07A cost engineering management training- nov 2017 moustafa sec 5 part iii...Moustafa Ismail Abu Dief
This document contains a lecture on project management and organization structures. It discusses the matrix structure commonly used for projects where multiple projects share resources. It also covers total quality management approaches and Deming's 14 principles for quality management. Additionally, it addresses factors to consider for an effective project organization such as ensuring the project manager has proper qualifications, authority, and reporting relationships defined. Pre-contract evaluation of contractors is also discussed to select qualified partners for reimbursable contracts.
Ss 06 cost engineering management training- nov 2017 - moustafa part ii ch 1...Moustafa Ismail Abu Dief
This document appears to be a lecture on cost engineering and cost estimation for discrete part manufacturing. It discusses various philosophies for discrete part manufacturing like computer-aided process planning, concurrent engineering, group technology, just-in-time manufacturing, and lean manufacturing. It also discusses concepts like materials requirements planning, supply chain management, total quality management, and total cost management. The document provides information on direct and indirect costs for discrete part manufacturing. It presents a cost estimating guide form and provides an example cost estimate. Finally, it discusses break even analysis and different cost bases and break even points.
Ss 09 cost engineering management training- nov 2017 moustafa sec 5 part ii...Moustafa Ismail Abu Dief
This document outlines a training course on cost engineering management and leadership. It discusses several concepts in leadership theory, including theories by Douglas McGregor on management styles, Frederick Herzberg on motivational factors, and Rensis Likert on leadership styles. It also covers the role of the project manager in leading teams through roles like leadership, management, facilitation, and mentoring. Motivation theories are discussed, including needs theories by Maslow and McClelland's theory of achievement motivation. The document provides contact information for the lecturer, Dr. Moustafa Ismail.
Ss ccp course cost engineering management training- 2017 - moustafa ch 1-4Moustafa Ismail Abu Dief
This document contains lecture notes on cost engineering management from a training course. It discusses various cost elements like direct, indirect, fixed and variable costs. It also covers topics like cost accounting, work breakdown structure, cost estimating, budgeting, forecasting, pricing versus costing, materials handling and purchasing, labor classifications and developing labor rates. The document provides definitions and examples to explain key concepts in cost engineering.
Ss 04 cost engineering management training- nov 2017 - moustafa part ii- ch 9Moustafa Ismail Abu Dief
This document provides an overview of cost estimating methodologies. It discusses five classes of cost estimates based on the level of project definition. Conceptual estimates use stochastic or factored methods and are appropriate for early project stages with little definition. Deterministic estimates use more detailed data as projects are better defined. Common conceptual methods described include end product units, physical dimensions, capacity factor, ratio or factor, and parametric modeling. The document provides examples of applying each method.
Ss 10 cost engineering management training- moustafa sec 5 part iii ch 2...Moustafa Ismail Abu Dief
This document summarizes a lecture on cost engineering management and contracting for capital projects. It discusses the basic elements of a contract including offer, acceptance, legality and consideration. It also describes different types of contracts like fixed price lump sum, unit price, cost reimbursable and target contracts. The key aspects covered are requirements, advantages and disadvantages of different contract types, allocation of project risks, contractor prequalification, and important contract clauses.
07A cost engineering management training- nov 2017 moustafa sec 5 part iii...Moustafa Ismail Abu Dief
This document contains a lecture on project management and organization structures. It discusses the matrix structure commonly used for projects where multiple projects share resources. It also covers total quality management approaches and Deming's 14 principles for quality management. Additionally, it addresses factors to consider for an effective project organization such as ensuring the project manager has proper qualifications, authority, and reporting relationships defined. Pre-contract evaluation of contractors is also discussed to select qualified partners for reimbursable contracts.
Ss 06 cost engineering management training- nov 2017 - moustafa part ii ch 1...Moustafa Ismail Abu Dief
This document appears to be a lecture on cost engineering and cost estimation for discrete part manufacturing. It discusses various philosophies for discrete part manufacturing like computer-aided process planning, concurrent engineering, group technology, just-in-time manufacturing, and lean manufacturing. It also discusses concepts like materials requirements planning, supply chain management, total quality management, and total cost management. The document provides information on direct and indirect costs for discrete part manufacturing. It presents a cost estimating guide form and provides an example cost estimate. Finally, it discusses break even analysis and different cost bases and break even points.
Ss 09 cost engineering management training- nov 2017 moustafa sec 5 part ii...Moustafa Ismail Abu Dief
This document outlines a training course on cost engineering management and leadership. It discusses several concepts in leadership theory, including theories by Douglas McGregor on management styles, Frederick Herzberg on motivational factors, and Rensis Likert on leadership styles. It also covers the role of the project manager in leading teams through roles like leadership, management, facilitation, and mentoring. Motivation theories are discussed, including needs theories by Maslow and McClelland's theory of achievement motivation. The document provides contact information for the lecturer, Dr. Moustafa Ismail.
Ss ccp course cost engineering management training- 2017 - moustafa ch 1-4Moustafa Ismail Abu Dief
This document contains lecture notes on cost engineering management from a training course. It discusses various cost elements like direct, indirect, fixed and variable costs. It also covers topics like cost accounting, work breakdown structure, cost estimating, budgeting, forecasting, pricing versus costing, materials handling and purchasing, labor classifications and developing labor rates. The document provides definitions and examples to explain key concepts in cost engineering.
Ss 04 cost engineering management training- nov 2017 - moustafa part ii- ch 9Moustafa Ismail Abu Dief
This document provides an overview of cost estimating methodologies. It discusses five classes of cost estimates based on the level of project definition. Conceptual estimates use stochastic or factored methods and are appropriate for early project stages with little definition. Deterministic estimates use more detailed data as projects are better defined. Common conceptual methods described include end product units, physical dimensions, capacity factor, ratio or factor, and parametric modeling. The document provides examples of applying each method.
Ss 10 cost engineering management training- moustafa sec 5 part iii ch 2...Moustafa Ismail Abu Dief
This document summarizes a lecture on cost engineering management and contracting for capital projects. It discusses the basic elements of a contract including offer, acceptance, legality and consideration. It also describes different types of contracts like fixed price lump sum, unit price, cost reimbursable and target contracts. The key aspects covered are requirements, advantages and disadvantages of different contract types, allocation of project risks, contractor prequalification, and important contract clauses.
