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To recognize outstanding VE achievements and promote awareness of the importance of this program, the AASHTO Value Engineering Task Force has established national awards to be given to state transportation agencies. These awards are presented every 2 years to agencies that have shown special achievement in either cost-effectiveness or innovation. TABLE 10.4 Life Cycle Cost […]

The concepts of annualized cost and present worth are employed in LCC. Using the annual­ized cost method, all costs incurred are converted to equivalent annual costs using a base­line and a specified life span. For example, initial costs would be amortized over the life cycle and include principal and interest (similar to home mortgage payments). […]

Costs that must be considered depend to some extent upon the system or project analyzed, but can generally be categorized as follows: 1. Initial costs a. Item costs. These are costs to produce or construct the item. b. Development costs. These are costs associated with conducting the value study, testing, building a prototype, designing, and […]

The first task one must accomplish in performing an LCC analysis is to determine the period of time for which the analysis of accumulated costs is to occur. This will usually be designated the project design life. The life span of the facility to be analyzed (a bridge, pavement, or culvert pipe) must be determined, […]

Life cycle cost (LCC) is the total cost of ownership of an item, computed over its useful life. To rationally compare the worth of alternative designs, or different ways to do a job (accomplish a function), an LCC analysis is made of each. For those who follow the VE job plan, a life cycle cost […]

A cost model is a diagrammatic form of a cost estimate. It is used as a tool in the VE process to provide increased visibility of the cost of the various elements of a system or an item, to aid in identifying the item’s subelements most suitable for cost reduction attention, and to establish cost […]

The following three considerations are general techniques that should be followed: 1. Usually only two FAST diagrams are of interest: the diagram that represents an exist­ing plan, program, or design, and the diagram that represents the proposed concept. When diagramming something that exists, be sure not to slip off on a tangent and include alternatives […]

The following steps are recommended in the construction of the FAST diagram: 1. Function listing. Prepare a list of all functions, by assembly or by system, using the verb-and-noun technique of identification of function. Do this by brainstorming the questions (a) “What does it do?” and (b) “What must it do?” 2. The function worksheet. […]

Figure 10.1 depicts the diagramming conventions to be used in preparing a FAST dia­gram. The relative positions of functions as displayed on the diagram are also levels of activity. The FAST diagram is a horizontal graphical display based on system functions rather than system flowcharting or components. Level 1 functions, the higher-level func­tions, appear on […]

Function analysis system technique (FAST) is a diagramming technique to graphically show the logical relationships of the functions of an item, system, or procedure. FAST was developed in 1964 by Charles V. Bytheway at the UNIVAC Division of the Sperry Rand Corporation. Prior to the development of FAST, one had to perform a function analysis […]