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Systematic Explicit And Reproducible Method Construction Essay

Fink states that a literature review is a systematic, explicit and reproducible method for identifying, evaluating and synthesizing the existing body of completed and recorded work completed by researchers , scholars and practitioners.

The aim of this paper is to look at the advantages or disadvantages that value management brings to a project. The author is going to look at the different benefits that a project can gain under a value management study.

The value management team structure will depend on the type of project. There will be projects were specialist engineers are required. All value management team members are specialists in their field of operations. This allows team members to concentrate and consider the benefits that could be achieved.

The one constant member of the team is the quantity surveyor. He acts as go between with the client, his design team and value management team. He gathers the information from the client on the project and relays it back to the team. The client can relay his worries and concerns which are all taken into account during the value management team’s study of the project.

Value management studies have been carried out on all types of projects were normal practice has failed. During this paper the author will look at some of the case studies and how they were carried out. The type of savings and changes were made on certain projects.

The value management team’s principal benefits are brought to all projects large or small.

Improved definition and articulation of value.

Clear brief and improved decision taking

Enhanced value and benefits for end users.

Reduced cost, improved affordability and value for money.

Improved productivity, efficiency, collaboration and trust.

Benefits realised where previous methods failed.

1.1 Definition

Value management is the name given to a course of action in which the practical benefits of a development are made clear and appraised regularly with a value scheme chosen by the client.

This description applies to all types of developments irrespective of which area they come from. For instance the development could be the design and creation of a product to plan, and construction of a building or transportation product, the re-valuation of an organisational process or the terms of a new or enhanced service in banking. The reason that makes value management possible is the credentials of the development.

The client for the development will totally establish a value system for the development.

1.2 History & Development: Value management (VM) started from a method introduced by Lawrence D. Miles in the United States in 1940s for product enhancement, known as value analysis (VA), which then developed in to value engineering (VE) and value management (VM) due to the use and applications in different industries. The clarification of (VM) is found in many literatures and is always known to be.

“A rigorous, systematic effort to improve the value and optimize the life cycle cost of a facility, without sacrificing the needed performance level” (Dell’ Isola, 1997);.

“A proactive, creative, problem-solving or problem seeking service which maximizes the functional value” (Male et al , 1998).

The use of the Bill of Quantities (a key control document for over a century and the reason for development of quantity surveying as a separate profession) is diminishing (potts, 2004). Surveyors in Europe especially those in large private practice are expanding and diversifying from their traditional roles to a total process management service (Kelly and Male, 1993).

Male et al. (2007) concludes that at present value management is in its academic infancy and without an adequate theoretical underpinning its foundations of distinctive technique is not sufficient to claim professional status.

Function analysis, an essential feature of the value management methodology is considered to be a promising method of expressing client requirements by providing precise description of client requirements in a structured framework there by enabling a clear definition and identification of client/user objectives and necessary functions (Shen et al. 2004)

Other innovative definitions could also be found in the British Standard BS EN 12973:2000 as well as the Association for Project Management’s Body of Knowledge (APM, 2000). The collections of definitions from several sources (i.e. Woodhead,Kaufman & Berawi, 2004; Berawi & Woodhead, 2005a; Berawi & Woodhead, 2005b; Berawi, 2006) shared the key words with universal understanding of value management and can be described as follows:

Methods and tools - Structured techniques or effort, workshop

Management style Team oriented, creativity and innovation, problem solving, skills and motivation

Cost and value - Optimize life cycle cost and maximize or improvise value

Competitiveness - Performances, needs and requirements, threats and opportunity.

Value management (VM) is a service that maximizes the functional value of a project by managing its development from concept to use value of a project by managing its development from concept to use value of a project by managing its development from concept to use through the audit of all decisions against a value system determined by the client (Kelly et al. 2004).

VM studies are normally conducted at the early stages of construction projects by the key stakeholders of projects. Successful VM studies in construction should clarify the client’s objectives, improve communication with stakeholders, and stimulate creativity through the interaction of participants of the VM study (Lin and Shen 2006).

