DTU ProjectLab - User contributions [en-gb]

The Technique of Value Engineering (VE) in Architecture

2022-03-27T18:28:59Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli - s212459''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|thumb|The 8-phases according the SAVE Value Methodology Standard|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. "Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines."<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> "This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation."<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

"The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved."<ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it "is the reliable performance of functions to meet customer needs at the lowest overall cost" <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, "quality, reliability, availability, maintainability, service ability" could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. "They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders." <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. "The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase." <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be "incorporated into the implementation plan before this begins." <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-27T18:24:09Z

Adeli: /* Implementation Phase */

''Developed by Aikaterini Deli - s212459''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|thumb|The 8-phases according the SAVE Value Methodology Standard|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. "The value engineering team has four to six members with complementary expertise in different disciplines."<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> "This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation."<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

"The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved."<ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it "is the reliable performance of functions to meet customer needs at the lowest overall cost" <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, "quality, reliability, availability, maintainability, service ability" could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. "They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders." <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. "The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase." <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be "incorporated into the implementation plan before this begins." <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-27T18:23:19Z

Adeli: /* Evaluation Phase */

''Developed by Aikaterini Deli - s212459''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|thumb|The 8-phases according the SAVE Value Methodology Standard|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. "The value engineering team has four to six members with complementary expertise in different disciplines."<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> "This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation."<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

"The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved."<ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it "is the reliable performance of functions to meet customer needs at the lowest overall cost" <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, "quality, reliability, availability, maintainability, service ability" could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. "They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders." <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. "The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase." <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-27T18:22:05Z

Adeli: /* Creative Phase */

''Developed by Aikaterini Deli - s212459''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|thumb|The 8-phases according the SAVE Value Methodology Standard|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. "The value engineering team has four to six members with complementary expertise in different disciplines."<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> "This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation."<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

"The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved."<ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it "is the reliable performance of functions to meet customer needs at the lowest overall cost" <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, "quality, reliability, availability, maintainability, service ability" could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. "They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders." <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-27T18:19:29Z

Adeli: /* Definition of Value */

''Developed by Aikaterini Deli - s212459''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|thumb|The 8-phases according the SAVE Value Methodology Standard|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. "The value engineering team has four to six members with complementary expertise in different disciplines."<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> "This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation."<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

"The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved."<ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it "is the reliable performance of functions to meet customer needs at the lowest overall cost" <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, "quality, reliability, availability, maintainability, service ability" could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-27T18:17:28Z

Adeli: /* Definition of Value */

''Developed by Aikaterini Deli - s212459''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|thumb|The 8-phases according the SAVE Value Methodology Standard|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. "The value engineering team has four to six members with complementary expertise in different disciplines."<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> "This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation."<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

"The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved."<ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it "is the reliable performance of functions to meet customer needs at the lowest overall cost" <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-27T18:15:11Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli - s212459''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|thumb|The 8-phases according the SAVE Value Methodology Standard|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. "The value engineering team has four to six members with complementary expertise in different disciplines."<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> "This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation."<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

"The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved."<ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-27T18:14:44Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli - s212459''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|thumb|The 8-phases according the SAVE Value Methodology Standard|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. "The value engineering team has four to six members with complementary expertise in different disciplines."<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> "This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation."<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-20T18:24:39Z

Adeli:

''Developed by Aikaterini Deli - s212459''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|thumb|The 8-phases according the SAVE Value Methodology Standard|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-20T18:24:04Z

Adeli: /* Key Principles */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|thumb|The 8-phases according the SAVE Value Methodology Standard|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-20T18:23:49Z

Adeli: /* Definition of Value */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|thumb|The 8-phases according the SAVE Value Methodology Standard|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-20T16:57:19Z

Adeli: /* Creative Phase */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|thumb|The 8-phases according the SAVE Value Methodology Standard|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-20T15:35:02Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|thumb|The 8-phases according the SAVE Value Methodology Standard|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

Articles Spring Term 2022

2022-03-11T09:01:06Z

Adeli:

