Study on Application of Value Engineering on Construction Design

i 2 3
WangFei , WangShilei , YanJuwei
School of Economics and Management,Hebei University of Engineering,Handan, China
(418467056@qq.com)

Abstract - At present, our country construction technical II. APPLICATION OF VALUE ENGINEERING IN
level is low, management and construction career behind the CONSTRUCTION COST CONTROL
vigorous development of variance exist. Meanwhile, adapt to
the development of modernization needs the new progress of Value engineering as a result of cost control has
science and technology industry has not yet been fully expanded the scope of work, from the control of the
formed. So strongly advocate application of value project life cycle cost of construction should be starting to
engineering in the construction industry .Construction study the engineering design of the techno-economic
enterprises need to improve product value and promote the rationality, and exploring the possibility of improving the
value of traditional products innovation, foster and form the
availability, specifically the application of value
core of enterprise competitiveness, promote national
engineering, analysis the relationship between function
economic and social sustainable development, both has long
significance.
and cost in order to enhance the value of coefficient of the
project. At the same time, through the analysis to tind and
Keywords - Cost control; Value Proj ect; Management eliminate the unnecessary function of engineering design,
to reduce cost, lower investment purposes.
All charges are applied value engineering, building
I. INTRODUCTION products are generally costly, so value engineering is
promising. In the construction project implementation and
With the development of socialist market economic operation of the decision, the whole life process can be
system, the establishment and improvement of increased carried out, and the implementation of the project or any
competition among enterprises, low-cost as an important decision are early directly or indirectly affect the follow­
competitive advantage of one of the criteria. up every stage of the work of value engineering, so using
Strengthening cost management to reduce costs in the the sooner, the better. Relative to the construction
enterprise business strategy has been extremely important projects, can form the basic procedures of investment
in the central position. Enterprises, in order to gain a estimate, design, construction drawing budget estimates,
foothold in the competition must have advantages in cost contracting contract with the final settlement price. These
management. The positive signiticance of value cost exists between the former to the latter, who added the
engineering: equations, graphics, and tables are not control of such interaction, according to the former, the
prescribed, although the various table text styles are latter control relation of the investment estimate by means
provided. The formatter will need to create these of various plays a role, cost is limit goal. Thus, strengthen
components, incorporating the applicable criteria that the depth of project decision-making in engineering
follow. Through analysis of the value of the project application value in the construction project; the project
activities could be defined more clearly the requirements can effectively improve the benefit of investment.
of owners of units, and more familiar with the design
requirements, structural characteristics and where the
natural and geographical conditions, thus more conducive III. DISCUSSION
to the formulation of the construction program, more easy
to organize and control project construction. Engineering Aim of value engineering is to improve the product
activities can under the premise of quality assurance for value. Increase value, the pursuit of the goal, and the
the owners to save investment, improve function and fundamental interests of the two is consistent. Enterprises
reduce life-cycle costs. Keeping mutual benetit relations shall study product function and cost of best match. The
between the two sides harmony and collaboration. basic principle of value engineering formula V =FIC,
Through the analysis of engineering design of value deeply reflects value products and product function,
engineering activities, to improve the quality of project realizing the function of the relationship of the cost of
organization, improving the internal organization consumption. According to the standard of value
management, reduce the unreasonable consumption etc. engineering, combining the construction work, the work
of value engineering construction projects for the
978-1-4244-3672-9/09/$25.00 ©2009 IEEE following three stages can program implementation:

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A. The preparation stage VI = 1: the importance of function equal to cost roughly,
is a relatively reasonable, no value analysis.
·The application of value engineering and the problem VI < 1: evaluation scheme of relative cost less than
need analysis object, should according to the specific relative functions, proportion of relatively high cost,
circumstances of the project can be determined from three which should find way to reduce costs.
aspects, to consider; Design, such as design standard VI> I: function of the relative costs to meet the minimum
exorbitant, design content in any unnecessary function; program, that is to say the economy is relatively better
etc. The construction aspect: mainly is to find the best in technology options.
quality requirements, such as analysis of construction According to the value of engineering work standards,
scheme, construction method, mechanical equipment, and combined with the characteristics of construction,
other water without unnecessary function; Cost: mainly in construction project value engineering work processes can
quality requirements for the premise way to reduce costs, be implemented in three phases as follows:
should choose the value of large project focused on the
analysis. A. The preparation stage

