3 Simple Criteria for Value Engineering!
We often heard "We need to value engineer a project because of budget constraints", but what does it really mean? To some, it may be changing from one chiller make to another, while others may opt to reroute the ducting and piping to shorter routes. Indeed, you will be able to reduce cost, in reality, do they fall into value engineering?
Let us first define what is value engineering. The key phrase by Investopedia is "less expensive alternatives, without sacrificing functionality". So does replace an efficient chiller with lower efficiency alternative sacrificing functionality? Both chillers serve the same function, what do you reckon?
This is where I wish to expand the definition offered to include and emphasise 'VALUE' in value engineering. Merely replacing a chiller to reduce cost is purely a cost reduction exercise, it's not value engineering. If so, we were merely shifting CAPEX cost to OPEX with no real benefit to the life cycle cost of the project.
In its true sense of value engineering, I have only three simple criteria; (1) Better (2) Faster (3) Cheaper, if it is not cheaper, why bother? These criteria ultimately serve one objective; it is to help clients to save money.
In a previous project, we value-engineered a central chilled water system and replaced it with a central indirect evaporative system. The proposed alternative design was accepted by the D&C builder purely because it was more cost-effective than the original design and faster to build. The architect loves it for he did not need to allocate space for a sub-station to run the chilled water plant.
The electrical engineer was able to power the indirect evaporative system with existing electrical infrastructure. The structure engineer did not need to strengthen the roof slab, columns and underpinning the foundation to take the weight of the chiller plant. The client was ecstatic with just over 70% reduction in OPEX!
We were equally happy for being able to deliver at first thought an insurmountable problem project. This, in my opinion, was what value engineering is all about. The bonus came when the project was commended for Innovation and Research & Development by Engineers Australia (South Australia).
Read more about the project at https://www.practicalhvac.com/hvac/indirect-evaporative-cooling-the-university-of-adelaide-hub-central/
Idling through the craziness!
4 年Value engineering and cost reduction are 2 very different things. Unfortunately many projects suffer from the latter only to discover escalated project costs even before the project is finished.
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4 年Imhh!This is a nice question.I usually do versus by versus for each system to analyze what will sustem will realistically be fit for the zone.Every criteria related with indoor and outdoor environments,geographical consedirations,gravitational,etc. always included jn my study to have the best budgetary assesment for my clients with system’s back pay timeline for a new system design and implementation.This study makes some differences for an existing system depend on its age and/or maintenance history.Moreover I choose to dive deep and do some CFD or FEA analysis to have some corrective actions or improvements needed on the system to make sure its really applicable.For implementation side always choose practical ways to lessen the project timeline to move within the project budget’s barriers.In short I do real time management and analyze every detail needed.
Ultra [email protected] - Residential ultra-high efficiency Cool Heat + hot water production . Ultra-starts where others loose site of Efficiency .
4 年I tend to look seriously at the convenience verses running and long term maintenance cost aligned with emissions With thermal storage of heat and cool the risk drops , then sit and look at every heating and cooling duty on site add all these values and look at the capacity in thermal storage , I broaden the set points within the thermal storage to build capacity then remove traditional one duty machines , typically we achieve large opex costs reductions however look at the installation operational cost savings over 30 years With fill circular heating and cooling we know only minor upgrades to the central machine doing all the heat and cooling may be needed over time and when production capacity changes Thermal storage gives us the capacity much like solar batteries
Building Services Engineer | GSAS | MMUP UPDA Registered | Community Association Management | NADCA Certified
4 年Sorry to say but I think in this article nothing is mentioned about the merits and demerits of the Indirect evaporative cooling and the process you opt to reach to your decision will be worth mentioning. Which would lead us to understand the valu Engineering. Though this article may fall in the category of "Indirect marketing" of Indirect Evaporative Cooling System. ????