Value Management Flashcards
define value management?
‘An organised approach pointing out unnecessary costs which don’t add any use, life, quality, appearance or customer features
purpose of value management ?
Motivating People
Developing Skills
Promoting Synergies
Facilitating Innovation
what is the aim of value management?
Maximising the overall performance of an organisation
what are the traits of value management?
Does not profess to find optimal answers;
they instead look to set up guidelines as framework and show them value for money
Concerned with establishing a common decision framework around which participants can think and communicate.
The process by which the functional benefits of a project are made explicit and appraised consistent with a value system determined by the client. (Kelly et al, 2004:165)
what are the traits on value engineering?
More detailed process
Involves searching for an optimal design solution.
The process of identifying and eliminating unnecessary cost during design and construction (Kelly et al, 2004:165)
working alongside client’s attributes
reducing capital cost without compromising on quality or performance
focus of value management?
softer approach looking to nurse relationships and create best value methods in the whole process
focus of value engineering?
hard approach which is technical focusing more on saving money on components or the building
when is value management used in the construction process?
to be used at the early stages of project development even before a project brief has been prepared
when is value engineering used?
when most the design work has been done to a suitable standard
also used when projects are running out budget or would like to cut costs of initial design
who is involved in value management?
client, the team, mc, design etc
approximate number of 15-25 but could up to 40-50 depending on the scale of the project
who is involved in value engineering?
The QS team and the Client
and a team will consist 8-15
cost benefits of value management?
there might be a budget set in which case value management will tailor guidelines in which to ensure cost decisions are made well
if no budget can help to produce one and choose the most efficient decisions through guidelines
cost benefits of value engineering?
more precise and can cut capital costs and can keep adjusting costings and valuations
why use value management?
The adversarial nature of operation and contractual relationships;
A need for integration of the supply chain
A need for simplicity in contractual language and arrangements; and,
A need to move away from the cheapest option towards the ‘best value’ option.
what is mentioned in the rics article “a fresh pm perspective” 10 strong focuses on value management?
Accelerate professionalism
PM offices increasingly adopted
Project planning and estimating improved
Proprietary methodologies adopted
Projects should be value - not output - driven
Projects should be considered as social enterprises
Project marketing
Associated professions engaged
Adapt to organisational cultures
Effective portfolio management precedes effective PM
name some historical features of value management
looking to reduce costs by being as efficient as possible
looking at supply
unnecessary costs
the higgins boat built using least costs to boost production
Value for money concept explain?
the concept associates and incorporates:
value management
value engineering
andvalueanalysis.
Whilst they are all keys to theVfMconcept, there are functional and systemic differences between them:
Value Management(VM) -is aboutgetting the right project.
Value Engineering(VE) -is done toget the project right.
ValueAnalysis (VA) - relates to the improvement of a construction, manufacturing or management process and also to apost project review to establishvalue achievement.
the process of value for money?
set business objectives and agree what they must do to achieve that
programme objectives set in line with business
project objectives set to see what must be done to achieve business goals
project value drivers: what the project team must do to achieve project objectives
design considerations: what the design team must do to fulfil the value drivers
design solutions: what the building must do to satisfy the design considerations
contributing elements: what the elements must do to satisfy design solutions
Establish goal
understand goal
agree the goal
and define goal
outline the preparation stage of the job plan?
Assemble the team. Chose Workshop method
(1) The Charrette -quick, chaired, meeting
(2) The 40 Hour Workshop - most common
(3) The Value Management Audit Value Manager
working together to establish goals in the form of workshops or meetings
outline the information stage in the job plan?
Oral presentation by the design team
(1) Project Rationale (2) Project Evolution (3) Project Constraints (4) Project Alternatives (5) Construct FAST charts - Function Analysis Systems Technique
process where information is given based on what was decided on the workshops or meetings
outline the creation stage in the job plan?
this is where from all the information has been provided brainstorming occurs and decisions are made
all ideas given then the best one selected
outline the evaluation stage of the job plan?
one method involves rating each idea out of 10 and listing all advantages and disadvantages
other evaluation methods involve a judgement chart scoring the ideas based on the functions i.e. cost security function etc
then development and recommendation based on teams finding
followed up by presentation and a report
and then follow up on decisions once installed and how they have worked
explain judgement charts and the process?
(1) Functions -
The design team goes back to basics and identifies the function of a product using
(2) Functions Selection - From the above process six or more functions will be identified . In order to make it simple select five Primary / Secondary functions (1) Aesthetics (2) Initial cost (3) Maintenance (4) Fire Resistance (5) Maintenance (6) Performance
(3) The client will then rate each function out of 10 to deem what they seem most important and can not assign the same number to two or more
(4) The QS and design team will then weigh up their scores from 1-5 based on performance and functionality and then times their number by the client’s.
The client then will be given the scores and recommendation given and then client will decide
overall benefits of value engineering?
Review of Functions:
sometimes forgotten by designers and clients
Occupier Satisfaction:
the building actually performance well for the occupier
Best Value:
possibly a reduction in cost and an increase in quality can be achieved
Group Decision:
the final decision about the suitability of a design choice is not left to one person
Group Dynamics:
VE motivates the team to achieve and integrates consultants/ contractor who may work as separate entities
New Technologies:
the VE teams will look for alternative methods/products far better than being stuck in the past