=Overview of 2022 Wiki Collections=

{| class="wikitable sortable"
|+Spring Term 2022 Wiki Collections
|Group 32
|Nikoleta
|Tsolaki
|s212602
|[[The Kaizen Method in Project Management]]
|-
|-
|TAs Example
|Thomas
|Giannoulopoulos
|s192419
|[[APPM Example 2021]]
|-
|-
|TAs Example
|Daniel Rohrer
|Hansen
|s173922
|[[Managing “emails”]]
|-
|-
|Group 9
|Andrea
|Sánchez Díez
|s202957
|[[Urgent vs important. The Eisenhower matrix]]
|-
|-
|Group 22
|Edgars
|Treimanis
|s213590
|[[Sustainable Project management]]
|-
|-
|Group 31
|William Taul
|Madsen
|s184956
|[[Risk Treatment in project management]]
|-
|-
|Group 12
|Pablo Leandro
|Capellari
|s213666
|[[Internal Rate of Return (IRR)]]
|-
|-
|Group 15
|Tolga
|Azgun
|s220502
|[[Pooled, Sequential & Reciprocal Interdependence]]
|-
|-
|Group 15
|Mathilde
|Dahl
|s176213
|[[Development Arena in Project Management]]
|-
|-
|Group 19
|Matias
|Earthy-Find
|s184350
|[[Stress Management]]
|-
|-
|Group 3
|Stephen Akabekire
|Azongo
|s213057
|[[The magic triangle as a project management tool]]
|-
|-
|Group 19
|Wout
|Jennissen
|s216914
|[[Porter's Five Forces Framework]]
|-
|-
|Group 4
|Sissel Albrecht
|Kahr
|s173964
|[[Work Break Down Structure (WBS)]]
|-
|-
|Group 15
|Teis
|Johannesen
|s213561
|[[Reflective practice]]
|-
|-
|Group 9
|Berta
|Viñas
|s202256
|[[Agile model]]
|-
|-
|Group 15
|Christina
|Qwist Frank
|s173409
|[[Staging negotiation spaces in project management]]
|-
|-
|Group 15
|Sara
|Kristine Holmskov Eberle
|s211691
|[[Wheel of change]]
|-
|-
|Group Name: TBD
|Saaransh
|PD Kattula
|s210240
|[[7 principles of Stephen covey for project mangers to tackle risks]]
|-
|-
|Group Name: 47
|Jakob Weber
|Vestermark
|s175072
|[[Kanban method]]
|-
|-
|Group Name: TBD
|Jakob
|Kehler
|s212691
|[[Post-Implementation Review (PIR)]]
|-
|-
|Group Name: 47
|Fie
|Fredshavn Nielsen
|s170396
|[[Project dashboard]]
|-
|-
|Group Name: 33
|Alvaro
|Martin Sanchez
|s220145
|[[New Hybrid Methodology: Scrumban]]
|-
|-
|Group Name: TBD
|Mathias
|Christensen
|s175382
|[[Agile (Adaptive) model]]
|-
|-
|Group Name:
|Emilie
|Haahr
|s175383
|[[Leadship vs Management Qualities]]
|-
|-
|Group 22
|Linda
|Zviedre
|s213817
|[[Matrix Organizations]]
|-
|-
|Group Name: 4
|Casper
|Stenbæk
|s183504
|[[Causes and effects of stress in project management]]
|-
|-
|Group name
|Sarah
|Naegele
|S220025
|[[Communication models based on Schulz von Thun]]
|-
|-
|Group Name:
|Sofie
|Wallin
|s173884
|[[Sources of conflict]]
|-
|-
|Group 19
|Elias
|Bobrowski
|s216056
|[[The Difference Between Leadership and Management]]
|-
|-
|Group Name:
|Luisa
|Buchta
|s216284
|[[MTA (Milestone trend analysis)]]
|-
|-
|Group Name:
|Frederik
|Østergaard Schytte
|s175075
|[[Prioritizing in Projects with Eisenhower Decision Matrix]]
|-
|-
|Group 40
|Xenofon
|Apostolou
|s202908
|[[Continuous Improvement (CI)]]
|-
|-
|Group Name: 08
|Periklis
|Aprilis
|s212866
|[[FMEA as tool in Project Management]]
|-
|-
|Group Name:
|Nils
|Lehmann
|s220153
|[[Effects of Social Loafing on Team Performance (due to low motivation)]]
|-
|-
|Group Name:
|Olivia
|Mark
|s175096
|[[Self-awareness in management]]
|-
|-
|Group Name:
|Paul
|Schatt
|s210736
|[[Perception filters]]
|-
|-
|Group name
|Lorenzo
|Incarnato
|s220426
|[[Internal rate of return (IRR)]]
|-
|-
|Group Name: 40
|Sasa
|Javorac
|s210770
|[[Agile way of working]]
|-
|-
|Group Name: 12
|Elia
|Simon
|s212700
|[[Extrinsic motivation]]
|-
|-
|Group Name: 32
|Hamzeh
|Alrijjal
|s152941
|[[Eisenhower decision matrix in project management]]
|-
|-
|Group Name:
|Swann
|Roussillon
|s212830
|[[Robust Decision Making (RDM)]]
|-
|-
|Group 09
|Deepthi
|Parana Liyanage Don
|s203116
|[[Net Present Value (NPV)]]
|-
|-
|Group Name: 10
|Felix
|Piepenstock
|s201828
|[[The Successive Principle for Managing Uncertainty]]
|-
|-
|Group Name: 10
|Julian
|Schmidt
|s213004
|[[Social loafing]]
|-
|-
|Group number: 22
|Gustav
|Gregersen
|s153930
|[[DMAIC Projects]]
|-
|-
|Group 42
|Simon
|Widmer
|s210449
|[[Scaled Agile Framework (SAFe)]]
|-
|-
|Group 17
|Cosmina
|Oltean
|s212409
|[[Team Cohesiveness]]
|-
|-
|Group 12
|Jasmine Riis
|Douglas
|s123367
|[[How stress management improves the effectiveness of the employees]]
|-
|-
|Group 42
