SlideShare a Scribd company logo
1 of 19
Download to read offline
VALUE ENGINEERING
1-MOHAMMED ABDEL KARIEM ELSAYED
2-AHMAD ABDO
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.
VALUE ENGINEERING
Function
+
+ Revenue + Quality
Value=
Cost
COST VS VALUE
Opportunities for Savings
FacilityCosts
Time
Cost Reduction
Potential
Break Point
Cost of
Change
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
EVALUATION OF ALTERNATIVES
TOOLS AND TECHNIQUE USED TO EVALUATE
ALTERNATIVES
•1-DECISION TREE
2-FOCUS GROUP
•2-DECISION MATRIX
•4 SOFTWARE BASED ON DECISION MATRIX (AHP-ANP)
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
IMPLEMENTATION OF SUPER
DECISION SOFTWARE (ANP
BASED)AS A TOOL OF DECISION
MAKING
CASE STUDY :VALUE OF
ESTABLISHING COST CONTROL
DEPARTMENT
•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)
DECISION NETWORK
STEPS OF USING ANP SOFTWARE
•ASSIGNING CLUSTER AND NODES (NETWORK)
CREATE CONNECTION BETWEEN GOAL, CRITERIA AND
ALTERNATIVES
COMPARISON BETWEEN CRITERIA ACCORDING TO GOAL
COMPARISON BETWEEN ALTERNATIVES ACCORDING TO CRITERIA
WEIGHTED MATRIX
RESULT
CONCLUSION
CREATING C.C.D AS INDEPENDENT IS
PREFERABLE BY 44.9%,PART OF
OTHER DEPARTMENT BY 29.9% AND
NOT REQUIRED BY 25.11%

More Related Content

What's hot

What is VAVE
What is VAVE What is VAVE
What is VAVE
Reff Ren
 
Value Engineering And Value Analysis
Value Engineering And Value AnalysisValue Engineering And Value Analysis
Value Engineering And Value Analysis
thombremahesh
 
Business Success Through VA/VE
Business Success Through VA/VEBusiness Success Through VA/VE
Business Success Through VA/VE
gojo67
 

What's hot (20)

Value engineering seminar presentation
Value engineering seminar presentationValue engineering seminar presentation
Value engineering seminar presentation
 
Value_Analysis_and_Value_Engineering, A_seminar_by_Mohan_Kumar_G
Value_Analysis_and_Value_Engineering, A_seminar_by_Mohan_Kumar_GValue_Analysis_and_Value_Engineering, A_seminar_by_Mohan_Kumar_G
Value_Analysis_and_Value_Engineering, A_seminar_by_Mohan_Kumar_G
 
122 value engineering
122 value engineering122 value engineering
122 value engineering
 
Value Engineering
Value EngineeringValue Engineering
Value Engineering
 
Value engineering case study ppt
Value engineering case study pptValue engineering case study ppt
Value engineering case study ppt
 
What is VAVE
What is VAVE What is VAVE
What is VAVE
 
Value Engineering
Value EngineeringValue Engineering
Value Engineering
 
Value analysis and Value Engineering in Cost Control
Value analysis and Value Engineering in Cost ControlValue analysis and Value Engineering in Cost Control
Value analysis and Value Engineering in Cost Control
 
Value Engineering Introduction - K K B
Value Engineering Introduction - K K BValue Engineering Introduction - K K B
Value Engineering Introduction - K K B
 
Value Engineering And Value Analysis
Value Engineering And Value AnalysisValue Engineering And Value Analysis
Value Engineering And Value Analysis
 
Value Engineering
Value Engineering Value Engineering
Value Engineering
 
Value engineering Short Over view ppt
Value engineering Short Over view pptValue engineering Short Over view ppt
Value engineering Short Over view ppt
 
Value engineering
Value engineeringValue engineering
Value engineering
 
Value engineering
Value engineeringValue engineering
Value engineering
 
Vave nttf- tech talk
Vave nttf- tech talk Vave nttf- tech talk
Vave nttf- tech talk
 
