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Value Engineering Management

For The Construction Industry


Value Engineering Management for the Construction Industry

Value Engineering Management has been increasingly applied in the construction industry to achieve the best overall design at optimal cost for main and substructures of buildings to achieve:

a) Whole Life Cycle Cost Objective
b) Operational Traffic Movement Optimality
c) Space Sufficiency
d) Waste Reduction to avoid Budget Overruns
e) Project Cost Allocation according to system requirements to meet the needs of clients

Getting the best value for money is an important consideration in the evaluation of System Unit Functionality. Other considerations and evaluation criteria such as Design Reliability, Durability, Maintainability, Operability, and Energy Utility Usage have to be included for assessment.

At the planning design stage, the key performance indicators for construction projects include:

a) Overall Project Life Cycle Cost
b) Overall Project Life Use Contribution
c) Traffic Flow Optimality
d) Space Usage Optimality
e) Short Turnaround Cycle Time for Clients
f) Facility Availability
g) Occupancy Utilization

to achieve the Project Overall Life Cycle Objective


Meeting The Requirements For Lean Management

The application of Value Engineering Management is a systematic way of assessing the value of large scale construction projects. Today, many systems are designed to meet functional needs as well as the requirements for LEAN.

Lean requirements specifically affect the Business Activity Workflow and this will impact the Flow Layout of the many functional activities of the enterprise. As briefly mentioned above, the Lean Layout would also consider the following:

a) Space Adjacency
b) Traffic Flow Optimality
c) Space Utilization
d) Turnaround Time for Users
e) Occupancy Utilization
f) Facility Availability


This is a complex System Tool that breaks down the Mission Objective of an enterprise into System Functions to establish Main Functions, Sub-Functions, and Auxiliary Functions according to Priority Ranking of Importance. This breakdown is supported by analysis into capacity and capability to determine the functional fit of the system units.

Further refinement includes factoring in the requirements for Lean Workflow which would affect the layout, etc. Finally, Project Feasibility is based on potential whole life benefits measured against Whole Life Cycle Cost.

The information outlined above gives a very clear outline approach to applying Value Engineering Management in Construction.

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