. Establish value engineering team, according to the

1) Preparation phase: Application of value engineering
selected object.
objects and needs analysis, should based on the specific
.The plan of value engineering, the main content should
circumstances of the project, generally from three aspects
include: the target, group goal, team members and
to consider:
division, the activities of the methods and steps, etc.
.Design aspects: such as the design standard is too high,
the design of the content whether or not unnecessary
B. Scheme evaluation stage innovation
features, etc;
.Construction: The principal objective is to meet the
Put forward the improvement plan. Its purpose is to
·

quality requirements to tind the best construction

tind any other method can realize the function of concrete
programs, such as analysis of construction methods,
engineering, such as whether new mix or mixed with
assembly-line, mechanical equipment;
additional agent, deep foundation excavation engineering
.Cost: The principal objective is to tind the quality to
have different methods, etc.
meet the requirements of the decline in low-cost way to
.Assessment improvement, it is mainly for the
select a value larger project focused on analysis.
improvement scheme, from two aspects of function and
The value of the project plan, the main content should
cost calculation, to evaluate the new scheme of cost and
include: target, target group, panel members and the
function.
division of activities, such as the methods and steps.
Assessment improvement is for the improvement
C. Experiments and acceptance stage
scheme, from two aspects of function and cost calculation,
to evaluate the new scheme of cost and function.
. New scheme, submit to project manager for
examination and approval, and some even get supervision B. Program innovation and evaluation stage
engineer, design units.
Acceptance and summarizes the achievements
·
Improve the program, aiming at finding whether or
not other ways to achieve this function, such as concrete
projects with the availability of a new ratio or doped with
IV. VALUE ENGINEERING WORK PROGRESS additives, deep foundation excavation works whether or
not different methods.
Before Value engineering, improve product value for Evaluation to improve, with proposed to improve the
the purpose. Enhance the value of both the needs of users, program, from both functional and cost to conduct the
but also the production of the goal pursued by the evaluation, the specific calculation of the cost and
operator; the fundamental interests of both are the same. functional value of new programs.
Enterprises should study the cost of product features and The nature of the optimal program, it is the basis of
the best match. The basic principles of value engineering improving the evaluation of the program, which preferred
formula V F / C, profoundly reflect product value and
=
the best option.
product features and realize this feature by the
relationship between consumption cost. C. Experimental and acceptance stage
From the basic formula of value engineering, the
following formula: value can be get value index (VI) =
New proposal, submitted to the project manager for
function index (FI) / cost index (CI) to calculate the value approval, and some also need recognition of supervision
of objects of different evaluation index. engineer, design unit owner.
Value index can have three cases.
. Implementation and inspections of the new program.
Conduct and summarize the results of acceptance

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 TABLE
· VALUE ENGINEERING COST CONTROL IN SATISFACTION SCORE TABLE
THE APPLICAnON OF CASE ANALYSIS Evaluation factor Score
Function factors Small steel Steel-wood combination
Optimize the construction program by using value fonnwork formwork
Unilateral cost 10 7
engineering. In the project implementation process to
Total cost 9 10
determine a reasonable use of value engineering, and Actual effi cacy 6 10
optimize the construction program, will enable the project Cycle 7 10
specific conditions to achieve good quality, short Disassembly
operation 8 10
duration, low cost, superior investment returns with good
results.
Take the main floor of a cast-in-place construction Importance of each function index take 04 score
project for example, construction units to speed up the method, and calculate the importance of each function
template for working capital, demolish as early as the use index in Table 3 below
of Steel-wood combination of the formwork system or
TABLE
small steel formwork construction. Both the technical FUNCTIONAL IMPORTANCE AND FUNCTION IMPORTANCE
economic indicators are shown in table 1 below. FACTOR SCORE

