TAKING VALUE ENGINEERING BACK TO ITS ROOTS
Value engineering is a commonly used term in today’s market, particularly evident as markets become more competitive and construction price indexes continue to rise. But what does it really mean to those in the industry? Antony Corbett, product applications engineer at Geberit, explores the topic and assesses how new innovations like the brand’s revolutionary Geberit FlowFit multi-layer piping system can help redefine value engineering back to its original meaning.
Ask five people in the industry what ‘value engineering’ in construction means and you will likely get five differently nuanced answers. Long established but rarely used consistently, the term has developed to now cover a spectrum of approaches that ultimately aim to reach optimisation of value.
For most, value engineering is a conscious and explicit set of disciplined procedures. The end goal is to seek the optimum value for both initial and long-term investment – and this inclusion of long-term investment is key. That is, take into account the life cycle of a building to ensure that the value goes beyond capital cost of materials and construction methods.
For others, mistakenly, it has evolved into a cost reduction or cost cutting exercise – a race to the bottom in terms of price, which may negatively impact on quality, reputation, overall project cost and much more.
The origins of value engineering
The term was first developed by Lawrence (Larry) D Miles at General Electric in 1947 and from an early stage, the history books tell us that the meaning was clear.
Value engineering – otherwise known as value analysis – started out as a necessity when Miles sought alternative materials, components and less labour-intensive manufacturing processes to overcome post-war shortages. Many of these were found to offer product or process improvement, reduced costs, or all of the above – and once the phrase was coined, value engineering was quickly turned into a systematic process to optimise value.
Today, it is too often used as a cost-cutting exercise – as a reason to cut corners and save early capital with little forward-thinking, rather than the strategic and systematic set of processes that it should be. We believe it is time to address those inaccuracies.
Correct specification choice
Of course, the risks of cost-cutting are evident to all. Buying cheap, possibly inferior products or down-specifying to materials and/or processes which may or may not be the most appropriate very rarely ends up cheaper in the long run.
In piping, for example, we often see the long-term costs of corrosion caused by either incorrect material choice or selecting products for the wrong applications with water pipes, not to mention the cumulative costs of longer installation projects because contractors opted for cheaper systems that do not offer the same installation efficiencies as the specified solution.
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All too often, project teams will take the specification and install the cheapest alternative that supposedly meets the same criteria. If copper is specified, for example, the site team may be given an option to solder fittings over press-fit. A multi-layer piping system could be derogated to metal or plastic. Poorer quality products might even be chosen which may not command the same longevity of a required product guarantee.
In fact, with a clear planning horizon and a holistic approach up front, using the most or more appropriate products and systems almost always delivers a more cost-effective overall project solution – even if the initial cost is higher. That is the original essence of value engineering.
A new value engineered solution
At Geberit, we have applied the principles of value engineering in introducing our new Geberit FlowFit multi-layer piping system.
Just launched in the UK after more than eight years of intensive research and development, Geberit FlowFit combines the benefits of multi-layer piping for a range of applications with a unique, patented pressing method for quicker, more reliable and more sustainable installation for potable water and heating applications.?
The pipe is a multilayered construction comprising of three layers; a central aluminium layer which makes the pipe strong yet flexible, and a plastic (PE-RT) layer either side of this to aid in corrosion prevention from external factors and ensure a smooth internal bore.
Geberit FlowFit incorporates press-fit technology, offering project teams efficiencies and time savings across jobs.
There are cheaper solutions available for piping systems (entirely plastic, for example) and there are more expensive options, such as copper and some alternative multi-layer systems. However, Geberit FlowFit offers the best value for its cost.
Remember this is not a race to the bottom – it’s about calculating the overall value of the solution.
It requires specifiers and contractors to factor in the reduced installation time, the fitting method that makes errors during installation virtually impossible and the reliable joints that will not leak, which then means there is no need for reinstallation after a short period of time. Once all of these factors are taken into consideration, the cost savings over the project duration yields a true result. This is the meaning of value engineering in its original sense.