Benefits from using value management team’s on a construction project. There are several benefits from holding one or more VM workshops, both direct and indirect; the main ones are:

1.3 Benefits:

Direct: A better knowledge of the project;

Value improvements and a better quality product/service;

Programme enhancements and time savings;

Cost savings, including capital and running costs;

Improved functionality;

Condensed risk;

Lower upkeep costs;

Improved focus on the project:

Indirect: Universal improvement of project management;

Team work:

Information sharing between the team resulting in an improved knowledge base for the participants:

Shared goals;

‘Buy in’ to project by workshop participants:

Facilitator: It is essential to appoint a trained and qualified facilitator to run your VM workshop, as he/she will have a number of tools and techniques with which to guide the project.

The facilitator must be independent; so appoint someone from outside the establishment or use direct an internal facilitator who has no association with the project. There are a number of organisations and consultancies that provide a VM facilitation service.

The Institute of Value Management (IVM) and Construction Best Practice

Programme (CBPP) can provide a list of suitable facilitators.

Maurer (1996) developed an outline of key factors in two respects: (1) setting up a continuing VM improvement program within an organization; and (2) conducting VM studies. The key factors in setting up a VM program were support from management sponsors, integrating VM into the objective of the organization, having an independent VM administrator, training of workshop facilitators, a plan for VM proposal implementation, and cooperation within the organization. The key factors in conducting VM studies included project selection, team selection, data collection, workshop preparation, workshop management, VM proposal review, and decision and implementation. In Maurer’s outline, the two categories of factors were developed separately. The impact of the former category on the success of VM studies was not examined.

1.4 Alternative Approaches to Value Management

There are a number of diverse approaches that can be applied while carrying out value management (VM). The alternative is often determined by the style and nature of the project. This will help in choosing the value management team. It is expected that a job plan be put in place to identify a strategy.

A value study must adhere to a methodical process – the job plan – which consists of six chronological phases (save, 2007).

The job plan chronological phase Outline

Information phase Project definition and goals

Function analysis phase Function definition and analysis

Creative phase Identifications of alternatives

Evaluation phase structured evaluation of alternatives

Development phase Development of alternative into proposals

Presentation phase Report/Presentation of the opportunities

SAVE (2007)

Kelly, J, Male, S (1993 P.4) Stated the following “a service which maximizes the functional value of a project by managing its development from concept to completion and commissioning through audit (examination) of all decisions against a value system determined by the client”.

Seyler (1993) states that information from individual sources needs to be grouped together to discuss topics within a literature review and a “healthy scepticism is required” when reviewing the same.

Hunter and Kelly (2007) take in to account the main distinction between UK and US value management of the workshops. The UK studies in generally use the project team in a one day workshop compared to 3-5 days in the US studies where an independent team is the norm.

A feature of value management in Hong Kong is the acceptance of shortcuts in the procedure with the 40 hour American method of workshops being unusual, also there is normally some involvement by the first design team in the studies and the

Addition of external expertise is considered to be beneficial (Fong and Shen, 2000).

In the 1994 Australian-New Zealand benchmark for value management is directly associated with the UK and European method, defining value management as being “a structured and analytical group process which seeks to establish and improve value and where appropriate, value for money, in products, processes, services, organisations and systems”. It is centred on a representative multi-disciplinary team employing workshop processes (Male et al.2007:108).

1.5 Creativity

Creativity is the ability to use the imagination to develop new and original ideas or things especially in an artistic context. At the start of the work study the team will start by going over the brief. The brief will contain all the information the value management team will need to gather information on the project. The information will contain what the client needs and requires having a successful project at competition. The creativity part of the work study will start with a brainstorming meeting. All the ideas will be thrown out and the work starts to break down and see if the requirements of the brief can be fulfilled.

The clients design team will be present at this stage as they can provide ideas that will help the value management team understand their concerns.

Creativity is considered to be the source of new and competitive ideas through which an “organization positions itself in its environment. A distinction is made between means-end planning and emerging alternative approaches to planning. It is argued that in means-end planning schemes creativity is predominantly a problem solving activity seeking to find an ideal mix of instruments to meet a clearly stated goal” (Vicki,J ,.Jul 2009).

