Value Added Engineering
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CHAPTER ONE
INTRODUCTION
What is Value Added Engineering?
Value Added Engineering (VAE) also known as Value Engineering, Value Analysis, or Value Management is an intensive problem solving activity that is concerned with improving the quality and value of functions needed to achieve the objectives of any service, products, process, or organization. The methodic application of recognized approaches that identify the functions of the service or product create the worth of the functions and offer the required functions to attain the performance needed at the lowest possible cost. It refers to a systematic technique by using an assessment of function. It follows a structured process of thought, which is based entirely on what something does but not what something is. Value added engineering applies rational logic and the assessment of function in the identification of relationships that improve value.
According to American Association of State Highway and Transportation Officials, (2010), Value Added Engineering is an organized set of procedures or processes that are initiated to facilitate services, systems, designs, or facilities functions at the possible lowest cost. VAE takes the aspects of quality, time, durability, cost, and conformance into consideration before its operations area initiated. Additionally, VAE is concerned with innovation and creativity, and with improving and maintaining a balance between the needs of stakeholders and resources needed in order to satisfy the needs. VAE operates on principles and rules of adding or defining value in order to facilitate innovation and achievement of goals and objectives.
As VAE is the systematic application of methods of value assessment for improving value, it focuses on effectiveness and efficiency improvement. However, in order to achieve this, the system operates in a various phases that will be discussed later in the paper. The work operations of Value Added Engineering are systematically and strategically done in the job plan, which is a framework that guides the systematic maneuvering of opinions and ideas in order to ensure that options are not unnecessarily omitted. This implies that the implementation of the process of Value Added Engineering on a problem improves reliability, quality, safety, effectiveness, durability, or other desirable features and characteristics.
As costs can be measured, the reduction of cost is frequently thought of as the only criterion for VAE application. However, it is necessary to recognize that the main and real objective of VAE is improving value, which may not immediately result in cost reduction. VAE is an organized manner of looking at an item or thinking about the item or a procedure through a functional approach. The process of VAE entails an objective assessment of functions carried out by components, parts, equipment, products, services, and procedures that cost money. The VAE process is carried on to modify or eliminate any component that significantly takes part in the overall cost with no considerable addition of value to the overall process or function. The process of VAE is not fundamentally centered on a particular class of the physical sciences. Rather, it integrates existing technologies and the principles of business management and economics into its processes and procedures. When looking at VAE from the management field point of view, it applies the entire available resources in an organization aimed at achieving the broad management objectives of key stakeholders involved. Therefore, Value Added Engineering is a methodic and creative technique for achieving a return on investment by improving what the service or product does with regards to the amount of money spent on it (American Association of State Highway and Transportation Officials, 2010).
History of Value Added Engineering
In the Second World War, a significant number of manufacturers were compelled to use substitute designs and materials as a consequence of crucial shortages in materials. In 1947, the General Electric Company launched an attempt to improve the efficiency of products by systematically and intentionally developing less costly options and alternatives. This was after the company found out that a lot of the substitutes were offering better or equal performance at significantly lesser cost. This effort was led by a staff engineer in General Electric, known as Lawrence D. Miles. He joined a number of techniques and ideas to establish a successful systematic approach for guaranteeing value in a product or service. This framework spread quickly through the private industry as the potential for large returns from moderately less costly investments were realized. This approach and methodology was initially referred to as value control or value analysis.
In 1957, a formal Value Added Engineering was established by the Navy’s Bureau of Ships. This made it the first DoD organization to develop such a program. Miles. Together with Raymond Fountain, another employee of General Electric established the Bureau of Ships program to assist in the reduction of cost of the construction of ships that had almost doubled as from the end of the Second World War. The Bureau of Ships requested the technique be referred to as Value Engineering and employed personnel under the position description of general engineer. In 1959, the Armed Services Procurement Regulation added the contractual requirement for Value Added Engineering. VAE was originally applied only with command approval. However, in June 1962, the procurement regulations of the Defense Department were adjusted to develop VAE as a compulsory program both for the contractors of the Department and the Department itself (American Association of State Highway and Transportation Officials, 2010).
In 1960s, VAE in construction was started by Alphonse Dell”Isola. He was concerned with similar goals to those of Miles in creating value analysis procedure for construction. In the period of his career, he carried out more than a thousand VAE workshops for various organizations that led to savings of significant amounts of money. He identified the main objective of VAE as improving the value of a project. He held that the team involved in the project should apply Value Added Engineering to overcome poor quality and value in project. Some of the factors that lead to poor project quality and value as stated by Dell’Isola include lack of shared project information. Inadequate data on the stakeholder’s requirements function such as insufficient building processes and materials may affect the quality of a project. Lack of ideas and opinions or failure to establish alternative solutions and making appropriate choices based on performance and economics may affect the quality and value of a project. Other significant factors that influence the value of projects include attitudes and habits, changes in requirements of stakeholders, lack of coordination and communication, and outdated specifications and standards. These have a significant influence on the project’s value and quality.
