Thursday, June 13, 2019

Value Engineering - Examples, Cases and Benefits

Value Analysis and Engineering - Examples by L.D. Miles

Value Analysis Techniques


Value Engineering - Examples, Cases


July 2019

Railway Station - Value Engineering

Engineering and professional services consultancy, WSP, with SME Expedition Engineering, have  undertaken a series of value engineering reviews for Old Oak Common  station designs.  “By challenging the standard design approach, the WSP-Expedition design team have realised savings in the roof steelwork tonnage that has significantly reduced cost, construction complexity and embodied carbon.

Taking advantage of the results from wind tunnel tests and a snow load review, the team of structural design engineers, in partnership with architects Wilkinson Eyre, concluded that structural thicknesses and profiles in the station roof could be modified to allow for 27% less material to be used with a total steel reduction of over 1000 tonnes. This is an amount equivalent to a 2700 tonne reduction in embodied carbon and a cost saving of £7m.

Ring for Oil Seal
Saving of Rs. 5 Crores through Value Engineering for Rear Axle Oil Seal Ring from forging ( EN8 Steel Grade) to casting ( FG 260 gray Iron) to AL with Induction hardening. 

Value Engineering
we examine the project in its entirety in an attempt to locate areas of opportunity for cost savings. We will provide a projection of the life-cycle cost analysis of certain materials involved in the project and provide alternative solutions.

Carbon Value Engineering: Integrated Carbon and Cost Reduction Strategies for Building Design
Costs savings were in the order of $127/m2 which equates to a 10% reduction in capital cost.

June 2019

Value Engineering a Multifamily Project



Enabling cost-effective reformulations for bio-based laundry detergents
We reduced production cost for Bio-Based laundry detergents without compromising on quality.
Lowered cost by 10% while maintaining the overall quality of the product.
Interested to see how we can help you reduce your production costs without compromising on quality?

Petro-SIM - Simulation Software Enabling “Value engineering” and “Value chain optimization.”

KBC has completed a major redesign of its flagship  Value Chain Optimization  engineering simulation software platform, Petro-SIM. KBC designed release 7 of Petro-SIM for industries focused on what it refers to as “value engineering” and “value chain optimization.”

Value engineering branch network renovation and expansion

SOLUTION: Developed a modular kit-of-parts, which lowered costs dramatically. The parts  could be trimmed on site to accommodate the varying branch sizes and layouts. Proprietary versions less costly to procure and ship and easier to install were used instead of locally fitted furniture at higher cost. 50 percent cost savings without sacrificing quality or functionality.

Consultant offering Value Engineering of Packaging

Value Engineering saves $4.5 million

Port Canaveral commissioners OK plan to cut cost of new cruise terminal by $4.5 million
Dave Berman, Florida Today Published  April 26, 2019

Work underway to build Port Canaveral Cruise Terminal No. 3 Canaveral Port Authority, Florida Today. Port Canaveral will be saving millions of dollars on the construction of its new cruise terminal through what officials call "value engineering."

Integrated Water Services, Inc. (IWS) recently completed the construction of the regions first “Zero Discharge” agricultural re-use project for the City of Tulelake, CA located five miles south of the Oregon border. A key element of the project was the $1.4 mm in savings that were achieved through value engineering, post bid, which brought the constructed cost in line with the city’s budget

Value Engineering for the Facade

Value Engineering is in Priedemann’s DNA. On the basis of precisely defined functions and requirements for the facade. we work out alternatives and options with a view to improving the overall solution. We take into account the criteria of the entire building life cycle.

Adaptation and optimization of facade systems and solutions for a specific project, taking into account functionality, sustainability and costs.

Adaptation and optimization of production procedures, assembly, logistics, installation and fitting

Enviroply Roofing Ltd  - Specialists in Flat Roofing - Value engineering Projects

Artificial Intelligence for Value Engineering

Quanta AI
Our proprietary algorithms recommend changes to your products and components, enabling you to maximize the value of your existing resources, and make crystal clear what is needed to achieve your corporate VE goals.  They have included applications in consumer electronics also in portfolio of services.

Using Value Engineering for Flooring Selection
The process of value engineering allows construction teams to select products that offer the greatest return on investment with the lowest total cost of ownership (TCO).

Value Engineering delivering competitive advantage
Despite challenging market conditions, since 2016 IMI Critical Engineering has won nearly half a billion pounds of new contracts through the application of Value Engineering tools and processes. On average, a 15% cost reduction for our customers has been delivered.

Included in the division’s 2018 contract wins was an order for IMI Remosa to provide a package of products for installation in a Spanish oil refinery which was being refurbished. The product package included control systems, actuators and slide valves, which operate together in extreme temperatures of up to 980°C. These products control and shut down the flow of liquids and gases during the critical “crude oil to liquid fuels” conversion process. Using Value Engineering, IMI Remosa was able to re-develop its products which significantly reduced welding and other manufacturing costs and created a compelling solution for the customer at a competitive price.

