{"id":1042,"date":"2021-09-27T11:01:00","date_gmt":"2021-09-27T11:01:00","guid":{"rendered":"https:\/\/yardlink.com\/blog\/value-engineering-and-its-importance-in-construction"},"modified":"2024-07-24T18:48:47","modified_gmt":"2024-07-24T18:48:47","slug":"value-engineering-and-its-importance-in-construction","status":"publish","type":"post","link":"https:\/\/yardlink.com\/blog\/value-engineering-and-its-importance-in-construction","title":{"rendered":"Value Engineering And Its Importance In Construction"},"content":{"rendered":"\t
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Value engineering (VE) has been used in the construction industry for many years. As a methodology, it provides a clear and detailed analysis of how best to fulfil the goals of a project.<\/p>\n\n\n\n

It\u2019s aim is to seek out the optimum value of a project in both the initial and long term. By analysing different costs and materials available, it\u2019s purpose is to complete a job to a high standard, at the lowest total cost.<\/p>\n\n\n\n

It\u2019s important to note that it is not a cost-cutting exercise and it does not compromise on quality. Instead, it gives all parties involved confidence that the maximum performance and highest value project will happen.<\/p>\n\n\n\n

The goal of every construction manager is to stay within budget and complete projects on time to avoid incurring additional costs. By reviewing each aspect of a project at different stages, it allows those involved to make better decisions that improve both quality and efficiency along the way.<\/p>\n\n\n\n

In this blog post we\u2019ll explain what value engineering is, why it was developed, and what\u2019s involved in the process. Whether you work in architectural design, project management, or you are responsible for purchasing materials, this method can make your job easier.<\/p>\n\n\n\n

\"People<\/figure>\n\n\n\n

What is Value Engineering?<\/h2>\n\n\n\n

Value engineering is defined by Cambridge Dictionary<\/a> as:<\/p>\n\n\n\n

\u201cThe process of reducing the cost of producing a product without reducing its quality or how effective it is.\u201d<\/p>\n\n\n\n

Essentially, this methodology helps construction workers to control costs without compromising on overall quality. As an organised effort, it analyses the requirements of a project for the purpose of achieving the necessary functions at the lowest cost possible.<\/p>\n\n\n\n

It takes various factors into account including staffing, energy, and maintenance over the lifetime of a project. By considering alternate design ideas, materials, and components, it aims to improve value without sacrificing the needs of the client.<\/p>\n\n\n\n

Customer satisfaction is highly important in any project, so ensuring this remains at the forefront is key for the success of your business.<\/p>\n\n\n\n

Where Did Value Engineering Start?<\/h2>\n\n\n\n

Value engineering was first introduced just after World War 2 at General Electric.<\/p>\n\n\n\n

As supplies were short, engineers started to consider alternative ways of sourcing essential materials to ensure production could continue.<\/p>\n\n\n\n

Engineers included Lawrence Miles, Harry Erlicher, and Jerry Leftow who worked with other teams at the company to identify appropriate substitutes. Their aim was to reduce production costs whilst retaining the quality and functionality of the products they provided.<\/p>\n\n\n\n

As a result of this challenge, the team discovered that they could in fact save on costs whilst creating an even better end product. By carefully considering which raw materials and components they chose, General Electric created products which were higher performing.<\/p>\n\n\n\n

Miles and Erlicher coined this term and developed a process which they called \u2018value analysis\u2019. Today, this has been transformed into \u2018value engineering\u2019 and is a core part of any cost estimators toolkit.<\/p>\n\n\n\n

What began as an accident, has since developed into a systematic approach which helps construction companies globally reduce production costs.<\/p>\n\n\n\n

How Is Value Engineering Calculated?<\/h2>\n\n\n\n

Value is calculated as a ratio of function to cost.<\/p>\n\n\n\n

Businesses can add value to their products or services by either cutting down on costs or improving functionality. In value engineering, the function of the product is preserved in the process of seeking value improvement.<\/p>\n\n\n\n

VE is used to design a product so that it lasts for a specific period of time before becoming obsolete. When a product is expected to become obsolete within a certain timeframe, manufacturers will often use value engineering to save on costs without taking away its core purpose.<\/p>\n\n\n\n

This means that although manufacturers can source high quality materials to make the product, VE allows them to source low cost alternatives to avoid spending more money on the production process which will then be passed onto the consumer.<\/p>\n\n\n\n

Therefore, the manufacturer is using cheaper components that fulfil the lifecycle of the product and preserves its basic purpose.<\/p>\n\n\n\n

\"Man<\/figure>\n\n\n\n

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How is Value Engineering Used in Construction Projects?<\/h2>\n\n\n\n

Value engineering can be used at any stage of a construction project, but it\u2019s most beneficial to use it in the very beginning.<\/p>\n\n\n\n

By taking advantage of this method before the project starts, you can be sure you\u2019re achieving the best possible value with the lowest costs in terms of resources, budgets, and scheduling.<\/p>\n\n\n\n

However, many companies only start employing this method when they realise they are running low on money. This usually happens during the course of a project, when it becomes clear that the initial plans and budget will not work.<\/p>\n\n\n\n

Therefore, they have to start looking at alternative ways of completing the job to make sure it is still a success. The best way to avoid this situation is to use value engineering before you sign any contracts or get started.<\/p>\n\n\n\n

This helps you avoid potential problems which can arise including:<\/p>\n\n\n\n