VE effect of power plant PLOT PLAN design

The Concept of VE

• Value Engineering (VE) was initially developed as Value Analysis (VA) by GE. The U.S. Department of Defense later renamed it VE, leading to its widespread adoption across all military suppliers and eventually across the entire U.S. industry.
• In South Korea, VE was first introduced in the home appliance industry where its effectiveness was proven, after which it spread to major corporations.
• The establishment of the Korea VE Central Promotion Headquarters and the activation of VE by organizations such as the Korea Standards Association for quality management and the Korea Productivity Center for cost reduction led to the development of VE techniques suitable for South Korea.
• VE is an appropriate technique for improving functionality and finding effective cost reduction measures in all activities beyond the construction sector. (Definitions of VE may vary by country and institution.)

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The Necessity of Introducing VE

• As projects become larger and more specialized, and with increasingly complex business conditions and fierce competition among contractors, there is a need for construction management technology and cost reduction efforts to improve business structure.
• A systematic effort to analyze and improve the functions of products and services is necessary to ensure that required functions are effectively performed at the lowest possible input cost.
• In the construction sector, cost-saving potential is greater in the planning and design stages than in the construction stage, thus requiring significant effort in technology development and research at these stages.

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Directions for Promoting VE

• VE should be applied to all projects to secure a competitive edge through cost reduction and functionality improvement.
• To maximize cost-saving effects, VE should be consistently applied from the design stage through to the construction stage.
• Since VE has significant cost-saving effects in the construction sector, various cost reduction strategies and construction method developments are needed.

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Effective Ways to Establish VE

• VE should be systematically implemented at all stages of a project. All employees need to understand and adopt VE techniques, and continuous cooperation and effort from clients, designers, and contractors are necessary to activate VE.
• Even for projects with low cost-saving potential, applying VE techniques should achieve a 5-10% cost reduction while maintaining customer-oriented quality.
• Since customer needs, wants, and requirements are always changing, VE techniques should be applied to recognize and respond to these dynamic factors.
• VE techniques are effective in the planning, basic, and detailed design stages. Designers should ensure that VE proposals are reflected in the final design through information exchange and understanding with the client.
• It is essential to acquire specialized VE skills in various fields and train VE experts to establish VE systems that suit the local context.
• Design VE should focus on improving functionality and reducing costs in construction projects to maximize efficiency and cost-saving effects.

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The Necessity of Introducing VE in the Design Stage

• As projects become larger and more specialized, with increasingly complex business conditions and fierce competition among contractors, VE techniques should be introduced at the bidding stage and in the basic and detailed design stages to maximize functionality improvements and cost reduction effects.
• Since cost-saving potential is greater in the design stage than in the construction stage in the construction sector, efforts should be focused on technology development and research by introducing VE techniques.
• Efforts should be made to identify and adopt cost-saving factors and customer-oriented quality maintenance in each field, ensuring that adopted VE proposals are reflected in the final design.

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Considerations for VE in Plot Plan Design

• All equipment should be grouped by process and system to optimize the location and size of buildings.
• Equipment and building placements should minimize the connection length of piping, ducts, and cables.
• Equipment and buildings should ensure maintenance space and access pathways.
• Construction should minimize interference to avoid delays.
• Relevant laws and standards should be followed to prevent functional issues during system operation after completion.
• Equipment and buildings should consider economic efficiency, accessibility, constructability, operability, maintainability, safety, and aesthetics.