Factor A B C D E Score index

TABLE I
Unilateral cost A 0 2 3 3 8 02
TECHNICAL AND ECONOMIC INDICATORS
Total cost B 4 3 4 2 13 0325
Item Small steel Steel-wood combination Actual efficacy C 2 I 3 I 7 0.175
formwork formwork Cycle D I 0 I I 3 0.075
Unilateral cost 130(Yuanl ) 250(Yuan/ ) Disassembly
Total cost 1500000 1300000 operation E I 2 3 3 9 0.225
The actual
16 ( Iday 22( Iday)
efficacy
Cycle template 12days 4days
According to important sub-function index, the
Disassembly operation and machinery could operate by program function points, function score derived programs,
skilled workers. The construction is simple and program evaluation function index in table 4
reasonable, in order to determine the optimal program, it
TABLE
was decided to use value engineering based on the FUNCTION AND FUNCTIONAL ASSENTMENT INDEX
indicators of techno-economic analysis above. Evaluate factor Score

Steel-wood
A. Value Engineering Importance Small steel
Function combination
factor formwork
formwork

That is, value analysis, the use of collective Unilateral cost 02 10 0.2 7 02

intelligence, through organized activities, focuses on Total cost 0.325 9 035 10 0325
Actual etfi cacy 0.175 6 0.175 10 0.175
functional analysis of the products so that a lower total
Cycle 0.075 7 0.0075 10 0.075
cost, reliable product to achieve the necessary function,
Disassembly 0225 8 0.22 10 0.225
thereby enhance the product value by scientific technical
operation
and economic methods. Score 8.3 9.4
Formula: V = F / C Index offunction evaluation 8.3/(8.3+9.4)=0.469 9.4/(83+9.4)=0531
Where: V- value analysis
F-function evaluation index
Determine cost index, according to the total cost of
C- Project cost
each scheme were calculated the cost of each factor .As is
shown in table 5
B. Determine the function evaluation
TABLE
COST INDEX CACULATION
Calculate index of function importance. According to
Scheme Total cost index
the function of cast-in-situ floor template, divide it into
Small steel formwork 150/(130+150)=0536
unilaterally cost, total cost, efficacy, cycle, disassembling Steel-wood combination
I 30/(130+150)=0.464
operating. Employ design, construction, owner, etc, score formwork

respectively, the average score 10 points for partial

Determine value index
function, grading results shown in table 2.
C =FIV results are shown in table 6
TABLE
CULATING INDEX OF VALUE

Plan Function index Cost index Value index

Small steel
0.469 0.536 0.46910.536=0.875
formwork
Steel-wood
508 combination
formwork 0.531 0.464 0.53110.464=1.144
 [5] Ma Xiao,Han Chunmin, Hao Weidong, "Evaluation of
Architecture Economy in the Library Building Plan," Value
Engineering Theory,pp: 30-31.2008 (7)
[6] Zhu Yutao,Chen Junran.:Shen Jianliang. "Value
C. Scheme evaluation. Engineering.Application in the Project Plan" Management
modernization construction. pp: 49-50.2008 (I)
From analysis results above, The index of value of
total cost steel combination template is I. 144 Higher than
the index of value of total cost of small steel formwork
o 875.So should choose combination of steel construction
scheme, Give full play to the template and reduce the use
function, improve the total project cost benefit of
investment.

V. CONCLUSION

An Empirical Analysis of the results of this analysis,

we can conclude that: In the building projects under
construction, the application of value engineering cost
control theory, practical operability; construction project
according to the different characteristics and
requirements, the focus of the study should normally be
released value theory through the application of value
analysis, to determine the optimal construction program,
with a view to enhance the functions of the product, lower
product cost. Through the empirical analysis can also
clearly see that the application of value engineering
theory of effective, economical and great potential, not
only works to enhance the quality, can also greatly
accelerate the construction schedule. Through the regular
application of value engineering theory, can also give full
play to the technical staff, materials procurement officers,
accountants, construction workers grassroots collective
intelligence that will enable an officer to more closely
together to jointly study the problems, the promotion of
construction enterprise management level improvement
has important practical significance.

ACKNOWLEDGMENT

I would like to thank my teacher Wang Fei and

classmate for their unfailing support and patience while I
was writing this work.

REFERENCES

[I] Li Na.Engineering Economics. Beijing Science Press, pp:

131-1025 (2004).
[2] Liu Yi. Construction Project Management. Beijing:
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[3] Li Weina. "Application in product design stage of value
engineering," journal of value engineering, pp: 82-83; 2008
(6)
[4] Cheng Xuechang, Xi Hanchuan, "Construction Project.
Process of Cost Management, journal of architecture economy,
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pp: 32-33.2007 (II)

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