VALUE ENGINEERING CONCEPT-A BRIEF IN CONSTRUCTION INDUSTRY-AKSHAY R MANOHAR 8th Semester SJMIT Chitradurga.

1. CONCEPT OF VALUE ENGINEERING
Guidance:
Sri P.G subramanya
Lecturer
Department of Civil Engineering
SJM Vidyapeetha (R)
SJM INSTITUTE OF TECHNOLOGY
NH 4 Bypass
CHITRADURGA -577502
2013-14
by:
AKSHAY R MANOHAR
8th semester
Aff. to VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM

2. CONTENTS
• Defining value engineering
• Value methodology
• Concept of value
• Process
• Application
• Conclusion

3. What is Value Engineering?
• Value Engineering (VE) is an intensive,
interdisciplinary problem solving activity that
focuses on improving the value of the
functions that are required to accomplish the
goal, or objective of any product, process,
service, or organization.
• Function oriented focus on reasonable cost
while maintaining same performance.

4. • Value Engineering is a function oriented, systematic team approach and
study to provide value in a product, system or service. Often, this
improvement is focused on cost reduction; however other important areas
such as customer perceived quality and performance are also of
paramount importance in the value equation.
• Value Engineering techniques can be applied to any product process
procedure system or service in any kind of business or economic activity
including health care, governance, construction, industry and in the
service sector.
• Value Engineering focuses on those value characteristics which are
deemed most important from the customer point of view.
• Value Engineering is a powerful methodology for solving problems and/or
reducing costs while maintaining or improving performance and quality
requirements.
• Value Engineering can achieve impressive savings, much greater than what
is possible through conventional cost reduction exercise even when cost
reduction is the objective of the task.

5. VALUE METHODOLOGY
• “The systematic application of recognized
techniques which identify the functions of the
product or service, establish the worth of
those functions, and provide the necessary
functions to meet the required performance
at the lowest overall cost.”

6. Concept of Value
FUNCTION
VALUE = ----------------
COST

7. FUNCTION
• 1. What is the purpose of the project or
element?
• 2. What does it do?
• 3. What does it cost?
• 4. What is it worth?
• 5. What else could do the job?

8. VALUE
1. Cost Value – Cost of Manufacturing a product
/ component.
2. Use Value – Functional value / Service
rendered
3. Esteem Value – Appearance value
4. Exchange Value – It is exchanged for
something else.

9. COST
A comprehensive list of five specific causes of unnecessary costs.
1. Cost -Unnecessary attributes Failure to examine attributes which cause no
useful function
2. Cost -Unnecessary specification Failure to examine specifications due to
needlessly expensive materials/components .
3. Cost -Poor build ability ,Failure to consider construction implications during
design
4. Cost – Lifecycle Failure to consider future operational costs
5. Cost – Opportunity Failure to consider the cost of losing potential revenue

10. PROCEDURE
1. BLAST
Identify the problem
Collect the relevant information
Define different functions
2. CREATE
Create different alternatives
Critically evaluate the alternatives
3. REFINE
Develop the best alternatives
Implement the alternatives

11. Value Engineering helps you to learn
how to :
• Improve your career skills
• Separate "Symptoms" from "problems"
• Solve "root cause" problems and capture
opportunities.
• Become more competitive by improving
"benchmarking" process.
• Take command of a powerful problem solving
methodology to use in any situation.

12. APPLICATION OF VALUE ENGINEERING IN
DIFFERENT CONSTRUCTION PROJECTS OF INDIA

13. conclusion
• Cost, performance, better quality, production
can be increased with VE technique.
• Step by step process made simple.
• Satisfaction that best alternative is chosen.
• Can be applied to all aspects......
• Economy of the country can be increased.

14. References:
• value engineering : A how to manual by s.s.Iyer.
• A REVIEW ON VALUE ENGINEERING TECHNIQUES IN INDIAN CONTEXT:NEETU B.
YADAV1, RAKESH KACHA2, NEERAJ D. SHARMA3 & HIREN A. RATHOD4
• 1,2M.E.Student (Construction Management), S.N.P.I.T. & R.C, Umrakh, Bardoli,
Gujarat, India.
• Value Engineering in Government and Private Sector Construction: William J.
Simpkins UNIVERSITY OF FLORIDA
• VALUE ENGINEERING FOR SMALL TRANSPORTATION PROJECTS :byJennifer Anne
Clark.
• Case study: An Introduction to VALUE ANALYSIS AND VALUE ENGINEERING for
Architects, Engineers, and Builders By Muthiah Kasi, C.V.S. Senior Vice President
Alfred Benesch & Company Chicago, Illinois.
• CASE STUDY: Value Engineering Report Ordot Dump Closure, Guam TG Engineers,
P.C. and Value Management Strategies, Inc.

15. Thank you