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Application of Value Management in Construction Industry | | |

Value Engineering
“The systematic application of recognized techniques by multi-disciplined team which identifies the function of a product or process, establishes a worth for the function, generates alternatives through creative thinking and provides the needed function reliably at lowest overall cost.”
Value engineering tries to provide appropriate functions at appropriate cost maintaining performance, quality, reliability or maintainability and safety.
VE analyzes a function or method by asking such questions as: * What it is? * What does it do? * What must it do? * What does it cost? * What other material or method could be used to do the same job? * What would the alternate material or method cost?

The essence of value engineering lies in the following four points: 1. Focus on Function
Value engineering is the function oriented revision design, and hence facilitates deeper thinking. It is not cost reduction or cheapening process.

2. Step by Step approach
Value Engineering is a step by step approach aimed at achieving desired function. The whole Value Engineering workshop involves following basic steps to be followed: * Project Selection Phase * Information Phase * Function Analysis Phase * Creative Phase * Evaluation Phase * Recommendation Phase * Implementation Phase * Feedback to Management

3. Emphasis on creativity
In the creativity phase, participants suggest alternatives for evaluation, development and refinement before adoption and implementation. The advantage of emphasis on creativity is that new development in technology and alternative material is considered for further analysis and evaluation.

4. Multidisciplinary team work
Value engineering workshop involves a multidisciplinary team to participate in. Involvement of key persons responsible for designing and implementation of project have certain advantages.
Multidisciplinary team generates more creative ideas through brainstorming for discussion and further analysis.
The team for value engineering workshop for any construction project may involve: Project Manager, Architect, Structural designer, Estimator, Contractor and owner with a team leader, who have value engineering knowledge and able to lead the whole team.

Value Engineering: Need

* All designs have unnecessary costs
Studies invariably show that all designs have unnecessary cost regardless of how excellent the design team may be. Design of construction projects are complex. They require investment, experience and talented people. There are many hidden costs which are impossible to find out without a value engineering review of design. The value engineering improves design by viewing them from a parallel yet discrete viewpoint. * Poor value creeps in the project
Following are the reasons: * Lack of time
Every architect and engineer has a due date to deliver his final plans. If he doesnot deliver, his reputation may suffer. Thus, lesser the manhours, more will be the unnecessary cost in the designs. * Lack of information New products and materials are constantly entering in market. It is impossible to become knowledgeable in all these changes. It is also impossible to accept all these new products until we are assured of their integrity. * Lack of idea
An individual by himself cannot think of lots of alternatives which is needed for an efficient design.

* Misconception
Everyone has honest misconceptions. Experience will sometimes gives them honest misconceptions because they are not exposed to subsequent development that would change the truth that they believe from their earlier experience. * Temporary circumstances
Sometimes people take some temporary decisions with a mean to go back and change those decisions. They forget to change those decisions and those become standard decisions for every next design. * Habits
Everybody is a creature of habits. Habit gives them experience and skill to do things quickly. But habits often limit their creativity. * Attitudes
Attitudes of people designing the project are the most important thing. Negative attitude is the most unwanted things from a designer. Negative attitude limits creativity of a person. * Politics
At times politics are beneficial and at other times they slow them down and steer away from the best solution. Often the least costly alternative to a construction project may not be acceptable because of political forces and influences of the project. * Lack of fee
Bidding for design contracts has forced the price of contracts down. Forcing the designer to cut his costs to the point where he cannot make the completions necessary to obtain a cost effective job. Less the design fee, less would be the input by designer for project and more will be the unnecessary cost.

Value Engineering Methodology Systematic Approach
Value engineering can be summarized in the following seven steps (DARSIRI): D = Data collection A = Analysis R = Record of ideas S = Speculation I = Investigation R = Recommendations I = Implementation
The DARSIRI is a straight forward routine that commences after the introduction stage of value engineering is completed and project is selected for value engineering study.
Factors To Be Considered
Numbers of factors are to be considered while applying Value Engineering.
There are five basic factors to be considered while applying value Engineering.
These key factors are: 1. Who effects cost

2. Where does the owner’s money go during the time period of designing, constructing, maintaining and operating a facility?

