GLOBAL ENGINEERING ECONOMICS

[Virtual Presenter] Dr. Antonio Sanjuan is a renowned expert in his field with extensive experience in teaching and mentoring students. He has worked extensively with various institutions and organizations, providing guidance and support to individuals seeking to improve their skills and knowledge. With over two decades of experience, he has developed a unique approach to education that emphasizes critical thinking, creativity, and problem-solving skills. His expertise lies in helping students develop a deeper understanding of complex concepts and applying them to real-world scenarios..

[Audio] Value engineering is a technique used to analyze the functions of building components or facilities to determine the best option in terms of the lowest life cycle cost and quality requirements. This involves evaluating the various functions that a component or facility performs, such as its functionality, reliability, maintainability, and performance, and then comparing these factors to identify the most cost-effective solution. By applying value engineering principles, organizations can optimize their investments and achieve significant savings while maintaining or improving the quality of their products or services..

[Audio] The Objectives of Value Engineering The primary objectives of value engineering are to improve efficiency and reduce waste in all aspects of an organization's operations. The main goal is to save money by reducing costs associated with materials, labor, and other resources. Reducing time is also crucial, as it allows for increased productivity and better utilization of resources. Improving quality is essential, as it directly impacts customer satisfaction and loyalty. Enhancing reliability and maintainability ensures that products or services function consistently and efficiently over time. Improving performance enables organizations to achieve their goals more effectively. Finally, improving human factors such as attitudes, creativity, and teamwork fosters a positive and productive work environment..

[Audio] The value equation is a mathematical formula used to calculate the value of a product or service. The formula is: Value = (Function x Quality) / Cost. This equation helps us determine the relationship between the three key elements that contribute to the overall value of a product or service. By using this formula, we can analyze the trade-offs between function, quality, and cost, and make more informed decisions about investments. For example, if a company wants to increase the quality of its products, but also reduce costs, it may need to re-evaluate its production process or sourcing strategies. Similarly, if a business wants to improve the functionality of its products, but also increase costs, it may need to consider alternative materials or manufacturing methods. By applying the value equation, companies can optimize their operations and maximize their returns on investment. The value equation has been widely adopted by businesses across various industries, including technology, healthcare, and finance. Its simplicity and flexibility make it an ideal tool for analyzing complex problems and making strategic decisions..

[Audio] The unnecessary costs we incur can often stem from a lack of information about what we need to accomplish. Without this knowledge, we cannot effectively plan our resources and allocate them appropriately. This lack of information can lead to inefficient use of resources, resulting in higher costs. Furthermore, a lack of ideas can also contribute to unnecessary costs. When we fail to explore alternative solutions, we may be forced to adopt expensive and ineffective methods. A lack of transparency in decision-making processes can also increase costs. Temporary circumstances such as changes in market conditions or technological advancements can drive up costs. However, these factors should not necessarily justify increased spending. In some cases, honest wrong beliefs about the necessity of certain expenses can also lead to unnecessary costs. Our habits and attitudes towards spending can also play a role in this issue. For instance, if we have a tendency to overspend or overinvest in certain areas, we may find ourselves with unnecessary costs. Changes in owner requirements can also lead to increased costs. These changes can result in the need for costly upgrades or modifications to existing systems. Poor communication and coordination between different departments or teams can also exacerbate the problem. Outdated standards and specifications can lead to unnecessary costs by requiring the purchase of new equipment or materials that may not be necessary. By understanding the reasons behind unnecessary costs, we can take steps to mitigate their impact and reduce waste..

[Audio] The seven most significant factors responsible for savings actions design are identified here. These factors include feedback from user, deficiencies, change in user needs, excessive cost, redesign cost, advance in technology, and questioning specs. Each factor has a specific percentage associated with it. The percentages indicate the relative importance of each factor. For example, feedback from user is associated with 22%, while deficiencies are associated with 12%. By understanding these factors, we can begin to design more effective savings actions. This will enable us to identify areas where improvements can be made to increase efficiency and effectiveness. Feedback from user is crucial as it provides valuable insights into how users interact with products or services. Deficiencies in product or service design can lead to poor performance and decreased customer satisfaction. A change in user needs can result in increased demand for certain features or functionalities. Excessive cost can hinder the adoption of new technologies or innovations. Redesign cost can impact the overall success of a project. An advance in technology can provide opportunities for innovation and growth. Questioning specs can help to ensure that products or services meet the required standards. These factors are interconnected and interdependent. They must be considered together when designing savings actions. By taking into account all these factors, we can create more effective solutions that cater to the needs of our customers..

[Audio] The Value Engineering process is a systematic approach to improving existing systems by identifying areas for improvement and implementing cost-saving measures. The process involves several key steps: gathering data, exploring alternatives, assessing options, presenting proposals, and implementing changes. By following this structured approach, organizations can identify opportunities for cost savings and improve overall efficiency. The goal of Value Engineering is to provide a more efficient and effective way of managing resources, thereby increasing productivity and reducing waste..

[Audio] The functions of an organization are its primary means of delivering value to its customers and stakeholders. Functions can take many forms, including but not limited to: - Providing information about products or services - Offering support and maintenance - Managing supply chains - Developing new products or services - Providing customer service - Offering training and education - Managing risk and compliance - Providing financial management These functions can vary greatly in terms of cost, with some requiring significant investments in resources and personnel, while others may be relatively low-cost. The value of a function lies in the satisfaction it provides to customers and stakeholders, as well as any tangible benefits such as increased efficiency or reduced costs. Organizations must identify and prioritize the most critical functions, allocate sufficient resources, and ensure effective communication and coordination among team members to accomplish these functions. This requires careful planning and execution, as well as ongoing evaluation and improvement. By doing so, organizations can deliver high-quality functions that meet the needs of their customers and stakeholders..