1.6 Evaluation

While evaluating the proposed ideas from the creativity workshop the value management team will take a number of aspects back to the table. They will need to know the funds that are available for the project. The maximum funds the client would like to invest in the project. The following factors will have a direct influence upon the cost of a project, and will need to be considered during the economic evaluation of the project.

Site considerations: The size of the site, the location of the site, the availability of services for the site, Entrances and access for plant and machinery.

Building size: This will be critical to know as the foundations will depend on the height and type of building.

Building height: Building height will have to take wind loading, engineering services, fire protection, structural frame and if the building will require vertical transportation (lifts).

The list above is just some of the questions that the value management team will struggle with. But they will find the right answers for the client.

“Financial evaluation methods such as Net Present Value (NPV) and Internal Rate of Return (IRR) are not fully adequate for accounting three practical aspects of construction projects: reinvestment rate, actual amount of required investment, and firm available funds. In a certain type of projects, this inadequacy often results in the inapplicability of NPV, multiple or no IRR problem, systematic bias of IRR, and inconsistent decision signal and ranking between NPV and IRR. Many modified methods have been developed, but hardly succeeded in reflecting”. ( Moonseo Park; Yongsik Chu; Hyun-Soo Lee; Wooyoung Kim. Journal of Civil Engineering & Management. 2009, Vol. 15 Issue 4, p349-359. 11p. 2 Diagrams, 8 Charts, 1 Graph. DOI: 10.3846/1392-3730.2009.15.349-359.)

1.7 Development

After the evaluation of the project and the value management team are happy with the new ideas for the project. A new brief will be put together with the changes the value management team believe will represent what the client is looking for in his project. The suggestions are reviewed by the clients design team. At this stage the suggestions are rejected or developed.

If the brief is rejected their will be a list of reasons recorded as to why the client’s design team rejected the proposals.

If the brief is accept and the proposals are agreeable with the client’s design team. The value management team will than compile a comprehensive report. The report will contain all the elements of the study and conclude with recommendations as to which items are to be developed by the project team.

“Value management (VM) is a useful method to use when dealing with issues such as budget and schedule challenges arising in the construction industry. However, little research has been done to measure the performance of VM studies, which has made many potential users reluctant to use VM. This paper presents a critical review of the development of performance measurement in general and the performance measurement in the construction industry, with a special focus on the performance measurement of VM studies in construction”.

1.8 Presentation/Recommendations

The presentation stage of the work study is to put forward the results the value management team considered as the way forward. They will produce their findings to the client and give a number of recommendations. This will contain refined ideas they believe would be worth implementing. The information will be backed up by drawings, calculations and costs.

1.1.1 Action, Feedback & Charette

At this stage the client will consider the recommendations put forward by the value management team. Before the client gives the green light to start the works. He needs to know if the finished product will have the life cycle and maintenance savings he is looking for.

All the feedback given to the value management team good or bad helps them understand the type of projects were some ideas worked and were they won’t. This allows the value management team consider new ideas for different projects.This is done after the project brief has been formulated and the design team selected but before the actual design is started. The clients representatives and the design team assemble under the chairmanship of the value manager or facilitator for a couple of days in order that the brief can be examined in detail and questions raised. The next stage is to create ideas for rationalising the brief, when practical examination of the space needs can figure a main component, in getting better results for the project’s cost effectiveness and savings. These ideas are than evaluated and if acknowledged are integrated in the revised brief.

The charette has five major advantages according to (Kelly and Male, 2004).

It is considered by many clients to be economical. There is of course staff time to think about and the time of the design team. The only real outlay is the fee for the value engineer. There is finally the secretary to the team who will be provided by the client or the value engineer.

The implementation was considered by some client’s to be the best way of informing the whole team. One industrial client stated that even if the exercise did not realise any great rationalisation the fact all members of the team were present meant that all fully understood his requirements.

The exercise occurs early in the process, stated by many to be the most cost ensuing stage.

The exercise can be carried out in a short period of time only the most complicated projects will involve more than two days work.

