Value Management Methods and Tools

This document discusses the value management process, methods, and tools for sustainable building construction. It covers the factors ensuring sustainability, value management implementation, and innovative methods for increased efficiency and productivity. The document also includes a stakeholder analysis and two standard value management tools for successful project delivery.

Value Management Methods
and Tools
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1: Value Management..........................................................................................................3
PART A...........................................................................................................................................3
1. Description of the three main factors that ensure sustainability during the process of
building construction...................................................................................................................3
2. Outlining of value management process for the implementation of core elements within the
project..........................................................................................................................................5
3. Discussion of the several methods of innovation and creativity that have contribution
towards incrementing efficiency and productivity within production stage of this project........7
PART B...........................................................................................................................................8
1. Discussion of the two standard value management tools for successful delivery of project. .8
2. Formulation of risk management strategy for addressing the issues related to supply chain
system........................................................................................................................................10
3. Discussion of the 10 factors that contribute towards the poor value of project....................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Value management is the process that includes combination of planning tools and methods
in respect to identification of sufficient amount of benefits associated with project costs and
risks. The overall aspects which are performing to maintain optimum value are planning,
assessing and developing of project in the manner so right decisions can be taken regarding
ascertainment of balanced benefits, risks and costs. The main purpose of the value management
exercise to create balance between the stakeholders needs and available resources to satisfy their
actual demands. The importance of this aspect is high within construction industry. This will
provide the opportunity in application of the quality methods and tools that provides long term
sustainability along with environmental protection (Adeleke, Bahaudin and Kamaruddeen,
2018). The current project is about the construction of residential building in Cardiff, Scotland.
The 36 months of time period is provided for development with the use of sustainable practices.
The main aim of this report is about ascertaining the contribution of value management process,
methods and tools in development of sustainable building.
The aspects cover in this report includes determination of three factors that contributes in
maintaining sustainability during construction process, outlining of value management process
for implementing core elements of the value management within project, analysis of the methods
of innovation and creativity for improvement of efficiency and productivity within production
stage of the project, assessment of the two standards value management tools for successful
delivery of project, outlining of risk management strategy addressing the issues of supply chain
and determination of the ten different factors that contribute towards the poor value of the
project.
TASK 1: Value Management
PART A
1. Description of the three main factors that ensure sustainability during the process of building
construction
Construction is the activity of preparing infrastructure as per the direction of client. This is
wide in scope and includes all the activities related to its designing to final finishing. The stage
exist in construction process is related to the formulation of building structure. The concept of
sustainability is important within construction of buildings. This will help to improve way of
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thinking and planning of aspects that will be qualitative in nature. It is taken care in performance
of all the stages related to construction. The main role is played within the stage of structuring as
this will enables in attaining core strength along with reducing higher amount of disturbance
towards environment in form of emitting Co2 and other greenhouse gases. The use of
sustainability aspects within designing and final finishing also ha equal contribution towards
providence of sustainability and safeguarding environment through use of methods or materials
that have long term positive impact. The overall benefit ascertained by the owner or residents of
building is about long term safety and less maintenance cost. The sustainable buildings are
designed and structured in the manner that they can easily sustain 20 years without maintenance
in hard conditions like facing floods, earthquakes etc. So, clear from the above description that
sustainability is the main aspect which is needed to maintain in construction of the any type of
building within today’s environment (Babalola, Ibem and Ezema, 2019).
The current project is about the development of residential building within Cardiff,
Scotland. The total budget is provided by client for the construction including designing and
preparation is 340 million pound. Total 36 months of time is given to project manager for
completion of project through application of sustainable activities, methods and tools. The main
three factors which are needed to consider in current project for ascertaining optimum
sustainability are defined below;
Prefabrication of materials in controlled environments: This is the process includes
construction of as much of structure as they can within controlled environment so the quality of
building will be improved and the extra benefits ascertained in the form of less trash and wastage
that resultants in to carbon emission within environment. The process of precise cutting provides
the opportunity for decrement of waste and creates the building that are strong enough for the
usage of wooden framings. Here, software of BIM is used by the contractors for cutting of the
duct sheet to protect from the problem of shape changing issue within hot and cold weather. BIM
also provides the access to all the information related to project along with 3D designing that will
be flexible in nature to made changes according to the preferences of client.
Construction waste management: This is the process that includes reduction of
construction waste at site through usage of the measures like recycling or reuse of old materials,
use of haulers etc. This will provide the benefit in form of less carbon emission, time saving and
unnecessary cost avoidance (Bajjou and Chafi, 2018).
