Value Management And Whole Life Cycle Costing

Running head: VALUE MANAGEMENT AND WHOLE LIFE CYCLE COSTING
VALUE MANAGEMENT AND WHOLE LIFE CYCLE COSTING
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VALUE MANAGEMENT AND WHOLE LIFE CYCLE COSTING1
Executive summary
The main aim of this paper is to comprehend the theory of value management, and whole life
cycle costing. Historically, value management developed in the United States because of coming
up short on materials utilized in manufacturing during World War II. This paper recommends the
use of a significant value management approach which depends on structured stages and steps
that ultimately target reaching a reasonable adjusting of cost and quality. Value management
improves the end-products of projects and their activities. The primary function of value
management procedure is to examine product changes in design and construction projects. In the
meantime, the management just as business help to equilibrate fundamental tasks, alongside cost
and different assets expected to achieve. Life cycle cost analysis (LCCA) is an information-
driven method that provides a detailed account of the total costs of a plan over its healthy life.
Perceiving its advantage, a few organizations have executed LCCA programs and have
effectively saved essential sums of money. Nevertheless, there are numerous challenges still
expanding or creating the use of LCCA in transportation. This report gives an investigation of
the regulatory framework that, at present, exists to encourage LCCA and talks about the
experiences of organizations that have started to incorporate LCCA in the process of decision
making.

VALUE MANAGEMENT AND WHOLE LIFE CYCLE COSTING2
Table of Contents
Introduction..........................................................................................................................3
Discussion............................................................................................................................4
Purpose............................................................................................................................4
Background......................................................................................................................4
Summarize the problems.................................................................................................5
What can be done on the given project to increase value................................................7
Limitation and assumption..............................................................................................8
Range of design buildability consideration for a medium-size construction project......9
Alternative design options and evaluate in terms of whole life costing and buildability 9
Conclusion.........................................................................................................................11
Reference...........................................................................................................................12

VALUE MANAGEMENT AND WHOLE LIFE CYCLE COSTING3
Introduction
In this paper, the main point is to speak to the varied nature of the frame of literature
capturing the scope of conflicting suppositions and understandings about the hypotheses and
practice of value management (VM) and life cycle cost (LCC). The use of value management
procedures can be a viable instrument in making sure that the requirements of a project fit in
with the customer's aims for the task (Kovacic & Zoller, 2015). When a decision has to be made
so far either to take or not, value management was introduced for this purpose. In general, LCC
contains a beginning investment (usual costs of construction) and the costs of follow-on, i.e.
regular payments like utilities, energy, maintenance and cleaning, variable costs for replacement
or renewal.
In contrast, few methods of LCC also involves the demolition costs (Surlan, Cekic &
Torbica, 2016). The industry's research and academic both themselves claim that a process of
integrated design, involving optimization and life cycle costing, can effectively lessen the
maintenance and operating costs (Naoum & Egbu 2016). The use of LCC analysis permits an
initial assessment of the practical cost-cutting perspective or assessment and collection of
alternatives.
There are three techniques commonly received in leading a value management
concentrate to be specific; value planning (VP), value engineering (VE) and value analysis (VA)
(Uzochukwu, Nwabueze & Ugbomhe, 2017). Value planning is the preliminary phase in the
value management procedure, and its emphasis is on unique development goals and creating
endless ways to deal with meet the project targets. The VE stage initiates after the VP and
focuses on identifying and removing undesirable expenses with the point of growing the value of