This document provides a summary of a lecture on variations and adjustments in FIDIC contracts. It discusses the engineer's right to vary works according to clause 13.1, including a list of variation inclusions. Value engineering is covered in clause 13.2, with savings split 50/50 after deductions. The variation procedure in clause 13.3 requires the contractor to promptly respond to engineer requests with proposals, without delaying work. Variations due to legislation are addressed in clause 20.1. Payment in multiple currencies according to agreed adjustments is explained in clause 13.4. The use and valuation of provisional sums is outlined in clause 13.5. Daywork is covered by clause 13.6. Adjustments for changes in
This document provides information about FIDIC forms of contracts and procedures related to project start, implementation period, project duration, schedule and program submission and approval, extension of time, tests on completion, and employer's taking over. It includes 6 lecture slides that discuss topics like commencement date, time for completion, programme of works, extension of time procedure, tests on completion requirements, and conditions for employer's taking over including issuance of taking over certificates. Contact details are also provided for the lecturer.
IRJET- Prediction Model of Factors Causing Increase in Overhead Cost in C...IRJET Journal
This document discusses factors that cause increases in overhead costs in the Indian construction industry. It aims to identify the main factors through a literature review and expert opinions. A prediction model will then be developed using regression analysis to help construction firms assess overhead costs as a percentage of total project costs. The factors identified from previous studies and expert questionnaires will be analyzed for their impact on overhead costs. Real construction project data from various Indian companies will also be collected and analyzed to inform the model. The goal is to improve cost estimation accuracy and help firms bid competitively while reducing unexpected costs.
A systematic study on site overhead costs in construction industryeSAT Journals
Abstract Construction sector is the one of the largest employer in the country. It has become a highly competitive field with a minimum profit. Construction costs are two types; one is direct cost (labors, materials, P & M, Equipments etc...) Other one is indirect costs/Overhead costs (Staff salaries, Staff benefits, Conveyance, Labor miscellaneous, Internet, Watch and ward etc.) and is added as a percentage to sum of labor, material and equipment. Normally 10 to 15% of contract value will be taken as overhead costs. Overhead costs cannot be neglected, but the indirect costs should be in control always. If the cost goes out of control, the contractors will not be in business. The article discusses about overheads, overhead percentage on contractual value, factor affecting the overhead costs, major issues faced by contractors, how overhead costs affects the income, Engineers/Contractors view on overheads, investigation and control of overhead costs, creating cost awareness among employees, lists out the major items which affects the overheads, interviews with professionals and data collection from the projects and hence creates awareness while bidding and plan the financial resources effectively. Key Words: Overhead costs, bidding, Engineers, Contractors
IRJET- Delay in Construction its Causes and Mitigation: A ReviewIRJET Journal
This document discusses causes of delays in construction projects and methods to mitigate them. It identifies several common causes of delay including changes by owners, payment delays, design errors, poor planning, and communication issues. Delays are classified as critical/non-critical, excusable/non-excusable, and compensable/non-compensable. The document also provides a table outlining specific mitigation plans for various delay causes related to the project management, financing, and construction. Overall, the document provides an overview of delays in construction and strategies to minimize them through improved coordination, planning, communication and dispute resolution.
This document provides guidelines for estimating costs for process plant design projects. It covers estimating capital investment costs, which include the costs of purchased equipment, installation, piping, instrumentation, buildings and other facilities. It also covers estimating total production costs, which include operating labor, utilities and other expenses. The document provides methods and factors for conducting economic analysis of projects, including calculations for depreciation, taxes, cash flow, net present value, return on investment and payout period. It includes examples of applying the cost estimating methods to sample process plants such as a refinery unit, ethylene plant and ammonia plant.
Project Controls Expo, 18th Nov 2014 - "NEC3 Contracts – Managing Risk and Ch...Project Controls Expo
Traditionally many Contractors (and even Employers) see following the contract or being contractual as a very negative. The NEC3 suite of contracts command a different approach and this session will explore the benefits of being contractual, and how it will help both Parties to manage their project and understand exactly where they both are in terms of liability throughout their project. A key aspect of this is approach to the management of regular revised programmes, which compared to other forms of contract have a much higher contractual significance under NEC3.
This document discusses target cost contracts and how to effectively implement them using NEC3. It explains that target cost contracts aim to align parties' objectives by sharing risks and potential savings. Setting the initial target cost is important to incentivize contractors to find efficiencies. Maintaining the target cost as the project progresses is also essential. The payment mechanism and what costs are allowed or disallowed must be clearly defined to ensure the arrangement drives the right behaviors.
IRJET- Effects of Project Cost Analysis and Factors Affecting InflationIRJET Journal
This document discusses project cost overruns in the construction industry in India. It analyzes the key factors that can lead to delays and cost overruns, such as contractor planning and management issues, subcontractor problems, material and labor shortages, and payment delays. The document also presents a case study that calculates the estimated costs, anticipated costs, excess amounts, and savings for different elements of a construction project in India. It finds the largest excess amounts and estimated amounts were for plastering work and miscellaneous work. Overall, the document examines the causes and impacts of cost overruns on construction projects in India.
Analysis of Cost Over Run in Construction ProjectsIRJET Journal
This document analyzes the causes and effects of cost overruns in construction projects in India. It identifies major reasons for cost overruns such as inaccurate planning, delays in land acquisition, weather issues, shortage of skilled labor, and contractor inefficiencies. The author conducted a case study of a hospital construction project in Pune to identify specific overrun factors like delayed payments, poor scheduling, and ineffective management. The conclusion is that the most significant overrun causes are delayed payments, inaccurate planning, weather, lack of experienced staff, excessive contractor workloads, and poor liquidity/management. Recommendations to avoid overruns include proper planning, accounting for cost variations, clear project scoping, efficient resource use, and strong communication.
IRJET - Fuzzy Logic Approach in Construction Delay AnalysisIRJET Journal
This document discusses the application of fuzzy logic to analyze delays in construction projects. It presents a case study of a housing project in Kochi, Kerala, India. Fuzzy logic was used to quantify the probability of scheduled delays. Based on expert interviews, fuzzy rules were created to assess various delay factors. These included labor, project, consultant, contractor, and external related factors. The factors were applied to the case study project using MATLAB fuzzy logic toolbox. This resulted in a scheduled delay probability of 32.9% compared to the actual schedule. The document concludes fuzzy logic can help construction parties predict delay risks and improve project time management.