In 1961, the Value Added Contract Clause was started in America. This would assist in sharing of the benefit of VAE between the contractor and the employer. The clause came into operation in 1962. In 1970, the Congress of the U.S suggested the application of VAE in General Service Administration and highway projects aided by the Federal. In 1971, the Department of Health, Education, and Welfare adopted the application of VAE on chosen projects of construction. During this era, the concepts of VAE had achieved their dynamism and continued to strengthen. This was because many industries and countries were adopting it for application in their construction processes. In 1965, the era of industrialization in Japan, the concept had been implemented for improvement of value in products and services. For instance, the Society of Japanese Value Engineering was initiated in the country. This society provides professional information on Value Added Engineering within the State, as well as, overseas. This is aimed at facilitating the activities of VAE in order to create a better outcome among business and industrial sectors. The objectives and mission of the organization are to create awareness on the advantages of the application of the VAE concept, to study VAE in order to improve value.
The UK institute of Value Management was established in 1966, as the Association on Value Added Engineering. In 1971, the institute widened its appeal. The institute facilitates VAE across all sectors of the country’s economy. In 1977, there was the formation of the Indian Value Engineering Society.
VAE remained primarily a DoD program until in 1988 when there was the issuing of Office of Management and Budget (OMB) Circular A-31 in order to expand this program into other organization where it was necessary. This circular had some loopholes that were later closed in 1993 when there was a reissuance. This circular currently necessitates that all Federal Departments and Agencies apply VAE and that OMB should be advised on an annual basis of top projects of VAE, as well as, the net lifecycle cost avoidance, cost savings, and cost sharing attained through Value Added Engineering. In 1991, Australia also adopted VAE. In 1993, Canada also embraced the application of VAE processes and procedures by the foundation of the Canadian Society of Value Engineering. In 1995, there was the formal establishment of the Hong Kong Institute of Value Management. Just like all VAE focused institutes, it was concerned with promoting the application of Value Added Engineering across the region and other places outside the country. In 1996, VAE was offered much support when the United State’s President then, President Clinton approved P.L. 104-106 that necessitates every executive agency in the Government to develop and maintain cost effective Value Added Engineering processes and procedures (American Association of State Highway and Transportation Officials, 2010).
Since the inception of the concept of Value Added Engineering, it has proved to be exceptionally successful that it is practiced today across the world, with a variety of organizations focused on its application and its promotion, as well. The DoD VAE program has two different components. An external attempt carried out by the contractors and applied to contracts after approval by the Department and an in-house or internal effort carried out by the DoD military, as well as, the civilian personnel. The former element is exceptionally essential. The compulsory provisions in most contracts facilitate participation of the contractor, hence, realizing the entire benefits ranging from cost reduction opportunities to innovations. The provisions offer the basis for the contractor to get a portion of the savings that arise from a VAE effort that has been approved. Prior to this development, submitting a change on cost reduction resulted in a proportionate decline sin the contract’s size and normally reduced profit by a comparative amount. These provisions changed this perspective by offering the contractor with a motivation to present proposals to reduce cost.
In the modern market, VAE has been adopted and has proven to be effective and efficient. The results of its application are positive and impressive, where it has been wisely applied and discreetly managed. It has led to a decline in the costs of procurement and manufacturing. Over the decades, the concept has proven successful, and this is why its use is wide (American Association of State Highway and Transportation Officials, 2010).
Benefits of Value Added Engineering
There are many benefits associated with the application of Value Added Engineering. VAE is used in the determination of the best alternatives of design for projects. This ensures that the best outcome is achieved. In addition, VAE increases reliability, availability and satisfaction of customers while at the same time improving quality and value. Value Added Engineering reduces costs on projects that are in existence guaranteeing for reduction of costs for future projects. Value Added Engineering is also used in order to improve the overall performance of organizations. It improves the environment, schedule, and economy at large. It also reduces risks associated with its processes and procedures. Value Added Engineering is a powerful technique used to identify problems and create suggested solutions to mitigate these problems. According to Melton et al., 2009), Value Added Engineering provides the industry applying the concept the incentive to use its best talent and skill in engineering in a manner that assists in solving problems that have significant influence.
Value Added Engineering increases the return on investments while at the same time ensuring savings in costs. In other words, it reduces the total costs of a project’s lifecycle or processes. VAE increases communication and coordination among the key stakeholders. Moreover, it establishes a reputation as it applies a high level of technology in its processes and procedures. As mentioned earlier, VAE focuses on reliability, quality, efficiency, and effectiveness to ensure that its main objective, achieving and improving value is attained (Melton et al., 2009).
Limitations of Value Added Engineering
Despite the many realized benefits associated with the application of Value Added Engineering. For instance, VAE should be carried out as early as possible prior to the commitment of any resources. This implies that the optimum timing for VAE study should be during the design phase. Moreover, the approach relies heavily on creativity and teamwork concepts. This implies that failure to incorporate these essential factors may lead to failure of the VAE approach (McCarthy, 2010).
