New age construction projects call for a 360-degree success—there is an increasing focus on the value of the project. Although the term “value” is synonymous with cost or budget, it differs in the way that it evaluates the best case scenario for a project by taking both cost and performance into consideration. Value engineering is a strategic approach towards a project that helps it reach the peak of performance at low cost with the help of better engineering systems—without compromising on the quality benchmark, aesthetic values and time constraints.
In other words, good value engineering:
- Covers the project’s scope of work
- Stays within the budget allocated
- Avoids delays with on-time completion
It also considers factors such as
- Heat exchange
- Wastage etc.
In addition to the above, value engineering reviews the concept of investment on a long-term basis and stands for the entire lifecycle of a project.
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Basics of Value engineering
Value engineering is a disciplined approach towards a project’s progress that achieves maximum efficiency with a minimal use of raw materials, workforce and other resources involved in a project. When done in the initial phase of a project, value engineering opens up a number of benefits for all the stakeholders. Some of the key benefits include:
- High return of investment due to early planning
- Better contingencies in case of unprecedented market risks
- Efficient benchmarks to support the vision of the future projects
Along with these characteristics, a good value engineering is also expected to protect:
- The overall quality of the project
- The aesthetic value of the project
- The scope of the project, among others.
The extensive process is carried forward by a multi-disciplinary team that works on a strategic yet creative alternative to an existing solution by working on the selection of materials and equipment, choice of methodologies etc. whilst meeting the primary objectives of the project.
Not able to get a clear idea of how it will benefit your project? Have a look at the successful projects by SSACT that came out as a result of such a rigorous process. Click here.
Understanding Value engineering behind smart projects
Smart projects conceived in today’s world call for a stringent value engineering process that involves all stakeholders including Architects, Engineers, Designers, Estimators etc. to come together for formulating a broad, empirical process. This involves several steps that include:
In this first step of the value engineering process, all information required to understand the project is collected as in a data collection method.
- Function Analysis
In this second step of the value engineering process, the focus is on identifying the functions of the project with respect to its goals or milestones.
In this third step of the value engineering process, a brainstorming session is conducted for generating ideas that create the best approach for the project.
In this fourth step of the value engineering process, a detailed evaluation of the ideas is done for determining the best value and success outcomes for the project.
In this fifth step of the value engineering process, a review is done to arrive at the best alternatives, whilst developing strategies for improving the project value.
In this sixth step of the value engineering process, the decision is presented to all stakeholders for their acknowledgement of the approach.
In addition to the above steps, a set of conditions are ensured in a project so that it becomes as efficient and challenging as the other projects conceived in this competitive field (or even better than them).
A smart construction project’s value engineering:
- Stays up-to-date with new materials launched in the market
- Employs time-saving, state-of-the-art techniques with advanced equipment
- Follows an independent review process that prioritizes project-specific requirements E.g. Time constraints or decision-making situations in large-scale projects
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The Ideal Performance-cost curve
Value engineering is a systematic process that achieves a balance in the performance-cost curve of a work in progress—the desired outcome has always been “low cost, high performance”. This simple curve, when calculated before the commencement of a project and tracked along its due course, helps us compare and present data at any given point of time.
Although mathematically, value is seen as Value = Function / Cost,
Statistically, project managers employ flowcharts and bar graphs to identify the desired outcomes and prove the efficiency of the methods employed by them.
In short, a distinct performance-cost curve ensures that a project is fit for purpose and that the project manager has done a good job.
Choosing the best project managers
The complexity of Value engineering process requires an avid project management team that has proven expertise in the area. The project manager or the team lead is expected to give direction to the team and ensure that both time and effort are saved (and not wasted) by the time of completion of the project. On the whole, the team is responsible for accomplishing a set of methods under a valuable approach that best responds to the requirements of the project.
At SSACT, we believe that every project is a unique challenge. We approach such new challenges with the tried and tested systems of SSACT that help us devise the best possible solution for the project.
“SSACT takes ownership of the project and strives to align the interests and aspirations of multiple stakeholders involved in successful completion and sustainable operations.”
Read more about our “values” here.
Do you find our processes interesting? Discuss your project with us and see what else we can offer.