Lean construction is the continuous process of eliminating waste, meeting or exceeding all customer requirements, focusing on the entire value stream and pursuing perfection in the execution of a constructed project.
Management For Construction Project:-Various Aspects Of DelayIRJET Journal
1. The document discusses various causes of delay in construction projects based on a questionnaire survey conducted with construction project stakeholders in India.
2. The top two most significant causes of delay identified are issues with the quantity and quality of labor, and delays in transporting materials to sites.
3. Other major causes of delay include lack of proper supervision or planning by contractors, work stoppages due to improper methodologies, changes to work orders by owners during construction, and slow decision making.
IJRET : International Journal of Research in Engineering and Technology is an international peer reviewed, online journal published by eSAT Publishing House for the enhancement of research in various disciplines of Engineering and Technology. The aim and scope of the journal is to provide an academic medium and an important reference for the advancement and dissemination of research results that support high-level learning, teaching and research in the fields of Engineering and Technology. We bring together Scientists, Academician, Field Engineers, Scholars and Students of related fields of Engineering and Technology
IRJET- Factors Influencing Time and Cost Overruns in Indian Construction Proj...IRJET Journal
This document summarizes a research paper on factors influencing time and cost overruns in Indian construction projects. It begins with an abstract describing the objectives of studying and ranking significant factors contributing to delays and cost overruns. It then discusses various causes of time and cost overruns based on a literature review. A methodology is described involving a questionnaire survey of owners, consultants, and contractors to assess their perceptions of influential factors. Finally, a case study is presented analyzing time and cost overruns for a housing construction project in India to evaluate procedures and identify recommendations.
IRJET- Maintenance Management of Construction Equipment on Construction P...IRJET Journal
This document discusses maintenance management of construction equipment on construction projects. It begins by stating that construction equipment costs can range from 25-40% of total project costs. Proper maintenance is important for equipment efficiency and productivity. The document recommends creating a database to record equipment maintenance and utilization records. It also discusses different types of maintenance, including reactive, preventative, and predictive maintenance. Reactive maintenance involves fixing equipment only after failure, which can lead to downtime, higher costs, and safety hazards. Proper maintenance planning and record keeping is necessary to reduce equipment downtime and losses on construction projects.
Bba501 & production and operations managementsmumbahelp
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
This document provides a summary of a lecture on variations and adjustments in FIDIC contracts. It discusses the engineer's right to vary works according to clause 13.1, including a list of variation inclusions. Value engineering is covered in clause 13.2, with savings split 50/50 after deductions. The variation procedure in clause 13.3 requires the contractor to promptly respond to engineer requests with proposals, without delaying work. Variations due to legislation are addressed in clause 20.1. Payment in multiple currencies according to agreed adjustments is explained in clause 13.4. The use and valuation of provisional sums is outlined in clause 13.5. Daywork is covered by clause 13.6. Adjustments for changes in
This document provides information about FIDIC forms of contracts and procedures related to project start, implementation period, project duration, schedule and program submission and approval, extension of time, tests on completion, and employer's taking over. It includes 6 lecture slides that discuss topics like commencement date, time for completion, programme of works, extension of time procedure, tests on completion requirements, and conditions for employer's taking over including issuance of taking over certificates. Contact details are also provided for the lecturer.
IRJET- Prediction Model of Factors Causing Increase in Overhead Cost in C...IRJET Journal
This document discusses factors that cause increases in overhead costs in the Indian construction industry. It aims to identify the main factors through a literature review and expert opinions. A prediction model will then be developed using regression analysis to help construction firms assess overhead costs as a percentage of total project costs. The factors identified from previous studies and expert questionnaires will be analyzed for their impact on overhead costs. Real construction project data from various Indian companies will also be collected and analyzed to inform the model. The goal is to improve cost estimation accuracy and help firms bid competitively while reducing unexpected costs.
A systematic study on site overhead costs in construction industryeSAT Journals
Abstract Construction sector is the one of the largest employer in the country. It has become a highly competitive field with a minimum profit. Construction costs are two types; one is direct cost (labors, materials, P & M, Equipments etc...) Other one is indirect costs/Overhead costs (Staff salaries, Staff benefits, Conveyance, Labor miscellaneous, Internet, Watch and ward etc.) and is added as a percentage to sum of labor, material and equipment. Normally 10 to 15% of contract value will be taken as overhead costs. Overhead costs cannot be neglected, but the indirect costs should be in control always. If the cost goes out of control, the contractors will not be in business. The article discusses about overheads, overhead percentage on contractual value, factor affecting the overhead costs, major issues faced by contractors, how overhead costs affects the income, Engineers/Contractors view on overheads, investigation and control of overhead costs, creating cost awareness among employees, lists out the major items which affects the overheads, interviews with professionals and data collection from the projects and hence creates awareness while bidding and plan the financial resources effectively. Key Words: Overhead costs, bidding, Engineers, Contractors
IRJET- Delay in Construction its Causes and Mitigation: A ReviewIRJET Journal
This document discusses causes of delays in construction projects and methods to mitigate them. It identifies several common causes of delay including changes by owners, payment delays, design errors, poor planning, and communication issues. Delays are classified as critical/non-critical, excusable/non-excusable, and compensable/non-compensable. The document also provides a table outlining specific mitigation plans for various delay causes related to the project management, financing, and construction. Overall, the document provides an overview of delays in construction and strategies to minimize them through improved coordination, planning, communication and dispute resolution.
This document provides guidelines for estimating costs for process plant design projects. It covers estimating capital investment costs, which include the costs of purchased equipment, installation, piping, instrumentation, buildings and other facilities. It also covers estimating total production costs, which include operating labor, utilities and other expenses. The document provides methods and factors for conducting economic analysis of projects, including calculations for depreciation, taxes, cash flow, net present value, return on investment and payout period. It includes examples of applying the cost estimating methods to sample process plants such as a refinery unit, ethylene plant and ammonia plant.
