Introduction
Industrial needs are growing, while the flow of financial resources are
standing still, if not falling back. Energy crisis has brought recognition to the
finites of our resources and realization that we must conserve existing resources,
both financial and natural, and search for new processes and materials
responding to maintenance needs. Value Engineering, is one tool that can
counteract these growing problems by :
a) cost reduction;
b) process improvement; and
c) alternative means and materials for maintenance .
Value Engineering may be applied at any point in development,
operation, and maintenance. To attain maximum effectiveness, however,
Value Engineering should be undertaken as early as possible when impact
of decisions on life-cycle costs is highest. Figure (1) represents the
distribution of total costs as expended over the life-cycle of a typical
construction project. It is obvious that design effort normally represent the
smallest expenditure.
Total cost
Design Procurement and Manufacture Operation and
Maintenance
Figure (1) Life Cycle Cost Distribution
At the outset of any project, when criteria are being established, any
effort to (1) identify functions; (2) eliminate unnecessary functions, (3)
speculate on alternatives, (4) adopt the most-effective alternative, and (5)
giving a plan for implementing the chosen alternative. Find ways to assure
that the suggested solutions implemented to plan and schedule.
Awareness of opportunities to employ Value Eng., VE, should before
most at all times. This awareness should be demonstrated from the project
conception to completion the maintenance operation.
Definition of Value Engineering
There have been many attempts to define Value Engineering. Definitions
mentioned hereinafter were reached by some of the leading authorities in
the application of Value Engineering.
According to U.S. Department Of Transportation, DOT, 1992 :
“Value Engineering (VE) is an organized effort to analyze the functions of
systems, equipment, facilities, services and supplies for the porpoise of
achieving the essential function at the lowest life-cycle cost consistent with
required performance, reliability, quality and safety.”
Instead, VE is a process that looks at ways to :
Improve the overall design;
Simplify project construction;
Improve project maintenance and
Lower a project’s initial and /or life-cycle cost.
Fundamentals of Value Engineering
In order to better understand the application of Value Engineering , one should
first identify the following main terms :-
a. Function
In VE, performance is defined as function. Miles defined function as a
want to satisfy a requirement. It is the characteristic of an item which
meets needs or wants of a user .
There are 2-distinguishable types of functions, and the following
definitions may help in differentiating between them :-
Basic Function
The needed performance characteristic (s) of item which is required in
order to make it perform and / or sell, the item may be a facility, service,
method, manufacturing system.
Secondary Function :
Is the function which supports basic function but generally exists only
because of the particular design approach that has been taken to perform
the basic function.
Function analysis is the key element in VE, because the purpose of VE is to
obtain the required function(s) of an item (or a component or element of a
system or facility) at the lowest total cost.
b. Cost :
Is the total amount of money required to obtain and use the function that
have been specified.
Costs play a major role in the methodology because they form the
basis for all savings and a guide toward selecting areas for applications.
c. Worth :
Refers to the least cost required to provide function(s) that are needed by
the user of the finished project.
d. Value :
VE is concerned with both the economical and use values. Function is
closely related to use value or the properties and qualities which
satisfactorily and reliably accomplish a use.
In general, the relationship of worth to cost is the principal measure of
value which is a dimensionless expression.
Value Index = worth / cost = utility / cost = function / cost
Vmax = F / Cmin
Where :
Vmax : is the maximum value,
F : is the function and
Cmin : is the minimum cost.
The value may be increased by doing any of the following :
1. Improve the utility of project with no change in cost
2. Retain the same utility for the less cost;
3. Combine improve utility with less cost.
Value Engineering should generally be undertaken when there is an assumed
potential a significant ratio of saving to cost of the VE
Value Engineering is applied in the design and maintenance management
.systems (MMS), as related to operation and maintenance procedures
Value Engineering Methodology
The phases are as follows:-
The first phase (Selection Phase) has the following objective:
Selection of projects to achieve maximum monetary savings, or other
benefits.
. The second phase (Investigation Phase):
Is divided into 2 stages namely investigation project and analysis of
function and cost.
The third phase (Speculation Phase) :
The objective of this phase is to “brainstorm” the functions of the
item and to develop a wide variety of alternatives to provide the basic
functions and the required secondary functions of the item to which
value improvements are being made.
The fourth phase (Evaluation Phase) :
The objective of this phase is to analyze the generated alternatives
during the speculation phase , develop lower-cost ideas and list
feasible alternatives in order to decrease savings potential.
The fifth phase (Development phase) :
The ojective of this phase is to collect additional data about selected
alternatives during the evaluation phase to prepare cost estimates and
ultimate project implementation.
The sixth phase (Presentation Phase) :
The objective of this phase is to put the recommended alternatives on
hand of decision-maker.
The sventh phase (Implementation Phase) :
The objective of this phase is to assure that the approved proposals
are rapidly translated into action, to achieve the savings that were
proposed.
The eight phase (Audit Phase):
The objective of this phase is to assure that desired results have been
attained.
Application of Value Analysis in Maintenance techniques
Example 1:
In a plant, as per general norm, clean or drinking water supply may
be used for water hydraulic systems and for air conditioning units and
industrial water may be used for fire fighting.
There may be situation in one particular shop that bulk of the
consumption is for clean/drinking quality of water and small quantity
of industrial water is used for one fire-fighting line and, for bringing
that industrial water, a long and cumbersome route is adopted.
In such cases fire fighting job can also be done by clean water by
modifying jet to suit the pressure or by introducing booster pump.
Example 2:
Replacing multiple (2 or 4) speed changing gearbox motor unit by
variable speed A.C. drive motor to solve the problem of frequent
gearbox failure (by eliminating the gearbox itself).
VE : A FRESH LOOK INTO MAINTENANCE
:Maintenance organization will shrink in size .1 .1
The traditional massive organization of repairmen (fitters, riggers,
welders, helpers, lubricators, electricians etc.) will give way to small
.organization of engineers and skilled technicians
:Work will be contracted .2
A large percentage of work will be contracted, than has been
.traditionally so far, to agencies doing the same jobs
:Distributed data processing systems .3
Maintenance management system will move to Distributed data
processing systems composed LAN based on mini and micro-
.computers. CMMS has already started in some plants
.Example : automobile & chemical industries, paper mill etc
Management will substantially increase the level of technical .4
.support provided to line management
:Derating of equipments .5
Though this will cost a little more at the initial stage, the
availability and reliability of equipment will be much more at derated
.capacity and will be quite beneficial in the long run
Example: a 50 ton electric arc furnace can be derated
.to 40 ton or a 2 ton truck can be derated as ¾ ton
Technology transfer and import substitution, both will continue .6
side by side. Here aim is to reduce the stress on the equipments and
components which is probably a better way than derating and over
design
Judicious application of management techniques such as FIFO, .7
.Queing theory, “ Strength Weakness Opportunity threat” (SWOT) etc
Miniaturization (smallness) of equipments and components will .8
continue by better design and use of better materials to withstand
.higher stresses . This would lead to modular change than in situ repair
.Exploration of some recent condition monitoring systems .9
Example: Air borne ultrasonic - Instruments based on airborne
ultrasound sense high frequency sounds produced by leaks, electrical
.emissions and mechanical operations
