The Technique of Value Engineering (VE) in Architecture - Revision history

Adeli: /* Big Idea */

2022-03-27T18:28:59Z

Big Idea

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	[[File:PhasesDiagram.jpg\|thumb\|The 8-phases according the SAVE Value Methodology Standard\|right\|750px]]		[[File:PhasesDiagram.jpg\|thumb\|The 8-phases according the SAVE Value Methodology Standard\|right\|750px]]

	The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. "The value engineering team has four to six members with complementary expertise in different disciplines."<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> "This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation."<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>		The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. "Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines."<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> "This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation."<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

	"The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved."<ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:		"The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved."<ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:

Adeli: /* Implementation Phase */

2022-03-27T18:24:09Z

Implementation Phase

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	''Realization of the Selected by the Client’s Ideas''		''Realization of the Selected by the Client’s Ideas''

	This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>		This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be "incorporated into the implementation plan before this begins." <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

	== Benefits & Limitations ==		== Benefits & Limitations ==

Adeli: /* Evaluation Phase */

2022-03-27T18:23:19Z

Evaluation Phase

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	''Ranking the Ideas''		''Ranking the Ideas''

	In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.		In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. "The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase." <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

	==== Development Phase ====		==== Development Phase ====

Adeli: /* Creative Phase */

2022-03-27T18:22:05Z

Creative Phase

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	''Production of ideas which correspond the needs''		''Production of ideas which correspond the needs''

	Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>		Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. "They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders." <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

	==== Evaluation Phase ====		==== Evaluation Phase ====

Adeli: /* Definition of Value */

2022-03-27T18:19:29Z

Definition of Value

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	'''Value = Function Performance / Resources - Cost'''		'''Value = Function Performance / Resources - Cost'''

	The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>		The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, "quality, reliability, availability, maintainability, service ability" could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

	==== Key Principles ====		==== Key Principles ====

Adeli: /* Definition of Value */

2022-03-27T18:17:28Z

Definition of Value

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	==== Definition of Value ====		==== Definition of Value ====
	According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.		According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it "is the reliable performance of functions to meet customer needs at the lowest overall cost" <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

	'''Value = Function Performance / Resources - Cost'''		'''Value = Function Performance / Resources - Cost'''

Adeli: /* Big Idea */

2022-03-27T18:15:11Z

Big Idea

← Older revision		Revision as of 18:15, 27 March 2022
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	The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. "The value engineering team has four to six members with complementary expertise in different disciplines."<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> "This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation."<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>		The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. "The value engineering team has four to six members with complementary expertise in different disciplines."<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> "This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation."<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

	The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:		"The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved."<ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
	'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''		'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Adeli: /* Big Idea */

2022-03-27T18:14:44Z

Big Idea

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	[[File:PhasesDiagram.jpg\|thumb\|The 8-phases according the SAVE Value Methodology Standard\|right\|750px]]		[[File:PhasesDiagram.jpg\|thumb\|The 8-phases according the SAVE Value Methodology Standard\|right\|750px]]

	The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>		The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. "The value engineering team has four to six members with complementary expertise in different disciplines."<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> "This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation."<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

	The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:		The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:

Adeli at 18:24, 20 March 2022

2022-03-20T18:24:39Z

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	''Developed by Aikaterini Deli''		''Developed by Aikaterini Deli - s212459''

	Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.		Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Adeli: /* Key Principles */

2022-03-20T18:24:04Z

Key Principles

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	==== Key Principles ====		==== Key Principles ====
	According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:		According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
	~~::::::::::::~~'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''		'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

	It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.		It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.