Value management / Value engineering

Question 1

What do you understand by the term VE?

Answer 1

• Value Engineering
• An organised approach aimed at providing the necessary functions at the lowest cost, without detrimental affect to Quality, reliability, performance or delivery

Question 2

What do you understand by the term VM?

Answer 2

• Value Management: Concerned with making explicit what value means to a client.
• Concerned with early stages of design e.g. to ensure the need to build is verified.
• VM aims to ensure that the right decisions are made the first time.
• VE used to correct decisions when things go wrong

Question 3

What is value, what does value mean?

Answer 3

• Complex concept, Measure of worth, a relative measure of usefulness of something in relation to the cost paid for it.

Question 4

When does the VE/VM process occur?

Answer 4

1. Concept- VM Workshop 1
2. Feasibility- VM Workshop 2
3. Scheme design- VE
4. Detailed Design- VE

Question 5

What happens during the VE process?

Answer 5

• Design team brought together: QS, Arch, Eng, Contractor
• Pool expertise, guided by a team leader
• Higher chance of identifying and solving problems at an earlier stage- better value for money
• Not a cost cutting exercise, this leads to reduced quality and value.

Question 6

What are the phases of the VE process?

Answer 6

• Information phase: Functional analysis of component: FAST diagram
• Speculation phase: creative thinking techniques: BRAIN STORMING
• Evaluation Phase: Evaluate solutions (Cost and Feasibility) List of Options
• Development Phase: Detailed development of surviving ideas and interfaces: LCC techniques
• Presentation Phase: Best solution identified and recommendation made: Written/ oral report.

Question 7

When does VE occur?

Answer 7

• Concept design stage

- Design development stage

Question 8

What are the limitations of VE?

Answer 8

• Assumes all parties have a common understanding of functions being provided.
• Assumes all feasible design alternatives provide same level of functional performance
• THEREFORE assessed on basis of cost alone.

Question 9

Why is VM needed?

Answer 9

• Aim is to reach agreement of exactly what the nature of the problem is.
• A shared understanding of what is being sought: Design objectives.
• Construction clients are different groups with different priorities: If agreements are not reached on exact requirements then chances of project perceived as a failure increase.

Question 10

Can you explain to me the VM process?

Answer 10

• Workshops held where Client must make important decisions
  1. VM 1- concept: The need to build, clear objectives set that are structured in a value tree
  2. VM2- Feasibility: Outline brief complete, outline brief costed.
  Review schemes and score against weighted objectives
  Assess capital cost to determine options for best value for money.

Question 11

What is a value tree?

Answer 11

• BRAINSTORM: Everything that is required to ensure a certain level of value is obtained.
• Members need to agree that the value tree is a fair representation of design objectives.
• Weights applied to each branch of the tree.

Question 12

Can you give me some benefits of VM?

Answer 12

• project goals are clearly defined
• Objectives and decisions are openly discussed and explicitly stated
• Accountability is increased
• Alternative solutions are always sought and considered
• Business decisions are made with greater confidence
• Potential for increasing value for money