--- title: "ABC graph and value engineering of materials" subject: "Construction Management" chapter: 3 key: "semester_8/construction_management:abc-graph-value-engineering" source: https://www.bctengineer.com/q/semester_8/construction_management/abc-graph-value-engineering site: BCT Engineering --- # ABC graph and value engineering of materials Construction Management · Chapter 3: Planning Construction Material - Asked in: 2073 Bhadra, 3+3 marks - Video: [Inventory Control Technique: ABC Analysis](https://www.youtube.com/watch?v=fzY_wPtPkbM) — WIT Solapur - Professional Learning Community - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_8/construction_management/abc-graph-value-engineering - Whole chapter: https://www.bctengineer.com/md/semester_8/construction_management/chapter-3 ## Question Explain about ABC classification of construction material graphically. How can the value of construction materials be analysed on the basis of value engineering? Discuss it. ## Short answer ABC classification plots cumulative value vs cumulative items, showing a steep A zone (10-20% items, 70-80% value), then B and C. Value engineering analyzes A items by function, brainstorms lower-cost alternatives (local materials, standard sizes, different suppliers), evaluates them using value=function/cost, and selects the option maintaining performance at reduced life-cycle cost. ## Answer #### ABC classification (graphical) Items are ranked by annual consumption value (quantity x rate), highest first, and the cumulative percentage of value is plotted against the cumulative percentage of items. The curve is steep at first and then flattens, and it is divided into three zones. ```text Cum. % of value 100 | ..................... 90 | .......: 80 | ..... : | .: : 60 | . : : | . : : 40 | . : : | . : : 20 | . : : | . : : 0 |. : : +--------+-----------+--------------------> Cum. % of items 0 20 50 100 A B C A: ~10-20% items, ~70-80% value B: ~30% items, ~15-20% value C: ~50-60% items, ~5-10% value ``` #### Analysing the value of construction materials by value engineering 1. Prepare the list of materials with quantity and rate, and classify them by ABC. Apply VE mainly to A items, which give the largest saving. 2. For each A material, state its function (for example, cement: binding; steel: resisting tension). 3. Check whether the same function can be provided at lower cost: an alternative grade, local material, standard size or a different supplier. 4. Evaluate the alternatives by cost, quality, availability and durability, using value = function/cost. 5. Select and specify the best alternative, then include it in the tender or purchase order. 6. Review the result: a saving in cost without loss of performance. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. How is the ABC curve plotted? A. Cumulative % of value against cumulative % of items, with items ranked highest value first B. Quantity against time C. Cost against delivery date D. Rate against supplier Answer: A. Ranking by value gives a steep curve that flattens, divided into A, B and C zones. (Key point: ABC curve) 2. Why is VE applied mainly to A items? A. They are the most numerous B. They give the largest saving as they carry most of the value C. They are cheapest D. They never change Answer: B. A items carry about 70-80% of value, so even small savings are large. (Key point: Where to apply VE) 3. After stating the function of an A material, what is the next VE step? A. Check if the same function can be provided at lower cost via alternate grade, local material, size or supplier B. Increase the quantity C. Skip evaluation D. Order immediately Answer: A. VE looks for lower-cost alternatives giving the same function, then evaluates them. 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