|Preetham
|Obla Sampathkumar
|s213604
|[[Root cause analysis (RCA)]]
|-
|-
|Group 4
|Patrick
|Laybourn
|s144993
|[[Robust decision making]]
|-
|-
|Group 6
|Gudrun
|Gudnadottir
|s212950
|[[Risk-based Learning]]
|-
|-
|Group 17
|Andreea Bianca
|Ladaru
|s202438
|[[Lean principles in the construction industry]]
|-
|-
|Group 15
|Lærke Viuff
|Petersen
|s163830
|[[Social Loafing in Teams]]
|-
|-
|Group 15
|Stine Pagaard
|Haahr
|s152100
|[[Conflict Management using the Thomas-Kilmann Conflict Mode Instrument (TKI)]]
|-
|-
|Group 42
|Nachanan
|Wongsupakpun
|s210284
|[[Organizational context]]
|-
|-
|Group 33
|Guillermo
|Roig Pitarch
|s212754
|[[Kanban: a project management framework]]
|-
|-
|Group 29
|Magnus
|Leick
|s213818
|[[VUCA]]
|-
|-
|Group 4
|Freja Ejdrup
|Andersen
|s183631
|[[The paradox of project planning from an uncertainty perspective]]
|-
|-
|Group 9
|Nongnapat
|Suksusiang
|s213572
|[[New Product Introduction (NPI)]]
|-
|-
|Group 31
|Eigil
|Vølund
|s183887
|[[Risk Treatment]]
|-
|-
|Group 11
|Ann Sofie
|Grube Kjeldsen
|s184535
|[[Milestone trend analysis]]
|-
|-
|Group 19
|Qiushi
|Lyu
|s212543
|[[Porter's 5 Forces - A strategic planning model]]
|-
|-
|Group 9
|Qifan
|Wang
|s212500
|[[The Big Five(OCEAN) Personality Traits]]
|-
|-
|Group 12
|Hai
|Hu
|s212360
|[[Kano Model: Introduction and Application]]
|-
|-
|Group 32
|Tobias
|Nielsen
|s220719
|[[The paradox of project planning]]
|-
|-
|Group 11
|Hannah
|Nissen
|s184497
|[[Effective teams with Belbin]]
|-
|-
|Group 11
|Emil Engstrøm
|Bruun
|S180902
|[[Adizes management styles]]
|-
|-
|Group 33
|Raquel
|Galocha
|S212745
|[[Project interdependency mapping]]
|-
|-
|Group 11
|Emilie
|Rasmussen
|S184532
|[[WBS, Work Breakdown Structure]]
|-
|-
|Group 6
|Telma Sigrún
|Torfadóttir
|S212566
|[[Stress]]
|-
|-
|-
|-
|Group 4
|Erlend Thabiso Rømyhr
|Sehube
|S212426
|[[Risk treatment for renewable energy developers]]
|-
|-
|Group 11
|Peter
|Birkholm
|S184514
|[[Gantt Chart In Construction]]
|-
|-
|Group 18
|Giacomo
|Branchini
|S212987
|[[Sources of Conflict: Guidelines for a Healthy Organizational Environment]]
|-
|-
|Group 33
|Paula
|González
|S213398
|[[The Big Five (Ocean)]]
|-
|-
|Group 33
|Fernando
|Ramiro Gonzalez
|S214134
|[[MCDA methods in decision making]]
|-
|-
|Group 20
|Magnus Stjernborg
|Koch
|S175189
|[[Project Success and Project Management Success]]
|-
|-
|Group 26
|Katarzyna
|Kukulowicz
|S213042
|[[Extrinsic and intrinsic motivation. What does the will to act depend on?]]
|-
|-
|Group 6
|Hildur Lara
|Jonsdottir
|S212410
|[[The Significance of Cohesiveness in Projects]]
|-
|-
|Group 20
|Ziwei
|Chen
|S212635
|[[Stakeholder Identification and Categorization]]
|-
|-
|Group 18
|Raül
|Ciscar
|S217122
|[[Developing a project with the Tuckman's model]]
|-
|-
|Group 18
|Giorgio
|Galasso
|S212985
|[[Risk Assessment: framework for combining CBA and MCDA]]
|-
|-
|Group 33
|Maria Elena
|Igarzabal Saborida
|S213206
|[[Intrinsic and Extrinsic motivation]]
|-
|-
|Group 32
|Aikaterini
|Deli
|s212459
|[[The Technique of Value Engineering (VE) in Architecture]]
|-
|-
|Group 08
|Jiajing
|Zhang
|s212412
|[[The Rolling-wave Planning]]
|-
|-
|Group
|Isera Sarah
|Hajaj
|s153540
|[[Standard Operating Procedures (SOPs)]]
|-
|Group 50
|Ibrahim
|Nassrallah
|s211254
|[[Brain Storming Technique]]-
|-
|-
|Group 29
|Panagiotis
|Bakas
|s216860
|[[Drexler/Sibbet Model for Team development and project management]]
|-
|-
|Group 20
|Dionysios
|Maroulis
|s212885
|[[Knowns and Unknowns]]
|-
|-
|Group 32
|Gabriela Miti
|Tsuge Costa
|s220075
|[[Project loafing in Projects]]
|-
|-
|Group 32
|Helená Evin
|Cinar
|s164741
|[[The use of SWOT analysis]]
|-
|-
|Group 3
|Pietro
|Boschetto
|s213928
|[[Enterprise Risk Management]]
|-
|-
|Group 3
|Virginia
|Stinchi
|s213230
|[[The Blake and Mouton's Managerial (Leadership) Grid]]
|-
|-
|Group 32
|César
|Delafargue
|s212834
|[[Design validation]]
|-
|-
|Group 11
|Rune
|Andersen
|s180642
|[[Creating effective teams by means of mathematical modelling]]
|-
|-
|Group Name: 47
|Hannibal
|Danielsen
|s154283
|[[Managing SCRUM]]
|-
|Group 20
|Kunyi
|Yang
|s220027
|[[Wideband Delphi]]
|-
|Group 20
|Haeberle
|François
|s213827
|[[TOC (Theory of Constraints)]]

