2. Value Management

Question 1

What is the definition of value management?

Answer 1

Value management is proportional to:

satisfaction of needs / use of resources

Question 2

Value management is proportion to the satisfaction of needs divided by the use of the resource.

The satisfaction of who’s needs?

Answer 2

Owner needs

Producer needs

Community needs

Question 3

What are the key elements to value management?

Answer 3

Focuses on needs and objectives

Focuses on function

Uses creative thinking to develop solutions

Makes choices based on value

Involves stakeholders through workshops

Workshops have a facilitator and a structured agenda

Question 4

What are the benefits of value management?

Answer 4

Clarifies and validates needs/objectives

Improves quality, understanding and ownership of project

Improves team working

Produces “sustainable agreements”

Reduces reworking

Improves programmes

Question 5

What does a FAST diagram study?

Answer 5

Function Analysis

Question 6

Give examples of the owner’s needs.

Answer 6

Functional, operable, reliable, economical etc.

Question 7

Give examples of the community needs.

Answer 7

Ethical, sustainable, beautiful, etc.

Question 8

Give examples of the producer’s needs.

Answer 8

Compliant, sourcable, producible, profitable, etc.

Question 9

To calculate the value of a product you must combine scores for different properties/functions.

For example:

Size - 6
Power - 5
Battery - 8

What must you also consider?

Answer 9

Weight. Each property should have a weighting of ‘importance’.

Property & weight
Size - 6 weight = 0.75
Power - 5 weight = 0.85
Battery - 8 weight = 1.00

Overall points score = (60.75) + (50.85) + (8*1.00)
= 16.75

Question 10

What must the total points score be divide by in order to give the ‘value’?

Answer 10

Whole life cycle cost