Value Engineering
Value EngineeringValue Engineering
Value Engineering
 
A Study Report on Value Analysis and Value Engineering (VAVE)
A Study Report on Value Analysis and Value Engineering (VAVE)A Study Report on Value Analysis and Value Engineering (VAVE)
A Study Report on Value Analysis and Value Engineering (VAVE)
 
Business Success Through VA/VE
Business Success Through VA/VEBusiness Success Through VA/VE
Business Success Through VA/VE
 
VA/VE Presentation
VA/VE PresentationVA/VE Presentation
VA/VE Presentation
 
Concept of Value Engineering with Case Study
Concept of Value Engineering with Case StudyConcept of Value Engineering with Case Study
Concept of Value Engineering with Case Study
 

Similar to Value Engineering

Innovation day 2013 2.1 koenraad rombaut (verhaert) - risk based methods in...
Innovation day 2013   2.1 koenraad rombaut (verhaert) - risk based methods in...Innovation day 2013   2.1 koenraad rombaut (verhaert) - risk based methods in...
Innovation day 2013 2.1 koenraad rombaut (verhaert) - risk based methods in...
Verhaert Masters in Innovation
 
Value Analysis Value Engineering & Business Process Reengineering
Value Analysis Value Engineering  &  Business Process ReengineeringValue Analysis Value Engineering  &  Business Process Reengineering
Value Analysis Value Engineering & Business Process Reengineering
T HARI KUMAR
 
Value Engineering And Value Analysis
Value  Engineering And  Value  AnalysisValue  Engineering And  Value  Analysis
Value Engineering And Value Analysis
Bhim Upadhyaya
 
valueengineeringandvalueanalysis-090821134729-phpapp02 (1).pptx
valueengineeringandvalueanalysis-090821134729-phpapp02 (1).pptxvalueengineeringandvalueanalysis-090821134729-phpapp02 (1).pptx
valueengineeringandvalueanalysis-090821134729-phpapp02 (1).pptx
DEEPAKS18MCD1038
 

Similar to Value Engineering (20)

Value analysis
Value analysisValue analysis
Value analysis
 
Value analysis
Value analysisValue analysis
Value analysis
 
Planning tools and techniques
Planning tools and techniquesPlanning tools and techniques
Planning tools and techniques
 
System Development Life Cycle
System Development Life CycleSystem Development Life Cycle
System Development Life Cycle
 
Practical Application of Value Engineering in Capital Projects
Practical Application of Value Engineering in Capital ProjectsPractical Application of Value Engineering in Capital Projects
Practical Application of Value Engineering in Capital Projects
 
Construction Project Management
Construction Project Management Construction Project Management
Construction Project Management
 
Innovation day 2013 2.1 koenraad rombaut (verhaert) - risk based methods in...
Innovation day 2013   2.1 koenraad rombaut (verhaert) - risk based methods in...Innovation day 2013   2.1 koenraad rombaut (verhaert) - risk based methods in...
Innovation day 2013 2.1 koenraad rombaut (verhaert) - risk based methods in...
 
Introduction to engineering economy
Introduction to engineering economyIntroduction to engineering economy
Introduction to engineering economy
 
APM Best Practices - Reliability Added Value
APM Best Practices - Reliability Added ValueAPM Best Practices - Reliability Added Value
APM Best Practices - Reliability Added Value
 
Efficiency Valuation: Fine Tuning M&V for Business Transactions
Efficiency Valuation: Fine Tuning M&V for Business TransactionsEfficiency Valuation: Fine Tuning M&V for Business Transactions
Efficiency Valuation: Fine Tuning M&V for Business Transactions
 
Value Analysis Value Engineering & Business Process Reengineering
Value Analysis Value Engineering  &  Business Process ReengineeringValue Analysis Value Engineering  &  Business Process Reengineering
Value Analysis Value Engineering & Business Process Reengineering
 