Steps of applying Value Added Engineering
There are six major steps in the application of Value Added Engineering. The first step is the information phase. This involves clear identification of problems that require to be solved and collect data on the background, requirements, and functions of the project. Activities in this phase are classified into the logistics and scope. There are times, however, when this phase is hurried to complete because Value Added Engineering is in most cases viewed as a means of resolving problems that are arising or providing direction. This should not be allowed because the eventual success of VAE depends significantly on covering the functions and activities of this phase. Some of the activities in the category of scope are associated with creating the focus and bounds of the VAE. Collected data, at the information phase, is evaluated and forms the basis for entire subsequent evaluation. VAE objectives are highlighted, and the identification and preparation of background data is also done at the scope category. On the other hand, logistics involves the creation of study schedule or timetable. Gaining of commitment and identification from various stakeholders engaged is also done at the logistics category. In addition, the processes of nomination, invitation, and participant briefing are carried out here. The venue is decided upon and arranged, and there is also the distribution of combined background material and information.
The next step in VAE is known as the functional analysis phase. In this phase, questions on what the project must do, the functions, and how these functions are related are answered. This implies that there is clear identification and evaluation of roles. The techniques and tools created to evaluate and identify functions in the functional analysis phase include the Function Analysis System Technique, the Functional Hierarchies, and others that are essential in VAE. The tools operate in a systematic manner starting with the general functions then going on to the specific functions. According to Gopalakrishnan et al. (2012), this phase is crucial and involves an analysis of combining the elements that are interdependent and integrated that create a joint entity and serve common interests.
The third step in the application of Value Added Engineering is creativity phase. This stage entails ideas on how to improve the value and functions involved in the application of Value Added Engineering. In this phase, therefore, alternatives of various ideas and options are brought forward to achieve value improvement. In the creativity phase, there is lateral reasoning that is encouraged to develop as many options as possible although some ideas may seem unreasonable or illogical. The method, however, depends significantly on the number of participants in this study and the nature of the study or project (Gopalakrishnan et al., 2012).
The next step is known as the evaluation phase. This is where ideas and options are screened for acceptance scored on a scale of various categories, to decide on ideas to adopt and the ones to ignore. In this phase, there is the establishment of design scenarios and selection criteria, which implies that the process is systematic. In other words, ideas are rated and ranked accordingly in the selection process. Each idea generated during the creativity phase is considered by the team to decide on the ones that require further analysis. Ideas are evaluated in terms of the advantages and disadvantages they offer to the project with greater consideration of value improvement. Evaluation Matrices are some of the tools and techniques that might be applied in this phase to carry out evaluation of ideas.
The development phase is the next procedure in the application of VAE. During this stage, there is planning of how ideas should be sold to the management. Additionally, there is the identification of main recommendation and this leads to plan of management presentation. The phase involves the Action Plan preparation. Results are summarized in this phase, which gives a framework for significant roles on analysis and decision making. This phase reflects the consensus of ideas of the participants of the project and highlights options and ides that depict the highest probability for improving value. The key components of the phase are a roll of all tasks and activities to be performed, identification of people responsible for each task and the indication of the project’s time and venue (Gopalakrishnan et al., 2012).
The last step in Value Added Engineering application is the reporting phase. This is where the oral presentation is given to the management, and there is the development of a written report. Gopalakrishnan et al. (2012), notes that the requirements for VAE vary considerably depending on the project’s stage at which the study is carried out. This means that the requirements differ with regard to whether the project is at strategic or concept phase.
Construction Project Delivery Time
Project delivery time is essential if there is a need to maintain good relations between customers and the participants of the project. There is nothing as good as delivering projects on time in the construction projects. It assures the client that the project can be trusted for future projects. However, delivering projects on time is not the only main concern as there is also a need to ensure that the quality and value of the project is maintained. Achieving improvement in value and delivery of the project on time is not an easy task. Rather, it requires adequate resources and dedication in order to achieve the best outcome. Lack of any material required in the construction process may delay the process and lead to undesired outcome. The construction industry has been looking for construction delivery techniques aimed at ensuring that projects are timely delivered and the value and quality of a project are improved (McCarthy, 2012).
The development of the construction project comprises various individuals, varied stages and phases of work, and various procedures. The main purpose of all construction projects is to carry out the project to successful completion. The development activities of successful delivery of construction project relies significantly on the managerial quality, technical, organizational, and financial performance of all individuals engaged in the construction project process. The universal evaluation of the construction process’s success is that they are delivered to budget, on time, and to the technical specification in order to achieve maximum consumer satisfaction. According to McCarthy, (2012), the success of construction project delivery should be looked at from the varied perspective of an individual, developer, owner, contractor, or even the general public. The success of a project is usually perceived as the accomplishment of project’s goal and objectives that comprise of various aspects including time, performance, safety, cost, and quality. Frequently, the customer and the contractor would regard a project as successful if the respective objectives and goals are attained, especially the financial objectives.