|-
|Group 3
|Cristiana
|Moraru
|s210219
|[[The strategy choice cascade. Where to play and how to win.]]
|-

|-
|Group 3
|Andrea
|Gatto
|s212974
|[[Emotional Intelligence in a Program, Project and Portfolio Management View]]
|-
|-
|Group 19
|Maria
|Bakali
|s220150
|[[Benefit realization management]]
|-

|-
|Group 20
|Iliana
|Dritsa
|s210373
|[[Risk management in Transport Infrastructure Projects (TIPs).]]
|-

|-
|Group 17
|Stine
|Bonne Rasmussen
|s203168
|[[Robust Decision Making under Deep Uncertainty]]
|-

|-
|Group 4
|Josep
|Comas Stokes
|s212787
|[[Management versus leadership qualities]]
|-

|-
|Group 26
|Almaelisa
|Giovannucci Fernandez
|s220007
|[[Agile in Project Management]]
|-

|-
|Group:
|Tobias
|Stabrand
|s175082
|[[Ishikawa Diagram]]
|-

|-
|Group 47
|Maria
|Kylafi
|s212860
|[[SWOT Analysis in Construction Projects]]
|-

|-
|Group 42
|Kristoffer Zanchetta
|Klercke
|s183633
|[[Digital Communication in Project Management]]
|-

|-
|Group 26
|Julie
|Nielsen
|s163853
|[[The Eisenhower Decision Matrix]]
|-

|-
|Group 32
|Marco
|Lombardo
|s210384
|[[Agile (adaptive) model]]
|-

The Technique of Value Engineering (VE) in Architecture

2022-03-07T12:49:27Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-07T12:49:17Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|right|750px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-07T12:48:42Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|right|800px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-07T12:48:29Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
[[File:PhasesDiagram.jpg|right|800px]]