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Material selection: The material used within the formulation of building is playing the
main role towards building sustainability and strength. This will provide the benefit in for
delivering core strength for the very beginning to the completion of project. This ensures the
safety of person working over site and those who going to reside for long period of time after its
construction. This also contributes in elimination of indoor air quality concerns along with
avoidance of toxics. Even the role of this point in finishing work of building with sustainability
is high. For ex., use of LEED and modern windows etc.
2. Outlining of value management process for the implementation of core elements within the
project
The contribution of value management exercises will be optimum towards the
development of building with sustainable activities. The understanding of the different associated
aspects along with implementation of core elements of value management within current project
is presented below:
Value Management
Value administration is a mix of arranging apparatuses and strategies to locate the ideal
parity of undertaking benefits according to extended expenses and dangers. It is the way toward
arranging, evaluating and building up the undertaking so as to settle on the correct choices about
the advanced parity of the advantages, dangers and expenses (Darko and et. al., 2019).
This is also depending on characterizing and including quantifiable worth, concentrating
on practical drivers and destinations before discovering arrangements, with the point of
upgrading in general development. It has four standards being; reinforcing esteem direction;
applying capacity thinking; applying an organized all-encompassing methodology; and
overseeing unpredictability, hazard and vulnerability. These standards are upheld by four drivers
(switches) being; a collective style of overseeing; propelling positive human elements;
considering both inner and outside conditions; and applying demonstrated strategies and
instruments (Value management, 2020).
In relation to building design and construction, the need of value management application
is must for performance of many functions like antagonistic nature of activity and authoritative
connections, requirement for mix of the production network, requirement for effortlessness in
legally binding language and game plans and need to move away from the least expensive
alternative towards the 'best worth' choice.
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Value management process
Value administration is a group based methodology used to characterize the customer's
goals and guarantee best worth where entire life arrangements are chosen to fulfil those targets. It
isn't really about cost cutting. To accomplish most extreme advantage, esteem the executives
ought to be done from the beginning times of an undertaking, not just presented when issues
happen. The procedure of significant worth administration incorporates esteem designing, which
is an increasingly deliberate way to deal with guaranteeing explicit capacities fulfilling the
necessary standards for the least expense. It evaluates a scope of potential arrangements against
the qualities required by the customer (Ding and et. al., 2018).
These activities can also be utilized to recoup cost difference (costs separating from the
financial limit) that may become evident when configuration reports are readied. Under these
conditions, the customer may need to pick needs, or choose to expand the financial limit.
The overall process includes three steps Value planning, Value engineering and Value
reviewing/analysis.
Figure 1Value Management Process
It is clear from the above image that value planning includes the activities related to
briefing of client requirement and exercise of brainstorming. Value engineering is most
important one in the process that includes formulation of objectives, functional analysis,
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speculation, evaluation and implementation of tasks. The last step of value reviewing/analysis
includes monitoring, correct and feedback.
The implementation of core elements of process, help to perform different activities
effectively within the project. Aspect of planning help to weighing the different determinants of
sustainability associated with building residential house. Point of engineering help in selection of
best approaches like soil and landscape analysis, material usage, waste management process,
prefabrication of materials etc. In last review, provides the opportunity to compare the current
level of quality with desired standards and take corrective measures for further improvement.
The overall benefit of this is ascertained in the form of improved quality and low cost (El-Sabek
and McCabe, 2018).
3. Discussion of the several methods of innovation and creativity that have contribution towards
incrementing efficiency and productivity within production stage of this project
Production stage of building infrastructure is the most difficult phase and time consuming
process. The strength of structure is depending over the working under this stage. It is the duty of
project manager to apply all the innovative and creative methods along with tools and techniques
that will improves the working abilities of workers. This will resultant in future as attainment of
high efficiency and productivity in their offerings that build overall strengthened structure. There
are huge importance’s associated with the use of these methods such as safety, improved
working condition, time and cost saviour etc. Effective application of all methods provides an
opportunity to project a manager in attainment of sustainable building that also has least negative
impact over environment along with high amount of strength (Matthews and et. al., 2018).
As per the demand of client in current project about sustainability, the use of innovative and
creative method is necessary for performing the work under production stage. These will not
help in improvement of the working conditions but also aid in learning of new aspects to workers
that help in completion of work with use of improved skills, attributes and abilities. The
description of the innovative and creative methods using within production stage of residential
building for improving efficiency and productivity is presented below:
Site Sensors: These sensors are deployed all across the construction site for the monitoring
of aspects like temperature, noise levels, dust particulates and volatile organic compounds for
limiting their exposure to workers. These can alert the immediately when they are near to the
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exposure of risk. This data is used further in development of strategies for optimum safety
(Enshassi and et. al., 2019).