The criteria of cost, time, and quality are applied in evaluating the success and performance of construction projects. Although these criteria are timely and easy to measure, they have received criticism due to a number of reasons. Scholars have argued that they are insufficient unless they are measured periodically. Additionally, they do not give a sufficient vision of the probability for advancement and the information gathered in most cases comes too late for any correction measures to be taken. The success of a project is a concept of the strategic management where efforts of a project must be related with the company’s goals. Similarly, strategic planning of the construction process is crucial for the success and accomplishment of a project. In the advanced society, clients are more discerning and more demanding than in the past decades. They want everything easier, cheaper, safer, and better. Customers who are informed are seeking for construction firms that have the ability of delivering better, progressive and experienced, and more knowledgeable to constantly meet their business requirements and needs (McCarthy, 2012).
Importance of delivery time in construction project
Delays in construction project delivery are an international phenomenon. Factors that cause these delays differ from one country to another as a result of distinct existing conditions. Such conditions that may influence the project delivery time include economic, physical, and political factors and the technological development level, the techniques of construction, and the management style (McCarthy, 2012). As customers are now seeking for construction firms that guarantee for timely delivery, it is essential for such companies to adopt project delivery methods that ensure that delays are eradicated, and maximum client satisfaction is attained. Timely completion of projects is important for various reasons.
A construction project is perceived as successful when it is accomplished within the specified time, quality, safety, and budgeted cost. There arises much conflict and dispute as a result of incomplete or projects not accomplished within the specified time span. Delays arise due to unfavorable actions of parties involved in the contract. However, there are times when delays may be caused by the client due to delayed instructions, late approval of operations, poor dimensional coordination, and late preparations of reports. The contractor may cause delays due to improper planning of work, lack of knowledgeable human resources or materials, poor or undesired construction techniques and tools, or even influences of weather, and strikes of the labor force. The probable impacts of these actions include increased cost of the project, delayed delivery of construction projects, and may also lead to termination of contracts. In this case, every effort should be undertaken to guarantee that parties to the contract do not hinder the timely delivery of projects unnecessarily. Timely delivery of projects ensures that conflicts and disputes between clients and other parties to contract do not occur and save on costs that could arise as a result of delayed delivery of construction projects (McCarthy, 2012).
Problems of Project Delivery Time in General
There are many challenges or problems associated with project delivery time in the construction industry. One of the major challenges has to do with the client whereby he or she may provide delayed instructions, late approval of operations, poor dimensional coordination, and late preparations of reports. The team also may be responsible for delayed delivery of construction projects. This may arise due to improper planning of work, lack of knowledgeable human resources or materials, poor or undesired construction techniques and tools, or even influences of weather, and strikes of the labor involved in the construction project. According to McCarthy (2012), all these problems and challenges serve as limitations to timely delivery of construction projects leading to conflicts between the client and team in the project.
Problems of Project Delivery Time in UAE
Just like the construction industry faces challenges on project delivery time, UAE construction companies also face such problems. Accomplishing a project within the predefined cost, time, and quality is the vital objective of all customers. Besides, the need for more necessities of the lesser amount of contracts and financial planning has caused an increase in the likelihood of looking for highly developed and new construction procurement systems. These requirements and the need for a higher level of lesser amount of contract administration and financial planning have exerted pressure to explore new options for the procurement process in construction. These factors, as well as, the shortage of components and materials that faced the manufacturing industry are what resulted in the implementation of Value Added Engineering and project delivery methods in UAE construction companies. The adoption of the project delivery techniques and Value Added Engineering had and continues to have significant positive consequences for the country’s (Dubai) construction companies and the construction industry as a whole (Oxford Business Group, 2009). This is because these techniques reduce costs while improving the effectiveness and efficiency at all construction levels.
However, despite the advantages that accrue from the application of these methods, construction companies in UAE faces problems in project delivery time. There are frequent delays experienced that lead to conflicts and disputes among parties to the conflict. These problems include delayed instructions from the client, delayed endorsement of operations from the client, poor dimensional organization, and late preparations of reports. Other challenges include inappropriate scheduling of work, lack or insufficiency of skilled and knowledgeable human resources, lack or inadequate materials, and undesired or poor tools and techniques of construction. Lack of proper communication and coordination among the team members is also a challenge of project delivery time in UAE construction companies (Oxford Business Group, 2009).
Statement of the Problem
The construction and engineering industries in the UAE face significant challenges. For example, the industries suffer from continual project overruns in schedule and budget, claim and counter claims, as well as, low profit margin. This means that the construction industry in UAE faces challenges in project delivery time despite the application of efficient project delivery methods in the construction process. However, the performance of the industry can be improved through the efficient and effective application of Value Added Engineering to control the project delivery time in construction.
