The Value Engineering (VE) success can be achieved in a variety of ways including
initial/life cycle cost Savings, improved performance, increased revenues and
enhanced image (Pucetas, 1998). The VE is the systematic
review of a project, product, or process to improve performance, quality and/or
life-cycle cost by an independent multidisciplinary team of specialists (NCHRP
Synthesis 352, 2005). The VE is known as a managerial method and useful
tool for cost management in the production process and it has been widely applied
in the various kinds of productive activities including the field of public
works (Ando, 2005).
The application of methodologies for the Value Management in such an industrial
environment as the automotive one, characterized by a product that presents
a high number of functions and components, is a complex process that involves
all the company since the contents introduced by these methodologies have an
high strategic relevance, it's been assumed that the approach could even be
imperfect, because of not considering all the sub-systems of a car, provided
the chance of implementation was very high (Darnir et
The VE increases value by reducing cost while retaining performance and customer
satisfaction Practitioners know this and can show managers and executives repeated
and presumably Compelling examples of success (Charles,
The VE process incorporates to the extent possible, the value of the major
stakeholders, these generally include the designer, construction engineer, maintenance
engineer, contractor, state and federal approval agencies, local agencies and
the public has been formally recognized as an acceptable review process in transportation
development (AASHTO, 2003). The application of Value
Engineering (VE) in the construction industry has been observed in a number
of countries around the world and is recognized as one of the most effective
methodologies for achieving best-value-for-money (Shen and
Liu, 2003). Since, its introduction, the development of Value Engineering
in construction has put the VE study objective far beyond its original intention,
which was seeking substitutes for materials in shortage. It is now also being
used to facilitate strategic decisions, to enhance communication and consensus
among stakeholders and to define the project scope (Barton,
2000). Since, overhead costs, general and administrative expenses and profit
are usually added to costs as a percentage of direct transport project costs,
it is imperative that estimate accuracy being with precise estimate of the materials
and labor hours required to the job (Peter, 2001).
The VE is understood to increase customer satisfaction and value to investments.
In enhanced assessment is seen that VE can be used also in improving the value
and optimizing the life cycle cost of a process and its practices (Pasi
et al., 1999). The VE is a professionally applied, function oriented,
creative and systematic team approach, used to analyze and improve value in
construction-a powerful methodology for solving problems and/or reducing cost
while improving performance and quality requirements (Pasi
et al., 1999).
Value Engineers are trained in saving money while improving the value of products
or services and hence improving the shareholders' value of large corporations
(Krishan et al., 1996).
This research applies VE for a local high-grade Main Road project. Present work started with the VE definition and finished with model VE (reduce cost, reduce time and increase quality) of improvement project in implementation. The aim of the study is to verify the effect of VE as a valid approach for Main Road improvement projects and to develop the VE technique in this procedure.
MATERIALS AND METHODS
Time cost and quality: The time, cost, quality triangle is commonly
used in Value Management workshops as a Tool to elicit from the client their
value criteria. The Facilitator commonly asks for team Consensus on the position
of the dot that indicates the teams relative value criteria in Terms of
the three variables, time, cost and quality. Invariably this discussion commences
With client stating all are important and therefore, the dot should be in the
centre. It is only after protracted discussion that the position of the dot
tends to move. Figure 1 illustrates a time cost quality triangle
for a proposed new court project. The dot indicates the result Of a discussion
in which the team agreed that quality is more important than cost and that Time
is not important in the context of a replacement for an existing court. In this
study, it is proposed to take three variables of cost, time and quality and
discuss them in relation to VE with the intention of decide a method of measuring
the clients value system (John and Steven, 2001).
|| Example time, cost, quality triangle
Data collection: The data for this research were gathered through main road which constructed in Iran country to number 30 projects from year 2003 until 2009 and base total project for length kilometer (KM) and for time month (M) optioned (Appendix). Also the questionnaire includes Value Engineering (VE) and quality that by consultant and employer and contractor to them answered. All this data will be stored and analyzed by using software R. The main purpose of usingR to analyze the data is to create a result for achieve to model Value Engineering. After fitting a multiple regression model on data which value engineering as a dependent (response) variable and the dependent (explanatory) variables includes time, cost, quality the regression model is significance at the level of 95 percent with the p-value = 5.322e-09. The multiple R-square for this model is = 0.79 which means 79% of variance of value explained by these variable.
