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Value Engineering example

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    MWCI-MWSIEd Bausa

    Dom DalanginPhilip BalingitMark Calura

    June 20, 2014

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    Scope of Study The group focused on the existing design of the

    pumping station.

    Architectural / Building LayoutsCivil Layouts

    Equipment Selection

    Piping SystemElectrical System

    Instrumentation

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    Objective of the Study To continuously innovate the design of the

    pumping station to reduce the cost without

    affecting the quality of the facility.

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    Information Phase To assist the VE team to understand the background

    and decisions that have influenced the development ofdesign engineer presented an overview of the project

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    Initial Drawings

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    Initial Drawings

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    Cost SummaryItem Major Unit Original Estimate(in Millions) % Weight(Cost)

    1 General Requirements 1.1 2.6%

    2 Site works 1.2 2.8%

    3 Concrete 4.9 11.5%

    4 Building works 2.6 6.1%

    5 Mechanical Equipment 8.3 19.4%

    6 Mechanical piping 16.2 37.9%

    7 Electrical 7.6 17.8%

    8 Instrumentation 0.8 1.9%

    Total 42.7 100.0%

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    Functional AnalysisSub Component

    FunctionAction

    Verb Noun

    Site work Provide Access B

    Electrical Distribute Energy B

    Instrumentation Control Process B

    Mechanical Piping convey water B Develop

    Building Works House Equipment B Develop

    Control room/office support process S Develop

    Flow metering measure Flow B Develop

    B - Basic function,S - Secondary function

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    Potential for cost savings, initial only

    Enhances operations and maintains mobility

    Meets needs and satisfies desires of users, owners and

    stakeholders

    Safety, including work zone safety

    Feasibility and constructability

    Potential for implementation

    Engineering judgment and experience

    Performance measures are clear and well defined in the

    advantages and disadvantages

    Criteria for Evaluation

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    Creative Phase / Evaluation Phase

    CREATIVE EVALUATION

    NO. IDEA ADVANTAGE DISADVANTAGERATING

    S

    1Relocate valve near the SAV

    chamberReduce cost in civil works None 8

    2 Remove Manual Butterfly ValveReduction in cost without

    effect in operations

    No isolation during

    replacement of

    motorized valve

    6

    3 Replace Fittings from Tee toElbow

    Reduction in cost withouteffect in operations

    No room for

    expansion on one

    side8

    4Removal of 3 units of pressure

    gauge and transducer

    Reduction in cost,

    monitoring can be done on

    one unit of pressure gauge

    and transducer since the

    line is gravity fed.

    No individual

    monitoring6

    5Lower ceiling height from 4m to

    3mReduce cost in civil works None 10

    6Replace roof deck to truss roofing

    and insulationReduce cost in civil works None 10

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    CREATIVE EVALUATION

    NO. IDEA ADVANTAGE DISADVANTAGE RATINGS

    7 Remove guard house Reduce cost Security issues 6

    8Replace Guard house to Guard

    PostReduce cost

    Mobility of security

    personnel6

    9 Add CCTVSecure facility;

    OPEX reductionAdditional cost 8

    10Reduce number of parking

    from 6 slots to 4 slotsReduce cost None 7

    11Change monorail to A- frame

    during maintenanceReduce cost Ease of maintenance 8

    12 Remove ACU Reduce costIncrease risk indamaging the

    equipment

    1

    13 Change type 1 to type 2 Reduce cost Security Issue 6

    Creative Phase / Evaluation Phase

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    Item No. Description

    Cost

    Reduction

    (in Million)

    Addition

    (in Million)Total Cost

    1Relocate valve near the SAV

    chamber-0.4 -0.4

    2

    Replace Fittings from Tee to

    Elbow -0.15 0.05 -0.1

    3Lower ceiling height from

    4m to 3m-0.3 -0.3

    4Replace roof deck to truss

    roofing and insulation-4.0 2.0 -2.0

    5 Add CCTV 0.2 0.2

    6Reduce number of parking

    from 6 slots to 4 slots-0.07 -0.07

    7Change monorail to A-

    frame during maintenance-0.15 -0.15

    Total -5.07

    2.25

    -2.82

    Cost of Proposed Changes

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    Item No. Description

    Cost Savings

    Original Cost

    Proposed

    cost

    Total Cost

    Savings

    1General

    Requirements1.1 1.1 0

    2 Site works 1.2 1.2 0

    3 Concrete 4.9 2.13 2.77

    4 Building works 2.6 2.6 0

    5Mechanical

    Equipment8.3 8.15 0.15

    6 Mechanical piping 16.2 16.1 0.1

    7 Electrical 7.6 7.8 (0.2)

    8 Instrumentation 0.8 0.8 0

    Total 42.7

    39.88

    2.82

    Cost Summary

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    SUMMARY The VE team used the model to identify areas of high

    potential initial cost savings. The VE team identified 13ideas and 7 of which are identified for

    implementation with a potential cost savings ofapproximately 2.82 million based on evaluatingperformance and cost.

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    SUMMARY

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    SUMMARY


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