NAME: MUHAMMAD SOLLEHEN BIN MISNAN (1522675)

SUBJECT: VALUE ANALYSIS AND VALUE ENGINEERING (MANU4351)

LECTURER: PROF ERRY YULIAN TRIBLAS ADESTA

ASSIGNMENT 1
History of VE
Started back in World War II where resources were very limited. Lawrence D. Miles needed to
produce products for the company he worked in (General Electric) for the military. He introduced
Value Engineering as a way improve the value of the work, thus utilizing resources the lowest.
Over the years, United States departments such as DOD and DOT have been using VE. Other than
produces billions of saving in cost of the projects oversee by the government, VE shortens project
time, improves performance and quality of the outcome, and introduces the best type of work to
be performed.
What is VE and What is not
Value is proportional to function and inversely proportional to cost. However, VE is not just a
cost-reduction exercise alone. Otherwise, it will jeopardize the function of the project.
VE is a tool to identify function, to establish the worth of the function and to suggest alternative
functions with the lower cost to meet the same function performance.
When to do VE & on what project
VE can be initiated as early as from the design stage. The cost incurred due to VE will increase by
time because the cost for making change is higher towards the end of the project than on the early
stage.
VE can be used in any kind of projects regardless of engineering fields.
How VE is implemented

Information Creative Evaluation Development

Presentati
on

Construction

VE starts with information phase. On this phase, value is established. Value is determined by how
cost affected from project’s functional criteria and design concept.
Creative phase is a brainstorming phase. Output: value engineering options.
NAME: MUHAMMAD SOLLEHEN BIN MISNAN (1522675)
SUBJECT: VALUE ANALYSIS AND VALUE ENGINEERING (MANU4351)
LECTURER: PROF ERRY YULIAN TRIBLAS ADESTA

Evaluation phase to when the VE options from creative phase are evaluated and ranked. The
evaluation reflects the concern on cost saving and value improvement.
Development phase is when the options ranked the highest are focused for a more cost-value
analysis before being presented to all stakeholders as a formal VE recommendation.
Presentation phase is when the VE proposals from development phase are presentation.
Stakeholders include the owner, design team and production staff. Feedbacks are collected to see
the feasibility of the proposals.
Construction phase is when approved proposal are implemented.
Why VE is implemented
VE is about cost. VE is implemented so that the enterprises can yield more revenue by offering
functions to the product while at the same time enjoying lesser project overall cost. VE is also
implemented when the resources for the project are limited, thus VE will introduce cost-effective
alternative to tackle the issue.
Value achieved from VE
Valuer achieved from VE are lesser project time, higher performance and quality of the outcome
and introduces the type of work to be performed.