<p>Surabaya River is very beneficial to Surabaya people as its water becomes the  main source of PDAM (Perusahaan Daerah Air Minum of Regional Water Utility<br />Company). The existing indications on pollution in the flow of Surabaya River due to various activities at its riverbank must not be ignored. Therefore, a study on identifying the distribution of water quality of Surabaya River is required so as to be a reference for formulating control actions to river damage. Identification on water quality distribution was carried out based on the differences of land-use around the left and right sides of river. The research involved the variables of the qualities of river water and waste water thrown into the river, river characteris-tics, and land-use. The results of research  demonstrated that the upstream water quality of Surabaya River was relatively better than the downstream. This statement was proven by the humans’ activities which were more intensively carried out at the downstream area. Numerous land-uses and great number of people living at the riverbank became the phenomena  increasing pressures toward the decreasing quality of river water.</p>

Currently, the use of value engineering has been done in various business fields. Not only large companies, but SMEs in the region have also started to recognize the method of business management with value engineering. This research attempts to solve the problem of how SMEs can improve their performance based on Value Engineering approach. This research is a qualitative research. From the research activities, obtained the following conclusions. (1) Application of Value Engineering method on SMEs can complete better solution in order to improve company performance. (2) Based on the alternative combination of work methods created then, alternative application of value engineering selected. Because the application of value engineering has advantages such as: (a) Rapid production process, (b) Neat workmanship, (c) Selling price is higher. While the technical specifications owned by Value Engineering alternatives that will be run are as follows: (a) The process does not work long time to manufacture 1 unit of minimalist metal fence. For the size of 8m2 it only takes 2 days. (b) The quality and quality required have a perfect shape and are not defective. (c) The welding joints are not easily broken by impact / blow. (3) Cost reduction can be done on Value Engineering method, because the change of new method in production process of minimizing iron fence affecting the reduction of labor cost. The reduction of these costs will affect the increase in the higher performance of the product, so the value of the product to rise, then affect the selling price to be high.