SAMORE Value Engineering Services: -

 We Establish Value Engineering Departments (Ministries/Authorities/Companies)

 Value engineering for organization's Departments (Upgrade performance benefits)

 Value Engineering consultancy (Investment Ideas/Concept & Design/Construction)

 Value Engineering Workshop's & report's

 Value Engineering Training course & Certifications

Our Value Engineering profile contents

 Background

 What is Value Engineering

 Timing of VE

 Unnecessary Cost

 Enhancing Value in Your Company

 Projects Which Are Most Likely to Benefit From

 Client Types

 Client Priorities

 The Team

 VE Team

 Team Objectives

 VE Workshops

 Five Phases

 Essentials of VE

 Examples of VE

 SAMORE Key Team Members

Establish for Value Engineering Departments

(Ministries/Authorities/Companies):

 SAMORE have a cooperation with a professional Value Engineers

 Where the Value Engineering as a new trend of construction projects has not yet

wide use in the middle east

 We are honored to submit our services to (ministries/Authorities/companies) to

establish their own team for future and regular application of value engineering for

their projects

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Our Value Engineering Services contents:

 Visibility studies for the benefits of establish the VE department

 Creation of the department scope description and the administration

communication channels with other departments

 Creation of the strategic plan and future expended for the department

 The proper organization, the number and the required requirements for the

department team

 Training courses and qualifying the candidate’s department's staff

 Implementation of VE methodology at the initial phase of the establish the

departments with the participation of department's staff, as a practical training

application

Value engineering for organization's Departments (Upgrading performance

benefits)

 One of the great applications of VE, that it can help the organization's board to audit

and enhance their Department's performance,

 Contribute to improving an organization’s competitive position.

Enhancing Organizations Value Engineering service

 Check and enhance organization strategic plan

 Apply VE methodology for organization's charts

 Apply VE methodology for organization's department

 Apply VE methodology for organization's formats and communications channels

 Generate ideas for enhancing work performance

 Implementation of approved VE ideas

 Audit work performance and issued follow up reports

Value Engineering consultancy

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 (Investment Ideas/Concept & Design/Construction:

 SAMORE has a large experience in project control systems of construction projects,

starting with the project idea, passing by the design and construction of the project,

ending with the commissioning and maintenance of the projects

 this experience with both construction projects and local market of construction in

GCC, enabled us to gain a great database and information for the best practical

solutions for construction industry and the local business need for the best

investment ideas

Projects Value Engineering workshop:

 Review and check the VE recommendations for the ideas or concepts of the projects

 Enhancing the requirements of the project in order to get the invisible benefits of

market opportunities

 Expert and trustful advices for project ideas and construction methodology

 Practical solutions and variations for under construction projects in order to get the

maximum benefits of its end use product

Value Engineering Workshop's & report's:

 SAMORE has in-house qualifying staff's capable and expert to generate a multiple

solution to rise the functions of the existing requirements of the projects

 Our team is certified from SAVE International.

 We have the advantage of the experience of different environments, and the proper

prices

Our VE Services

 assigning the expert team for VE according to project criteria

 Studying the projects Requirements and information

 Implementation of VE work Shop with the project Major Stakeholder

 Generate the ideas for enhancing the project functions

 Development the main ideas

 Present the recommended VE ideas

 The Final Report for VE study

 Follow up the implementation of Approved VE recommendations

Value Engineering Training course & certifications

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 The Certification Program is composed of two major elements: individual

professional certification and educational program approval.

 The highest level is the Certified Value Specialist (CVS), which is recognition of the

individual who has met all certification requirements, both technical and experience,

and whose principal career is value engineering.

 The Associate Value Specialist (AVS) program recognizes those individuals who

decided to become professional value engineers but who have not yet acquired all

the experience or technical skills expected of a CVS.

 The Value Methodology Practitioner (VMP) program was established to recognize

those individuals who acquired the basic skills of value engineering/analysis but their

principal career is not value engineering.

 The CVS and VMP must recertify every four years. Although considered an entry

level certification, the AVS may be maintained indefinitely as long as all certification

maintenance fees are paid. Membership in SAVE is not a requirement for individual

certification or for educational program approval.

Value Engineering in brief:

 Value engineering which for the remainder of this introduction will be referred to as

VE is a relative newcomer to the construction industry.

 However, it has been in use in other industries since the Second World War. In

keeping with many management techniques VE started life in the USA. "L D Miles"

one of the gurus in the subject introduced VE into GEC in the 1940s. In the mid-

1950s the USA Department of the Navy began routinely to incorporate incentive

clauses in procurement contracts. VE began as a method of overcoming shortages

during and just after the Second World War and involved widespread substitution of

goods

What is Value Engineering?

