THE APPLICATION OF VALUE THE APPLICATION OF VALUE ENGINEERING ON PUBLIC ENGINEERING ON PUBLIC

CONSTRUCTION PROJECTS IN CONSTRUCTION PROJECTS IN SAUDI ARABIASAUDI ARABIA

BY: BY:

Mohammad Ali Husain Al-SughaiyerMohammad Ali Husain Al-Sughaiyer

Supervised By:Supervised By:

Dr. Saadi AssafDr. Saadi Assaf

Date:Date:

June 1987June 1987

Summarized By:Summarized By:

Omar A. Al-DukhayyilOmar A. Al-Dukhayyil

OutlineOutline

ObjectivesObjectives DefinitionDefinition Value Engineering in Saudi ArabiaValue Engineering in Saudi Arabia Research MethodologyResearch Methodology Results & AnalysisResults & Analysis RecommendationsRecommendations ConclusionConclusion

OBJECTIVESOBJECTIVES

The objectives of this thesis are:The objectives of this thesis are:

To introduce value engineering concept.To introduce value engineering concept.Finding out the extent of use of value Finding out the extent of use of value engineering on public construction projects.engineering on public construction projects.Determining reasons and roadblocks for Determining reasons and roadblocks for extending the use of value engineering in extending the use of value engineering in Saudi Arabia.Saudi Arabia.Suggesting some ways to expand the use Suggesting some ways to expand the use of value engineering in Saudi Arabia.of value engineering in Saudi Arabia.

Value EngineeringValue Engineering

Is defined as an organized creative Is defined as an organized creative effort which analyzes the functions effort which analyzes the functions of the products or services for the of the products or services for the purpose of achieving the required purpose of achieving the required functions at the lowest possible cost functions at the lowest possible cost without sacrificing quality, without sacrificing quality, performance, and reliability.performance, and reliability.

Value Engineering in Saudi Value Engineering in Saudi ArabiaArabia

Mid-seventies (Ministry of Defense & Mid-seventies (Ministry of Defense & Aviation)Aviation)

RESEARCH METHODOLOGYRESEARCH METHODOLOGY

Discussing the government development plans Discussing the government development plans and the importance of value engineering and the importance of value engineering concept, followed by discussing its process.concept, followed by discussing its process.

Survey:Survey:– Government Agencies.Government Agencies.– Consulting Firms.Consulting Firms.

Results and analysis of the collected responses.Results and analysis of the collected responses.

Suggestions on expanding the use of value Suggestions on expanding the use of value engineering in Saudi Arabia.engineering in Saudi Arabia.

Results & AnalysisResults & Analysis

Responses were divided into two Responses were divided into two groups:groups:– Those who apply VE. (MODA)Those who apply VE. (MODA)

– Those who do not apply VE.Those who do not apply VE.

Results & AnalysisResults & Analysis

- Those who do not apply VE: it was found the Those who do not apply VE: it was found the following:following:

- Only 11.7% of the responses from government Only 11.7% of the responses from government engineers understand VE very well.engineers understand VE very well.

- Only 25.7% of the responses from consultant Only 25.7% of the responses from consultant engineers understand VE very well.engineers understand VE very well.

- 70.6% of the responses claimed that the main 70.6% of the responses claimed that the main reason for not implementing VE technique is that the reason for not implementing VE technique is that the concept was not practically introduced to them.concept was not practically introduced to them.

- 68.6% of the responses consulting firms claimed 68.6% of the responses consulting firms claimed they had never been asked to conduct such a study they had never been asked to conduct such a study for additional fee.for additional fee.

RecommendationsRecommendations

Introduce the concept of value engineering Introduce the concept of value engineering to all government agencies.to all government agencies.

Enforce a government regulation.Enforce a government regulation.

Value engineering should be conducted Value engineering should be conducted first for large construction projects.first for large construction projects.

The implementation should be supported The implementation should be supported by the top management.by the top management.

Establish a value engineering society.Establish a value engineering society.

ConclusionConclusion– VE is a successful technique that has been tested in VE is a successful technique that has been tested in

many countries.many countries.– VE can be applied at any stage of the project's VE can be applied at any stage of the project's

development.development.– The most important reason for not applying VE in this The most important reason for not applying VE in this

country is that the concept is not very well known.country is that the concept is not very well known.– Government regulations through a government Government regulations through a government

procurement system do not encourage the idea of VE.procurement system do not encourage the idea of VE.– There are no qualified personnel to apply this concept. There are no qualified personnel to apply this concept. – Top management's support is essential to introduce Top management's support is essential to introduce

and operate a successful VE program in organizations.and operate a successful VE program in organizations.

Thank youThank you