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Mohamed A. Essa, PMP, AVS
“Otaishan Consulting Engineers”
essa2000eg@gmail.com
Introduction
In past 20 years a bigb construction boom
b start in the
h
gulf region, on other hand the world economy financial
crisis create a huge need to start thinking seriously how
we will manage and control these new projects and get
the maximum profit from these investments,
investments we need
more powerful methodologies, tools and technics to
gget the best value of our money. y The main objective
j of
project management is to deliver the project right from
first time on time, with high quality and within budget
to achieve owner satisfaction. Therefore, Value
Engineering Methodology can be utilized as powerful
costt andd quality
lit control
t l tool
t l on construction
t ti projects.
j t
VE Brief History
• Value Engineering Began at General Electrical early
1940’s, in 1947 ‐ Value Analysis started by
Lawrence D. Miles the “Father of VA// VE”
• In 1954 ‐ Value Engineering was used by the U. S.
Navy
• Society of American Value Engineers (SAVE) was
formed in 1959.
1959
• SAVE changed its name in 1996 to SAVE
International® at the Annual Conference since the
VE Approach has been used worldwide.
VE Definition
Value Engineering
g g / Value Analysis
y / Value
Management Are Synonymous Meaning a Creative,
Function‐Oriented
Function Oriented, Systematic Team Approach with
the Objective to Optimize Quality / Performance and
Reduce Total Life Cycle Costs of Projects or Processes.
Processes
Objectives of VE
Value Engineering techniques can be used to achieve a number of
objectives. They can optimize total life cycle cost, reduce time,
improve quality, reliability, maintainability and performance.
Three basic elements provide a measure of value to the user: those
are function, quality, and cost. These elements can be interpreted
by the following relationship:
• Lack of information.
• Lack of ideas.
• Temporary circumstances.
• Honest wrong beliefs.
• Habits and attitudes.
Habits and attitudes
• Changes in owner requirements.
• Lack of communication and coordination.
L k f i ti d di ti
VE Methodology
Continuous VE Process during Projects Life Cycle