Project Controls Expo, 18th Nov 2014 - "NEC3 Contracts – Managing Risk and Ch...Project Controls Expo
Traditionally many Contractors (and even Employers) see following the contract or being contractual as a very negative. The NEC3 suite of contracts command a different approach and this session will explore the benefits of being contractual, and how it will help both Parties to manage their project and understand exactly where they both are in terms of liability throughout their project. A key aspect of this is approach to the management of regular revised programmes, which compared to other forms of contract have a much higher contractual significance under NEC3.
This document discusses target cost contracts and how to effectively implement them using NEC3. It explains that target cost contracts aim to align parties' objectives by sharing risks and potential savings. Setting the initial target cost is important to incentivize contractors to find efficiencies. Maintaining the target cost as the project progresses is also essential. The payment mechanism and what costs are allowed or disallowed must be clearly defined to ensure the arrangement drives the right behaviors.
IRJET- Effects of Project Cost Analysis and Factors Affecting InflationIRJET Journal
This document discusses project cost overruns in the construction industry in India. It analyzes the key factors that can lead to delays and cost overruns, such as contractor planning and management issues, subcontractor problems, material and labor shortages, and payment delays. The document also presents a case study that calculates the estimated costs, anticipated costs, excess amounts, and savings for different elements of a construction project in India. It finds the largest excess amounts and estimated amounts were for plastering work and miscellaneous work. Overall, the document examines the causes and impacts of cost overruns on construction projects in India.
Analysis of Cost Over Run in Construction ProjectsIRJET Journal
This document analyzes the causes and effects of cost overruns in construction projects in India. It identifies major reasons for cost overruns such as inaccurate planning, delays in land acquisition, weather issues, shortage of skilled labor, and contractor inefficiencies. The author conducted a case study of a hospital construction project in Pune to identify specific overrun factors like delayed payments, poor scheduling, and ineffective management. The conclusion is that the most significant overrun causes are delayed payments, inaccurate planning, weather, lack of experienced staff, excessive contractor workloads, and poor liquidity/management. Recommendations to avoid overruns include proper planning, accounting for cost variations, clear project scoping, efficient resource use, and strong communication.
IRJET - Fuzzy Logic Approach in Construction Delay AnalysisIRJET Journal
This document discusses the application of fuzzy logic to analyze delays in construction projects. It presents a case study of a housing project in Kochi, Kerala, India. Fuzzy logic was used to quantify the probability of scheduled delays. Based on expert interviews, fuzzy rules were created to assess various delay factors. These included labor, project, consultant, contractor, and external related factors. The factors were applied to the case study project using MATLAB fuzzy logic toolbox. This resulted in a scheduled delay probability of 32.9% compared to the actual schedule. The document concludes fuzzy logic can help construction parties predict delay risks and improve project time management.
Lean construction is the continuous process of eliminating waste, meeting or exceeding all customer requirements, focusing on the entire value stream and pursuing perfection in the execution of a constructed project.
Management For Construction Project:-Various Aspects Of DelayIRJET Journal
1. The document discusses various causes of delay in construction projects based on a questionnaire survey conducted with construction project stakeholders in India.
2. The top two most significant causes of delay identified are issues with the quantity and quality of labor, and delays in transporting materials to sites.
3. Other major causes of delay include lack of proper supervision or planning by contractors, work stoppages due to improper methodologies, changes to work orders by owners during construction, and slow decision making.
IJRET : International Journal of Research in Engineering and Technology is an international peer reviewed, online journal published by eSAT Publishing House for the enhancement of research in various disciplines of Engineering and Technology. The aim and scope of the journal is to provide an academic medium and an important reference for the advancement and dissemination of research results that support high-level learning, teaching and research in the fields of Engineering and Technology. We bring together Scientists, Academician, Field Engineers, Scholars and Students of related fields of Engineering and Technology
IRJET- Factors Influencing Time and Cost Overruns in Indian Construction Proj...IRJET Journal
This document summarizes a research paper on factors influencing time and cost overruns in Indian construction projects. It begins with an abstract describing the objectives of studying and ranking significant factors contributing to delays and cost overruns. It then discusses various causes of time and cost overruns based on a literature review. A methodology is described involving a questionnaire survey of owners, consultants, and contractors to assess their perceptions of influential factors. Finally, a case study is presented analyzing time and cost overruns for a housing construction project in India to evaluate procedures and identify recommendations.
IRJET- Maintenance Management of Construction Equipment on Construction P...IRJET Journal
This document discusses maintenance management of construction equipment on construction projects. It begins by stating that construction equipment costs can range from 25-40% of total project costs. Proper maintenance is important for equipment efficiency and productivity. The document recommends creating a database to record equipment maintenance and utilization records. It also discusses different types of maintenance, including reactive, preventative, and predictive maintenance. Reactive maintenance involves fixing equipment only after failure, which can lead to downtime, higher costs, and safety hazards. Proper maintenance planning and record keeping is necessary to reduce equipment downtime and losses on construction projects.
Bba501 & production and operations managementsmumbahelp
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
Concept development using Optimization, DFM & CAE - In DFSS Waynsahay
This document summarizes the optimization of powertrain components for an automotive vehicle development program using Design for Six Sigma (DFSS) methodology. It describes defining the optimization goals of reducing weight and increasing frequency while maintaining strength. Topology optimization was performed in Optistruct to generate optimized designs. Multiple concepts were evaluated based on design for manufacturability criteria, with the optimal concept selected. Finite element analysis in ANSYS validated the design meets the goals of over 600Hz frequency and a safety factor over 1.5 for strength. Customer feedback through an engagement performance assessment validated the optimized design satisfied requirements.
Minimising waste in construction by using lean six sigma principleIAEME Publication
This document discusses how lean six sigma principles can be applied to minimize waste in construction projects. It first provides background on lean production and six sigma methods. It then discusses how the 5S methodology (seiri, seiton, seiso, seiketsu, shitsuke) can help identify and eliminate waste at various construction stages through improved organization, cleanliness and standardization. The benefits of applying 5S principles in construction include improved safety, productivity and quality. Key lean principles like reducing non-value adding activities, continuous improvement and flexibility are also important for efficient construction. Overall waste can be minimized through proper planning, material management and applying lean six sigma techniques.