The parameters which can be included in the model with the significance level of 95 and p-value = 5.322e-09 < 0.05. Therefore final model achieved in following shown.
Multiple linear regression method: The results of analysis are obtained as shown in following. Analysis, the Value Engineering prediction model for Main Road Construction according following equation:
The model has an R-square of 0.79, which means that 79 % of the variation in
the number of VE has been explained the regression line. The t-test also indicates
that the model is significant and can be used for the prediction of the number
of VE in Main Road Construction. This study developed model value engineering
in main road construction which might bring about a decrease in construction
cost and time and an increase in project quality. But the other variable cannot
be included in the model (since their p-value are greater than 0.05).
RESULTS AND DISCUSSION
Relationship between VE and cost, time, quality: Fig. 2 the
relationship between Value Engineering and cost shows that with reducing costs
value Engineering increased and Considering the linear equation Y = -0.000004X+4.8507
shown that with Reducing the costs value construction in projects linear form
of increased and in Fig. 3 relationship between Value Engineering
and time shows that with reducing time, Value Engineering increased also in
Fig. 4 VE versus Time equal: Y = -1.3042X+6.9652 shown that
with Reducing the time value construction in projects increased.
|| Use of value engineering techniques with method brain storming
in construct highways
|Source: (FHWA. 2002)
|| The usage linearity between VE and cost
And in Fig. 3 shows that with increase quality, Value Engineering
increased and this equation Y = 0.1205X+3.2922 Confirming. meaning in per KM
reduce cost and time In according previously research (Table 1)
more than twenty paper studied in more them usage technique VE for reduce cost
and time also increase quality according to recommendation engineering experiences
and project manager to method brain storming presented but this model (VEMRC)
to accuracy control analyzed and this model for other project responses.
For example, statistics and results presented proposed change to the method
VE in office Federal Highway Association (FHWA, 2002)
in recent years in Table 1 is shown below that usage VE during
years 1997 until 2004 to method brain storming growing trend and had a good
and compared with model achieved which in this model reduce time and cost also
is increase quality in projects whereas, in evaluation project by FHWA more
focus on cost reduction.
|| The usage linearity between VE and quality
|| The usage linearity between VE and time
Reasons for Use VE: Usage of VE Project complexity is the most influential
in construction Main road. Also strong influencing factors (cost, time and quality)
affecting usage. The characteristics of the data collected for effect of VE
in construction main road. The results show that the cost related process is
the most important in the project then quality in finally time. The achieved
high value in construction projects main reason usage VE is projects also with
utilization and with use of this technique employers can more money save.
The model in this study can in the evaluates the projects performance of VE study. By reduced cost, reduce time and increase quality which in this model for per KM using of technique VE that achieved: VEMRC = 3.836-0.2099T-0.0000033396C+0.334 Q. Therefore, this model tested for another project and can be used for other projects also in this research Linearity between VE with cost, time and quality as separately calculated and shown. To evaluate the effects of a VE study needs to consider not only the final economy but also the reciprocation relationship between VE with time, relationship between VE with quality and then study reciprocation between the expeditor and the project participants.
However, VE, Main Road projects are reviewed and opportunities for better, less expensive means of completing the projects are analyzed. The intention is to improve project quality and productivity, foster innovation, optimize design elements and ensure overall economical costs. The goal of a VE study is to achieve performs excellence. Its objectives are to improve quality, minimize total ownership costs and decrease construction time.
Authors would like to thank the Ministry of Highway of Iran and also the consultant companies in Iran