Applying Process Simulation Technique to Value Engineering Model: A Case Study of Hospital Building Project

Applying value engineering (VE) in a construction project has proven to be an effective way to save the cost of a project. Different VE models have been developed and used in construction projects in the past. One common attribute of construction projects is the dependence of a highly qualitative decision making process: capturing, interpreting, and quantifying expert's subjective judgment. This study proposes an advanced five-phase VE model, each phase of which consists of a series of steps to better quantify subjective opinions of VE team members. Construction simulation technique, the Cyclic Operation Network, is used as a means to minimize subjectivity in estimating the value of different alternatives in terms of time and cost savings. A case study shows that the advanced five-phase VE model improves analysis, assessment, and decision on VE. This new approach has a great potential to minimize subjectivity during VE process and improves VE decision-making process by using quantitatively derived data from the simulation analysis.

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