended by New Zealand standard (AS/NZS 4183 1994). The aim of this value Engineering workshop consist of identifying unnecessary cost, developing alternatives, enabling decisions to be made without touching or disturbing the required level of quality, functions and value.Information phaseParticularly in this phase of the workshop, client shared relevant information with workshop members, mainly objective of the workshop to ready all participant for ask questions, begin to develop ideas and suggestions and challenge ideas already on the table. The ideas are being to elevate innovative alternatives and ideas that may lead to better value outcomes for the project.All participant were presented they ideas asking question at this stage therefore this very important stage of the VE workshop for clearly make understand of the objective further.Client AgentHe explained the project tolerateground and objectives for all participants clearly, and his expectation getting of workshop eventually as unnecessary cost reduction of the project without tou ching or disturbing the project original scope.Civil EngineerHe explained the existing situation of construction and agreed with some proposals given by VE team. Such as local made sanitary fittings and accessories, rampart base of operations tiles, etc. due all make under UK standardsProject ManagerHe explained possibility of mange for all ideasArchitectHe very much concerned about change of tile and local made sanitary items, eventually, he satisfy and explain those are under similar quality of original design.MEP DesignerHe explained the possibility of change of lighting system inside the all room without harm to the original quality and value.Quantity SurveyorHe explained cost launchive for all participant ideas,Safety MangerHe explained concerning the safety side for all new ideas, potential incident in future as well as some changes by recommended.Value Engineer TeamThey explained the their proposalsSpeculative phaseThis step of the VE workshop concerned developing creativ e ideas, the VE team trace all possible methods of providing the required functions within the project at a lower cost to the owner, many of the ideas were generated during the function analysis by detraining the worth of Collecting of creativity ideas from each team member and analyze them to identify which idea is worthy, which one should improve to use, which one not worthy or additional study required to evaluate, etc.Hence, all ideas given by the Value engineering team are as follows, and also the Quantity Surveyor provided possible cost saving by each idea.NSpecified work items in ContractProposed IdeasCommentsOriginalCostProposed CostPotentialSavings1.Important sanitary fittings and bath room accessories UK made as specified.locally made Similar quality kind of of import from UKCost saving, not effect to the quality.AED 4.2 millionAED 3.1 millionAED 0.9 million2.9 cement blocks for inner walls.4 cement block for internal walls.Cost saving and not change the quality.AED 8.5 m illionAED 6.1 millionAED 1.5 million3.100 Lux Normal candent Lights bulbs for all rooms and out sides100 Lux energizer bulbs preferably of specified Incandescent Lights bulbs.Cost saving but the change will effect to the appearanceAED 11.0millionAED 8.0millionAED 1.0million4.Cast in-suit concrete floor and guard duty wall of Car park.Precast concrete for car park floor slab and guard walls.Cost saving Possible time.AED 5.5 millionAED 5.5 million5.Electrical panel boards and accessories units import from UK.Electrical panel boards and accessory units should import from china instead of UK made.Cost saving and might not high standard with compare of UK made.AED 10.0 millionAED 10.0 million6.9 inch thick internal block wall as specified.For all 9 inch brick internal wall should be changed to 4 inch block walls.Cost saving,AED15.0 millionAED15 millionAll participants were noted down the ideas but not judge them at this stage. Later in the workshop all participants would be given the opportunity to judge all proposals for worth and assess whether can be implemented to archive the aim of the VE workshop, hence at the Judgment Phase each of the ideas was evaluated for worth.JUDGEMENT chassisIn this phase the whole group judged the speculative ideas for merit the purpose being to identify ideas that are likely to reduce cost of the project.EvaluationThe following table lists the ideas submitted by participants and they were evaluated in accordance with the following rating systemEach Idea has rated by each participant as how it is effecting to the time, cost and quality of the project. Then it is possible to put rates at the opportunity column according to the given points by professionals. Then the Value Engineering Coordinator can select which proposal should develop, which proposal should reject and also which proposal can directly push for the action, etc.Company PMP Value Management LLC.Project Al Maya Residential Complex Project,( 25 storey and Car park in b asement)Held on 05-10-2012 Table of Impact of VE workshop SummaryNoDescriptionImpactOpp.ActionRemarksTCQ1.Locally made Similar quality instead of import from France made sanitary fittings accessories.5545ACost saving2.4 cement block for internal walls.5455ACost saving3.100 Lux energizer bulbs instead of specified Incandescent Lights bulbs.5334REffect to Appearance4.Precast concrete for car park floor slab and guard walls.5555DTo be identify possible areas5.Electrical panel boards and accessory units should import from china instead of UK made.3544ACost saving but should order again6.For all 9 inch brick internal wall should be changed to 4 inch block walls.3555ACost saving but design to be done backCode of RatingOpp = Opportunity,Impact= T Time, C Cost, Q QualityRating of Impact = 1 Possible/Low, 5-Very Possible/HighAction=A (Accept), D (Develop), R (Reject)This identified ideas with the potential of cost saving or improvements to the project shall be identified for further development under development phase.DEVELOPMENT PHASEIn this phase participants have the opportunity to make specific recommendations and proposals based on outcomes of the earlier phases. Workshop outcomes and a specific action plan are also produced pending the post workshop report.EVALUATION OF THE PROPOSALThe proposal was supported by participants because it Support to local traders, Improves efficiency of lighting system, Provides safety of workmanship during the construction, Provides an alternative energy savings, and environmental safe.Issues that detract from the proposalIt requires more evaluation for life cycle cost of maintain period and functioning, as well as it does not include infrastructures work review.CONCLUSION/ RECOMMENDATIONValue Management strategies can apply for any stage of any project. It is very much use full to apply Value Engineering/ Management strategies since the connectional stage of a project. Also these strategies can be applying to any project till the demolition phase its, thus for the life cycle of the project. Any client can have a great value for his investments by applying Value management/ engineering strategies for his/ her investment. It is passing recommended to carry out the proposals which proposed by the vale management team and also it is highly recommended to carry out further value management workshops to find out further more possible ways to reduction the construction cost.