T022 Design Economics And Cost Planning Ve&vm Rics Apc

Front 1

What do you understand by the term VE?

Back 1

Value Engineering

An organised approach aimed at providing the necessary functions at the lowest cost, without detrimental affect to quality, reliability, performance or delivery

Front 2

What do you understand by the term VM?

Back 2

Value Management: Concerned with making explicit what value means to a client.

Concerned with early stages of design e.g. to ensure the need to build is verified.

VM aims to ensure that the right decisions are made the first time.
VE used to correct decisions when things go wrong

Front 3

What is value, what does value mean?

Back 3

Complex concept, Measure of worth, a relative measure of uselfulness of something in relation to the cost paid for it.

Front 4

When does the VE/VM process occur?

Back 4

Concept- VM Workshop 1
Feasibility- VM Workshop 2
Scheme design- VE
Detailed Design- VE

Front 5

What happens during the VE process?

Back 5

Design team brought together: QS, Arch, Eng, Contractor
Pool expertise, guided by a team leader
Higher chance of identifying and solving problems at an earlier stage- better value for money
Not a cost cutting exercise, this leads to reduced quality and value.

Front 6

What are the phases of the VE process?

Back 6

Information phase: Functional analysis of component: FAST diagram
Speculation phase: creative thinking techniques: BRAIN STORMING
Evaluation Phase: Evaluate solutions (Cost and Feasibility) List of Options
Development Phase: Detailed development of surviving ideas and interfaces: LCC techniques
Presentation Phase: Best solution identified and recommendation made: Written/ oral report.

Front 7

What is a VE workshop?

Back 7

Can be 40hr (working week) workshop or series of mini workshops or 2 day workshops.
40hr: Entire team/ neutral venue/ intensively work on design proposals
Mini: facilitator joins DT at briefing stage & remains throughout.
2 day: Most common in UK
NOTE: Detailed development work better tackled outside workshop

Front 8

When does VE occur?

Back 8

Stage C- CONCEPT (NOTE LATEST RIBA PLAN OF WORK 2007)
Stage D- Design Development
In practice VE studies are commissioned when things go wrong
Limits ability to make better and more effective design solutions

Front 9

What are the limitations of VE?

Back 9

Assumes all parties have a common understanding of functions being provided.
Assumes all feasible design alternatives provide same level of functional performance
THEREFORE assessed on basis of cost alone.

Front 10

Why is VM needed?

Back 10

Aim is to reach agreement of exactly what the nature of the problem is.
A shared understanding of what is being sought: Design objectives.
Construction clients are different groups with different priorities: If agreements are not reached on exact requirements then chances of project perceived as a failure increase.

Front 11

Can you explain to me the VM process?

Back 11

Workshops held where Client must make important decisions
VM 1- concept: The need to build, clear objectives set that are structured in a value tree
VM2- Feasibility: Outline brief complete, outline brief costed.
Review schemes and score against weighted objectives
Assess capital cost to determine options for best value for money.

Front 12

What is a value tree?

Back 12

BRAINSTORM: Everything that is required to ensure a certain level of value is obtained.
Primary objective--- sub-objective--- sub-sub objective
Members need to agree that the value tree is a fair representation of design objectives.
Weights applied to each branch of the tree.

Front 13

Can you give me some benefits of VM?

Back 13

1) Need for new investment is always verified and project goals are clearly defined.
2) Objectives and decisions are openly discussed and explicitly stated.
3) The Evaluation and re-evaluation frameworks are structured, rigourous and rational
4) Decisions are supported by data and made on the basis of defined performance criteria
5) Accountability is increased
6) Alternative solutions are always sought and considered
7) Business decisions are made with greater confidence
8) Potential for increasing value for money
9) Communication, understanding and teamwork can be improved and disseminated throughout the organisation.
10) Participation by all key stakeholders increases the likelihood of satisfaction with the end product.
11) Opportunities for long term profitability and continuous improvement are enhanced.