Value engineering increases value, reduces delivery time for I-17 bridge project
Contractor’s innovation yielding new bridges at Willard Springs Road
October 29, 2018
PHOENIX – The Arizona Department of Transportation’s original plan for improving the Interstate 17 bridges at Willard Springs Road south of Flagstaff called for replacing the decks in both directions over two summers, ending well into 2019. The project that’s underway, however, is replacing the bridges in their entirety by the end of November – at no additional cost.

The difference is thanks to a process called value engineering.

Value Engineering Gas Turbines

TAS can provide detailed evaluations of the economics of gas turbine power augmentation options.

The study provides a detailed “before and after” look at a GT-based simple cycle or combined cycle power plant which provides an hour-by-hour simulation of how a plant will operate with and without Turbine Inlet Chilling. Multiple options are  investigated.

The methodology full encompasses variations in air temperature, humidity, and other site conditions. The calculations further overlay the real-time value of power and the cost of fuel. Other economic factors such as capacity payments, economic dispatch, water usage, and the cost of hot / cold engine starts.

TAS customers get the benefit of 8760 analyses of their chiller plants to optimize the target compressor inlet temperature (T2), the range of the chilled water temperature (“delta T”), the heat transfer configuration of the chilled water / air coils, the size of the chiller system, the efficiency of the chiller plant, and the capacity of the Thermal Energy Storage tank when the Generation Storage option is used.

The use of these studies assists our customers to realize the highest value of their potential TIC investment, and to focus their decisions to the optimum hardware configuration that maximizes both the operational flexibility and their maximum profits.

Study outputs provide tabular and graphical results of simple metrics such as incremental capacity (MW), incremental energy (MWHrs), CapEx requirements, and net revenue. We can also provide financial results through the “unlevered IRR” method. Finally, we demonstrate why TIC technology always results in the lowest “$/kW” for the entire power plant.

Railway construction projects - VALUE ANALYSIS AND VALUE ENGINEERING
Railway construction projects are capital intensive and a slight variance in design could bring a significant impact in the total project cost. To achieve value for money, it is necessary to optimize the design as far as possible. However, in reducing costs, it is important that key project objectives such as system capacity and operational flexibility are not sacrificed. It involves

Identifying major cost drivers
Devising explicit knowledge representations for these cost drivers
Analysing how they could be optimized without compromising key requirements such as the passenger-carrying capacity.

Value Engineering with Geosynthetics
Civil engineers add value through smart design, efficient and safe construction methods or leveraging new materials or technologies.  Whatever the scale or complexity, there is always room for engineers to add value.

Over the past thirty years geosynthetics have emerged as a “value engineering” solution for civil engineers, being a new construction material that allowed engineers to design and build their engineering infrastructure faster and safer, at reduced costs, with lower risk, and with lower environmental impact.

most common method is to “add value” through reduced product supply cost, but this ignores the greater benefits that flow from understanding the many sources of value that a geosynthetic product offers when used as part of the engineered system.

The best way is to understadn this is to look at recent, real examples where if the engineer had understood how a geosynthetic product performs as part of a system, greater value could have been achieved for their client:

Example 1 – New Rail Formation Being Built for an Australian Mine

Example 2 – Road Formation

Value Engineering (VE) alternative to your current deep foundation plans?

For the past 20 years, owners and general contractors have worked with Geopier design engineers to perform Value Engineering on their projects, by developing Geopier Intermediate Foundation® solutions when deep foundation options prove too costly.

Our systems have become effective replacements for massive over-excavation and replacement or deep foundations, including driven piles, drilled shafts or augered cast-in-place piles. Over 9,000 structures around the world are currently supported by Geopier technologies. Each providing a safe, reliable, cost-effective solution that can help expedite your construction schedule.

Value Engineering
Value engineering explained is a simple process of taking a conventional way of doing something and exploring more economical options while maintaining the original design intent. It’s just another way to save you money, whether its through decreasing operating costs by using pre-fabricated walls, comparable design options, or changes in scope of work.

Value Engineering, case study - NPTEL

Value Engineering
Value Engineering plays an important role in our Masters in Improvement philosophy. Products can always be improved, in terms of both functionality and costs, particularly in the markets in which Hittech is active, where the time-to-market aspect is of great importance. Product introduction often puts the emphasis on proving the functionality, with the emphasis shifting to improving the ratio between functionality and costs soon thereafter. Streamlining the process of optimising costs and/or functionality often involves the use of product roadmaps. These roadmaps are drawn up to efficiently implement product improvements from market feedback and value engineering ideas.

Value engineering application in a high rise building (a case study in Bali)
Putri Arumsari and Ricco Tanachi

Value engineering solutions in Packaging
We deliver solutions that simplify logistics, reduce costs and increase profit for our customers.
Our solutions add value
Our value engineering solutions enable more efficient packaging lines, improved supply chain efficiency, reduced total cost of ownership, and decreased environmental footprint. If you want to achieve this kind of continuous improvement on your own packaging products or logistical processes, give us a call.

