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KING FAHAD UNIVERSITY OF PETROLEUM & MINERALSKING FAHAD UNIVERSITY OF PETROLEUM & MINERALSCollege of Environmental Design College of Environmental Design

Construction Engineering & Management Construction Engineering & Management CEM 512 – Value EngineeringCEM 512 – Value Engineering

Case Study Wastewater Treatment

Plant

Presented by:Ameer Al-Saleh

Fawaz Al-GhamdiWahab Al-Jaroudi

Jamman Al-ZahraniMustafa Al-Humood

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OUTLINEOUTLINE DefinitionsDefinitions ObjectivesObjectives WWTP process & ScopeWWTP process & Scope VE different PhasesVE different Phases

– Information PhaseInformation Phase– Creative PhaseCreative Phase– Judgment PhaseJudgment Phase– Development PhaseDevelopment Phase– Presentation & Report PhasePresentation & Report Phase– Implementation PhaseImplementation Phase

Summary & ConclusionSummary & Conclusion Executive SummaryExecutive Summary

55

DefinitionsDefinitions

Value= Function / CostValue= Function / Cost Value ( Merian Webster dictionary) is :Value ( Merian Webster dictionary) is : 1. A fair return or equivalent in goods, service, or 1. A fair return or equivalent in goods, service, or

money for something exchanged.money for something exchanged. 2. The monetary worth of something.2. The monetary worth of something.

3. Relative worth , utility , or importance.3. Relative worth , utility , or importance.

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DefinitionsDefinitions

There are Three type of value: Use value, Esteem There are Three type of value: Use value, Esteem Value, and Exchange value.Value, and Exchange value.

Function is a want or a need , it is something we Function is a want or a need , it is something we are willing to pay for.are willing to pay for.

Worth is defined as the least expenditure required Worth is defined as the least expenditure required to provide an essential function, and is often to provide an essential function, and is often established by comparison.established by comparison.

““Value engineering is a creative, organized Value engineering is a creative, organized approach whose objective is optimize the life cycle approach whose objective is optimize the life cycle cost and/or performance of a facility.”cost and/or performance of a facility.”

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Difference between QA, and VEDifference between QA, and VE

QA ( Quality Assurance) will answer questions QA ( Quality Assurance) will answer questions such as : does the design meet code such as : does the design meet code requirement, will design work, and does the requirement, will design work, and does the design conform to accepted standards.design conform to accepted standards.

VE Analysis will answer questions such as : VE Analysis will answer questions such as : What else will achieve the same function for What else will achieve the same function for lower life-cycle cost; what function are must to lower life-cycle cost; what function are must to have in the project.have in the project.

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Benefit of VEBenefit of VE

Save MoneySave Money Reduce TimeReduce Time Improve Quality, Reliability, Maintainability, and Improve Quality, Reliability, Maintainability, and

Performance.Performance. Proper VE study could save between 5%-10%, Proper VE study could save between 5%-10%,

sometimes up to 20 %sometimes up to 20 %

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INTRODUCTIONINTRODUCTION

The study covers two phases

Phase (2) expansion : To expand the Wastewater treatment plant (WWTP) capacity from 4.5 million gallon per day ( MGD ) to 9.0 MGD

Ultimate site utilization UP TO 88 MGD

1010

Objectives of this study are:Objectives of this study are:

Objective #1: to conduct value-engineering review of phase 2 expansion as recommended by 1992 environmental study report.

• Objective #2: to develop maximum site utilization plans.

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Over 180 ideas were developed during Over 180 ideas were developed during the study, only 72 proposal were the study, only 72 proposal were considered by the team. 25 proposals considered by the team. 25 proposals recommended additional cost primarily recommended additional cost primarily oriented toward life cycle savings. These oriented toward life cycle savings. These proposals offer more than $ 5 millions in proposals offer more than $ 5 millions in potential savings for present phase 2 potential savings for present phase 2 expansion.expansion.

Executive summary Executive summary

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Executive summary Executive summary

Life cycle cost saving of $ 300,000-Life cycle cost saving of $ 300,000-400,000 per year was identified. Over 400,000 per year was identified. Over $ 10 millions in potential saving for $ 10 millions in potential saving for future saving beyond 9 MGD were future saving beyond 9 MGD were identified. These savings would be identified. These savings would be offset by $13 millions for meeting offset by $13 millions for meeting anticipated new standards, anticipated new standards, performance and life cycle performance and life cycle improvements.improvements.

1313TSE

Wastewater Treatment Process & ScopeWastewater Treatment Process & Scope

• What is wastewater? Why treat it?What is wastewater? Why treat it?

• Wastewater Treatment ProcessWastewater Treatment Process

• Scope of WorkScope of Work

1414TSE

Wastewater Treatment Process & Wastewater Treatment Process & ScopeScope

What is wastewater?What is wastewater?

It is used water that includes substances It is used water that includes substances such as human waste, oils, storm runoff such as human waste, oils, storm runoff and chemicalsand chemicals

Why treat it?Why treat it?