 A systematic approach

 A concentration on value and not cost

 The removal of unnecessary cost without reducing value

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VE is none of the following

- An attack on the quality or appearance of the project

- A cost cutting exercise

- A criticism of the design professionals

 The main objective is to improve the value of the end product or service whereby

the clients receives more for their money. This could be defined as an organized

approach to the identification and elimination of unnecessary cost without loss of

function. Unnecessary cost means cost which provides neither use nor life nor

quality nor appearance nor customer features.

 The value Engineering (VE), a systematic and structured approach, improves

projects, products, and processes. VE is used to analyze manufacturing products and

processes, design and construction projects, and business and administrative

processes. VE helps achieve balance between required functions, performance,

quality, safety, and scope with the cost and other resources necessary to accomplish

those requirements. The proper balance results in the maximum value for the

project.

o Value = Function/Cost

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 Value is the reliable performance of functions to meet customer needs at the lowest

overall cost.

 Function is the natural or characteristic action performed by a product or service.

 Cost is the expenditure necessary to produce a project,

service, process, or structure.

1. 2. Information Phase: Gather information to better understand the project.

Function Analysis Phase: Analyze the project to understand and clarify the required

functions.

3. Creative Phase: Generate ideas on all the possible ways to accomplish the required

functions.

4. Evaluation Phase: Synthesize ideas and concepts to select feasible ideas for

development into specific value improvement.

5. Development Phase: Select and prepare the “best” alternative(s) for improving

value.

6. Presentation Phase: Present the value recommendation to the project stakeholders.

 The VE process produces the best results when applied by a multi-disciplined team

with experience and expertise relative to the type of project to be studied. A

Certified Value Specialist usually leads the VE team to ensure proper application of

the methodology.

 There are all too many examples of techniques masquerading as VE involving a

hatchet job with the sole objective of reducing cost. Function must remain intact for

true Value Engineering.

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Timing of VE

 It is generally accepted that the earlier the VE process is undertaken the more

effective it is likely to be. The later in the construction process changes are made the

more expensive they will become which in turn makes them less effective. There are

however differing views on this matter. The ENR magazine published in the USA in its

March 1990 edition states:

 “The impact of a VE study on the design is often most evident when undertaken

after the start of construction. For example, a decision to change the originally

specified square columns to less expensive round columns at Chicago’s Boulevard

Tower South building saved $250,000”

 Value Engineering the Search for Unnecessary Cost recommends that value

engineering studies are not undertaken after 50-60 per cent of the design has been

completed.

 Others will often argue that the VE process is ongoing and it should not stop until the

work has been completed.

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Unnecessary Cost

Value Engineering provides five examples of unnecessary cost

1. Cost of an unnecessary component

 An example of this type of unnecessary thickness or types of foundations

could be a higher than the necessary required but engineers are often accused of

being over cautious when designing concrete elements.

2. Cost of unnecessary material

 This occurs where an expensive material is specified when a cheaper one

would do the job just as well

3. Excessive cost of build ability

 Often the designer does not consider the manner in which the work is to be

constructed. This can result in expensive plant being employed for longer periods

than is really necessary or labor cost being well in excess of what would be incurred

if more thought were given to the build ability of the project.

4. Unnecessary opportunity costs

 An example of this type of cost is a retail shopping mall where due to

inefficient design the net let table area is less than could be achieved with a more

efficient approach. This could affect the client’s rental income and the value of the

building.

5. Unnecessary life cycle cost

 When comparing design alternative, it is becoming common to include an

exercise relating to the life-cycle performance of the alternative. Due to the

uncertainties of future levels of interest and inflation the comparison can be

distracting. However, if appropriate the importance of life cycle costing can be

reflected in the scoring system

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Enhancing Value in Your Company

 VE is embraced by a global spectrum of public authorities, Social Societies,

businesses, industries, building designers, contractors, automobile manufacturers,

chemical processors, pharmaceutical companies, etc. Benefits realized by those

companies using VE far exceed the investment. Savings in time, cost, and quality

contribute to improving an organization’s competitive position.

Projects Which Are Most Likely to Benefit From VE

 All kind of projects can be learned from VE applications, especially those

which are:

-Costly

-Complex

-Repetitive

-Unique with few precedents

-Highly visible and subject to external audit.

Client Types

 When undertaking VE it is essential to have a thorough understanding of the client’s

objectives. Clients fall into different categories which include the following:

 The ministries and authorities who participating at state's development plans

 The experienced corporate client who undertakes construction projects frequently

and has a good understanding of how the construction industry works.

 The inexperienced corporate client who rarely procures construction projects

 Private clients who are often inexperienced and naïve.