Wearables: These fulfil two purposes as monitoring of workers and their safety. These
wearables are attached with GPS, biometrics, environmental sensors, Wi-Fi, voltage detectors
etc. These are generally including hard hats, gloves, safety vests and work boots. This provide
the optimum safety and information to project manager for effective regulation in absence at site.
Autonomous Heavy Equipment: This is about the use of technologies like self-driving car
for the performance of work like excavation, grading and site work. This will help to reduce the
cost through removal of operator role. Also, the safety is ensured of workers who got harmed in
performance of such dangerous functions. This will provide the opportunity in completion of
work with high quality.
BIM: This provides the digital representations of building in 3D form. This will provide all
information to project manager and stakeholders associated with project. This help in better
design and building construction. Any changes in BIM are occur in real so the same will be
updated on software at same time. This will help in improving working with aid of instant
communication of changed information to all team members and workers.
PART B
1. Discussion of the two standard value management tools for successful delivery of project
Value management has the main purpose of delivering best quality project at expense of
least cost. This process includes main three steps planning, engineering and reviewing. In overall
manner, this provides the opportunity to justify the preferences of stakeholders within available
amount of resources. Its application from the very initial stage is necessary. This will help to
control the overall functioning through usage of various techniques and tools.
The application of the two standard tools of this system that are very helpful in the
direction of delivering current project successfully is presented below:
Stakeholder analysis: This is about ascertainment of different stakeholders associated
with project along with their interest and power. The determination of these is necessary because
further decisions can be taken in direction of meeting their preferences. This will aid in
performance of all activities legally along with removal of duplication (Gálvez-Martos and et.
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al., 2018). This saves the cost and time and help to ascertain the support of all stakeholders in
right direction of completing the project.
Stakeholders Interest Power
Project manager High High
Owner High High
Government Low High
Employees High low
Industry officials Low Medium
It is clear from the above table that project manager and owner have high level of interest
and power within the project. This means necessary for the project manager to fulfil all the
preferences of owner. Also, ensure the satisfaction of their own functioning’s through meeting
standards and desired objectives. Government has low interest but high power so must to adhere
legal requirements otherwise have to face negative consequences in form penalty or closure of
work. Employees have high interest due to involvement in routine activities but have low power
because have to adhere the instructions of project manager. Industry officials are also having low
interest with medium power. It is must for project manager to take care about the industry
standards prevail at particular location and locality.
Risk analysis: This is about assessment of risks associated with performance of project.
The current project is about the development of residential building so assessment of risk is
important its sustainable completion (Ganbat and et. al., 2018). This analysis helps in
development of strategies related to risk mitigation that will help in future for continuous
operations. The risk analysis in relation to current project is done below:
* The impact of risk is measured from the scale of 1 to 10 through rating.
Risk Owner Nature Impact Mitigation
measure
Technical risk Project manager High 7 Ensure the use of
advanced
techniques
Financial Risk Finance manager Low 4 Focus over
proper allocation
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and identification
of alternative
sources
Workforce risk Project manager/
HR manager
Medium 5 Contact with
local agencies
Material risk Project Manager High 8 Build strong
supply chain and
application good
inventory
management
system
2. Formulation of risk management strategy for addressing the issues related to supply chain
system
Supply chain system between an organization and its providers help to create and
disseminate a particular item to the last purchaser. This system incorporates various exercises,
individuals, elements, data, and assets. This is the important process within all industries for the
starting of business activities.
In construction industry, this includes the procurement of materials from market related to
the construction of building. The work of contractor and associated employees is totally
depending over the presence of raw materials at site. There are lots of issue that will impact the
effective chain of supply and hinders the ability of continuing working with same speed. This
includes improper inventory management and change in supplier demand (Ghodrati and et. al.,
2018).
Risk management is the aspect which is necessary to do everyone in each type of business.
In field of construction, it is highly required. This will aid development of strategy that will work
as preventive measure at the time of risk occurrence. In relation to mitigate the above risk of
supply chain, contractor must use the effective software of inventory management or the
technique like EOQ. On the other, hand must sign the agreement with supplier along with
contacting with various other alternative suppliers so the material is never short at actual site.