ChE: 1st Principles Approach to Problem Solving
ChE: 1st Principles Approach to Problem Solving  ChE: 1st Principles Approach to Problem Solving
ChE: 1st Principles Approach to Problem Solving
 
valueengineeringandvalueanalysis-090821134729-phpapp02.pdf
valueengineeringandvalueanalysis-090821134729-phpapp02.pdfvalueengineeringandvalueanalysis-090821134729-phpapp02.pdf
valueengineeringandvalueanalysis-090821134729-phpapp02.pdf
 
Software Testing Process & Trend
Software Testing Process & TrendSoftware Testing Process & Trend
Software Testing Process & Trend
 
Peoject Risk Management(quantative&qualitive)
Peoject Risk Management(quantative&qualitive)Peoject Risk Management(quantative&qualitive)
Peoject Risk Management(quantative&qualitive)
 
Cost accounting
Cost accountingCost accounting
Cost accounting
 
Value Engineering And Value Analysis
Value  Engineering And  Value  AnalysisValue  Engineering And  Value  Analysis
Value Engineering And Value Analysis
 
How to solve problems (or at least try) with 8D
How to solve problems (or at least try) with 8DHow to solve problems (or at least try) with 8D
How to solve problems (or at least try) with 8D
 
valueengineeringandvalueanalysis-090821134729-phpapp02 (1).pptx
valueengineeringandvalueanalysis-090821134729-phpapp02 (1).pptxvalueengineeringandvalueanalysis-090821134729-phpapp02 (1).pptx
valueengineeringandvalueanalysis-090821134729-phpapp02 (1).pptx
 
Value analysis
Value analysisValue analysis
Value analysis
 

Recently uploaded

scipt v1.pptxcxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx...
scipt v1.pptxcxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx...scipt v1.pptxcxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx...
scipt v1.pptxcxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx...
HenryBriggs2
 
Integrated Test Rig For HTFE-25 - Neometrix
Integrated Test Rig For HTFE-25 - NeometrixIntegrated Test Rig For HTFE-25 - Neometrix
Integrated Test Rig For HTFE-25 - Neometrix
Neometrix_Engineering_Pvt_Ltd
 
Kuwait City MTP kit ((+919101817206)) Buy Abortion Pills Kuwait
Kuwait City MTP kit ((+919101817206)) Buy Abortion Pills KuwaitKuwait City MTP kit ((+919101817206)) Buy Abortion Pills Kuwait
Kuwait City MTP kit ((+919101817206)) Buy Abortion Pills Kuwait
jaanualu31
 

Recently uploaded (20)

School management system project Report.pdf
School management system project Report.pdfSchool management system project Report.pdf
School management system project Report.pdf
 
Worksharing and 3D Modeling with Revit.pptx
Worksharing and 3D Modeling with Revit.pptxWorksharing and 3D Modeling with Revit.pptx
Worksharing and 3D Modeling with Revit.pptx
 
Max. shear stress theory-Maximum Shear Stress Theory ​ Maximum Distortional ...
Max. shear stress theory-Maximum Shear Stress Theory ​  Maximum Distortional ...Max. shear stress theory-Maximum Shear Stress Theory ​  Maximum Distortional ...
Max. shear stress theory-Maximum Shear Stress Theory ​ Maximum Distortional ...
 
PE 459 LECTURE 2- natural gas basic concepts and properties
PE 459 LECTURE 2- natural gas basic concepts and propertiesPE 459 LECTURE 2- natural gas basic concepts and properties
PE 459 LECTURE 2- natural gas basic concepts and properties
 
Introduction to Serverless with AWS Lambda
Introduction to Serverless with AWS LambdaIntroduction to Serverless with AWS Lambda
Introduction to Serverless with AWS Lambda
 
Path loss model, OKUMURA Model, Hata Model
Path loss model, OKUMURA Model, Hata ModelPath loss model, OKUMURA Model, Hata Model
Path loss model, OKUMURA Model, Hata Model
 