The charette is therefore an economical means of investigating the client’s needs by the use of function analysis and permitting rationalisation and full design team briefing.

“The Charette is by definition backwards looking and change orientated with the consequence that some work already undertaken is altered/abandoned. Notwithstanding this, a review so early in the development of the design of the project can prevent inappropriate design development and therefore costly abortive work”.

1.1.2 Selecting the team members:

The five extracted CSFs significant for cluster 1 are all related to the requirements of a (VM) team. Good research and understanding of the associated information are clearly important for the (VM) team to run an efficient (VM) workshop. Norton and McElligot (1995) stressed that the excellent and comprehensiveness of the information upon which the (VM) study is based is imperative to the quality of the resulting proposals. Under the watchful eyes of the facilitator, large amounts of effort should be made by the (VM) team prior to the formal (VM) workshop on preparing and assimilating the related information, such as project terms, cost data, site conditions, and project constraints. If some participants do not have a good understanding of (VM), it is necessary to give them a brief introduction on (VM) before the workshop, preferably with the guidance of the facilitator. Multidisciplinary composition, which is stressed by many researcher and practitioners as one of the key reasons for the success of (VM) studies (Kelly and Male 1993; Dell’Isola 1997),

Members of value management teams should be select for their skill to contribute information and facilitate decision taking. The ACID test is a useful aid for picking team members.

Authorise: incorporate those who have the authorization to make decisions during the workshop process.

Consult: Incorporate those who have to be consulted during the workshop process and without whose discussion the workshop would be suspended.

Inform: eliminate those who simply have to be up dated of the outcome of the workshop.

Do: involve those who have to interpret the outcomes of the workshop and put it into practice.

In picking members of the team avoid picking members from one department or administration were a cross sector of views are being sought. For instance don’t have four members from (M&E) and one from each of the design team this will only allow them to try and dominate the workshop.

1.1.3 Facilitator:

It is essential to appoint a trained and qualified facilitator to run your (VM) workshop, as he/she will have a number of tools and techniques with which to guide the project.

The facilitator must be independent; so appoint someone from outside the establishment or use direct an internal facilitator who has no association with the project. There are a number of organisations and consultancies that provide a (VM) facilitation service.

The Institute of Value Management (IVM) and Construction Best Practice

Programme (CBPP) can provide a list of suitable facilitators.

The (VM) facilitator controls and leads a collection of individuals working jointly to reach the objectives of the study. It has been established that the (VM) facilitator performs an essential role in the (VM) process and is a significant feature in the degree of accomplishment achieved (SAVE International 2001). A qualified (VM) facilitator should exhibit competence in a wide range of skills, including group management, communication, analysis, interpretation, questioning, and lateral thinking (Joint Technical Committee 1994). Although a qualification from the related (VM) societies [such as Certified Value Specialist (CVS), Associate Value Specialist (AVS) and Value Methodology Practitioner (VMP) granted by SAVE International] is not a necessary requirement for a (VM) facilitator, it is a good sign that the facilitator has gained a firm range of information and skills in (VM) facilitation. In order to give assurance that the (VM) study follows a logical and structured job plan, the facilitator should have a good capability to control the whole (VM) program. Function analysis in this cluster grouping shows that suitable tools should be used in (VM) studies with the supervision of the facilitator. Communication among team members reflects the expertise of the facilitator in encouraging communication and building team spirit. For an unbiased view, ICE (1996) and the Australian/New Zealand (VM) Standard (Joint Technical Committee 1994) recommend that an independent facilitator (not an in-house staff member of the client organization) be appointed for this specific purpose.

A facilitator is a recognized leader whose attendance can aggravate the normal growth of a team such that the forming, storming and norming stages described above can be invalid. In the circumstance of value management implementation a skilled facilitator can easily manage a provisional team so that maintenance activities are minimised and job behaviour is maximised. It is vital from a project management’s point of view that the leadership roles of the value manager and project manager are known and appreciated.

Value management is predominantly a facilitated process.

Where a value management package is sought it is often the case a value management facilitator will be contacted.

