2. VALUE ENGINEERING
A philosophy implemented by the
use of a specific set of techniques,
a body of knowledge, and
a group of learned skills.
It is an organized creative approach
which has as its purpose the
efficient identification of unnecessary cost, i.e.,
cost which provides neither quality, nor use,
nor appearance, nor customer features."
Lawrence Miles, 1946, General Electric Co.
6. VALUE ENGINEERING PHASES
Information
• get the facts about the problem
• define the functions } FUNCTIONAL
• evaluate the functions } ANALYSIS
Speculation
• define alternatives } CREATIVE
} TECHNIQUES
Evaluation
• develop specifics for alternatives
• costing, value matrix } VALUE
• comparative cost-value chart } ANALYSIS
Development
• decide on alternatives
• prepare implementation plans
Implementation
• report solution and action plan
8. TOOLS AND TECHNIQUE USED TO EVALUATE
ALTERNATIVES
•1-DECISION TREE
2-FOCUS GROUP
•2-DECISION MATRIX
•4 SOFTWARE BASED ON DECISION MATRIX (AHP-ANP)
9. USING ANP SOFTWARE AS TOOL OF DECISION MAKING
•SUPER DECISIONS IS DECISION-MAKING SOFTWARE WHICH WORKS BASED ON TWO MULTI-
CRITERIA DECISION MAKING METHODS.
•SUPER DECISIONS IMPLEMENTS THE ANALYTIC HIERARCHY PROCESS (AHP) AND
THE ANALYTIC NETWORK PROCESS (ANP). IT HAS BEEN USED IN MANY RESEARCH AND
PRACTICAL FIELDS SUCH AS MANUFACTURING, ENVIRONMENTAL MANAGEMENT, AVIATION,
SMALL HYDROPOWER PLANTS AND AGRICULTURE.
•AHP FOUNDER: THOMAS L. SAATY
•ANP DEVELOPED BY ROZANN SAATY
10. IMPLEMENTATION OF SUPER
DECISION SOFTWARE (ANP
BASED)AS A TOOL OF DECISION
MAKING
CASE STUDY :VALUE OF
ESTABLISHING COST CONTROL
DEPARTMENT
11. •WHAT IS PROBLEM
•PROBLEM IS :WOULD CREATING C.C.D WILL ADD VALUE
•IF C.C.D WILL ADD VALUE IS IT BETTER CREATING IT INDEPENDENT
OR PART OF OTHER DEPARTMENT
•WHY ITS PROBLEM
•1-DIRECT COST/BENEFIT ANALYSIS IS PARTIALLY ACCURATE
•2-THERE ARE SOME QUALITIVE CRITERIA (FASTER DECISION
MAKING-LESSON LEARNED)