• To reduce pollutants in wastewater to a To reduce pollutants in wastewater to a level nature can handle.level nature can handle.

• To meet environmental standards To meet environmental standards

1515TSE

Wastewater Treatment ProcessWastewater Treatment Process

Primary Primary TreatmentTreatment

Sludge Sludge TreatmentTreatment

ChlorinationChlorinationSecondary Secondary TreatmentTreatment

WastewaterWastewater

60 % Solid60 % Solid

Clean WaterClean Water

90 % Solid90 % Solid

Disposal or FertilizationDisposal or Fertilization

Methane for Boiler or Cogen.Methane for Boiler or Cogen.

1616TSE

Wastewater Treatment ProcessWastewater Treatment Process

1717TSE

Wastewater Treatment ProcessWastewater Treatment Process

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Wastewater Treatment ProcessWastewater Treatment Process

Sludge Treatment UnitSludge Treatment Unit

1919TSE

Wastewater Treatment ProcessWastewater Treatment Process

Wastewater Treatment PlantWastewater Treatment Plant

2020TSE

Scope of WorkScope of Work• 2 primary clarifiers2 primary clarifiers• 4 Aeration cells4 Aeration cells• 2 Air blowers2 Air blowers• 2 Final clarifiers2 Final clarifiers• New return activated sludge systemNew return activated sludge system• Improvement to the existing cogen. Sys.Improvement to the existing cogen. Sys.• 2 digestion tanks 2 digestion tanks • 1 sludge storage tank1 sludge storage tank• Facility to receive sludge hauled from other Facility to receive sludge hauled from other

plantplant

2121TSE

Scope of WorkScope of Work (Cont.)(Cont.)• Site work (roads & landscaping)Site work (roads & landscaping)• Instrument / DCS Instrument / DCS • All mechanical, electrical and ancillary itemsAll mechanical, electrical and ancillary items

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Information PhaseInformation Phase Prepared Cost /Worth modelPrepared Cost /Worth model Worth: is the lowest cost means possible to Worth: is the lowest cost means possible to

achieve an individual function.achieve an individual function. Worth is determined by experts whose are Worth is determined by experts whose are

depending on similar project and historical cost depending on similar project and historical cost data.data.

Cost Worth help to isolate areas of higher Cost Worth help to isolate areas of higher potential saving potential saving

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System

Sub-System

Design Estimate

VE evaluation Worth4 M

2424

14 M

2525

2626

Creative PhaseCreative Phase

Listing of creative ideasListing of creative ideas Provide the necessary functions at lower Provide the necessary functions at lower

initial and/or life cycle cost.initial and/or life cycle cost. Layout ………….59 ideasLayout ………….59 ideas Process …………87 ideasProcess …………87 ideas Future …………39 ideasFuture …………39 ideas Total …………..185 ideasTotal …………..185 ideas

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Group 1Recommendation Actions

2828

Group 2Regional Follow-up

Actions

Group 3Certificate of Approval

Actions

2929

Group 4Recommended Actions

Savings Expressed for 55 MGD Plant

3030

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Judgment Phase:Judgment Phase:

In this phase of the In this phase of the project, the value project, the value engineering team engineering team judged the ideas judged the ideas resulting from the resulting from the creative session creative session

Ranked the ideas Ranked the ideas according to the according to the following criteriafollowing criteria

State of the artState of the art

1-10 new- existing technology1-10 new- existing technology

Probability of implementation Probability of implementation

0-100-10 Low-high chance Low-high chance

Magnitude of savingsMagnitude of savings

0-100-10 Small-large savings Small-large savings

Redesigning effortsRedesigning efforts

0-100-10 Large-minimal effort Large-minimal effort

ScheduleSchedule

0-10 Large-no impact0-10 Large-no impact

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Judgment Phase:Judgment Phase:

Ideas found to be impractical or not worthy of additional Ideas found to be impractical or not worthy of additional study are disregarded study are disregarded

ideas that represent the greatest potential for cost savings ideas that represent the greatest potential for cost savings are then developed further. are then developed further.

Through the interaction with the owner, each cost item on Through the interaction with the owner, each cost item on the LCC model was explored to determine its importance.the LCC model was explored to determine its importance.

The LCC model, (LCC-1), illustrates the categories The LCC model, (LCC-1), illustrates the categories addressed by the VE team during the VE workshop. addressed by the VE team during the VE workshop.

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Development Phase:Development Phase:

Many of the ideas were expanded into workable Many of the ideas were expanded into workable solutions. solutions.

The development consisted of the recommended The development consisted of the recommended design, life cycle cost consideration, and design, life cycle cost consideration, and descriptive evaluation of the advantages of the descriptive evaluation of the advantages of the proposed recommendations.proposed recommendations.

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Development Phase:Development Phase:

It was important that the value engineering team It was important that the value engineering team convey the concept of each recommendation to convey the concept of each recommendation to the designer. Therefore, each recommendation the designer. Therefore, each recommendation was presented with a brief narrative to compare was presented with a brief narrative to compare the original design method to the proposed the original design method to the proposed change. change.