3. Determination of points during the life cycle period where the use of value engineering will have the greatest payoff.

4. Cost impact of principal disciplines

5. Validity of the cost estimates a. Accuracy differs among owners/designers b. Cost estimates when developed until design phase or later, becomes too late for effective cost control process c. Cost estimates are not normally standardized.
Thus, cost estimates should be developed using a phased approach i.e. budget, concept, design, development, working drawings.

Case Study :-
Roof sheeting was required for an Industrial Building.
Alternatives available: * AC Sheet (6mm) * Aluminum Sheet (1mm) * FRP Sheet (3mm) * RMP Sheet (1.5mm) * GI Sheet * Acrylic sheet (4mm)
Based on the requirements the following evaluation criterias were listed down.
Evaluation Criteria: * Weight * Durability * Fire resistance * Cost * Reusable Value * Tensile strength * Installation ease * Appearance * Insulating value * Maintenance * Walkability

MATERIALS | PARAMETERS | | Weight(kg/m2) | Durability (yrs.) | Fire Resistance('C) | Cost (₹./m2) | Reusable Value (%) | Tensile Strength (kg/cm2) | AC Sheet (6mm) | 14.05 | 20 | 250 | 130 | 30 | 70 | Aluminum Sheet (1mm) | 3.2 | 50 | 300 | 160 | 80 | 170 | FRP Sheet (3mm) | 3.6 | 20 | 172 | 290 | 25 | 578 | RMP Sheet (1.5 mm) | 2 | 15 | 90 | 180 | 15 | 430 | GI Sheet | 7.83 | 40 | 350 | 200 | 60 | 100 | Acrylic Sheet (4mm) | 5.3 | 20 | 140 | 600 | 25 | 350 |
Factored Comparison Method
Step 1: First, all the factors that govern or influence the project are listed down and assigned a letter of alphabet to each criteria.
A : Weight B : Durability
C : Fire resistance D : Cost
E : Reusable Value F : Tensile strength
G : Installation ease H :Appearance
I : Insulating value J : Maintenance
K :Walkability

Step 2: Now, every factor is compared with the each other for importance. A factor is compared with only one factor at a time.
E.g. now, according to the requirement of Industrial building, A (weight) is more important than B (Durability). So, A is marked in first block.

Step 3: Next, relative degree of importance of these two factors is marked depending on the point scale below: COMPARISON | POINTS | Major Difference | 3 | Medium Difference | 2 | Minor Difference | 1 | No Difference | 0 |

E.g. Weight and Durability have minor difference, so score 1 is given in favour of weight.
Step 4: Similarly all other factors are compared and tabulated in factored matrix as shown. The relative scores are added up and ranking is done.
A1
7
A3
A1
A2
9
B1
B3
B3
B1
8
C3
C3
C1
D1
F3
A2
1
F3
0
6

A: Weight Comparison | Points | Major Difference | 3 | Medium Difference | 2 | Minor Difference | 1 | No Difference | 0 |
B: Durability
C: Fire Resistance
D: Cost
E: Reusable Value
F: Tensile Strength

Ranking As Per Scores Given Identity | Criteria | Score | Rank | A | Weight | 9 | 1 | B | Durability | 8 | 2 | C | Fire Resistance | 7 | 3 | D | Cost | 1 | 5 | E | Reusable Value | 0 | 6 | F | Tensile Strength | 6 | 4 |

Decision Matrix
Now depending upon the value of various parameters, ratings are given as shown below and a decision matrix is formulated. Point Scale | Points | Excellent | 5 | Very Good | 4 | Good | 3 | Fair | 2 | Poor | 0 |

The alternative which gets the maximum score is considered to be most cost effective solution and hence it is selected.