The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-07T12:48:12Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:PhasesDiagram.jpg|right|800px]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-07T12:47:46Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:PhasesDiagram.jpg|center|800px]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-07T12:46:44Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:PhasesDiagram.jpg|center|700px]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-07T12:46:22Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:PhasesDiagram.jpg|center|600px]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-07T12:46:09Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:PhasesDiagram.jpg|center|500px]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-07T12:45:48Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:PhasesDiagram.jpg|center|50px]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-07T12:45:39Z

Adeli:

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:PhasesDiagram.jpg|center|100px]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

File:PhasesDiagram.jpg

2022-03-07T12:43:58Z

Adeli:

The Technique of Value Engineering (VE) in Architecture

2022-03-06T19:21:28Z

Adeli:

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to go throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:PhasesDiagram.jpg]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T19:17:38Z

Adeli: /* The Verb - Noun Approach */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:PhasesDiagram.jpg]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T19:17:30Z

Adeli: /* The Verb - Noun Approach */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:PhasesDiagram.jpg]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions<ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T19:06:06Z

Adeli: /* The Verb - Noun Approach */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:PhasesDiagram.jpg]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture, https://www.researchgate.net/publication/308201362_Value_Engineering_for_The_Practice_of_Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T19:02:54Z

Adeli: /* Key Principles */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:PhasesDiagram.jpg]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T19:02:28Z

Adeli: /* Definition of Value */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:PhasesDiagram.jpg]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the first definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T18:56:23Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:PhasesDiagram.jpg]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T18:55:59Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:Phases_Diagram.jpg]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T18:45:01Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

[[File:Phases_Diagram.png]]

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T18:43:17Z

Adeli: /* Annotated Bibliography */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management. It is meant to provide help to students and beginners.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T18:40:53Z

Adeli: /* Annotated Bibliography */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T18:40:38Z

Adeli:

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''The Value Methodology Standard is the main guideline for applying the principles of the value methodology in a consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management.''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

''This diploma thesis gives the general idea of the practice of value engineering in the filed of architecture.''

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

''This review gives some principle knowledge about the VE tool but also it is focused on sustainable construction refering a part of limitations and suggesting solutions for these.

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T17:48:18Z

Adeli: /* Limitations */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''This Standard was originally drafted in May 1997. The Value Methodology Standard is intended to provide a practical guide for applying the principles of the value methodology in a
consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management, as well as related topics specified in several university syllabi, and which have been taught to the TQM students all over the world, into a single, comprehensive book. ''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

....

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T17:48:06Z

Adeli: /* Annotated Bibliography */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''This Standard was originally drafted in May 1997. The Value Methodology Standard is intended to provide a practical guide for applying the principles of the value methodology in a
consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management, as well as related topics specified in several university syllabi, and which have been taught to the TQM students all over the world, into a single, comprehensive book. ''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

....

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitations and Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T17:45:56Z

Adeli: /* Annotated Bibliography */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''This Standard was originally drafted in May 1997. The Value Methodology Standard is intended to provide a practical guide for applying the principles of the value methodology in a
consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

''This textbook, Total Quality Management, Key Concepts and Case Studies, brings together all the management principles and practices that govern the quality function of quality management, as well as related topics specified in several university syllabi, and which have been taught to the TQM students all over the world, into a single, comprehensive book. ''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

....

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T17:44:51Z

Adeli: /* Annotated Bibliography */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

''This Standard was originally drafted in May 1997. The Value Methodology Standard is intended to provide a practical guide for applying the principles of the value methodology in a
consistent manner. It may be used by both practitioners and management.''

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

....

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T17:42:11Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38, https://www.pmi.org/learning/library/review-value-engineering-effective-system-5410</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

....

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

....

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T17:40:24Z

Adeli: /* Limitations */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38.</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, https://doi.org/10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

....

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

....

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T17:39:43Z

Adeli: /* Limitations */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38.</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015, DOI:10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

....

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

....

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T17:39:28Z

Adeli: /* Limitations */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38.</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost. <ref>Joel Wao, Ph.D., A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015DOI:10.13140/RG.2.1.5183.0884</ref>

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

....

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

....

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T17:37:04Z

Adeli: /* Big Idea */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38.</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value. <ref name="KIRAN">D.R.Kiran, ''Total Quality Management - Key Concepts and Case Studies'', BSP, 2017, https://doi.org/10.1016/B978-0-12-811035-5.00033-7)</ref>

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost.

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

....

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

....

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T17:35:00Z

Adeli: /* Annotated Bibliography */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38.</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value.

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost.

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

....

'''D.R.Kiran, Total Quality Management - Key Concepts and Case Studies, BS Publications, 2017, Chapter 33 - Value Engineering'''

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

....

