Value Management and VE Flashcards
What do you understand by the term VE?
Solve problems, eliminate unwanted cost, while maintaining quality and function
Usually done at S2 - S4 phases
What do you understand by the term VM?
Establish early what value is for the client and managing that throughout the design stages
Manage expectations and value for money against quality
Assess clients KPI’s and what is value?
What is value, what does value mean?
Dependent on what clients requirements are:
Cost
Time
Quality
When does the VE/VM process occur?
- Preparation and Briefing 1
- Concept - VM Workshop
- Developed design- VE
- Technical design- VE
What are the limitations of VE?
- Assumes all parties have a common understanding of functions being provided.
- Assumes all feasible design alternatives provide same level of functional performance
- THEREFORE assessed on basis of cost alone.
Why is VM needed?
- Aim is to reach agreement of exactly what the nature of the problem is.
- A shared understanding of what is being sought: Design objectives.
- Construction clients are different groups with different priorities: If agreements are not reached on exact requirements then chances of project perceived as a failure increase.
Can you explain to me the VM process?
- Workshops held where Client must make important decisions
- Review schemes and score against weighted objectives
- Assess capital cost to determine options for best value for money.
- Review clients requirements
Can you give me some benefits of VM?
i. Provides cost control
ii. Objectives and decisions are openly discussed and explicitly stated.
iii, Avoid budgetary issues
v. Accountability is increased
vi. Alternative solutions are always sought and considered
vii. Business decisions are made with greater confidence
viii. Potential for increasing value for money
ix. Communication, understanding and teamwork can be improved and disseminated throughout the organisation.
x. Participation by all key stakeholders increases the likelihood of satisfaction with the end product.
xi. Opportunities for long term profitability and continuous improvement are enhanced.
Can you provide me with an example of where you have advised on Design Economics?
ANSWER
Can you give me an example on where you have advised on VE / VM?
ANSWER
Can you explain why there was a cost difference between Rotary Bored vs CFA Piles?
ANSWER
How did you input into a DTM?
ANSWER
How did you carry out the measurement of the piling in line with NRM?
ANSWER
What was your role under VE?
Price up and advise client
Propose VE options
What was the output of VE?
PM to prepare VE Report
Cost plan updated w/VE options taken
