Value engineering is a technique that uses a set of skills and methods to identify unnecessary costs in a systematic way. It aims to improve value through cost reduction without sacrificing quality, usefulness, or customer satisfaction. The value engineering process involves gathering information, functional analysis, developing alternatives through creative techniques, evaluation using tools like decision trees and matrices, and implementation. A case study demonstrates using ANP software to evaluate alternatives for establishing a cost control department, identifying creation as an independent department as the preferred option.

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.

3. VALUE ENGINEERING
Function
+
+ Revenue + Quality
Value=
Cost

4. COST VS VALUE

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

7. EVALUATION OF ALTERNATIVES

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)

12. DECISION NETWORK

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

17. WEIGHTED MATRIX

18. RESULT

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%