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T17:32:52Z

Adeli: /* Annotated Bibliography */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38.</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value.

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost.

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

....

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

....

'''Joel Wao, Ph.D., MQSI, S. SAVE Intl, A Review of the Value Engineering Methodology: Limitationsand Solutions for Sustainable Construction, 55th SAVE International Annual Conference: SAVE Value Summit, San Diego, CA, USA, June 7-9, 2015'''

== References ==
<references/>

The Technique of Value Engineering (VE) in Architecture

2022-03-06T17:31:01Z

Adeli: /* Annotated Bibliography */

''Developed by Aikaterini Deli''

Value Engineering (VE) is a sequence of procedures aiming to meliorate the value of the final product by having a better management through the overall steps, always considering the cost. Value Engineering is an organizing tool with origins from the science of Project Management which had been used during the World War II by “General Electric Co” and nowadays it is an approach commonly used for planning building projects. This technique constitutes one of the main processes of the Value Methodologies.

Most of the companies follow this technique in order to minimize the cost but not the basic function of the product. In the architectural field, the engineers are facing plenty of composite projects which have to meet the needs and requirements of their clients and also being in time and in budget. For this reason, the VE technique is preferable from large architectural offices because of the status of their clients. The bigger the project, the greater the need for examining continuously the budget through the design process. In a nutshell, Value Engineering is an organized creative review of the needs and requirements of the client which are satisfied through the functions of the product, always underlining its quality and its low life cycle cost.

This article will deliver an analysis of this management tool and will focus on the different stages that the team has to pass throught, the benefits on applying this technique and also its limitations. The article may be read by both practitioners and academics as a guide for applying the technique of Value Engineering.

== Definitions ==
In this chapter some definitions of the Value Engineering will be developed for a better understanding of this term.

'''Miles (1972):''' ''A discipline action system, attuned to one specific need: accomplishing the functions that the customer needs and wants at the lowest cost.''

'''Society of American Value Engineers (SAVE) International:''' ''The Value Methodology (VM) is a systematic and structured approach for improving projects, products, processes, services and organizations. VM, which is also known as Value Engineering, is used to analyze and improve manufacturing products and processes, design and construction projects, business and administrative processes, and both public and private sector services and organizations.''

'''Sievert, R. W. (1991) - Project Management Institute:''' ''Value engineering is a function-oriented and multidisciplinary approach for planning building projects using a multi-disciplined team to identify and reduce unnecessary costs and poor performance, while maintaining product quality.''

'''Investopedia:''' ''Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.''

'''D.R. Kiran (2017):''' ''Value engineering is a design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value. It is a systematic and creative method using proven methods akin to the modern design for six sigma (DFSS) tool of define-measure-analyze-improve-control, to obtain the same or better performance at a lower cost, so as to improve the value of goods, or products and services by critical examination of its function.''

== Big Idea ==
The idea was born at General Electric Co in the 1940s by the engineers Lawrence Miles, Jerry Leftow, and Harry Erlicher. The combination of the high demand of products with the lack of raw materials, created the need for seeking alternative materials which will be in the same cost and function levels with the first ones. Hence, Miles developed a function-based approach which was named Value Engineering and until 1985, the idea of Value Engineering procedure had been spread around the world. Nowadays, Value Engineering is consisted by a multi-disciplined team which purpose is to identify and reduce unnecessary costs and poor performance, while maintaining product quality. Functional Analysis System Technique (FAST) diagrams illustrate the phases. The value engineering team has four to six members with complementary expertise in different disciplines.<ref>Sievert, R. W. (1991). A review of value engineering as an effective system for planning building projects. Project Management Journal, 22(1), 31–38.</ref> This tool can be applied at any step in a project, from the pre-workshop preparation to the post-workshop implementation.<ref name="SAVE1">SAVE International Value Standard, ''VALUE METHODOLOGY STANDARD'', (SAVE International Value Standard, 2015)</ref>

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. <ref>https://www.wbdg.org/resources/value-engineering</ref> According to the Value Methodology Standard from the SAVE and the American Society for Testing and Materials (ASTM) standard E1699-14, Value Engineering can be described by the following 8-phases:
::::::::'''Preparation Phase, Information Phase, Function Analysis Phase, Creative Phase, Evaluation Phase, Development Phase, Presentation Phase and Implementation Phase'''

Value Engineering is also known by the terms 'Value Analysis (VA)' and 'Value Management (VM)'. The main difference which distinguishes the VE from the other terms is that this tool is related to new products and after its completion the stakeholders invest their capital.