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Client Priorities

 Clients have varying reasons for undertaking construction work which includes:

-For investment

-To carry out their business

-To meet social needs such as roads and schools

-To make a statement and demonstrate confidence such as a company

headquarters

-For private occupation

-Clients have differing priorities in relation to the following:

-Function and performance of the facility

-Time and cost

-Quality and sustainability

-Flexibility

-Risk

-It is essential that the VE team is fully aware of all these factors which should be

considered when undertaking the VE process.

The Team

 It is the norm in the UK for VE to be undertaken by a team with skills which cover

design, constructability, cost and time. It would be normal for the team to include

representatives from the Architect or Engineer, contractor’s construction and buying

departments, quantity surveying and input from specialist sectors of the

construction process which may be affected. It is also often essential to have input

from the user of the facility

 The tasks undertaken by the team comprise:

 Gathering information about the present design determining the needs,

requirements and constraints of the owners/users/stakeholders

 Establishing design criteria

 Developing a cost model, breaking down the project into functions and performing a

functional analysis

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VE Team

 The Team of VE should has the ability and experience in using the value engineering

methodology and techniques, by training courses and regular workshops, and

certified as a VE specialist's

 The ideal VE team, Numbers may vary from five to twenty-five depending on the

project’s complexity. While the VE team for a high-rise building would include an

architect, structural engineer, a wind engineer, a mechanical engineer, a cost expert

and programming, a VE team for a hospital or power plant would require a larger

team with a greater number of specialists. There can be a case made out for the

employment of a team independent of the original design team. This however could

lead to them and us situation which may operate contrary to team working. In the

USA the Society of Value Engineers promotes the idea of using an independent value

engineer on most projects. This has been met with resistance by some employers as

they consider that the existing team should be capable of operating VE. Care should

be taken when devoting time to VE and costs carefully monitored to ensure that the

cost of the team is not out of proportion to the benefits derived from the VE.

Team Objectives

 The team work together to develop the VE process to achieve the following:

o Provide in detail the alternatives with the greatest potential value

o Establish costs and backup documentation needed to individually convey the

Alternative solutions

 The Team will normally present a written report to the management together with a

verbal presentation. After the accomplish of VE workshop

VE Workshops

 The VE process to involve workshops. For large and or complex projects it is usual for

there to be three major workshops involving the whole team. Smaller and/or less

complex projects may require less than three. It is common for there to be an

external facilitator. The profession of value engineer however has not developed in

the UK to the same extent as in the USA.

 The workshops comprise the following:

o VE 1 Information gathering

o VE 2 Brainstorming/evaluation

o VE 3 Development of chosen ideas

o VE 4 Formulation and presentation of recommendations.

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 These workshops produce the best results if held outside the normal working

environment and should be spread over 4 or 5 days.

Value Engineering Phases

VE be undertaken in five phases

1. Information Phase:

The initial task for the VE team during this phase is to identify the elements of the

project which can benefit most from the process. Prompt questions can be useful in

providing a structure to this process

What is it?

What does it do?

What else does it do?

What does it cost?

What is its value?

2. Speculation Phase

In this phase the object is to generate alternative design ideas. It is essential that

any ideas to be considered are creative.

3. Evaluation Phase

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Once ideas have been identified and selected, they need to be fully evaluated and

either accepted or rejected. The advantages and disadvantages of each idea will be

properly considered. A criterion against which each idea is to be judged is established at

the outset of this phase. Each design alternative can be assessed against each of the

performance criteria in order to produce an overall point score. At the end of this phase

there should be a list of feasible options which should be listed in order of merit with the

option gaining the highest score at the top.

4. Development Phase

The option selected in the Evaluation Phase is then more fully developed including

costing. Full life-cycle costing together with energy use should be employed as far as

possible. A decision is then made as to the options which are to be recommended.

5. Presentation Stage

The purpose of this stage is to convince the original design team and the client of

the merit of the chosen options.

Essentials of VE

The essentials of VE may be summarized as follows:

- The overall objectives of the project and performance standards must be clearly

defined and prioritized and understood by all stakeholders as early as possible in

the project development process.

- It is essential that evaluation criteria for considering each idea is established at the

outset. Evaluation criteria will differ for each project depending upon the client’s

corporate/project objectives. A school for example would have a very different VE

evaluation criteria than that of a chemical plant. It is usually good practice to link

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the evaluation criteria to the Strategic Brief which contains the objectives for the

project.

- Sufficient energy, time and creativity is spent in developing a range of solutions.

- The range of potential solutions is properly and objectively evaluated to influence

final choice of the preferred solution

- Chosen solutions are validated at appropriate intervals both during and after

project development

- All of the implications of preferred solutions (costs, risks and other commitments)

have been properly considered and are understood, accepted and agreed by all

stakeholders

- Preferred solutions are successfully implemented at minimum cost without

detriment to required quality and performance standards

- It is normal for a design freeze to be placed on new ideas at some stage in the

process, as late design changes tend to cause delays and additional cost.