Minimising waste in construction by using lean six sigma principleIAEME Publication
This document discusses how lean six sigma principles can be used to minimize waste in construction projects. It first provides background on lean six sigma and its goals of eliminating waste and defects. It then discusses how the 5S methodology (sort, set in order, shine, standardize, and sustain) can be applied to construction processes to establish order and cleanliness. Some benefits of implementing 5S in construction include improved safety, productivity, quality and reduced lead times. The document provides examples of how lean principles like just-in-time delivery and visual management can help minimize waste in construction material management, planning and work execution.
This document provides a seminar report on value engineering. It begins with an introduction that defines value engineering and value analysis, and discusses the historical background and objectives of value engineering. It then describes the eight phases of the value engineering methodology: orientation, information, functional analysis, creativity, evaluation, development, presentation, and implementation/follow up. The document includes two case studies applying value engineering techniques to optimize a medical instrument component and a flush valve. It concludes with a discussion of the future scope of value engineering.
Bba501 production and operations management (2)smumbahelp
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The document provides information on preparing cost estimates for manufactured products. It discusses gathering cost information, identifying and calculating labor costs, establishing resource requirements, developing estimated costs, and verifying estimates. It describes direct and indirect costs, and outlines methods of costing like process, job, and batch costing. Key components of a cost estimate like materials, labor, expenses/overheads are defined. The document is intended to guide understanding of cost estimation processes.
Ss 03 CCP- AACE.org cost engineering management training- 2017 - dr. mousta...Moustafa Ismail Abu Dief
This document summarizes a lecture on activity-based cost management. It discusses how activity-based costing (ABC) can provide insights into indirect expenses by assigning costs to activities and tracing them to final cost objects. ABC expresses activities using verbs and links expenses to outputs. It also discusses how ABC can identify value-adding versus non-value-adding activities and be used for both local process improvement and enterprise-wide strategic decision-making. More advanced ABC systems integrate with other decision support systems for automated data collection and reporting.
IRJET- Value Engineering-An Approach to Enhance Real Estate IndustryIRJET Journal
This document discusses how value engineering can enhance the real estate industry by identifying unnecessary costs. It begins with an introduction to value engineering, explaining that it is a systematic process that identifies necessary functions and delivers them at the lowest cost. It then provides the history and theory behind value engineering, including how it originated at General Electric during WWII to deal with material shortages. The document outlines the value engineering methodology, including information gathering, functional analysis, generation of alternatives, evaluation and development of recommendations. It argues that value engineering can improve quality, reliability and performance over the lifespan of a project while reducing costs.
Om0017 – advanced production and planning controlsmumbahelp
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Concurrent Engineering- for Environment & SustainabilityIRJET Journal
This document discusses concurrent engineering and its benefits for sustainability and the environment. Concurrent engineering involves simultaneous development of products and processes through cross-functional team collaboration. It aims to shorten development timelines while improving quality. The document outlines the key elements and implementation of concurrent engineering. It discusses how concurrent engineering supports sustainability through immediate response to demands, reduced environmental impacts, and improved material efficiency. The document argues concurrent engineering is needed to quickly respond to changing environments through continuous improvement and inclusion of environmental constraints in decision making.
This document discusses customer value creation topics covered in an EPGP class. It summarizes key topics like approaches to customers, customer value elements, buyer behavior, segmentation, and pricing. It also provides an overview of Blue Star Infotech, describing its origin and growth, business models including delivery models of offshore development and extended offices, and business models of fixed price, time and material, and co-sourcing. Partnership models are also mentioned for acquiring overseas business.
Ss 05 Cost engineering management training- nov 2017 - moustafa part ii ch 10Moustafa Ismail Abu Dief
Cost Management training course, Certified cost professional certification preparation course.
Cost Engineering- Commercial management- tendering and bedding.Process product manufacturing- skills and knowledge of cost engineering
Design and Engineering Module 3: Prototype to ProductNaseel Ibnu Azeez
As per KTU Syllabus Design and Engineering
Prototyping- rapid prototyping; testing and evaluation of design; Design modifications; Freezing the design; Cost analysis. Engineering the design – From prototype to product.
Planning; Scheduling; Supply chains; inventory; handling; manufacturing/construction operations; storage; packaging; shipping; marketing; feed-back on design.
7 qct optmisation in new product development detailed study on inter-links ...prjpublications
This document summarizes an article about optimizing quality, cost, and time (QCT) in new product development. It discusses how these three objectives are interrelated and often require trade-offs. It proposes using a systematic, analytical approach to quantify the interrelationships between objectives to help with trade-off decision making. This would assess how movement in one objective impacts others. For example, reducing development time could increase costs. The document also discusses using profitability metrics like profitability index, net present value, and payback period to evaluate trade-offs based on long-term profitability. Graphically representing cash flows can help assess trade-offs subject to the specific project's profitability targets.
Activity based costing provides more accurate product costs than traditional costing. The document analyzes Vikash Industries' costing system and compares it to activity based costing for one of its products. It identifies the activities involved in manufacturing the product, calculates the costs of each activity, and allocates costs using appropriate drivers. Implementing activity based costing would provide Vikash Industries a better understanding of true product costs and help identify areas to reduce costs and increase efficiencies.
Mb0044 production and operation management..smumbahelp
This document provides information for students to obtain fully solved assignments. It instructs students to send their semester and specialization name to the provided email address or to call the given phone number to receive assistance. The document then provides a sample assignment covering topics like production and operation management, total productive maintenance, Gantt charts, bullwhip effect, scheduling in services, and capacity options. It includes multiple questions with answers on changing project management processes, value engineering, vendor managed inventory, rating methods for plant location, and business process modeling.
Similar to Ss 2 cost engineering management training- 2017 -dr moustafa ismail ch 5-6 (20)
The document provides information about FIDIC (International Federation of Consulting Engineers), including that it was established in 1913 and represents over 600,000 engineering consultants worldwide. It discusses the FIDIC Red Book, which provides a standard form of contract between an employer and contractor for construction projects designed by the employer. The document also provides background on the speaker, Moustafa Abu Dief, who has over 30 years of experience in construction projects, engineering, contracts and claims.
Early Contractor Involvement (ECI) provides several benefits for construction projects:
1. It allows contractors to provide input during early design phases, improving constructability, value management, and risk mitigation.
2. Contractors can help optimize design alternatives and construction planning, potentially reducing project duration and costs.
3. Involving contractors early helps reduce risks, claims, and disputes through improved coordination, joint problem-solving, and risk sharing between parties.