==== Definition of Value ====
According to the Cambridge Dictionary, the principle definition of 'value' is the amount of money that can be received for something, and the following one refers to the importance or worth of something for someone. In the case of the Value Engineering, the second definition seems to be closer to the technique because it is the reliable performance of functions to meet customer needs at the lowest overall cost <ref>https://www.value-eng.org/page/AboutVM</ref>. The amount of value is depended on the relation between the level of the accomplishment of the subject under study according to the user functions and the needed expenditure to create it and it can be calculated by the following equation.

:::::::::::::::::::::::'''Value = Function Performance / Resources - Cost'''

The increase of the numerator, keeping stable the denominator or the decrease of the denominator, keeping stable the numerator, entails the increase of value. By the term Function Performance, quality, reliability, availability, maintainability, service ability could be used. When the resources are the lowest ones and the functions the most effective ones, then the result is the maximun value.

==== Key Principles ====
According to the The Institute of Value Management in UK and the BS EN12973:2020, there are four key principles of Value Management. <ref> https://ivm.org.uk/value-management/key-principles/</ref> These are the following:
::::::::::::'''Strengthen Value Orientation, Apply Function Thinking, Apply a structured holistic approach and Manage complexity, risk and uncertainty.'''

It is significant everybody in a project to be in line with a common vision, mission and values and especially the ones which are set by the stakeholders of the project. The available methods and tools increase the group's creativity and the structured approach reach a best result as the risks and the complexity are effectively disciplined.

== Application ==
In order to have a valuable outcome with this tool, it is essential to follow the suggested methodology which is consists of the following eight (8) phases.

==== Preparation Phase ====
''Understanding the project, First touch''

In this step the description of the project is given and it is important for the value engineering team to be familiar with the project, which means that the team has to understand the need and the specifications that the customer demands and wants for the final product, especially what is to be studied and when. In this step, a list with the basic functions is created.

==== Information Phase ====
''Gathering of Data''

In this phase, the team has to research and investigate deeper about the project. Some parts have to be clear now, like the functions of each element and the design procedure. The deeper the research, the better the outcome and the understanding and the more comfortable the team is. The investigation could be in the fields of "Engineering", "Materials", "Costs", "Manufacturing" and "Scheduling". Some really good and helpful questions are the following: How, What, Why, Where, When. These data will contribute to the procedure. According to the Value Methodology Standard of SAVE, there are some activities which can be followed in order to reach the outcome faster, e.g. Identify and prioritize strategic issues. Tools: SWOT.

==== Function Analysis Phase ====
''Analysis of the project, Clarification of the Purpose''

In this step, the team defines the served by the building functions, some of the them are primary and the remaining secondary. The difference between them is that the first one reveals absolutely the purpose of the building while the second one describes an added value in this. On the basis of the Cambridge Dictionary, as primary is defined the most important than anything else; the main. On the other hand, a secondary function exists for supporting the primary one, is less important than related things and the building can perform its primary functions without the secondary ones. Based on the Standards of SAVE, a Function Analysis System Technique (FAST) and a tool for Cost to Function Analysis could be developed.
===== The Verb - Noun Approach =====
The Verb - Noun Approach is well known between the value engineering team, as they set the questions "What this function does?" and "What is this fuction?", which are aswered by a
verb and noun respectively. Some advantages about this technique can be summarized like these:
#The success of this approach makes clear that the team has understood the function and it is capable to describe it in two words.
#With this technique, it is way easier to not be confused. This is a common phenomenon as the functions are plenty and it is not easy to seperate the different meanings of each. <ref>Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture </ref>

:According to D.R.Kiran, there is a guideline with purpose to assist in defining the functions:
*The function shall be defined only by two words, a verb and a noun.
*The noun shall be measurable and/or countable.
*The noun shall as much as possible signify the design-based constraint.
*The verb shall be active and affect the noun directly.
*The function shall be verifiable.