Objectives of the study
The general objective of the study is to investigate the Control of Delivery Time in the Construction Projects through the Application of Value Added Engineering. Specifically, the study aims at applying the Value Added Engineering concept to optimize the project delivery time in UAE construction. Additionally, the research aims at investigating the use of Value Added Engineering to improve the weaknesses of delivery time method in UAE construction and improving the control of the project delivery time through the application of Value Added Engineering.
Significance of the study
The study aims at establishing the control of delivery time in the construction projects through the application of the concept of Value Added Engineering. This is crucial in achieving the main objectives of the study, which include, applying the concept of Value Management to optimize the project delivery time, to use Value Added Engineering to improve the weaknesses of delivery time method, and to improve the control of the project delivery time through the application of Value Added Engineering in UAE.
Scope of the study
The study is limited to the construction projects in United Arab Emirates. The study will explore the delivery time challenges experienced in construction projects in the UAE. This will be done through the carrying out of a construction project as a case study to address the time delivery challenges and to apply the techniques of Value Added Engineering to resolve these problems. The study will also be limited as only three construction companies will be studied. The three companies include Arabtec Construction LLC, Freeman Contracting LLC, and Eurogulf Construction LLC.
CHAPTER TWO
LITERATURE REVIEW
Definition and Benefits of Value Added Engineering
Value Added Engineering (VAE) also referred to as Value Engineering, Value Analysis, or Value Management refers to an intensive problem solving activity concerned with improving the functions of quality and value required in order to achieve the objectives of any service, products, process, or organization. The use of accepted approaches that identify the functions of the service or product build the value of the activities of VAE and provide the needed functions to achieve the performance required at the lowest possible cost. VAE refers to an orderly technique that uses an assessment of function while following a planned process of thought that is based completely on what a function does but not what it is. The concept of Value added engineering utilizes coherent logic and evaluation of function in the determination of relationships that improve quality and value. The concept of VAE is a planned set of procedures initiated in order to enhance systems, services, designs, or facilities functions at the possible lowest cost. It takes into consideration the aspects of time, quality, cost, durability, and conformance before its operations are started. Furthermore, VAE focuses on innovation and creativity, as well as, on improving and sustaining a balance between the needs of stakeholders and resources required to fulfill these needs (American Association of State Highway and Transportation Officials, 2010).
The VAE framework operates on principles and rules of adding or defining value to facilitate innovation and achievement of goals and objectives. Value Added Engineering is the systematic application of methods of value assessment for improving value, and it is concerned with concepts of effectiveness and efficiency improvement. In order to achieve this, however, the scheme operates in various phases that have been discussed in the first chapter of this study. The operations of Value Added Engineering are systematically and strategically undertaken in the job plan, a structure that directs the methodical maneuvering of opinions and ideas to make certain that options are not unreasonably omitted. This implies that the implementation of the process of Value Added Engineering on a problem improves reliability, quality, safety, effectiveness, durability, or other desirable features and characteristics.
The reduction of cost is frequently thought of as the only criterion for VAE application since costs can be measured. It is, however, vital to recognize the fact that the real and main purpose of Value Added Engineering is improving the project’s quality and value that may not instantly result in the reduction of cost. Value Added Engineering is an organized method of looking at or thinking about an item or a process during a functional approach. The VAE process involves an objective appraisal of activities and roles undertaken by components, parts, equipment, products, services, and procedures that involve spending of money. The process is performed to alter or eliminate any constituent that considerably takes part in the overall cost with no considerable addition of value to the overall process. The process not essentially centered on a certain class of the physical sciences. Rather, it incorporates existing principles, as well as, technologies of business management and economics into its processes and procedure. Looking at Value Added Engineering from the management field point of view, the approach utilizes the entire existing and available resources in an organization aimed at attaining the wide management objectives of key stakeholders of certain project. Hence, VAE is a systematic tool for achieving a return on investment by improving what the service or product does with consideration of the amount of resources involved.
The application of Value Added Engineering has proven to be successful and beneficial over the years since its implementation. Using VAE helps the team involved in the project to determine the best alternatives for designing projects. This is essential as it guarantees that the best alternative is selected leading to the achievement of goals and objectives, and; hence, the best results. Using Value Added Engineering improves reliability and availability that facilitate customer satisfaction. Apart from reliability and availability, the concept is also concerned with improving value and quality that again provide satisfaction to customers improving their relationship with the team involved in the construction project.
Value Added Engineering reduces the cost on projects that are in existence guaranteeing for reduction of costs for future projects. Reduction of costs leads to better performance and better relationships among project’s participants. Therefore, the application of VAE improves the overall performance of organizations. Moreover, VAE improves the environment, schedule, and economy at large. This is done through its ability of reduction of risks related to its processes and procedures. As Value Added Engineering is a powerful technique, it is essential and is used in the identification of challenges or problems. The identification of the problem is not sufficient in defining the benefits of applying VAE. This is because VAE also generates suggested solutions to mitigate these challenges, which makes it a powerful tool or technique. Value Added Engineering provides the industry applying the concept the incentive to use its best talent and skill in engineering in a manner that aids in solving problems that have significant influence on the activities of a project or the entire project.
