Value Management Report of TechWatt Corporation PDF

Value Management Report of
TechWatt Corporation Report
Table of Contents
1. Executive Summary
2. Introduction
3. Information required before the workshop
4. People involved
5. Areas for improving value
6. Tools and Techniques
7. Benefits of Value management for TechWatt Corporation
8. What the Value Management Study will entail
9. Reference List
Executive Summary
Value management is a process that is used to discover the different functions
of the project. This includes coming up with techniques and tools which can be
useful in meeting the required objectives. Value management will be used to
successfully manage the construction of TechWatt Corporation’s new building.
This will be beneficial, as it will ensure that the project flows smoothly from the
inception to completion.
In addition, value management will assist in cutting costs while improving
performance. This report will include the benefits of value management to
TechWatt Corporation, the agenda for the study, techniques that would be
useful if applied in the study. In addition, the issues that should be analyzed
during the value management study will be dealt with. The participants of the
program and the role they will play will be discussed.
Introduction
Value management has been widely accepted as a means of enhancing the
value of a project from it inception to its operation. The process ensures that

quality, performance, reliability are upheld while minimising the life cycle costs
(Shen & Liu 2004).
Value management is useful in dealing with challenges like constraints in the
budget and complexity of a project. Value management can assist in reducing
costs while sustaining or improving the performance of a construction project.
TechWatt Corporation will benefit in many ways by using value management
during the projects initial stages. It will be able to add value to the building
project that thus improving its position in the market. The main benefit of value
management is attaining the maximum the maximum value from the entire
project.
This is what sets value management apart from other methods of improving
value for projects or systems. TechWatt Corporation will be able to find the
best ways to optimize design and establish the project objectives by analyzing
the project briefs.
Information required before the workshop
Financial information is very important for decision making during the
deliberations in the workshop. This includes the costs of the project, the
expected benefits. The venture can create value if the benefits are more than
the costs or if there is value for the money invested. Financial data is useful in
his stage because sound decisions can be made based on this information.
(Shen & Liu 2004)
Information about risks that TechWatt Corporation would face should be made
available to the participants of the workshop. Considering risk is necessary in
value management. Important data includes the kind of risks in the market and
ways to manage these risks. In addition, the cost of dealing with risks should
be highlighted. (Shen & Liu 2004)
People involved

Value management is a team activity which involves the interaction and
cooperation of many people. The team TechWatt Corporation may include in
value management study may include the project manager, constructor,
company managers, the project finance team, design team, project cost
manager.
A value manager must be part of the value management team. This individual
is charged with the responsibility of understanding the value problems,
coordinating value systems and implementing improvements to the company.
(Woodhead & Downs 2001)
The finance team has to ensure that the project being embarked on by
TechWatt Corporation has a sound capital investment plan. The team should
also perform a detailed analysis of the project in order to find useful
information that will be used during deliberations and decision-making. The
finance team should ensure that the project follows the company’s financial
policies.
The accounting and financial reporting standards should also be followed. The
managers responsibility is to ensure that there is proper planning. This
includes asset disposal planning, asset maintenance, planning and capital
investments planning. The basis of these plans should be the company’s
policies. (Woodhead & Downs 2001)
Areas for improving value
Constructing the new building to house the headquarters of TechWatt
Corporation should create value for the organization. This may be in terms of
increased profitability, a better working environment or improving the
experience of the firm’s clients.
Value management will assist the organization in creating a means of
balancing costs of a project and the benefits received. Value for money is a
key feature in value management and it focuses on creating value for
investment (Dell’Isola, A.1982).