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Development Phase:Development Phase: Sketches and design calculations, where Sketches and design calculations, where

proper, are included in this report with the proper, are included in this report with the corresponding recommendations.corresponding recommendations.

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Development Phase:Development Phase: Co-Gen Plant with three alternative design Co-Gen Plant with three alternative design

have been proposed and evaluated.have been proposed and evaluated.

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3838

3939

4040

4141

4242

Development Phase:Development Phase: Slug Handling Design OptionSlug Handling Design Option

4343

4444

4545

4646

Development Phase:Development Phase: Hydraulic Gradient in new plantHydraulic Gradient in new plant

4747

4848

4949

Development Phase:Development Phase: Water Conservation Program.Water Conservation Program.

5050

5151

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Presentation and Report Phase Presentation and Report Phase

• The last phase of the value engineering The last phase of the value engineering effort. effort.

• The major VE recommendations were The major VE recommendations were summarized and presented to the summarized and presented to the Owner and designer. Owner and designer.

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Recommendation Category

ProposalsInitial

Saving

Total Annual Saving

Layout 2727 4,000,0004,000,000 300,000300,000

Process 1919 800,000800,000 175,000175,000

Future 2626 2,500,0002,500,000 3,450,0003,450,000

TOTAL 72 72 7,300,0007,300,000 3,925,0003,925,000

Presentation and Report Phase Presentation and Report Phase

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Number of Proposals

Process 36%

Future 26%

Layout 38%

Presentation and Report Phase Presentation and Report Phase

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Presentation and Report PhasePresentation and Report Phase

1.1. Phase 2 Expansion to 9 MGDPhase 2 Expansion to 9 MGD

• Savings $ 4 million, representing 33%.Savings $ 4 million, representing 33%.

• Based on previous similar studies, the Based on previous similar studies, the implemented saving will be > 50% & implemented saving will be > 50% & annual saving will be $ 500,00/year.annual saving will be $ 500,00/year.

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Presentation and Report PhasePresentation and Report Phase

2.2. Ultimate Site Utilization of 88 MGDUltimate Site Utilization of 88 MGD

Saving

($/year) Description

1 2,500,0002,500,000

Included several areas of Included several areas of additional expenses of additional expenses of process and life cycle process and life cycle

improvements improvements

2 >>3,000,0003,000,000If all proposals were If all proposals were

implemented implemented

5757TSE

Presentation and Report Phase Presentation and Report Phase

• At the end of this phase and before At the end of this phase and before preparing the final report, each VE preparing the final report, each VE recommendations was again reviewed, as recommendations was again reviewed, as a result: a result:

Some proposal made at the presentation my Some proposal made at the presentation my have been deletedhave been deleted

Some may have been addedSome may have been added

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Conclusion Conclusion

– The study is very ideal for VE. It is diversified The study is very ideal for VE. It is diversified and comprehensive.and comprehensive.

– The economical analysis is a very good tool for The economical analysis is a very good tool for convincing decision maker. It has been used convincing decision maker. It has been used comprehensively in this study.comprehensively in this study.

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Critique to the paper:Critique to the paper:

Over $ 10 millions in potential saving for Over $ 10 millions in potential saving for future saving beyond 9 MGD were identified future saving beyond 9 MGD were identified yet the optimal capacity have not pointed .it yet the optimal capacity have not pointed .it could be 55 MGD or 88 MGD . Also the could be 55 MGD or 88 MGD . Also the anticipated new standard have been anticipated new standard have been mentioned on the beyond 9 MGD capacity mentioned on the beyond 9 MGD capacity while not been mentioned on the 9 MGD while not been mentioned on the 9 MGD capacity. No explanations were provided. capacity. No explanations were provided.

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Critique to the paper:Critique to the paper:

The size of the team has not been indicated, yet we The size of the team has not been indicated, yet we assume the VE team composed of all engineering assume the VE team composed of all engineering disciplines. It was observed that, no Civil engineering disciplines. It was observed that, no Civil engineering / chemical engineering inputs were there. Our finding / chemical engineering inputs were there. Our finding comes based on the type of information phase comes based on the type of information phase breakdowns.breakdowns.

The Case study paper always refers to The Case study paper always refers to Environmental Study report. This report was not Environmental Study report. This report was not included.included.

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Critique to the paper:Critique to the paper:

The phases were more than one ( Phase 2/ phase The phases were more than one ( Phase 2/ phase 3/ultimate Utilization) WITH two different project sizes 3/ultimate Utilization) WITH two different project sizes ( 9 MGD & 88 MGD) . Yet equipments prices were ( 9 MGD & 88 MGD) . Yet equipments prices were not projected fairly in correlation with quantities.not projected fairly in correlation with quantities.

Chemical consumption were not indicated in the Chemical consumption were not indicated in the study. It might be overlooked by the VE team.study. It might be overlooked by the VE team.

Implementation phase have not been Implementation phase have not been reflected in the Study as there are reflected in the Study as there are potential cost .potential cost .

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