It will cover topics such as the definition and description of value management, the projects that will benefit most from value management, the stages involved in a proper value management session, the facilitation process of a value management workshop and the role of the workshop facilitator. The purpose of the second part of this discussion is to demonstrate that value management is indeed useful and worthwhile. The benefits and costs of value management are weighed against each other and the importance of value management as an integrated practice and the introduction of value management into the curriculum of courses related to the built environment industry are explored.
INTRODUCTION AND BACKGROUND
- Introduction and brief overview of value management
- Statement of the main problem
- Hypothesis of main problem
- Statement of the sub problems and their hypotheses
- What exactly is VM, when is the best time to implement it and will it be beneficial on smaller construction projects?
- What are the different stages involved in a proper value management session?
- What is the role of a VM facilitator and which person or built environment professional is best suited for the task?
- How is VM an integrated practice and should VM form part of the curriculum of a course related to the built environment industry?
- What are the costs and benefits of VM and how can VM be improved?
- Delimitations of research
- Terms and definitions
- Assumptions
- The importance of the study conducted
- Research methodology used
This research is aimed at identifying the benefits of VM and the general processes associated with VM. Briefly, VM will be assessed as part of the curriculum of construction related subjects. How VM is an integrated practice and whether VM should be part of the curriculum of a course related to the built environment industry.
WHAT IS VALUE MANAGEMENT, WHEN IS THE BEST TIME TO IMPLEMENT IT
- Introduction
- What exactly is VM and what does it entail?
- The definition of VM
- Test for authentic VM
- The difference between VM and cost management
- Life cycle costing
- Pareto’s law of maldistribution
- Factors to consider before initiating a VM study
- When is the best time to implement VM on a project?
- Who can initiate the VM study
- At what project stages can VM be implemented?
- When is the best time to implement VM on a project?
- Which types of project benefits the most from VM?
- Which types of projects are most suitable for VM?
- Value management as a statutory requirement in other countries
- Summary and conclusion
- Testing of hypothesis
VM can result in savings of up to 5-15% of the total cost of the project and therefore it is very cost effective to apply VM to higher cost projects. It is important to note that VM can be applied at any stage of the building development cycle and is not just limited to the early stages of a building project. It is not limited to the types of projects mentioned in this chapter, but it is more.
WHAT ARE THE DIFFERENT STAGES INVOLVED IN A PROPER VM SESSION?
- Introduction
- Seven phases of a proper VM session
- Pre-study phase
- Information phase
- Presentations
- Function analysis
- Creative phase
- Evaluation phase
- Development phase
- Presentation phase
- Post-Study phase
- Summary and conclusion
- Testing of the hypothesis
The purpose of this meeting is to have a proper. understanding of the project and the clients' objectives. Another factor to consider is the stage of the project in which the study will be carried out. Most information will be obtained from the design team and the client depending on the stage of the construction project.
The goal of this phase is for all VM team members to fully achieve. There are several basic principles of the creative phase that form the backbone of this phase. After this 'forgetting' of ideas, the remaining ideas are given to team members for development.
The time allocated for this phase should not be shortened as this is a critical phase for the successful outcome of the WC workshop. The goal of this final phase is to assist in the communication of the results of the WC study to the decision makers and the original design team. Completion of the physical WC workshop does not mean that the WC process as a whole has reached a conclusion.
It depends on the time available for running the VM session and the size and complexity of the project.
WHAT IS THE ROLE OF THE VM FACILITATOR AND WHICH PERSON
IS BEST SUITED FOR THIS TASK?
- Introduction
- Roles and responsibilities of the VM facilitator
- Guidance in creative thinking techniques
- Structuring the process
- Recognition of valuable ideas
- Deferring judgment
- Creating a conducive environment
- Recording
- Skills required by the VM facilitator
- Appointment of an internal vs. external facilitator
- Training of facilitators
- The role of the quantity surveyor in VM
- Summary and conclusion
- Testing of hypothesis
It is important to understand that the role of the moderator is not to provide technical advice, offer solutions or make decisions on behalf of the group. The focus of the moderator's role is to facilitate and guide, not to play a central role in, the discussions. There is the ability of a core group to hire a specific skill at a specific time.
It is not affected by periods of peak workload in the organizations involved in the project. Disadvantages • Facilitator can find it. One of the main disadvantages of an external moderator is the cost associated with their services. The role of moderators is not an easy one, requiring tangibles such as managing the VM process and intangibles such as managing a dynamic team environment.
The Institute of Value Management in Australia has certain criteria on which potential facilitators are evaluated and they must hold a qualification equivalent to the 'practitioner degree' of the Institute. Roelf Visser conducted a study on the potential role of the quantity surveyor in value management in the construction industry. Included in his research is an evaluation of the ten most important competencies and skills that the VM facilitator should possess and how quantity surveyors scored in each of these 10 most important competencies.
