general project information, project building functions, and project design constraints. Project data
is needed to obtain basic information about a project. Some of the basic principles carried out at the
information stage are to create a breakdown cost model and create a Pareto diagram.
Breakdown Cost Model
The creation of a breakdown cost model aims to sort work items ranging from the highest cost
to the lowest cost and then presented cumulatively. From the breakdown cost model, analysis can
be carried out to determine the limit of the highest-cost work items using the legal basis of
parParetostribution.
Diagram Pareto
The Pareto diagram was invented by Vilfredo Pareto, an economist in the 19th century, and
first used by Joseph Juran. Joseph Juran stated that 80% of the company's problems are the result of
only 20% of causes.
Function Analysis
Function analysis aims to classify the main functions and their supporting functions. From this
classification, a comparison is obtained between costs and the value of benefits needed to produce
the function. The next stage is the function analysis process using the Cost / Worth (C / W) ratio
equation which analyzes the cost of the element with the cost of the element function. Index Function
Analysis = Cost/Worth ........ (2.1) Where cost is the total cost of a work item and worth is a form of
cost that only has a function value to the work item. In the function analysis stage, if the index value
is obtained > 1, then some of these work items have the potential to be carried out via VE
engineering.
Creative stage
At this creative stage, innovation and creativity are needed in processing cost elements that
have the potential to cause loss costs while still referring to the principle of not reducing
performance, quality, benefits, functions, and aesthetics in an element of work chosen in the concept
of value engineering. If several alternatives to the creativity process have been determined, further
analysis can be carried out.
Analysis stage
This stage will be analyzed by the tools that appear. The analysis includes Life Cycle Cost
(LCC) analysis and profit and loss analysis.
Profit and Loss Analysis
In this analysis, the ideas that have been obtained at the creative stage will be arranged with
advantages and disadvantages. Once the gains and losses on each idea or alternative are recorded,
it is then given a rating for each alternative.
Project Life Cycle Cost Analysis
The life cycle of a project consists of six major stages, namely the conception and feasibility
study stages, engineering and design, procurement, construction, initiation, and application as well
as operation or use (Indrastuti &; Mustifany, 2022). After identifying all associated costs by year
and amount then converted into present value, then the costs are added together to get the life cycle
cost
LCC = Initial Cost + Initial Cost + Cost
Therapy + Material Replacement Cost (2.2)