The Decision Matrix Criteria | A | B | C | D | E | F | Score | Weightage | 9 | 8 | 7 | 1 | 0 | 6 | | | | | | | | | | Ac Sheet | 5 | 2 | 3 | 5 | 3 | 1 | | | 45 | 16 | 27 | 5 | 0 | 6 | 99 | A/M. Sheet | 2 | 5 | 4 | 5 | 5 | 3 | | | 18 | 40 | 28 | 5 | 0 | 18 | 109 | Frp Sheet | 2 | 2 | 2 | 2 | 2 | 5 | | | 18 | 16 | 14 | 2 | 0 | 30 | 80 | Rmp Sheet | 1 | 1 | 1 | 3 | 1 | 4 | | | 9 | 8 | 7 | 3 | 0 | 24 | 51 | Gi Sheet | 4 | 4 | 5 | 3 | 4 | 2 | | | 36 | 32 | 35 | 3 | 0 | 12 | 118 | Acrylic Sheet | 3 | 2 | 2 | 1 | 2 | 3 | | | 27 | 16 | 14 | 1 | 0 | 18 | 76 | Poor | 1 | Fair | 2 | Good | 3 | Very Good | 4 | Excellent | 5 |

SCALE:

Least Important | 1 | Neutral | 2 | Important | 3 | Very Important | 4 |

Analytical hierarchy :-
LEVEL 1 :- To select a best alternative for industrial building LEVEL 2 | LEVEL 3 | 1. Weight | A. AC SHEETB. ALUMUNIUM SHEETC. FRP SHEETD. RMP SHEETE. GI SHEETF. ACRYLIC SHEET | 2. Durability | | 3. Fire Resistance | | 4. Cost | | 5. Reusable value | | 6. Tensile Strength | | 7. Installation Ease | |

Rating and Codification :- Criteria | Code | Rating | 1. Weight | C1 | 3 | 2. Durability | C2 | 4 | 3. Fire Resistance | C3 | 3 | 4. Cost | C4 | 4 | 5. Reusable value | C5 | 2 | 6. Tensile Strength | C6 | 2 | 7. Installation Ease | C7 | 3 |

Pair-Wise Comparison of level 2 :- | C1 | C2 | C3 | C4 | C5 | C6 | C7 | C1 | 1 | 0.75 | 1 | 0.75 | 1.5 | 1.5 | 1 | C2 | 1.33 | 1 | 1.33 | 1 | 2 | 2 | 1.33 | C3 | 1 | 0.75 | 1 | 0.75 | 1.5 | 1.5 | 1 | C4 | 1.33 | 1 | 1.33 | 1 | 2 | 2 | 1.33 | C5 | 0.67 | 0.5 | 0.67 | 0.5 | 1 | 1 | 0.67 | C6 | 0.67 | 0.5 | 0.67 | 0.5 | 1 | 1 | 0.67 | C7 | 1 | 0.75 | 1 | 0.75 | 1.5 | 1.5 | 1 |

Geometric Mean :- Code | Geometric Mean | Weight | C1 | 1.021646 | 0.143938 | C2 | 1.226056 | 0.172738 | C3 | 1.021646 | 0.143938 | C4 | 1.226056 | 0.172738 | C5 | 0.790375 | 0.111355 | C6 | 0.790375 | 0.111355 | C7 | 1.021646 | 0.143938 | SUM | 7.097801 | 1 |

SCALE:

Poor | 1 | Fair | 2 | Good | 3 | Very Good | 4 | Excellent | 5 |

For Criterion C1 (Weight) :- | A1 | A2 | A3 | A4 | A5 | A6 | A1 | 1 | 0.25 | 0.25 | 0.2 | 0.5 | 0.33 | A2 | 4 | 1 | 1 | 0.8 | 2 | 1.33 | A3 | 4 | 1 | 1 | 0.8 | 2 | 1.33 | A4 | 5 | 1.25 | 1.25 | 1 | 2.5 | 1.67 | A5 | 2 | 0.5 | 0.5 | 0.4 | 1 | 0.67 | A6 | 3 | 0.75 | 0.75 | 0.6 | 1.5 | 1 |