[Audio] The creative phase is a critical component of the design process. During this phase, designers must think creatively and come up with innovative solutions that meet the needs of their clients. The goal is to generate new ideas and concepts that are not only feasible but also aesthetically pleasing. Designers should focus on finding alternative ways to achieve the desired outcome, rather than simply copying existing designs. This requires a deep understanding of the subject matter and a willingness to take risks. The designer must be able to think outside the box and challenge conventional thinking. The creative phase is often the most challenging part of the design process, as it requires a high level of creativity and imagination. However, it is also the most rewarding, as it allows designers to bring their unique perspective to the table and create something truly original..

[Audio] The proposal phase is a critical component of any successful project. It involves evaluating the feasibility of the proposed solution, identifying potential risks and challenges, and determining the most effective way to implement the solution. The goal of the proposal phase is to develop a comprehensive plan that outlines the key elements of the solution, including the benefits, costs, and long-term implications. This phase requires careful consideration of the project's scope, timeline, and budget, as well as the identification of stakeholders and their interests. The proposal phase is often the most challenging part of the project, but it is essential for ensuring that the final product meets the needs of the end-users..

[Audio] The concept of function analysis is essential in understanding how things work. A function is defined as an end or purpose that a thing or activity is intended to perform, expressed in a verb-noun form. This means that we need to identify the main action or goal associated with a particular object or process. In this case, we have four examples of functions: store, prison, hospital, and school. Each of these functions has a specific verb and noun that describe its primary objective. The verb is often active, indicating the type of action taken, while the noun provides more detail about what is being achieved. By analyzing these functions, we can gain insight into their underlying purposes and mechanisms. This understanding is crucial for effective problem-solving and decision-making in various fields..

[Audio] ## Step 1: Identify the basic functions of a product or system The first step in understanding how a product or system works is to identify its basic functions. These are the fundamental elements that enable the product to perform its intended user function. ## Step 2: Consider secondary functions that are not essential to the main user function Next, we need to consider secondary functions that are not essential to the main user function but are still necessary to meet certain regulatory or compliance requirements. ## Step 3: Provide examples of basic and secondary functions A car has a basic function of transporting people from one place to another. This is the primary utilitarian characteristic of the vehicle. The car also has secondary functions such as meeting safety standards, emitting fewer emissions, and conforming to local regulations. ## Step 4: Classify functions to understand product or system complexity To classify these functions, we need to determine which ones are essential to the main user function and which ones are not. This classification will help us understand the complexities of a product's design and functionality. ## Step 5: Summarize the importance of classifying functions By identifying both basic and secondary functions, we can gain a deeper appreciation for the complexities of a product's design and functionality. The final answer is:.

[Audio] The primary function of a system is to perform its intended purpose. The secondary functions, however, serve as additional features that enhance the overall performance of the system. While primary functions are essential, secondary functions are often considered non-essential. However, some secondary functions can be critical to the system's operation. In order to classify functions, one must consider both the importance and relevance of each function. Functions that are deemed critical to the system's operation should be classified as primary functions. Those that are not critical, but still provide benefits, should be classified as secondary functions. The classification of functions is crucial because it allows for the identification of areas where improvements can be made. By understanding which functions are truly necessary, organizations can focus their efforts on optimizing those functions..

[Audio] The Function Analysis System Technique, also known as FAST, is a method used to analyze complex systems by breaking them down into smaller components. This technique involves identifying the basic functions that need to be performed within the system, as well as the secondary functions that support these primary functions. By analyzing both the input and output functions, we can gain a deeper understanding of how the system operates and identify areas where improvements can be made. The FAST technique provides a structured approach to this analysis, allowing us to systematically evaluate the relationships between different components of the system. By applying the FAST technique, organizations can improve their overall efficiency and effectiveness, leading to better outcomes and results..

[Audio] The pencil is a simple writing instrument with multiple functions. Its primary function is to write or draw on surfaces such as paper. However, upon closer inspection, several sub-functions become apparent. These include portability, a firm grip, erasability, and precision. Each of these functions contributes significantly to the user's experience when using a pencil. The design of a pencil plays a crucial role in fulfilling these functions. The wooden body of a pencil makes it lightweight and portable, while the textured surface provides a comfortable grip. The metal end cap adds stability to the grip, ensuring a secure hold. The lead inside the pencil allows for smooth and precise writing, while the attached eraser facilitates correction of errors. To evaluate the effectiveness of these design elements, researchers such as Alphonse Dell’Isola and Stephen Kirk have conducted extensive studies on the design and function of writing instruments, including pencils. Their findings provide valuable insights into the importance of considering the design and functionality of products in order to achieve optimal performance. Conducting a function analysis of a product enables users to gain a deeper understanding of its purpose and design. This critical thinking skill is essential in higher education, allowing individuals to analyze everyday objects and their significance. By applying this skill, one can develop a more nuanced appreciation for the intricacies of everyday objects and their impact on our daily lives..

Function Analysis on a Pencil.

LIFE CYCLE COSTING.

[Audio] The cost of owning and operating a facility is not just limited to the initial purchase price of the facility itself. There are many other factors that contribute to the overall cost of ownership, including maintenance, repairs, and replacement parts. These costs can be significant and may vary depending on the specific needs of the facility. For example, a hospital might require specialized equipment and software, which would increase the operational costs. Similarly, a school might require additional security measures, such as cameras and alarms, to protect students and staff. The costs associated with these items can add up quickly and should be taken into account when making decisions about facility design and operation..