==== Creative Phase ====
''Production of ideas which correspond the needs''

Here, the team generates the ideas which are corresponding better to the functions. It is a brainstorming, productive and why not, an innovative process and for the designing team, it is the heart of the whole procedure. Through this step, the team adopt creative ways to to generate ideas from their own perspective, based on the results of the function phase. It is common to work in an individual level at this point where each of the members creates a list with alternative solutions. They can sometimes be unconventional, eccentric and undisciplined, but may also be clear-headed thought leaders. <ref>https://www.designingbuildings.co.uk/wiki/Creative</ref> In architecture, creative phases are always in the front stage but not in the same level every time, with the most significant to be the one of the concept stage. This may not be so long in comparison with the whole procedure. Some tools for this stage are the Gordon Technique, the Nominal Group Technique and TRIZ. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref>

==== Evaluation Phase ====
''Ranking the Ideas''

In this phase, the team considers about the advantages and disadvantages of each idea of the previous step. It is important the team members to be objective as a non-critical view may lead to wrong outcome in the end. The team performs a weighted matrix analysis to group and rank the alternatives, and the best alternatives are selected for consideration in the next phase. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref> The outcome of this process is to create a shorter list of ideas which correspond the needs and purpose, with the greatest prospects. Some tools suggested by SAVE are the Pugh Analysis, Kepner-Tregoe, Life Cycle Costing, Choosing by Advantages (CBA) and Value Metrics.

==== Development Phase ====
''Review and Selection of the most suitable ideas''

An in-depth analysis follows the Evaluation Phase. The team now creates a profile for every alternative which has been selected previously in order to inform the client about the idea. The profile may consists of sketches, diagrams, 3D models, cost estimation and cost savings of the building but also of the negative factors which are associated with the alternative. <ref name="SAVE2">SAVE International Value Standard, ''VALUE STANDARD and BODY OF KNOWLEDGE'', (SAVE International Value Standard, 2007)</ref> Each of them should be clearly written so the stakeholders can understand everything. Last but not least, every profile should refer information about next steps and dates.

==== Presentation Phase ====
''Presentation to the Stakeholders''

The value engineering team meets the stakeholders. The Evaluation and Development Phases are now represented to the customers through reports, flow charts in a high level of detail in order to convince them about the outcome and the positive impact of their generated ideas.

==== Implementation Phase ====
''Realization of the Selected by the Client’s Ideas''

This step belongs to the post-workshop stage and it exists from the moment in which the stakeholders have been convinced and agreed with the previous presentations. Any changes should be incorporated into the implementation plan before this begins. <ref name="CFI">https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-engineering</ref>

== Benefits & Limitations ==
===== Benefits =====
Part of the benefits of the VE tool are listed below. By applying this methodology on architectural projects:

* It becomes easier to increase the efficiency in managing the projects, as every phase has a clear concept and content.
* The goals are well settled, so the communication and collaboration between the members will be better, so the outcome will be more accurate and more relative to the scope of the project.
* The creative parts are never missing, and each member contributes to the value addition of the project.
* The cost saving and cost reduction are always under consideration.

===== Limitations =====
The VE technique emphasizes on the cost of the final project which sometimes it is not preferable and this is not the objective of the tool at all. In this technique is easy to detect the limitations, which are man-made <ref>https://www.yourarticlelibrary.com/marketing/value-analysis-meaning-phases-merits-and-limitations/49178</ref>. Some of these are the following:
*Difficulties in the communication inside the multidisciplinary team.
*Lack of creativity.
*Lack of knowledge.
*Persistence from stakeholders for even less cost.

According to R. W. Sievert (1991), the value engineering team has four to six members with complementary expertise in different disciplines. Even if nowadays it is common to have multidisciplinary teams, this is not an effortless work formula. The differencies in the unique backgrounds and educational - professional experiences of every member may create obstacles in the process, leading to delayed outcomes. Sometimes, the one part does not take in consideration the others, they cannot cοmmunicate their ideas and work, they cannot be synchronized hence the result comes out of time. This is also related with the lack of knowledge.
Another limitation of this technique is the lack of creativity. This happens when some approaches are scientific-oriented and there is no knowledge background, like the sustainability outcomes. To control this obstacle, better communicational skills and methods are needed inside the team which maybe comes in conflict with the previous limitation.

The VE tool is a cost-oriented technique but sometimes it is possible to overcome the limits which means focus on reducing the costs but not on improving elements of the Function Performance like quality, reliability, availability. Especially, as the VE technique is part of architectural projects, it is negative-related the fact that the sustainability approach is not taken under consideration at the very beginning of the methodology. Last but not least, as the stakeholder's purpose is to gain from every method, in this way maybe they will be more strict about the cost, whick has as an outcome the lack of creativity and motivation from the side of the value engineering team.

== Annotated Bibliography ==
'''SAVE International Value Standard, VALUE METHODOLOGY STANDARD, (SAVE International Value Standard, 2007) & (SAVE International Value Standard, 2015)'''

....

'''Akoud, H. (1998). Value Engineering for the Practice of Architecture, Diploma Thesis, Faculty of New Jersey Institute of Technology, School of Architecture'''

....

== References ==
<references/>