This document provides an overview of Contract Management Consultant Module 1020 R1 2020 on the YELLOW FIDIC 2nd Edition, 2017. The module is presented by Dr. Moustafa Ismail and covers FIDIC's second edition of the Yellow Book from 2017. It aims to help contract management consultants understand the Yellow Book, which contains standard terms and conditions for use in civil engineering and building works contracts where the employer provides the design.
The document describes a Contracts Management Consultant certification program consisting of three modules - Module 1010, Module 1020 and Module 1030. The program aims to develop integrated contracts and claims management competencies and skills in participants. Upon completing all three modules, participants will be accredited as Contracts Management Consultants.
This document provides a summary of a lecture on variations and adjustments to contracts using FIDIC forms of contracts. The key points covered include:
- The engineer has the right to vary works prior to issuing the taking-over certificate, including omitting, adding or changing works.
- Value engineering proposals by the contractor for cost savings are shared 50/50 after deductions, with the contractor bearing development risks.
- The variation procedure requires the engineer to request proposals from the contractor and for work to proceed without delay while awaiting responses.
- Contract price adjustments may be needed for changes in legislation or costs according to formulas in the contract appendices.
- Proper financial planning including payment schedules and budget
This document provides an overview of variations and adjustments, termination by employer and contractor, risks and responsibilities, and insurance clauses based on FIDIC contracts. It discusses topics like the engineer's right to vary works, value engineering, grounds for termination by employer or contractor, risks assumed by each party, intellectual property rights, limitations of liability, and general insurance requirements.
Here is the analysis:
1. If the Employer released an IPC IN 86 days from the day of properly submitted by the Contractor- discuss clauses late payment- value/ EOT if any:
- According to clause 14.7 of FIDIC Red Book 1999, the Employer shall pay the Contractor the amount certified in the IPC within 56 days after receiving the IPC.
- Since the payment was made in 86 days, it is considered a late payment as per the contract.
- As per clause 14.8, the Contractor shall be entitled to receive financing charges compounded monthly for the period of delay until payment is issued.
- The Contractor can claim for an
SCE 1 2018 claims management-in-construction-projects-seminar-.-2017 dr mous...Moustafa Ismail Abu Dief
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help boost feelings of calmness, happiness and focus.
The program shall include:
- The order in which the Contractor proposes to carry out the Works;
- The anticipated timing of each stage of design (if any), procurement, manufacture of Plant, delivery to Site, construction, erection, and testing;
- Each of these stages for work by each Nominated Subcontractor;
- The sequence and timing of inspections and tests specified in the Contract; and
- A supporting report providing a general description of the methods intended to be adopted, and details showing the Contractor's reasonable estimates of personnel and Equipment.
Unless the Engineer has responded with comments within 21 days disapproving the program, the Contractor shall proceed with the Works in
Cfcc certified forensic claims consultant lecture one 2017- dr moustafa ismailMoustafa Ismail Abu Dief
This document provides an overview of a lecture on claims management in construction projects. It introduces the speaker, Dr. Moustafa Ismail, and his qualifications. It then outlines the seminar topics which include claims types, causes, impacts, avoidance, and dispute settlement. The document focuses on the certification process for becoming a Certified Forensic Claims Consultant (CFCC). It details the eligibility requirements, references needed, experience and education required, and structure of the certification examination.
Here are the roles of the contract parties if unforeseen physical conditions were experienced on the site based on the FIDIC Red Book 1999:
Case 1 (Contractor):
- Notify the Engineer in writing with details of the conditions encountered.
- Suspend work in the affected area until receiving instructions from the Engineer.
- Be entitled to an extension of time and payment of any additional costs arising from the conditions.
Case 2 (Engineer):
- Inspect the site conditions upon receiving notice from the Contractor.
- Determine whether the conditions were actually unforeseen based on the contract definition.
- If determined to be unforeseen, instruct a variation in work along with granting an extension
The document provides an overview of a training course on FIDIC forms of contracts. It discusses the history and objectives of FIDIC and their various standard form contracts, including the Red, Yellow, Silver, and Green books. It also outlines some of the key features and clauses of the FIDIC contracts, such as the roles of the engineer and communication procedures. The training course will cover topics like risk management, procurement strategies, and dispute resolution in FIDIC contracts over the course of several lectures.
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How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
Physiology and chemistry of skin and pigmentation, hairs, scalp, lips and nail, Cleansing cream, Lotions, Face powders, Face packs, Lipsticks, Bath products, soaps and baby product,
Preparation and standardization of the following : Tonic, Bleaches, Dentifrices and Mouth washes & Tooth Pastes, Cosmetics for Nails.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Executive Directors Chat Leveraging AI for Diversity, Equity, and InclusionTechSoup
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
1. CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 1
Cost Engineering Management
Training Course:
Association for the Advancement
of Cost Engineering
Nov. 2017
LECTURE 2
وبركاته هللا ورحمة عليكن السالم
2017
2. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 2
Section 1 Chapter 5: Engineering Role & Project Success
The success of many products and projects is predicated upon
an effective and efficient engineering effort. Improved
engineering efforts are essential in many applications given
globalized competition and product/project liability issues,
Product, Project, and Process Development
Development of products, projects, processes ranges from
simple to the incredibly complex. It may depend on the
concurrent or predecessor development of other items.
Pure and Applied Research
Non product oriented, it is for testing & information gathering
like chemical interaction between different component.
3. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 3
Section 1 Chapter 5: Engineering Role & Project Success
Applied research:
Typically carried out by the performing organization for enhancing
existing product or extending its applications.
Product, Project, and Process Life Cycles
The life cycle of a particular product/project will have a significant
influence on all design decisions, including producing plant and
equipment. ( Cars- buildings- factory)
Computer-Aided Design (CAD)/Computer-Aided Engineering (CAE)
In product, project, and process development, designers have been
aided significantly by the advent of computer-aided design (CAD) &
computer-aided E (CAE) software. (work station % software)
4. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 4
Section 1 Chapter 5: Engineering Role & Project Success
Computer-Aided Manufacturing (CAM)
Computer-aided manufacturing (CAM) provides the counterpart
advantages of CAD/CAE software to the factory floor. Design
information from CAD/CAE software can be ported directly into
CAM software design is sent directly to the machine.