Signal Processing and Linear System Analysis
Signal Processing and Linear System AnalysisSignal Processing and Linear System Analysis
Signal Processing and Linear System Analysis
 
Computer Networks Basics of Network Devices
Computer Networks  Basics of Network DevicesComputer Networks  Basics of Network Devices
Computer Networks Basics of Network Devices
 
Online food ordering system project report.pdf
Online food ordering system project report.pdfOnline food ordering system project report.pdf
Online food ordering system project report.pdf
 
scipt v1.pptxcxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx...
scipt v1.pptxcxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx...scipt v1.pptxcxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx...
scipt v1.pptxcxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx...
 
Integrated Test Rig For HTFE-25 - Neometrix
Integrated Test Rig For HTFE-25 - NeometrixIntegrated Test Rig For HTFE-25 - Neometrix
Integrated Test Rig For HTFE-25 - Neometrix
 
Online electricity billing project report..pdf
Online electricity billing project report..pdfOnline electricity billing project report..pdf
Online electricity billing project report..pdf
 
Kuwait City MTP kit ((+919101817206)) Buy Abortion Pills Kuwait
Kuwait City MTP kit ((+919101817206)) Buy Abortion Pills KuwaitKuwait City MTP kit ((+919101817206)) Buy Abortion Pills Kuwait
Kuwait City MTP kit ((+919101817206)) Buy Abortion Pills Kuwait
 
Basic Electronics for diploma students as per technical education Kerala Syll...
Basic Electronics for diploma students as per technical education Kerala Syll...Basic Electronics for diploma students as per technical education Kerala Syll...
Basic Electronics for diploma students as per technical education Kerala Syll...
 
Computer Graphics Introduction To Curves
Computer Graphics Introduction To CurvesComputer Graphics Introduction To Curves
Computer Graphics Introduction To Curves
 
Introduction to Artificial Intelligence ( AI)
Introduction to Artificial Intelligence ( AI)Introduction to Artificial Intelligence ( AI)
Introduction to Artificial Intelligence ( AI)
 
UNIT 4 PTRP final Convergence in probability.pptx
UNIT 4 PTRP final Convergence in probability.pptxUNIT 4 PTRP final Convergence in probability.pptx
UNIT 4 PTRP final Convergence in probability.pptx
 
Hostel management system project report..pdf
Hostel management system project report..pdfHostel management system project report..pdf
Hostel management system project report..pdf
 
COST-EFFETIVE and Energy Efficient BUILDINGS ptx
COST-EFFETIVE  and Energy Efficient BUILDINGS ptxCOST-EFFETIVE  and Energy Efficient BUILDINGS ptx
COST-EFFETIVE and Energy Efficient BUILDINGS ptx
 
Linux Systems Programming: Inter Process Communication (IPC) using Pipes
Linux Systems Programming: Inter Process Communication (IPC) using PipesLinux Systems Programming: Inter Process Communication (IPC) using Pipes
Linux Systems Programming: Inter Process Communication (IPC) using Pipes
 

Value Engineering

  • 1. VALUE ENGINEERING 1-MOHAMMED ABDEL KARIEM ELSAYED 2-AHMAD ABDO
  • 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.
  • 5. Opportunities for Savings FacilityCosts Time Cost Reduction Potential Break Point Cost of Change
  • 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)
  • 13. STEPS OF USING ANP SOFTWARE •ASSIGNING CLUSTER AND NODES (NETWORK)
  • 14. CREATE CONNECTION BETWEEN GOAL, CRITERIA AND ALTERNATIVES
  • 15. COMPARISON BETWEEN CRITERIA ACCORDING TO GOAL
  • 16. COMPARISON BETWEEN ALTERNATIVES ACCORDING TO CRITERIA
  • 19. CONCLUSION CREATING C.C.D AS INDEPENDENT IS PREFERABLE BY 44.9%,PART OF OTHER DEPARTMENT BY 29.9% AND NOT REQUIRED BY 25.11%