Value Eng for Airport

8/7/2019 Value Eng for Airport

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Airports being nuclei of economic activityassume a significant role in the nationaleconomy.

While cargo carried by air in India weighsless than 1% of the total cargo exported, itaccounts for 35% of the total value ofexports. Better cargo handling facilities

lead to enhanced levels of importation,especially of capital goods and high-valueitems.

97% of the country's foreign tourists arrive

by air and tourism is the nation's second

INTRODUCTIONINTRODUCTION


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1. Airports also represent a countryswindow on the world. Passengers formtheir first impressions about a nation from

the state of its airports. They can beeffectively used as symbols of nationalpride, if we pay sufficient attention to theirquality and maintenance.

2. In many remote, hilly and inaccessibleareas of the country, air transport is thequickest and sometimes the only mode oftravel available. This is especially true of

sensitive regions on the borders with our

INTRODUCTION


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Value management has a systematic andcreative procedure operating on the

relevant aspects of the value processthrough the life of a project. The procedureof VE is a sequence of actions that lead tothe achievement of value and can be

divided into a number of major phases.

VALUE ENGINEERING FORVALUE ENGINEERING FOR

AHMEDABADAHMEDABAD

INTERNATIONAL AIRPORTINTERNATIONAL AIRPORT


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It is the foundation of the VE study andshould be initiated by the project

manager. A preliminary assessment ofthe project should be made:The actual Stakeholder Requirements for

project is agreed.

The problem is identified and clearlydefined.

The study scope is defined.

Phase 1: Define the scopePhase 1: Define the scope

of Value Engineeringof Value Engineering


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During this phase the majority of theinformation that is needed to conduct the

study should be collected, collated,validated and compiled into aninformation data pack.

Also, the value of the SARDAR PATEL

International Airport Project is defined andlisted in this phase.

Phase 2: Information andPhase 2: Information and

analysisanalysis


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The speculation phase is the most importantphase of VE, for it is at this point that wepropose the alternatives. At this point the

whole team members should be involvedin discussion, break the mould of theproject and generate fresh ideas.

Phase 3: SpeculationPhase 3: Speculation


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The final selection of schemes is put forwardfor a full evaluation in the phase. Analternative proposal is prepared by the

value engineer and will be presented tothe project manager.Phase 1-4 above constitute the main process

of value analysis.

Phase 4: EvaluationPhase 4: Evaluation


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The value engineer must generate a plan ofaction that will cover all the tasksnecessary for the implement phase. The

plan should be showed that how, what,where and who will do this relative task.The implementation of VE should bemonitored.

The value of The SARDAR PATELInternational Airport Project tostakeholders and evaluation of variousschemes are discussed mainly in the

following sectors.

Phase 5: Plan, ImplementationPhase 5: Plan, Implementation

and Monitorand Monitor


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Airport type Basic runwaylength (m)

Width ofrunwaypavement (m)

Maximumlongitudinalgrade (%)

A Over 2100 45 1.5

B 2099 to 1500 45 1.5

C 1499 to 900 30 1.5

D 899 to 750 22.5 2.0

E 749 to 600 18 2.0

Classification of airportClassification of airport


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COMPONENT CONTRIBUTION

MAIN BUILDING 30%

RUNWAY 42%

CARGO 16%

PUBLIC PARKING 12%

COST COMPONENT OFCOST COMPONENT OFS.P.I.AS.P.I.A

The cost component of runway is more so much emphasis is laid on it.


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LIFE CYCLE COST FORLIFE CYCLE COST FORRUNWAYRUNWAY


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The life cycle costing can be defined as follows: An economic assessment of alternatives designs, construction, or

other investment considering all significant costs of initial costs and

ownership costs over economic life of each alternative, expressed in

Equivalent economic units. In general life-cycle costs include all costs anticipated over the life of the

facility.

Life Cycle Costing is a comparative assessment of competing design

alternatives based on their respective life cycle costs over their

economic life.

