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| • EXCH RATES |
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Baht/$ 33.32/36
Bid/Ask
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GOLD |
15,150
+ 150
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KANANA KATHARANGSIPORN
Amid rising construction costs, value engineering can be an effective tool for developers to save on costs and increase their competence, according to Charan Kesorn, managing director of condominium developer L.P.N Development Plc.
''The value engineering concept is based on an assumption that there's always a better method so the idea is for a new production design that is better and safer,'' he said.
''Value engineering means adjusting products to a changing business environment, such as using better materials, applying innovations and adjusting to market expectations, competition and costs.''
With the value engineering method, costs of products will decrease without any decrease in the functions of the product. To apply value engineering in product development, there are five steps:
- Searching all information related to the product such as sales, price, cost, production process, inventory materials, current and potential customers.
- Indicating major functions of the product and separating them piece by piece before considering functions of each piece and those contributing to major function.
- Analysing and giving weight to every angle found in the past steps by considering functions and costs.
- Expecting to improve functions and save costs by brainstorming, which is the most interesting process of value engineering.
- Having a plan.
Mr Charan adds that developers should avoid former formats. To do this, they should check the major and minor functions of products and every parts piece. Then suggestions for cost saving will emerge.
Developers should search for all information about costs. Without it, decisions cannot be made. At the same time, they should use information from the best sources, especially in the product design process. A lack of information or getting the wrong information will result in a bad output.
Innovation will open opportunities for developers to search for new products.
He says developers should work with industrial experts to expand knowledge and techniques. In condominium construction, these include designers, architects, engineers, contractors, and suppliers.
Anything unnecessary and useless should be cut off. Meanwhile, using materials produced by good suppliers is better than starting from the beginning.
Another cost-controlling technique includes asking for suppliers' suggestions and discounts, using special processes, using materials with practical standards.
''Humans always resist change. To defeat resistance to a change, get all related staff to participate from the first step of planning. Brainstorming will create a good result,'' Mr Charan said.
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