Prototypes
Organizations will typically develop prototypes prior to large-scale
production, to test designs and also test customer reaction. It is a risk
mitigation approach.
Patents and Trade Secrets
It is concerned with investment protection. Typically, organizations
can protect this investment through either patents or trade secrets. In
the U.S., 17 years.
5. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 5
Section 1 Chapter 5: Engineering Role & Project Success
Product Liability: Sellers must be ware to not injure the buyer and
avoid litigation and compensations.
Product, Project, and Process Design
Standardization
It attempts to base product designs, in whole or in part, advantages;
decreases cost, time, and maintenance- while a default can spread over
a large number of the product.
Process Selection:
Process selection relates to the production methods chosen ,
continuous or discrete.
6. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 6
Section 1 Chapter 5: Engineering Role & Project Success
Process Selection:
Continuous, (less expensive overtime), like petro-chemical plants,
power plants and manufacturers with assembly-line methods, wire/cable
manufacturers and automotive manufacturers.
Discrete, any type of custom product, such as a concrete pre-cast plant,
structural steel fabrication shop, or machine shop. Some products will
envelope both methods, sometimes by the same organization. (structure
steel factory- assembly). It is using more labor, adding cost it may be a
privilege when labor are less expensive.
7. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 7
Section 1 Chapter 5: Engineering Role & Project Success
Manufacturability
Design should consider the issues of product design, and on issues of
manufacturing the design as well, design should be:
1. Forgiving of minor inaccuracies
2. Easy to fabricate
3. Based on efficient use of labor, materials, and equipment.
8. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 8
Section 1 Chapter 5: Engineering Role & Project Success
Constructability-
Designs can be developed and may make sense, from the designer‘s
viewpoint, but create significant problems in their construction.
Generally. Choosing welded vs. bolted connection in a steel structure
is a constructability review, the same may apply for precast
foundation or cast in place. The concept for improved constructability
is to increase the fabricated elements in a workshop and reduce such
casting and fabrication/assembly in the site where the labor cost shall
reduce and level of skilled labor is not a concern.
It is a market
orient topic in
KSA
9. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 9
Section 1 Chapter 5: Engineering Role & Project Success
Make or Buy Decisions
Decision-makers with are concerned with "make" or "buy" decisions-
when to sub-contract- or buy a part of the scope, fabricate, or
installation, rent equipment, installation( cost-time-quality-safety)-
For know how and trade secret the decision is make. The driver is
always quality in lower cost.
Engineering Production/Construction
Production Health and Safety
Personnel health and safety is paramount in any industry; as well as
from both a humanitarian and an economic standpoint. Incidents causes
disruption to the process and loss of labor time. Safety program shall be
considered in the processes to decrease/eliminate incidents.
10. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 10
Section 1 Chapter 5: Engineering Role & Project Success
Facility Layout:
The facility may be existing or new being built from the ground, it
needs design for the layout of the facility, to account for the labor,
equipment, inventory, material, transportation, future expansion is
also to be considered.
Assembly and Flow Process Charts
Assist in planning the facility layout and material flow and help to
analyze production operations in terms of operations sequences
performed, distances between operations, and operation time
requirements.
11. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 11
Section 1 Chapter 5: Engineering Role & Project Success
Quantitative Analysis in Facility Layout
Linear programming and Monte Carlo techniques can significantly
assist in facility layout and production decisions through modeling
and simulation.
• Linear programming is widely used to find optimal solutions to
problems it either minimize or maximize an objective function.
For example, material distances in a facility.
• Monte Carlo technique is used to simulate the waiting time for a
crane in a plant and relevant cost. The required data can be
generated through a computer software with random number
generators.
12. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 12
Section 1 Chapter 5: Engineering Role & Project Success
Reengineering:
• It is the fundamental rethinking and radical redesign of business
processes to achieve dramatic improvements in critical
contemporary measures of performance, such as cost, quality,
service, and speed. An example of reengineering might have your
supplier monitoring your inventory of their supplied item, since
they are better able to accomplish this task.
• Reengineering focuses on the optimization of the total
organization, rather than sub-optimization of individual
departments or units. It focuses with why not how.
13. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 13
Section 1 Chapter 6―Machinery, Equipment, & Tools
. Selecting, purchasing, tracking, storing, maintaining, and selling
machinery, equipment, and tools is an important project M
function that can greatly impact a project‘s cost and schedule.
Equipment Value Categories
Equipment values can be divided into two major categories:
1. Replacement cost (the cost new of an item having the same or
similar utility)
2. Market value (used equipment, secondary market value)
1. Replacement Cost,
Reproduction Cost―is the cost new of an identical item.
Fair Value―is the adjusted cost of a new item, considering the
cost of similar items, and taking into account utility and all
standard adjustments and discounts to list price.
14. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 14
Section 1 Chapter 6―Machinery, Equipment, & Tools
.Sources of Data:
Manufacturer selling price list, marketing and sales divisions,
Quotations, invoices, and signed contracts
Journals, trade seminars, and shows
2. Market value
Fair Market Value-in-Place―is the monetary amount that may
reasonably be expected for an installed property in an exchange
between a willing buyer & seller, with equity to , neither under
pressure/ to buy or sell and both are aware of all facts & info.
Fair Market Value-in-Exchange― Monetary amount that may
be expected for a property in an exchange between a willing
buyer & seller, with equity to both, neither under any pressure to
buy or sell, and both fully aware of all relevant facts.= retail value
15. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 15
Section 1 Chapter 6―Machinery, Equipment, & Tools
. 2. Market value - cont.
Orderly Liquidation Value― Estimated gross monetary amount
could be realized from a liquidation sale, given a reasonable
period of time to find a purchaser , with the seller being
compelled to sell on an as-is, where-is basis, as of a specific date
= wholesale value).
Forced Liquidation Value― Estimated gross monetary amount
that could be realized from advertised and conducted p u b l i c
auction, with the seller being compelled to sell with a sense of
immediacy, as-is, where-is basis, as of a specific date = “under
the hammer” or “blow-out” value).
16. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 16
Section 1 Chapter 6―Machinery, Equipment, & Tools
. 2. Market value - cont.
Salvage Value/Part-Out Value― Estimated monetary amount
that may be expected for the whole property or a component of
the whole property retired from service, can be reused.