Introduction of LCCIntroduction of LCC


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ConstructionCost

Fee Cost

Other Cost

Financing CostC2

Maintenance CostC4

Operation CostC3

Owner's total CostLCC C1to C8

Initial CostC1

Salvage ValueC8

Replacement CostC5

Tax elementC6

Associated CostC7

Life Cycle Cost Elements


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Steps In A Life-cycle CostingSteps In A Life-cycle CostingStudyStudy


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1) Present-worth Method,

2) The Annualized Method,

3) The Rate-of-return Method

4) Benefit-cost Ratio Method,

5) Break-even Analysis,

6) Payback Period,

7) Capitalized Cost.

Methods of LCCMethods of LCC


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The life cycle costing analysis can not be carried outwithout considering the followings:

A - Total Costs B - The concept of the time value of money


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A - TOTAL COSTS - Initial costs - Owner costs

INITIAL COSTS.

They include the followings: - initial construction costs - design costs

- land costs - finance costs


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OWNER COSTS

They include the followings:- Operating costs o maintenance costs

o utility bills o staffing fee

- Replacement costs

o cost of replacement theproject after it runs itseconomic life.


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B - THE CONCEPT OF THE TIME VALUE OFMONEY

o The value of money today is not equal tothe

same amount of money in the past or inthe future.

o The concept of the time value of money considered the following: - initial costs (P) (present value)

- discount or interest rate (I%)


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To make an equivalent value of money for an assessment along its economic life,

many

methods can be used such as:

1. Present worth method

2. Uniform annual method


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1. Present Worth Method

In this case, all costs or savings (cashflows) which occur during the life time of aninvestment are discounted to the presentvalue of money.


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(b) Alternative method, instead of using theabove formula, use of interest tables withthe following notations.

(F/P, I %,n) find F given P, or (P/F,I %,n) find P given F.

2. Uniform Annual Worth Method In this case, all costs or savings (cash

flows) which occur during the life time ofan investment are discounted to a uniformannual series of cash flows over the lifetime of the investment.


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(b) Alternative method, instead of usingthe above formula, use of interest tableswith the following notations.

( P/A. i %, n ) find P given A

(A/P, i % n ) find A given P

( F/A, i % n ) find F given A

(A/F, i % n ) find A given F


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q Sub Grade Soil

q Design Period

q Design Methods

q Design Trafficq Rigid Pavement with design life 20 years

RUNWAY DESIGNRUNWAY DESIGN


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Rigid Pavement

Section of PavementSection of Pavement

PQC 350mm

Drainage Layer 215 mm

DLC 150mm

G.S.B. 215 mm 930mm


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Sr. No. Detail of Quantities

Quantity Unit Rate Amount

1 Pavement

QualityConcrete

12600 cum 3200 40320000

2 Dry leanConcrete

7020 cum 1845 12951900

3 G.S.B. 7290 cum 1480 10789200

4 Drainage Layer7290 cum 1115 8128350

Total 72189450

Cost BreakupCost Breakup

DATA ASSUMPTIONS FORDATA ASSUMPTIONS FOR


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Escalation in ConstructionLife Of the Project 20 years45m width of section

15 % interestAnnual maintenanceSalvage Value nil

DATA ASSUMPTIONS FORDATA ASSUMPTIONS FORLIFE CYCLE COSTING OFLIFE CYCLE COSTING OF

RUNWAYRUNWAY


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q Initial Cost

v 7,21,89,450 INR/Kmv

q Maintenance Cost Per Annumv 7,90,000 INR /Km

Present Worth MethodPresent Worth Method


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(RIGID PAVEMENT)(RIGID PAVEMENT)

0 1 2 3 420

Years

7218

9450

790000

790000

790000

790000

790000


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Pa =72189450 + 790000(P/A , i%, n) = 72189450+ 790000(6.2593) = 7,71,34,297 INR

Life cycle costingLife cycle costing


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Thank you

Value Eng for Airport

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