It is essential to note that Value Added Engineering also increases the return on investments while at the same time ensuring savings in costs. In other words, it reduces the total costs of a project’s lifecycle or processes. It facilitates communication and coordination among the key stakeholders. VAE establishes a reputation as it uses a high level of technology in its processes and procedures. Generally, VAE focuses on reliability, quality, efficiency, and effectiveness to ensure that its main objective, achieving and improving value is attained (American Association of State Highway and Transportation Officials, 2010).
Implementation of Value Added Engineering in Construction Company
Generally, the services of Value Added Engineering in UAE comprise mainly of two studies that are carried out at the completion of the processes, the Concept Design and the Tentative Design. If it necessitates, extra studies may be undertaken at the intermediate Design phase for the ultimate construction documents because of constraints in technology or budget. A single study may, however, be suitable on smaller or less complicated projects. In UAE, for new projects on construction, the first analysis in the Concept Design phase is aimed at reviewing essential decisions on plans that relate to concerns of building orientation and site such as the shape, massive layout, and form, the criteria of design, gross relations of occupation, options of the space program, selection options of building systems, the building space or volume parameters, vertical or horizontal circulation, considerations on the entire energy to be used, key Mechanical-Electrical-Plumbing considerations, the access of site, the availability of utility, the overall plans of phasing and scheduling. For construction projects that necessitate repair and alteration (modification), these areas also apply and are appropriate especially in the concept stage study (Gopalakrishnan et al., 2012).
On the other hand, on the Tentative Design, the study is concerned with in depth decisions on performance and requirements specification, details of the proposed design, system design of specific design, site paving, plans on scheduling and phasing, main concerns in the construction process, the geometry of the building layout option, and specific system selections of mechanical, electrical, and plumbing. The essential approach of this study is aimed at considering issues at the Concept Design (macro level) and at Tentative Design (micro level). In general, options decided upon because of the first evaluation are not taken into account during the second evaluation except for cases where new data is available (Gopalakrishnan et al., 2012). In addition, alterations in design implemented as a consequence of evaluations are not regarded as being within the usual design process limits. Exceptions to this case can, however, be taken into account on a basis of instance by instance.
Successful Value Added Engineering involves the combined engagement of the Architect Engineer of the design, the consultant of the VAE, as well as, the Construction Manager. Furthermore, the success of effort involved in the process relies highly on the management and the organization of the entire VAE process. The VAE study effort is classified into three major sequential activity periods. These include the pre-workshop activity, the VAE workshop, and post-workshop. There are two VAE assessments carried out at different stages of completing a design. This implies that activities of pre-workshop, workshop, and post-workshop are carried out twice. The effort needed is controlled by the project’s complexity and size (Gopalakrishnan et al., 2012).
During the activity of pre-workshop, the coordinator of VAE utilizes this time to get familiar with the project and evaluate the technical data and cost to be incurred, organize the timing for VAE workshops, complete the logistical preparations for the VAE workshops, perform the selection of participants and members of VAE, and establish working conditions that are productive with the representative of Public Buildings Service and the Construction Manager. In this period, the contractor gets in contact with the representative and the Architect Engineer to organize the entire handling and schedule of resources or material. According to (Gopalakrishnan et al., 2012), any challenges or constraints on the entire study require to be addressed during this period.
The VAE workshops are for the period taken as appropriate for the project’s size and complexity. In UAE construction companies, the workshop’s portion varies from a single day effort entailing few members to more days’ effort involving numerous participants. The recommended VAE job plan or methodology used by the VAE team in this period has six phases, which are briefly described below:
During the information phase, the VAE team obtains much information that concern the project’s design, constraints, background, as well as, the anticipated costs and expenses. The next stage is the functional analysis stage where the VAE team is charged with the role and responsibility of carrying out a functional examination and relative system’s cost ranking to identify potential points with high cost. During the creative or speculative phase, the team applies a creative interaction process among its individuals to develop ideas and options for completing the system’s function. In the evaluation or analytical phase, the ideas developed from the creative phase are monitored and evaluated by the VAE team. Ideas that depict the highest potential for quality and value improvement on the project and cost savings are, therefore, selected for further analysis (Gopalakrishnan et al., 2012). During the development or recommendation phase, the VAE team examines the selected ideas and organizes sketches, cost estimates, and descriptions, in order to aid the recommendation as formal VAE proposals. During the final phase, the Report phase, the consultant of VAE works with the representative from the Public Buildings Services and the Architect Engineer to present a written VAE report aimed at representing the outcome the VAE activities and achieving the goals and objectives of the VAE Program.
