Value Management

Question 1

define value management?

Answer 1

‘An organised approach pointing out unnecessary costs which don’t add any use, life, quality, appearance or customer features

Question 2

purpose of value management ?

Answer 2

Motivating People

Developing Skills

Promoting Synergies

Facilitating Innovation

Question 3

what is the aim of value management?

Answer 3

Maximising the overall performance of an organisation

Question 4

what are the traits of value management?

Answer 4

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)

Question 5

what are the traits on value engineering?

Answer 5

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

Question 6

focus of value management?

Answer 6

softer approach looking to nurse relationships and create best value methods in the whole process

Question 7

focus of value engineering?

Answer 7

hard approach which is technical focusing more on saving money on components or the building

Question 8

when is value management used in the construction process?

Answer 8

to be used at the early stages of project development even before a project brief has been prepared

Question 9

when is value engineering used?

Answer 9

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

Question 10

who is involved in value management?

Answer 10

client, the team, mc, design etc

approximate number of 15-25 but could up to 40-50 depending on the scale of the project

Question 11

who is involved in value engineering?

Answer 11

The QS team and the Client

and a team will consist 8-15

Question 12

cost benefits of value management?

Answer 12

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

Question 13

cost benefits of value engineering?

Answer 13

more precise and can cut capital costs and can keep adjusting costings and valuations

Question 14

why use value management?

Answer 14

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.

Question 15

what is mentioned in the rics article “a fresh pm perspective” 10 strong focuses on value management?

Answer 15

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

Question 16

name some historical features of value management

Answer 16

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

Question 17

Value for money concept explain?

Answer 17

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.

Question 18

the process of value for money?

Answer 18

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

Question 19

outline the preparation stage of the job plan?

Answer 19

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

Question 20

outline the information stage in the job plan?

Answer 20

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

Question 21

outline the creation stage in the job plan?

Answer 21

this is where from all the information has been provided brainstorming occurs and decisions are made

all ideas given then the best one selected

Question 22

outline the evaluation stage of the job plan?

Answer 22

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

Question 23

explain judgement charts and the process?

Answer 23

(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

Question 24

overall benefits of value engineering?

Answer 24

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