Value Management

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VALUE MANAGEMENT

VFM
Executive Summary
With the due passage of time, value for money has attained a place of special importance. In
this report, VFM for the Omani government has been taken into consideration. The report
stress upon important areas that pertain to Oman and Value for money. The report initiates
with the introduction followed by the description of value for money. It then sheds light on
the performance assessment of public sector infrastructure in Oman. Further, solutions that
can mitigate failure is dealt in an in-depth manner. Further, the opportunities for value
management are discussed in the report.
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VFM
Contents
Introduction...........................................................................................................................................4
Value for money....................................................................................................................................4
Value for money performance assessment and attainment of public sector infrastructure in Oman...5
The solution that can mitigate failure....................................................................................................6
Opportunities for value management...................................................................................................7
Conclusion.............................................................................................................................................9
References...........................................................................................................................................10
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VFM
Introduction
Value for money or VFM is an important element of the process of decision making for any
proposal that comprises of the utility of public resources. VFM performance has been
selected by the Omani Government as a major area for the attainment of securing
improvement in terms of efficiency and release of resources for the use in delivering front-
line services. Value for money can be used as a potent tool by the public entities to attain the
maximum benefits from the goods and services provided as resources. VFM should be
economic in nature. VFM analysis enables managers to enhance the performance programme.
It helps the managers to ascertain the influence of challenges they observe and know the
interventions that are best that could lead to resource allocation (Leo, 2011).
Value for money
Value of money can be understood as a method that can be used by the public entities in
order to receive the maximum benefit from the goods and services that have been provided to
them as resources. Also in relation to sustainable development, it has been intercepted by
IISD that value for money always is in accordance with the whole life cost audit total
ownership cost which can also be understood as the cost of an asset which will not only
simplify the point of purchase but also the design, raw material sourcing, construction,
operation and end of life decommissioning (Needles & Powers, 2013). Therefore, it can be
stated that value for money not only takes into account the financial feasibility of an asset but
also tries to look after the material and energy intensity, durability, fitness for purpose, the
social multipliers and skill building which when used together can be very helpful.
It has been cleared and settled in the public procurement act, 2003 that public procurement
generally means acquisition of goods, works, and services in the best possible cost of
ownership in the right quantity and quality and it in the right time and right place so that
maximum revenue can be generated and used by government, individuals and corporations
with the help of contracts (Handley & Limao, 2015). Hence, a public document is a process
by which the company tries to get hold of goods and services with the help of public funds.
This process also includes planning, inviting offers from awarding contracts and other
management functions of contracts (Porter & Norton, 2014). Generally, in order to achieve its
goals, the organization should follow these two principles: Professionalism and value for
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