In the post-workshop activity, the consultant of the VAE created and presents the final VAE report that contains all ideas and comments from the preliminary report. Then, the Architect-Engineer works with the representative to ensure that all VAE proposals are considered for approval or implementation. All the proposals are then given official consideration by the representative and the Engineer for inclusion into the design of the project. The consultation with user agency is done as required. After the completion of the effort, the Engineer sets up a report stating each proposal’s condition in the VAE final report (Gopalakrishnan et al., 2012). The approval of the VAE summary report entails reasons for acceptance, rejection, or partial acceptance of proposals. Activities of this period involve assessment of budget processing, but only if it is necessary. It is of great significance to note that if a budget increase is required to promote the VAE proposals, the proposals cannot be approved until the budget increase is approved first. Therefore, the final approval summary account of the Engineer is only completed after the budget increase request is acted upon.
The pre-workshop activity can last for a period of one to two weeks for every workshop. The workshop takes a maximum of one week while the post-workshop; on the other hand, can take one to four weeks for every workshop. The VAE study report should be brief and self-sufficient. In addition, it should contain an adequate description of the technical project to be understood by people who are not directly related to the project. In other words, other individuals should be able to understand the main concerns of the project. The initial concept, the concepts proposed, the pros and cons, and the economic effects should be documented in this report. There should also be a reflection of summaries as they permit for a speedy overview and grant the Engineer an easy means of evaluating of the final VAE adoption report (Gopalakrishnan et al., 2012). After the final reports of the consultant and the Engineer are issued, it is important for the representative to review the effect for the VAE program of Design and Construction to be included in the Central Office’s reports. However, there should be the inclusion of a concise description evaluation of study such as all suggestions and points for improvement of value and quality. This is the responsibility of and should be carried out by the representative. The follow-up processes and procedures must include an analysis of trends and patterns in the project. This is important for improving the process of VAE in the future.
Control of delivery time in construction
VAE is crucial and can be applied in the control of delivery time, in the construction process. This from its ability as it has demonstrated high levels of effectiveness and efficiency. VAE is applied throughout the life cycle and process of a construction process in UAE companies and other construction firms across the world (McGeorge et al., 2013). In most cases, a construction process follows a series of sessions integrated with the construction project program beginning with the description of the project, the strategic level, and progressing to the construction level. In the stage of operations, the knowledge and skills obtained aid in the improvement of the upcoming construction projects and the use of the new facility or structure. VAE is related to the process of cutting costs and improving value. In this case, VAE improves the comprehending of clients’ requirements, as well as, their business needs. This becomes beneficial especially for the existing concept of value management in the construction companies, in UAE. Insufficient or lack of instructions of customers may lead to poor quality and value through the project’s lifecycle with a waste of resources in management of time, design and production, and the cost of change. Availability of external challenge or constraint is vital in achieving improvement in the engineering and construction industry in UAE. The application of VAE involves strategic and tactical workshops, as well as, external facilitators (Emmitt, 2009). This makes certain that there is no unnecessary commercial or political force that bears on the team involved in the construction project. Also, it guarantees that points of uncertainties are identified and appropriately dealt with. VAE gives a planned framework on how the construction project is to be carried out. Hence, VAE is a vital technique that requires being applied. All these concerns on the application of VAE account for the control of delivery time of a project by creating positive implications and ensuring that the construction projects are delivered on time (Halpin and Senior, 2012).
VAE is applied in order to identify the best design options for a number of construction projects in UAE. The application of Value Added Engineering ensures reduction of costs on existing projects, improvement in quality, reliability and enhancement of client satisfaction. These may lead to other positive outcomes associated with the application of VAE such as improvement of organizational performance, economy improvement, and schedule improvement Xu et al., 2012). This is made possible through the practice of conventional development. VAE is a powerful technique used in reducing risk and in the identification of challenges and creation of possible and recommended solutions. VAE requirements are depended on realistic measures of efficiency and effectiveness. This means that the approval and implementation of ideas and options are based on reducing costs of the project. The VAE concept takes into consideration the cost of budget increases that are based on reductions of the life of a construction process (Emmitt et al., 2012). This aids in the control of a project’s delivery time.
CHAPTER THREE
RESEARCH METHODOLOGY
The adoption of VAE is essential for ensuring the control of project delivery time in UAE construction companies. The need for improvement of value, quality, and reduction of costs in construction projects is what necessitates the application of the VAE concept, which has proven successful. In general, the main purpose and objective of this research is to carry out a pilot study aimed at establishing a basis for a wider understanding of the application of the VAE concept in the control of project delivery time, in UAE construction companies. Hence, the chapter will establish the study methodology to be used in this study, the respondents or participants of the study, the study instruments to be applied, as well as, the method of analysis to be used. These are crucial in ensuring that the study aims and objectives are realized. The chapter is essential and seeks to answer the research Questions outlined below:
- How can VAE be applied in UAE construction?
- How far has the VAE concept developed in reaction to client requests for construction projects completed earlier and within time and budget in UAE construction?
- What are the strengths and weaknesses for applying VAE in the traditional delivery approach in UAE construction?
- How can VAE techniques improve the weaknesses of delivery methods used in UAE construction?