Scrap Value― Estimated monetary amount that could be realized
for the property if it were sold for its material content, for
example, dollars per ton of steel or pound of copper.
Sources of data:
• Used items/equipment sales advertisements
• Used equipment show room
• Successful past transactions, invoices, quotation, PO, contracts
• Journals and date published
• Auction data and brochure and flyers.
17. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 17
Section 1 Chapter 6―Machinery, Equipment, & Tools
.
Valuation Examples- Subcategories of values
18. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 18
Section 1 Chapter 6―Machinery, Equipment, & Tools
.Market value Example:
SK6 page 57
19. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 19
Section 1 Chapter 6―Machinery, Equipment, & Tools
.
Trade Data/Cost Adjustments
Used equipment sales data is often inconsistent for the same or
similar pieces of equipment. To adjust/ normalize this
data, consider the following points, add deduct as appropriate:
Different years of manufacture (adding value for newer).
Different attachments, drive motors, etc.
Location of the sale (i.e., equipment sold in a prime market or?
Use (amount of wear/use).
Condition (one of the most important considerations).
20. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 20
Section 1 Chapter 6―Machinery, Equipment, & Tools
.Equipment Condition Terms and Definitions
Very Good (VG)— Equipment is in excellent appearance and
being used to its full design specifications without being modified
and without requiring any repairs or abnormal maintenance at the
time of inspection, or within the foreseeable future.
Good (G)— Equipment that was modified or repaired and is
being used at or near its fully specified use.
Fair (F)— Equipment used at some point below its fully specified
use, because of the effects of age and/or application, will require
general repairs and some replacement of minor elements in the
foreseeable future.
21. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 21
Section 1 Chapter 6―Machinery, Equipment, & Tools
.Equipment Condition Terms and Definitions
Poor (P)— Equipment being used at some point well below the
fully specified use. This equipment will require extensive repairs
and/or the replacement of major elements in the near future to
realize full capacity.
Scrap (X)—Describes equipment that is no longer serviceable and
cannot be used to any practical degree regardless of the extent of
the repairs or modifications that may be undertaken. This
condition applies to equipment that has been used for 100 %
useful life, or that is 100 % technologically/ functionally obsolete
22. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 22
Section 1 Chapter 6―Machinery, Equipment, & Tools
.Equipment Valuations
The task of evaluating and calculation of equipment residual values
(future values) for leases or life cycle costing depends on experience
and good data base.
Residual Value Curves:
i. Normal Curve: L shape long-lived equipment
ii. Disrupted-Market: U shape – regulatory impacts or shortage in
market.
iii. Regulatory Change Curve: Impact of regulation changes on
market value.
23. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 23
Section 1 Chapter 6―Machinery, Equipment, & Tools
.iv. High Obsolescence Curve: impact of technological development/
obsolescence( computers and mica-tronic equip).
v. New Tax Law/ High Inflation Curve: Tax laws – inflation can rise the
normal curve rapidly
SK6 page 60
24. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 24
Section 1 Chapter 6―Machinery, Equipment, & Tools
.Variables That Affect Residual Value:
Twelve items should be considered in estimating residual values:
1. Initial Cost: ( some times ignored), for residual purposes, the
estimator/appraiser should consider basing his or her residual
estimate on ‗hard costs‘ (new machine cost+ items needed for
operable machine, to make it operate, drives, motors, electrical
and controls. Items referred to as ―soft costs‖ that should not be
included. ( foundation, taxes, debugging, freight, installation).
25. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 25
Section 1 Chapter 6―Machinery, Equipment, & Tools
.Example:
A leasing company was presented with a transaction valued at $2.1
million. Subsequent investigation found the following:
1. The basic cost of the machine was $1.5 million.
2. The cost of foundations was about $400,000.
3. The cost of freight was $40,000. soft= 0.60
4. Taxes were $60,000.
5. Installation was estimated at $100,000 (all totaling $2.1 million).
Historical ―residual curve‖ indicated 30 % of the new cost at end
including soft costs, would equal $180,000 at lease term.
Total Cost: $2.1 million x 30% = $630,000
Hard Cost: $1.5 million x 30% = $450,000
Difference: = $180,000= could present a future shortfall/loss
For some instances, like facility lease or financing or life-cycle
costing-soft costs to be considered in determining residual values.
26. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 26
Section 1 Chapter 6―Machinery, Equipment, & Tools
Variables that affect residual value:
2. Maintenance—Maintenance adds significant value to the equipment
and its useful life, it affects the estimation/ appraising process for
residual value, leasing shall also consider maintenance.
3.Use/Wear and Tear— use/wear and tear is considered in estimating
residual values. Use of equipment in harsh service, versus mild service,
can be substantial. Most of the equipment work for 10-20,000.00 Hr.
then may need rebuild.
4. Population— Large sample, more data, will provide statistical
significance to the residual value.
5. Age— The equipment which is new in 2017 could be built in 2016,
both are considered new but with different price.
6. Economy— A used truck that sells for $35,000 in a strong(1-30d)
economy, sell for $18,000 in a recession(30-60d, add cost of money).
27. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 27
Section 1 Chapter 6―Machinery, Equipment, & Tools
7. Changes in Technology—These changes occur in every type of
equipment, some changes have a more profound impact on value,
analysis of technological changes, over the past 20 Yrs., shows that
future advances in technology were generally known at the time of
lease origination. Currently used scanners had reduced the time
necessary to ―fix‖ an image from minutes to one second.
8. Foreign Exchange— Factors that influence foreign exchange
include international trade relations and the international political
environment, strong foreign currency increases the equipment price
and its residual value as well.
9. Tax Law— Tax law can affect such things as build rates and thus
the supply on the secondary market.( Used equipment)
28. Nov. 2017CCP Cost Engineering Training 1011 BTA - Dr. Moustafa Ismail 2017 LEC- I 28
Section 1 Chapter 6―Machinery, Equipment, & Tools
10. Legislation/Regulation—
Although it cannot be predicted, a sense of future legislation can be
recognized, it can impact + or –ve.
11. Equipment Location— The location of equipment at the end of
the lease. Does the lessee require that the equipment be delivered to
a prime market location, or will it have to be sold in a remote area?
12. Method of sale – Cash- credit- LC- installments.
End of Variables that affect residual value