The value management facilitator is often the only person in a team who is experienced and skilled in the value management process.

Value management has relevance at certain planned points in the development and therefore the facilitator tends to be occupied only for the number of hours needed to undertake the value management study.

1.9 40 hour value management workshop

The 40 hour value management workshop is perhaps the most established approach to value management. The rough draft of the project is reviewed by a separate design team under the watch full eye of the value management controller. The team will consist of six to eight professionals depending on the type of project.

If the project involves a considerable amount of mechanical or structural engineering a proportion of the team will be specialised in that element of the project. The workshop will usually take place near the project in a hotel room or the client’s office.

The workshop is spread over five days and concludes with a number of design/construction modifications which are referred back to the client for approval and execution. It can have implications as the potential exists for confrontation from the clients design team and may be critical towards the value management’s proposals. The value management’s proposals can be rejected by the client at anytime.

These problems can have considerable influence on the success of the (VM) workshops. Disadvantages as a recent survey has suggested that some (VM) users have encountered problems of shyness when speaking in public, conformance pressure, and domination by a few individuals in the idea generation phase of (VM) workshops (Shen and Chung 2000). Similar problems during the process of idea generation in meetings or workshops are also indicated by other researchers. Nunamaker et al. (1993) suggested group members may not be unwilling to express their opinions because of the fear of public speaking or of public comment on their ideas by others. One or more group members may unduly manipulate lesser-status members (Walker et al. 1996). Since the idea generation phase aims to provide alternate solutions to the tasks of (VM) workshops.

Individuals intentionally limit their efforts and contributions by relying on other group members to accomplish the brainstorming task at hand (Diehl and Stroebe 1987). This phenomenon is worse in groups when individuals perceive their efforts to be dispensable (Harkins and Pretty 1982; Kerr and Bruun 1983) or feel that

The responsibility for generating ideas is diffused (Latane et al. 1979; Williams et al. 1981).

The most accepted technique used in idea creation during (VM) workshops is brainstorming. In traditional (VM) workshops, there are two universal approaches: face-to-face and nominal. The main distinction between the two methods is whether there is communication among participants. When the nominal approach is employed, participants generate ideas individually, without communication with other participants.

1.1.2 Workshops versus project meetings

VM workshops should never be treated as just an additional project meeting. There can be pressures to merge a VM workshop with a project team meeting to take advantage of the attendance of key project participants. If this happens, the VM workshop and project meeting must be split. For example, hold the workshop in the morning with participants staying on or coming in to join an afternoon project meeting. Don’t be tempted to join workshops and project meetings: you will not get the full benefits from either.

“In practice, value management exercises are carried out first, to determine exactly what constitutes value to the business from delivery of the project. A preferred option (or options) is identified, together with the risks that are likely to occur if that option was implemented. The integrated project team repeats the parallel exercises of defining value and associated risks until they arrive at the optimum balance of value and risk”

1.1.3 Facilities

Additional services, such as photocopying, computing, printing, fax and telephones, should be easily reachable but only when necessary to provide information for the workshop. Allow regular breaks to keep the pace up and the participants creative. If you use an external site, brief the facilities and hospitality staff so that they know how to lay out the room, the equipment that is essential, and the timing of coffee breaks.

There are very clear parallels between the practical briefing process as recommend and those in design stage value engineering (Barrett and Stanley, 1999). Yu et al.(2006b) maintain that the body of research and mounting legislation for use of value engineering on large projects suggest that value management may be the answer for improving the implementation of the briefing process. Surveys specify that a guided briefing workshop can advance exchange of ideas and result in answers constructed from a number of views that are considered better than that proposed by any single person (Yu et al.2008).

“The translation of user requirements into performance requirements is specialist work that has to be done by Architects or Consulting Engineers” (Spekkink, 2005).

Conclusion:

In conclusion the author has covered each of the above sub-headings by researching all avenues available such as books, journals, magazines and websites.

This secondary research shall now form the basis for the primary research and enable the author to form relevant questionnaires for chapter 6. It shall also enable the author to research the relevant topics in chapter5 case study.

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