Research Instruments
The study focuses on establishing the control of project delivery time. Therefore, the study instruments that will be used will include both questionnaires and interview schedules. Questionnaires and interview provide a convenience in gathering primary data from respondents. Secondary data from the records of the companies will be used to find out more information on the subject of concern.
Questionnaires
The questionnaires to be used in this research will take both the structured and unstructured forms. The questionnaires will be distributed to top managers and team leaders of three UAE construction companies, Arabtec, Freeman, and Eurogulf. The researcher targets a sample size of 100 respondents who will provide answers to questions on the application of VAE concept in their organizations. In this case, therefore, the units of analysis in the research will be leaders of these organizations that have implemented project delivery methods and VAE in their operations as the leaders have a wider comprehension of the concepts and challenges that accompany their application.
Importance of Questionnaires
Questionnaires are essential as study instruments because of the diversity of benefits they offer. They have huge quantities of data that can be collected from big numbers of respondents within a short period in a manner that is cost efficient and effective. This implies that questionnaires are practical in nature. Additionally, they can be managed or administered by the individual researcher with restricted effect to the questionnaires’ reliability and validity. The findings of the questionnaires are simply and speedily measured by the researcher or the researcher might prefer the use of software packages. In addition, the findings can be evaluated and analyzed more impartially and empirically than other study instruments. Once the findings of the questionnaires are measured, they may be applied in the comparison of other researches. They can also be applied in quantifying variations. Questionnaires produce quantitative data, which may be used to form new theories, statements, or hypotheses (Kuada, 2012). There are a few disadvantages related to the application of questionnaires in research. However, the benefits of using questionnaires outweigh these challenges. For instance, it is argued that questionnaires may lack validity n some instances. On the whole, the benefits outweigh the insignificant disadvantages.
Interviews
Interviews will be carried out performed on respondents who may not be willing to fill in questions in the questionnaires. The interview schedule’s questions will be the same as those in the questionnaires but will be brief. It is vital to note that although questionnaires may be sufficient to gather the required information, interviews offer additional and real information from respondents.
Importance of Interviews
Interviews are helpful as the researcher is able to obtain detailed information on individual views, feelings, and opinions. They are Interviews are important as the researcher is able to find out how different individuals think and feel about Value Added Engineering and its application in the control of project delivery time, in construction projects. Interviews also intensify comprehension as the researcher is able to give details on issues that the respondents may experience hardships in comprehending (Kuada, 2012). In this case, there is an elucidation of ambiguities. Among the significant benefits of using interview as an instrument in research the attaining of high levels of response and are not influenced by other respondents present during the interview. Additionally, the respondent’s own information and words are written down or recorded by the researcher during the interview session. Similar to the case of the application the benefits of using interviews in research outweigh their drawbacks.
Data Analysis Design and Interpretation
Referring to the aims and objectives this study, the researcher will use applied descriptive statistics to execute percentages and frequencies. Also, the Statistical Package for the Social Science will be applied to do correlation essential in analyzing the observed variables in the study. In many cases, the interpretation procedure entails drawing a scientific or reasonable statement that explains phenomena or data. Systematic and scientific interpretations are neither complete reality nor individual view (Kuada, 2012). Rather, they are suggestions, hypotheses, or inferences on the implication of data based on empirical and knowledge and personal expertise. Scholars, scientists, or researchers apply expertise and experience in constructing practical and logical rationalization for particular data. Though they may commit faults, a considerable number of them construct interpretations that are logical and supported by reliable data.
References
American Association of State Highway and Transportation Officials. (2010). Guidelines for value engineering. Washington, D.C: American Association of State Highway and Transportation Officials.
Emmitt, S., Prins, M., & Den, O. A. (2009). Architectural Management: International Research and Practice. Chichester: John Wiley & Sons.
Gopalakrishnan, K., Van, L. J., & Brown, R. C. (2012). Sustainable bioenergy and bioproducts: Value added engineering applications. London: Springer.
Halpin, D. W., & Senior, B. A. (2011). Construction management. Hoboken, NJ: Wiley.
Kuada, J. E. (2012). Research methodology: A project guide for university students. Frederiksberg: Samfundslitteratur.
McCarthy, J. F. (2010). Construction project management: A managerial approach. Westchester, Ill: Pareto — Building Improvement.
McGeorge, W. D., Zou, P., & Palmer, A. (2013). Construction management: New directions.
Melton, T., Iles-Smith, P., Yates, J. W., & Institution of Chemical Engineers (Great Britain). (2009). Project benefits management: Linking your project to the business. Amsterdam: Butterworth-Heinemann.
Oxford Business Group. (2009). The Report: Ajman 2008. London: Oxford Business Group.
Xu, J., Yasinzai, M., Lev, B., & International Conference on Management Science and Engineering Management, ICMSEM. (2012). Proceedings of the Sixth International Conference on Management Science and Engineering Management: Focused on electrical and information technology. Berlin: Springer with Tsinghua University Press.
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