Alternatives | Geometric Mean | Weight | A1 | 0.0020625 | 4.02078E-05 | A2 | 8.512 | 0.165938865 | A3 | 8.512 | 0.165938865 | A4 | 32.6171875 | 0.635862202 | A5 | 0.134 | 0.002612289 | A6 | 1.51875 | 0.029607572 | | 51.296 | 1 |

For Criterion C2 (Durability) :- | A1 | A2 | A3 | A4 | A5 | A6 | A1 | 1 | 0.6 | 1 | 1.5 | 0.75 | 1 | A2 | 1.67 | 1 | 1.67 | 2.5 | 1.25 | 1.67 | A3 | 1 | 0.6 | 1 | 1.5 | 0.75 | 1 | A4 | 0.67 | 0.4 | 0.67 | 1 | 0.5 | 0.67 | A5 | 1.33 | 0.8 | 1.33 | 2 | 1 | 1.33 | A6 | 1 | 0.6 | 1 | 1.5 | 0.75 | 1 |

Alternatives | Geometric Mean | Weight | A1 | 0.675 | 0.033082 | A2 | 14.55457188 | 0.713322 | A3 | 0.675 | 0.033082 | A4 | 0.0601526 | 0.002948 | A5 | 3.7642192 | 0.184485 | A6 | 0.675 | 0.033082 | | 20.40394368 | 1 |

For Criterion C3 (Fire Resistance) :- | A1 | A2 | A3 | A4 | A5 | A6 | A1 | 1 | 0.75 | 1.5 | 3 | 0.6 | 1.5 | A2 | 1.33 | 1 | 2 | 4 | 0.8 | 2 | A3 | 0.67 | 0.5 | 1 | 2 | 0.4 | 1 | A4 | 0.33 | 0.25 | 0.5 | 1 | 0.2 | 0.5 | A5 | 1.67 | 1.25 | 2.5 | 5 | 1 | 2.5 | A6 | 0.67 | 0.5 | 1 | 2 | 0.4 | 1 |

Alternatives | Geometric Mean | Weight | A1 | 3.0375 | 0.035387 | A2 | 17.024 | 0.198332 | A3 | 0.268 | 0.003122 | A4 | 0.004125 | 4.81E-05 | A5 | 65.23438 | 0.759989 | A6 | 0.268 | 0.003122 | | 85.836 | 1 |

For Criterion C4 (Cost) :- | A1 | A2 | A3 | A4 | A5 | A6 | A1 | 1 | 1.25 | 2.5 | 1.25 | 1.67 | 5 | A2 | 0.8 | 1 | 2 | 1 | 1.33 | 4 | A3 | 0.4 | 0.5 | 1 | 0.5 | 0.67 | 2 | A4 | 0.8 | 1 | 2 | 1 | 1.33 | 4 | A5 | 0.6 | 0.75 | 1.5 | 0.75 | 1 | 3 | A6 | 0.2 | 0.25 | 0.5 | 0.2 | 0.33 | 1 |

Alternatives | Geometric Mean | Weight | A1 | 32.61719 | 0.635867 | A2 | 8.512 | 0.16594 | A3 | 0.134 | 0.002612 | A4 | 8.512 | 0.16594 | A5 | 1.51875 | 0.029608 | A6 | 0.00165 | 3.22E-05 | | 51.29559 | 1 |

For Criterion C5 (Reusable Value) :- | A1 | A2 | A3 | A4 | A5 | A6 | A1 | 1 | 0.6 | 1.5 | 1 | 0.75 | 1.5 | A2 | 1.67 | 1 | 2.5 | 5 | 1.25 | 2.5 | A3 | 0.67 | 0.4 | 1 | 2 | 0.5 | 1 | A4 | 0.33 | 0.2 | 0.5 | 1 | 0.25 | 0.5 | A5 | 1.33 | 0.8 | 2 | 4 | 1 | 2 | A6 | 0.67 | 0.4 | 1 | 2 | 0.5 | 1 |