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3. Discussion of the 10 factors that contribute towards the poor value of project
The current project is about the development of residential building within the time period
of 36 months on the budget of 340 million pound. There are numerous factors that can affect the
value of project and resultants into the poor. All these factors are defined below:
Ineffective allocation of funds: In effective allocation impacts the performance of activities
where requirement of fund is needed more. This will hinder the continuity and quality is
compromised (Saieg and et. al., 2018).
Non segregation of work in different stages: Segregation of work into stage is important
otherwise allocation and requirement of materials is not identified. This process limits the
productivity through lack of planning and presence of inappropriate resources.
Non consideration of time determinants: Time determinant is must to calculate with each
stage. This will help to define the objectives and functionalities accordingly. This resultant into
usage of more time in project completion.
Use of less quality material: Use of less quality materials not able to provide the
sustainability also have high level of environmental pollution.
No use of advance or new technologies: This hinders the capacity of working multiple
functions at a time with high speed. This lowers down the quality and extends time.
Low level of safety standards: Low safety standards decreases the productivity of workers.
Also, attracts penalties from government due to non-adherence of standards (Wang and et. al.,
2018).
Poor waste management system: This resultant into involvement of high cost and large
environmental pollution not allow to get the target of sustainability.
Lack of coordination: Lack of coordination between different working limits the work of
other. Also, hinder from ascertaining supporting behaviour of each other.
Poor communication or flexibility: Poor communication and flexibility not allow the
changes as per market and client requirement. Also, poor communication resultants in to
situation of conflicts.
Inexperienced workers: This attracts the injuries that impacts continuity of project and
resultant into poor quality completion (Whitlock and et. al., 2018).
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CONCLUSION
It has been concluded from the above report that importance of value management is high
within construction filed. The process of value management is important for effective completion
and assessment. The tools of value management provide the opportunity to build strategies of
effective working so the working continuity cannot be hindered. Sustainability in construction is
must in today’s environment for reducing environmental pollution, safety of residents and
reducing the depletion of non-renewable resources. This concept helps to build solid
infrastructure that able to sustain for longer period of time.
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REFERENCES
Books and Journals
Adeleke, A. Q., Bahaudin, A. Y. and Kamaruddeen, A. M., 2018. Organizational internal factors
and construction risk management among nigerian construction companies. Global
Business Review. 19(4). pp.921-938.
Babalola, O., Ibem, E. O. and Ezema, I. C., 2019. Implementation of lean practices in the
construction industry: A systematic review. Building and Environment. 148. pp.34-
43.
Bajjou, M. S. and Chafi, A., 2018. Lean construction implementation in the Moroccan
construction industry. Journal of Engineering, Design and Technology.
Darko, A. and et. al., 2019. Review of application of analytic hierarchy process (AHP) in
construction. International journal of construction management. 19(5). pp.436-452.
Ding, Z. and et. al., 2018. A system dynamics-based environmental benefit assessment model of
construction waste reduction management at the design and construction
stages. Journal of Cleaner Production. 176. pp.676-692.
El-Sabek, L. M. and McCabe, B. Y., 2018. Coordination challenges of production planning in
the construction of international mega-projects in the Middle East. International
Journal of Construction Education and Research. 14(2). pp.118-140.
Enshassi, M. S. and et. al., 2019. Integrated risk management framework for tolerance-based
mitigation strategy decision support in modular construction projects. Journal of
Management in Engineering. 35(4). p.05019004.
Gálvez-Martos, J. L. and et. al., 2018. Construction and demolition waste best management
practice in Europe. Resources, Conservation and Recycling. 136. pp.166-178.
Ganbat, T. And et. al., 2018. A bibliometric review on risk management and building
information modeling for international construction. Advances in Civil
Engineering, 2018.
Ghodrati, N. and et. al., 2018. Role of management strategies in improving labor productivity in
general construction projects in New Zealand: Managerial perspective. Journal of
Management in Engineering. 34(6). p.04018035.
Matthews, J. and et. al., 2018. Building information modelling in construction: insights from
collaboration and change management perspectives. Production Planning &
Control, 29(3), pp.202-216.
Saieg, P. and et. al., 2018. Interactions of building information modeling, lean and sustainability
on the architectural, engineering and construction industry: a systematic
review. Journal of cleaner production. 174. pp.788-806.
Wang, L. and et. al., 2018. Picture fuzzy normalized projection-based VIKOR method for the
risk evaluation of construction project. Applied Soft Computing, 64, pp.216-226.
Whitlock, K. and et. al., 2018. BIM for construction site logistics management. Journal of
Engineering, Project, and Production Management. 8(1). p.47.
Online
Value management. 2020. [Online]. Available Through: < https://ivm.org.uk/value-
management/>
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