Importance of Value Management

Importance of rate centeringThe cogitation aims at making the lymph nodes awargon of the importance of a Value Management (VM) study in their send. It describes the process of the study step by step, the benefits of conducting the study at an early stage and relating the study to item project issues. It gives a brief lowstanding of how the VM study works at different stages and a veritable(prenominal) agenda provides a brief review of the same. Tools and techniques exampled in the study ar as well explained. in the long run a short introduction to Value engineering science and the importance of its study at the appropriate clip in the Project life rung will be discussed.1. IntroductionThe (Public Private Partnership) project is to be assessed through the epoch grade management study. As the project brief indicates a mixed use refreshment and commercialised centre, a gym, swimming pool, park, health spa, squash court, jogging and cycling tracks with features as le isure facilities and for commercial centre would include retail outlets, health clinics, cafes, offices to let, pharmacies and theatres. Benefits of such(prenominal)(prenominal) a PPP project are it reduces costs, switch risks to the private partner, shortens the construction period, and has access to skills, experience and technology of the private sector. This project is to cater for the expatriate and local anaesthetic communities living in the suburbs who do not cede assess to any leisure facilities. With this project people, particularly children will be able to spend time outdoors and use other facilities rather than term of enlistment indoors watching television. It also allows people to use various health facilities and do their shopping in their locality itself.Value management is a study that serve wells maximize the operational quantify of the project under study by managing its festering right from the concept to its completion by accessing its esteem system. In a PPP project as there are two parties the government and the private sector there are varying value systems. The public sectors aim is to regulate, deliver services to people and achieve value for money while the private sectors goal is profit.2. Value Management StudyValue Management (VM) studies are typically initiated for a procedure of reasons such as cost overrun of the project, communication problems, clients not satisfied with their approach to project management and finally clients who understand and believe that a VM study helps improving the value of the project. The benefits of VM exercise are the maximum when implemented at the start of the project, particularly if its applied during conceptual development and initial architectural plan stages. Some of the benefits may be improving project schedule, improving technical specifications, generating alternating(a) ideas calling unnecessary expenditure optimizing resources eliminating redundant features and apprec iation of whole of life cycle costs.The VM study can terminus specific issues of this PPP project such as a give away Value for Money, obtaining provisions for better quality services, quicker delivery of the project and finally better utilization of the assets being put inot the project.2.1 druthers PhaseThe VM study can broadly be divided into three stages namely orientation human body, shop phase and the implementation phase. During the orientation phase tasks such as coordination of works, gathering of data such as plan layouts, site conditions, project constraints, operational requirements. Also tasks such as scheduling VM study location, preparing the agenda and selecting the study team are done. If large team is selected, subdivide the members to form teams so that specific matters cover in detail. Selection of the team is done by the ACID test. Authorize include those who have license to take decisions during the workshop. Consult include those without whose consult ation the workshop may be suspended. Inform exclude those who have to be merely informed about the aftermath of the workshop. Do include those who have to translate the outcome of the workshop into action.The study team comprises of the following1 certified value specialist1 adviser project manager1 contractors representative1 quantity surveyor1 architect with mixed use recreation centre experience1 morphological organise1 building service engineer1 school teacher1 health counselorIt is advised to use a combining of members from the fancy team and outside in suppose to assure free thinking and unbiased recommendations. The value specialist will preside over the entire workshop to see that the study is carried out swimmingly and as per the agenda. The consultant project manager and the contractors representative represent the client and the contractor, informs each of their value systems to the be members of the study team. The quantity surveyor advises about the quantities of items that would be required, while the architect would provide his opinion on what would be the perfect design for the project. The structural engineer looks into the requirement of the elemental units of the social organization such as columns and beams so that the structure is permanent whereas the building service engineer analyses the services that will be installed once the structure is ready. Besides professional a school teacher and health counselor are appointed into the team so that they can provide their perspective representing the local community.AGENDATIME ACTIVITYDay 1 Pre workshop16.00 IntroductionPurpose of the VM workshop and its benefits17.00 Gathering reading such as project constraints, matteralrequirements, plan layouts and site conditions19.00 Familiarizing the team with the agenda (job plan)20.00 Dinner and getting to know members of the study teamDay 2 Workshop phase09.00 Introduction phaseQuick review of collected information09.30 Issues Analysis10. 