Value Engineering
Design Concepts
What is Value Engineering (VE)?
Value engineering is used to solve problems and identify and eliminate unwanted
costs, while improving function and quality.
The aim is to increase the value of products, satisfying the product’s performance
requirements at the lowest possible cost.
Value engineering involves:
● Identifying the main elements of a product, service or project.
● Analysing the functions of those elements.
● Developing alternative solutions for delivering those functions.
● Assessing the alternative solutions.
● Allocating costs to the alternative solutions.
● Developing in more detail the alternatives with the highest likelihood of
success.
It’s History
● It is a methodology developed by Lawrence Miles, who worked for the
General Electric Company in the USA during the Second World War
● The war caused shortages of certain materials an products. BUT
production did not stop, so new ideas on how to solve this were
needed.
● There was a need to replace materials that were unavailable with
materials that performed the same function
Value = Function/Cost
Value is defined as containing two components, function and cost:
■ Function: a measure of the the performance capabilities of the product, service, or
project. example “achieve traffic flow across the river.” In practice value engineers
look at many different functions that the bridge serves, like accommodating floods,
passengers, bicycles, endangered turtles, emergency vehicles, the sun on the
horizon, and anything else that serves in a functionary capacity.
■ Cost: The resources required to achieve the function. This can include materials,
tools, price, time, or anything that is required to achieve the functional specifications.
Project value is increased when the function is increased, the cost is decreased, or both.
Alternatively, the function and cost could both be increased or decreased, as long as the cost
becomes proportionately less to the function, the value will increase.
Value Study
A Value Study attempts to improve the value of a project using value engineering
methodology.
Typically, a value engineering team meets for 1-3 weeks, during which they work
through the “job plan” as outlined by the standard.
According to the Value Methodology standard, there are 6 phases to a Value
Study:
1. Information
2. Function Analysis
3. Creative
4. Evaluation
5. Development
6. Presentation
Six Steps in a Value Study
● Information: During the initial phase, the team gather information about the project.
including important details about the owners’ objectives, key criteria, and definition of
value.
● Function Analysis: Primary, reason for the project’s existence, and secondary
functions, those that the project serves without being core to the project, are listed
● Speculation: data studied and brainstorms as many ways as possible to reduce initial
or lifecycle cost while still maximizing function.
● Evaluation: The team evaluates ideas produced during brainstorming.
● Development: Ideas are further developed into workable proposals. Each
recommendation will be accompanied by a short narrative with a list of the positive and
negative aspects of each proposal along with cost comparisons.
● Presentation: Lastly, the team makes a formal written presentation of their findings
accompanied with an oral presentation to clients.
Benefits of a Value Study
● Held during the initial planning stages,
● the time spent on the workshop has little impact on the final project schedule and
redesign costs.
● The independent team brings a fresh perspective to the project based on their
professional construction experience.
● Clients who defined the initial criteria for value in the information phase experience
increased satisfaction with the finished product at a reduced overall project cost.
● In the end, the project generally has fewer changes and delays throughout the
construction process and greater functionality and value for the end client.
● The project team can bring positive environmental and social impact solutions to the
table including methods for reducing the carbon footprint of transportation, building, and
operation as well as suggestions that positively affect the safety and wellness of the
surrounding community.
When it goes wrong!!!
Speaking in October 2018, in the aftermath of the Grenfell Tower fire, Dame Judith
Hackitt, author of the Hackitt review of the building regulations and fire safety, final
report, criticised the industry for value engineering, saying it is a phrase she would
be “..happy to never hear again. It is anything but value, it is cutting costs and
quality.”
According to Hackitt, ridding the industry of value engineering would be one part of
a necessary culture change that the industry has woken up to after the Grenfell
tragedy, and that "needs to be embraced to deliver buildings that are fit for
purpose."
She said: “People are looking for quick fixes but they need to understand that root
and branch reform is required. This has to be a turning point to bring about the
culture change we need.”
Grenfell tower
● Just before 01:00 on 14 June, fire broke out in the
kitchen of a fourth floor flat at the 23 storey tower
block in North Kensington, West London.
● A total of 65 people were rescued from the building
by firefighters.
● But in desperation, other residents went upwards and
sought refuge in flats of friends and neighbours on
the upper floors. Twenty-four people died on the top
floor of the tower block.
● By 02:10, multiple internal fires could be seen
burning inside the building
● At 02:22 fire had spread to the south side of the
tower and by 02:30 it was reported that the eastern
side of the building was "fully involved in fire".
Grenfell tower
● The stay put advice was finally abandoned at
02:47, when the incident commander gave the
order to "advise people to make efforts to leave
the building."
● Counsel to the Grenfell inquiry Richard Millet QC
told the 4 June hearing that 144 people managed
to evacuate before 01:38, but only 36 after the
stay put guidance was abandoned.
● By 02:51, the fire had reached the western side.
At this point, some 63 flats were on fire and more
than 100 people remained in the building.
● At 04:30 the whole building was engulfed, with
more than 100 flats on fire.
● Seventy-two people died
Your investigation
Please find the answers to these questions write them up
and add them to your sketchbook or folder. The exam will
ask you about value engineering
1. How did the fire start
2. How did the fire spread?
3. What caused the fire to spread so quickly?
4. Grenfell was recently renovated, what did this include and at what
cost?
5. Did Value Engineering Fail in it job to cut costs but maintain
function?
6. What changes would you make to the implementation of Value
Engineering to prevent this from happening again?