Alternatives | Geometric Mean | Weight | A1 | 1.0125 | 0.012081 | A2 | 65.23438 | 0.778351 | A3 | 0.268 | 0.003198 | A4 | 0.004125 | 4.92E-05 | A5 | 17.024 | 0.203124 | A6 | 0.268 | 0.003198 | | 83.811 | 1 |

For Criterion C6 (Tensile Strength) :- | A1 | A2 | A3 | A4 | A5 | A6 | A1 | 1 | 0.5 | 0.2 | 0.25 | 1 | 0.33 | A2 | 2 | 1 | 0.4 | 0.5 | 2 | 0.67 | A3 | 5 | 2.5 | 1 | 1.25 | 5 | 1.67 | A4 | 4 | 2 | 0.8 | 1 | 4 | 1.33 | A5 | 1 | 0.5 | 0.2 | 0.25 | 1 | 0.33 | A6 | 3 | 1.5 | 0.6 | 0.75 | 3 | 1 |

Alternatives | Geometric Mean | Weight | A1 | 0.00825 | 4.82049E-05 | A2 | 0.536 | 0.003131861 | A3 | 130.4688 | 0.762332068 | A4 | 34.048 | 0.198943289 | A5 | 0.00825 | 4.82049E-05 | A6 | 6.075 | 0.035496372 | | 171.1443 | 1 |

For Criterion C7 (Installation ease):- | A1 | A2 | A3 | A4 | A5 | A6 | A1 | 1 | 0.5 | 0.5 | 0.67 | 0.4 | 0.4 | A2 | 2 | 1 | 1 | 1.33 | 0.8 | 0.8 | A3 | 2 | 1 | 1 | 1.33 | 0.8 | 0.8 | A4 | 1.5 | 0.75 | 0.75 | 1 | 0.6 | 0.6 | A5 | 2.5 | 1.25 | 1.25 | 1.67 | 1 | 1 | A6 | 2.5 | 1.25 | 1.25 | 1.67 | 1 | 1 |

Alternatives | Geometric Mean | Weight | A1 | 0.0268 | 0.001597 | A2 | 1.7024 | 0.101441 | A3 | 1.7024 | 0.101441 | A4 | 0.30375 | 0.0181 | A5 | 6.523438 | 0.388711 | A6 | 6.523438 | 0.388711 | | 16.78223 | 1 |

Weightage of Criteria's & Alternatives
`
Computation of contribution of each alternative :-
The resulting computations for each of the Alternatives are:
A1 = 0.1439(0.0000402) + 0.1727(0.0330) + 0.1439(0.0353) + 0.1727(0.6358) + 0.1114(0.0120) + 0.1114(0.000048) + 0.1439(0.0016) = 0.1222 A2 = 0.1439(0.1659) + 0.1727(0.7133) + 0.1439(0.1983) + 0.1727(0.1659) + 0.1114(0.7783) + 0.1114(0.0031) + 0.1439(0.1014) = 0.3058

A3 = 0.1439(0.1659) + 0.1727(0.0330) + 0.1439(0.0031) + 0.1727(0.0026) + 0.1114(0.0032) + 0.1114(0.7623) + 0.1439(0.1014) = 0.1303

A4 = 0.1439(0.6358) + 0.1727(0.0029) + 0.1439(0.000048) + 0.1727(0.1659) + 0.1114(0.000049) + 0.1114(0.1989) + 0.1439(0.0181) = 0.1454

A5 = 0.1439(0.0026) + 0.1727(0.1844) + 0.1439(0.7599) + 0.1727(0.0296) + 0.1114(0.2031) + 0.1114(0.000048) + 0.1439(0.3887) = 0.2252

A6 = 0.1439(0.0296) + 0.1727(0.0330) + 0.1439(0.0031) + 0.1727(0.000032) + 0.1114(0.0031) + 0.1114(0.0354) + 0.1439(0.3887) = 0.0706

Conclusion:-
After using two different multi criteria decision making tool , we have found that by using Factor Comparison Method the best suitable alternative for roofing of industrial building is GI Sheet. and by using Analytical Hierarchical Process the best suitable alternative is Aluminum Sheet.

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