45 Snacks break11.00 Clients value systemIdentifying main values of the client12.00 Preparing a strategic timeline for the projectStakeholder mapping12.30 Familiarizing the study team with social occasion Analysis and speedy13.00 Lunch break14.00 Function Analysis14.30 Sorting of functions needs and wants15.00 FAST platming17.00 Tea break17.30 Review the FAST diagram18..00 End of DAY 2Day 3 Workshop phase09.00 Creativity phase cogitate11.00 Snacks break11.20 Listing of ideas generated12.00 Evaluation phaseCrude filtering by weighted voting to reduce number of ideasRefined filtering green dots to select 8 ideasred dots to select 4 ideas.13.30 Lunch break14.30 outgrowth phaseDevelopment of ideas selected in evaluation phase15.30 Detailed analysis of TCQ time, cost, qualityLife cycle be16.30 Tea break16.50 Implementation of ideas and follow up plan18.00 End of DAY 3Day 4 Workshop phase09.00 Reviewing the development of ideas09.30 Action plan10.00 Presenting importance of Value Engineering and its benefits11.00 Presentation Recommendations to Management11.30 Snacks and Goodbye2.2 Workshop PhaseThe workshop commences by analyzing project understanding how client plans to own, generate and maintain the project and followed by issues analysis. Client Value system is then identified by considering values which are important to the client and performing paired comparison between the values as shown below. This helps identify which are the key values of the client. Stakeholder mapping (power to influence vs. interest) and Strategic Timeline are other tasks to be carried out.One of the main steps of the VM process is function analysis. Through function analysis project components are analyzed and compared to be able to achieve project objectives. The primary function and twinklingary functions are also identified. The primary function is essential for the achievement of stated objectives, whereas the secondary functions aid in providing the projects wants. Usi ng FAST diagramming the functions of the system are identified. First functions are generated through brainstorming and then sorted such that the needs are at the topmost left and wants bottommost right. The functions are placed in such a way that we move to a lower level asking how? and move to a higher(prenominal) level asking why? Function analysis helps generate ideas that eventually result in recommendations.The second phase of the workshop is Creativity phase. It is done by considering a function and contributing suggestions that answer the function through a list of creative ideas as well as identifying risks involved with them.The team generates as many ideas as possible to provide the functions at a lower cost.Judgment of the ideas is not permitted. virtually of the ideas are a result of the exercise done in the function analysis phase.The next phase (evaluation) of the workshop involves screening ideas to more manageable numbers. The ideas and risks evaluated are graded on the basis of potential savings, time required to redesign and client acceptability. They are then ranked and the highest are selected by the team to be further reviewed by the members of the design team.During the development phase the ideas are converted into workable solutions after examining their technical feasibility and economic viability.The risks that are assessed and weighted are also considered. They are entered into a risk register. The recommendations are prepared with a short brief to compare the original design with the suggested changes. At the end of the workshop a presentation is held to give recommendations and suggestions to the management.2.3 Implementation PhaseThe implementation phase of the VM study includes submitting to the clients and the design team, the VM pass over containing recommendations developed during the workshop.The design team may incorporate the recommendations suggested into their project design or reject them. on with the VM report a summa ry of the cost savings and redesign costs are also included.The report may include KPI Key performance indicators, schedule of activities and a Risk register.3. Value EngineeringValue Engineering (VE) is the process of identifying and eliminating unnecessary cost during design and construction. VE studies should ideally be conducted at 35% design schematic design stage. While the early stages of design provide the most opportunities for affecting the value elements, it is prudent to consider VE at all stages of the project. Project constraints should be outlined prior to the VE, as it will help avoid making recommendations that are contrary to the clients design. The elements that are typically of interest during the VE study are (1) the underlying structural elements positioning of columns and beams, optimizing loading effect on the foundation. (2) The architectural design, (3) Positioning of electrical and windup(prenominal) components such as lifts, escalators, HVAC systems ,(4) the use of technology etc. The study team for the VE workshop may comprise of1 certified value specialist1 project engineer1 structural engineer1 building service engineer1 electrical engineer1 mechanical engineer1 quantity surveyorVE facilitator with a specific expertise in aspects of VE will lead the workshop in order to structure the process and to better the effectiveness of the program. The team members are selected depending on the subject to be evaluated, the structural engineer would look into the requirement of the elemental units of the structure such as columns and beams so that the structure is stable whereas the building service engineer analyses the services that will be installed once the structure is ready. The electrical and mechanical engineers analyze the installations of electrical equipment and machinery such as lifts, HVAC etc. The Project Engineer shall take part whenever design aspects of the project are reviewed. Supporting disciplines like quantity sur veyor is involved to assess the quantities.The VE workshop provides improvement of value through the followingThe current project design is assessed with the functions, checked for technical, cost optimization.Alternative ideas are evaluated to identify benefits and risks of changes to the alternative design.Key aspects of the design are evaluated so as to achieve Value for money potentiality of each option is evaluated, in terms of Cost to function ratio Life cycle costing OPEX vs. CAPEX balanceAnalyzing buildability and overall performance of the project.