Listed below is a summary of the survey results as done by Visser in his thesis.
HOW IS VM AN INTEGRATED PRACTICE & SHOULD VM FORM PART
- Introduction
- VM, an integrated practice
- Life cycle costing
- Risk management
- Lean construction
- Project management
- Management styles
- Sustainability
- Best value tendering
- Cost management
- VM being taught at educational institutions
- Summary and conclusion
- Testing of the hypothesis
Many of the tools and techniques used in running workshops are not unique to VM, but consist of many management methodologies structured together. VM offers an opportunity to incorporate sustainability issues early in the project where its impact would be greatest. One of the questions asked in the interviews and asked in the questionnaire was whether this person believed that VM should be taught in educational institutions in the construction industry.
Interviewees who had more complete knowledge of VM generally thought that it should be a service that should be offered to the client and involve most professionals more actively in the development of a project. The questionnaire results further revealed that some professionals in the built environment industry have never heard of VM, or were only vaguely aware of VM, and very few respondents have attended a VM session. Due to the fact that VM is not widely known or often practiced in the built environment industry in S.A., students should familiarize themselves with VM if only theoretically.
He/she must be able to lead and organize WC workshops in the various phases of a project's life cycle. A good start would be to begin with the training of students studying a course in the built-in. There are many benefits to early educating people in the built environment industry about value.
This is the hypothesis as stated in the first introductory chapter: “VM is not an.
WHAT ARE THE COSTS AND BENEFITS ASSOCIATED WITH VM AND
HOW CAN VM BE IMPROVED?
- Introduction
- The benefits of a VM study
- Financial benefits of VM
- Secondary and “unquantifiable” benefits of VM
- The costs and risks involved with VM
- Possible risks involved with VM
- Financial and other costs involved in VM
- Methods to improve VM and to minimise associated risks
- Establishing a group support system
- Developing a knowledge management system
- Developing a performance measurement framework for VM studies
- Using value added/based strategies
- Summary and conclusion
- Testing of the hypothesis
Considering the cost of the WC, a recovery of the total cost of the workshop can vary from 1:35 to more than 1:50. VM challenges the established views and private agendas that some of the project team members may have. It is that these benefits are dependent on the proper implementation and facilitation of the WC survey.
The probability of improper application of the VM methodology by an unqualified facilitator is high. It may happen that there is poor representation of project stakeholders in the VM study. It can be difficult to convince some of the stakeholders that VM is useful because it can be a new concept that is difficult to understand.
The fee range can be expected to be from 0.1% to 0.5% of the total project cost. Another cost/disadvantage of VM is that it generates a lot of follow-up work for most consultants. When all the above factors are satisfactory during a VM study, it will give favorable results.
As seen in this chapter, the costs of conducting a VM workshop are almost negligible compared to the cost of the project and the benefits obtained from VM.
CONCLUSION
- Background on main problem
- Summary of treatise
- Conclusion
- Recommendations for further study
The combined results of the different chapters (subproblems) will prove whether the hypothesis of the main problem is true or needs to be disproved. These stages form a work plan, which is one of the criteria that must be met for an authentic VM. How VM is an integrated practice and whether VM should be part of the curriculum of courses related to the built environment industry.
VM as part of the curriculum for students in the built environment industry has been considered keeping in mind the current trends in Hong Kong. The responses from the questionnaires were almost unanimous in favor of the idea of VM becoming part of the curriculum of courses related to the built environment industry. This subproblem directly deals with the last part of the main problem, which answers the question of whether VM is merely a futile practice.
Here follows the hypothesis about the main problem: "Value management is an integrated, organized and structured process, led by an experienced facilitator. One of the barriers to a successful implementation of WC in SA is in particular the lack of knowledge about WC. Chapter five of this thesis briefly discussed the possibility of WC becoming part of the curriculum for courses related to the construction industry.
The duration of the workshops should be adapted to the value of the project.
BIBLIOGRAPHY
2008. Die integrasie van die Japannese afbreekmetode met ontwerp vir samestelling en waarde-ingenieurswese. Die potensiële rol van die hoeveelheidsmeter in waardebestuur in die konstruksiebedryf in die Republiek van Suid-Afrika.
ANNEXURE A
VM QUESTIONNAIRE
I have never heard of value management in construction. I have never been part of a value management session. I have worked on a project where value management has been carried out. I have been part of the value management team. How much time would you be willing to spend on value management for a project worth less than 50 million rand.
34;VM is a systematic, multi-disciplinary effort directed at analyzing the functions of projects with the goal of achieving the best value at the lowest overall life cycle cost." (Norton. What factors do you think are likely to drive value to be commonly practiced in South Africa. If you have previously been part of a value management study, what were the 'barriers', disadvantages or costs (not just referring to monetary costs) associated with the session.
Should value management be part of the curriculum for students studying a course related to the construction industry.
ANNEXURE B
