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What is a Value Management?

The application of a value methodology by an organisation to achieve strategic value improvement.

What is a Value Methodology?

A systematic process used by a multidisciplinary team to improve the value of a project through the analysis of its functions.

A value methodology is applied using a process known as a Job Plan.

The purpose of the Job Plan is to guide the team through the process of identifying key functions and creating new ideas for improvement.

Types of Workshop

2 Types: Strategic and Technical.

Strategic - shown as VM1 and VM2

Technical workshops are value engineering workshops relating to components and elements.

VM1 and VM2 are used to assist the client in defining requirements and developing a value scheme.

VE1 and VE2 are used to technically appraise alternative solutions proposed by the project team to meet the client's requirements.

Factors for Facilitating a Successful Workshop

Keep the atmosphere light, open and honest.

Take frequent breaks.

Make sure the whole group participate in the discussions.

Be reactive to changing situations in the workshop and act accordingly.

Ensure consensus decisions are made (silence means agreement)

What is Function Analysis?

The process of defining, classifying and evaluation functions

Functions are defined using a verb/noun pairing.

This naming process helps teams build a shared understanding of the functional requirements and as a result, where opportunities exist for improvement.

FAST diagrams are used to understand how functions of a project relate to one another.

What is a FAST Diagram?

FAST - Function Analysis System Technique

Is a 'graphical representation of the dependent relationships between functions within a project'.

Stages of a Value Study

Pre-Workshop (preparation)

Workshop (execution of the 6 phase Job Plan)

Post-Workshop (documentation and implementation)

Stages of the Job Plan

Identification

Information

Idea Generation

Idea Evaluation

Idea Development

Decision & Implementation

Feedback

Information Phase

Understand the current state of the project and constraints that influenced project decisions.

Analysis Phase

Typically involves the use of function analysis.

Identify what the functions are and how they are related.

Define the project functions using verb-nouns.

Once suitable functions have been developed, they can be structured into a Function Analysis Systems Technique (FAST) Diagram

Creativity Phase

Common technique in this phase is brainstorming.

Generate a quantity of ideas of other ways to perform functions,

Fast and simple technique to generate a large quantity of ideas in a short time.

4 Basic Rules for Brainstorming:

Defer judgement.

Ensure a positive environment & prevent negative thinking.

It is the quantity of ideas that is important.

Encourage the building upon of ideas.

Evaluation Phase

Reduce the quantity of ideas that have been identified to a short list of ideas with the greatest potential to improve the project.

Most common evaluation techniques for selecting options to carry forward for further development are:

Consensus Rating - Participants simply take a vote on whether an option is worthy of further investigation.

Championing - Participants volunteer to 'champion' an idea/ideas and are responsible for seeing it through util it is rejected/accepted.

Time/Cost/Performance/Value/Risk - Options are judged against these criteria.

Decision Matrices - More complex and time-consuming method.

Development Phase

Options selected during the evaluation phase for further development are worked on in greater detail to asses their feasibility.

Further analyse the short list of ideas and develop those with merit into value alternatives.

This phase can take place outside the workshop & presented at a later stage.

Presentation Phase

Present value alternatives to the management team and other project stakeholders or decision makers.

Post-Workshop

A VM workshop report should be issued in 5 days of the workshop.

The report should detail the proceedings and findings of the workshop and an Action Plan which details the tasks to be carried out, by whom and by when.

A follow-up meeting should be held some time after the workshop to monitor implementation.

This meeting will address issues that were set out in the Action Plan at the end of the VM workshop.

The final report issued following this meeting will confirm all recommendations of the workshop team.

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