Indian companies take to value engineering to reign in prices
To become more competitive in an increasingly hostile environment, Indian companies are innovating to add value


Value Engineering and Function Analysis: Frameworks for Innovation in Antenna Systems
Hamid Reza Fartookzadeh, and Mahdi Fartookzadeh
Open Access
Challenges 2018, 9(1), 20
Published: 25 April 2018

A study on value engineering and green buildings in residential construction
Jan 2018

Holistic Value Design - PWC
2018 Note

Cutting COGS by Three Times the Target - Argo Consulting structured Value Engineering approach

Cooking Palm Oil Value Engineering


Application of Value Engineering in the Design and Implementation of Dam channel and Storage Pump Power Plant (Case Study of Siah Bishe Project)
(Research Paper)
Mojtaba Saeedi, Mohammad Reza Kavian pour
Journal of Civil Engineering and Materials Application
Volume 1, 2017, Issue 3, Pages 108-117

Value Engineering from Tata Steel

Value Engineering Based on Monitoring During Tunnel Excavation Phase-a Case Study of Hakim Tunnel
Majid Taromi 1, Maziar Hosseini , Seyed Mahdi Pourhashemi , Majid Sadeghi
Volume 11, Issue 1 (Vol. 11, No. 1 Spring 2017 2017)

Number of Examples of Value Analysis/Value Engineering/Value Management
by VM Services,Bryanston, South Africa
Specialists in the application of Value Analysis, Value Engineering and Value Management (VA/VE/VM) methodology including Value Improvement Practices (VIP’s)

Advanced Structures India Private Limited - Value Engineering Services and Case Study Examples

Wekiva Parkway/SR 417 and I-4 Interchange  - Highway project value analysis study report


Value Analysis of 2 Wheeler Parts - TVS Motors

Value Engineering Analysis in the Construction of Box-Girder Bridges


Jonson Street Bridge Replacement Project - Value Engineering Report

A Survey on the Application and Role of Value Engineering in Pars
Simin Chemical manufacturing company (the manufacturing unit of
Pars Simin white plastic paints)
Seyed Mohammad No' Pasand Asil1
, Esmaeil Ramzanpour2
, Seyedeh Sogol Seyed Sa'adat
International Research Journal of Applied and Basic Sciences
Available online at
Vol., 3 (9), 1935-1945, 2012


Seat base weight reduction

Auckland Rail Transportation Project - Role of Value Engineering
Cost reduction of 25 million dollars.

Student Project - Value engineering for car shade


Value Engineering West Rail
Estimate for the project was brought down to HK$46.4 billion from HK$64 bn
2006 report
Supporting document - legislative council panel report
KPIT cummins Infosystems

   *  Over 30% weight reduction (optimization) by value engineering
    * 60% variant reduction (standardization) by value engineering
    * Engine performance improvement through re-engineering engine components
    * Cost effective solution in material optimization of interior plastic trims (Instrument panel, Door panel)
    * Fuel economy improvement and reduced carbon footprint from weight
    * Savings over $148,000/year from cost of aluminum by design, optimize & virtual simulation
Accessed on 28.2.2010

Seattle Sound Transit Rail link - Value engineering and cost reduction results

Value engineering applications in transportation: a synthesis of highway practice
NCHRP synthesis, 352
Volume 352 of Synthesis of highway practice
Authors David C. Wilson, National Cooperative Highway Research Program
Publisher Transportation Research Board, 2005
125 pages


Acumen Value Engineering

Automotive client. They had begun a new product and not performed a value planning session during the planning phase, because "they didn't have time." Result, they were losing 5% on each product sold. 

Using VE, we were able to give them a 12% profit immediately, with more to come. This way, they would not "sell them selves out of business." Unfortunately, due to machining costs, we had to leave much opportunity behind. If we had been able to do a value planning session before equipment purchases, we estimate that we could have generated an additional 10% profit for each unit.

Accessed on 28.2.2010

substituting INA114

with LM324

A student at NITIE IM interview (15.3.2011) said that they brought down the cost of ECG instrument with this substitution. He explained that they got this idea from the function performed by INA114 in the instrument. Cost came down by 20 times he claimed.


Value Engineering Study for Closing waste packages containing TAD Canisters

Value engineering leads to piping innovations at New FAU Football Stadium 

USA Department of Energy - OU1 Value engineering - Waste minimization and volume reduction study



Value Engineering in Transportation - Value World Issue March 1997



The VE study has shown that value engineering, applied after the alternatives analysis phase, can provide significant savings on an overall transit project's costs. It also has demonstrated that single tracking is an operating technique with potential for major capital cost savings.

The paper appeared in Transportation Research Board State-of-the-Art Report 2, Light Rail Transit: System Design for Cost-Effectiveness. Presented at the Conference on Light Rail Transit held May 8-10, 1985, Pittsburgh, Pennsylvania.

Original Knol - 2utb2lsm2k7a/ 2348

Related Articles

Value Analysis and Engineering - Examples by L.D. Miles

Value Engineering in Buildings - Some Examples

Updated 14 July 2019,  1 July 2019,  1 June 2019,   28 April 2019,  22 April 2019,  26 July 2018,  22 July 2017, 12 June 2016, 26 June 2015,  4 April 2015, 20 Feb 2014

Please share any interesting value engineering example that you appreciate.

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