Construction Essays | Value Management Risk

twisting Essays survey worry riskiness honor vigilance RiskRationale for StudyThrough divulge my 4th twelvemonth of the Honours Degree measuring rod canvas Programme, I found the particularize and Risk Appraisal module very interesting especi whollyy the topic of entertain circumspection. I had never re tout ensembley come across this topic before and only heard the term used a few times only when didnt re bothy k today what was gnarled. From undertaking that specific module, it follow throughms that rate heed is mostly used as a tool to achieve judge for silver for Clients. Working for a Contractor for 4 and a half years now, I construct only ever seen place Management used on one Construction Project and this is the one that I am currently based on just now. From my experience, I feel that pry Management has a deal of advantages for Contractors as well as Clients and I wanted to find out why it is non being used to a great purpose by Contractors.Get help wi th your essay from our expert essay writersIndicative Title lever Management A Contractors Perspective1.3 The AimTo determine the reasons as to why harbor Management is not being greatly used by Contractors in the Construction Industry.1.4 The Main ObjectivesIn order to achieve the higher up aim the following objectives must be metTo identify the divulge principles and elements of harbor Management.To identify techniques and working practices adopted and to identify the benefits of Value Management.Examine the reason as to why Value Management is not widely used in the Construction Industry.Critical analysis of the views of Main Contractors about the benefits or mindless comings of Value Management.To propose recomm block offations for improved implementation of Value Management for Contractors.CHAPTER 2LITERATURE REVIEWVALUE MANAGEMENT2.1.1A DefinitionValue Management is a ardor of management particularly dedicated to motivating stack, developing skills and promoting synergi es and innovation, with the aim of maximizing the over both achievement of an organization.The Institute of Value Management online http//www.ivm.org.uk/vm_whatis.htm Accessed on 18 July 2007.Value Management is a squad based process-driven methodology. Its incentive is to deliver a product, service or count on at optimum whole life performance and cost without detriment to graphic symbol.By using teams of experts in the Construction Industry, this allows the Value Management process to identify design and construction solutions which offer the best nurture for money with regard to the rangeal requirements of the ClientKelly, J. Male, S. (1988) A Study of Value Management and Quantity Surveying PracticeValue Management plays a key role in the Construction Industry for continuous improvement and innovation.The Background ConceptValue Management originated in the United States of America in the new-fashioned 1940s and the process was originally used in the manufacturing indust ry. This was soon adopted by the Construction Industry in the UK by the head start of the 1990s as unlike studies highlighted between 36% and 45% savings on estimated construction cost to the ClientKelly, J. Male, S. (1988) A Study of Value Management and Quantity Surveying PracticeThe concept of Value depth psychology was introduced by Lawrence Miles in the 1940s. Miles, a Purchase Engineer working for the General Election, had to find way of lifes to tackle the bodily shortages which was due to the Second World War. Miles sought to find option materials that would tolerate the same function. This proved effective as Miles found that many of the secondary products he was finding were of an equal, if not rectify quality than that originally proposed. In addition to this he found that many of these alternatives were at a lower cost. Dallas (2006) states that a short while later, people realised that not only did the technique stick out a way to substitute alternative materi als but it was also an excellent way to reduce costs while still maintaining the necessary functionality. This system would involve value and analysis and based on this Miles developed the definition of Value Analysis.An nonionized approach to providing the necessary functions at the lowest cost.Kelly, J.R. Male, S.P. Graham, D. (2004) Value Management of Construction Projects.To further enhance this Miles provides further definitionValue Analysis is an organised approach to the realisation and elimination of unnecessary cost.Kelly, J.R. Male, S.P. Graham, D. (2004) Value Management of Construction Projects.Key Principles of Value ManagementThe institute of Value Management states that the key principles of Value Management ar different from other styles of management in that they include attributes that are not normally found togetherManagement Style furiousness on teamwork and communicationA focus on what things do, rather than what they are (functional approach)An atmosphe re that encourages creativity and innovationA focus on customers requirementsA requirement to evaluate options qualitatively to enable robust comparisons of optionPositive Human DynamicsTeamwork encouraging people to work together towards a common solutionSatisfaction recognizing and giving creditCommunication bringing people together by improving communication between themFostering demote common understanding and providing better group decision supportEncouraging change challenging the status quo and bringing about in effect(p) change self- exit the assumption of ownership of the outcomes of Value Management activities by those responsible for implementing themConsideration of External and Internal EnvironmentExternal conditions taking account of pre-existing conditions out-of-door to the organisation over which omnibuss may have little influenceInternal conditions within the organisation there will be existing conditions which managers may or may not be able to influenc eDegrees of Freedom the external and inhering conditions will dictate the limits of potential outcomes and should be quantified.Effective Use of Methods and Tools actor of achieving outcomesThe Institute of Value Management online http//www.ivm.org.uk/vm_whatis.htm Accessed on 18 July 2007From this we can see that Value Management brings Construction teams together and gets them to communicate more effectively with separately other, this in turn will have a beneficial effect on the Project. The functionality of a Project will be more focused on being able to achieve Value for Money.Value Management Techniques Function AnalysisFunction Analysis is a powerful technique in the identification of the principal functional requirements of a projectSeeley, I. (1997) Quantity Surveying Practice. Second Edition.Function analysis is basically a brain storming session with all people involved in the construction project and is used to determine the main needs of a project in order to focus o n alternative options that are less expensive although still achieving the functionality as required.FAST DiagramsSeeley (1997) states that the FAST (Functional Analysis System Technique) has evolved from the functional analysis approach as it establishes a power structure of functions in order of importance.FAST diagrams are a more effective way of showing the main important functions and needs of a project.Bolton (2002) verbalise that function analysis was key to success in a workshop and always uses a FAST diagram.Pasquire and Mauro (2001) cite Norton and McElligott (1995) who suggest that the use of FAST may provide more benefit in the early stages of a project but not so much in the construction phases. It is also highlighted that FAST schematisation requires experience and training on the part of the facilitator to ensure it accurately depicts the function of the project. Another constraining factor is the time required to complete FAST diagrams.Hunter, K. Kelly, J. (2006) I s unrivaled Day Enough? The Argue for Shorter VM/VE Studies.Value Management WorkshopsValue Management Workshops are one of the main techniques of Value Management. This will be discussed in great detail in Chapter 2.2.Benefits of Value ManagementAfter several pack-project examines with Contractors and Consultants, Kelly Male identify various positive aspects of the Value Management process. The most significant of these areProof that the initial design was indeed the bestPeace of mind to the owner that he was receiving good value for moneyIntroduction to higher quality productsBest up-to- get out technology at least costA clear focus on project objectivesAn alternative view of the design modify project programmesImproved site management structuresAn probability for a detailed analysis of the required projectKelly, J. Male, S. (1988) A Study of Value Management and Quantity Surveying Practice.The Institute of Value Management indicates that Value Management has already been s uccessful in achieving Value for Money for such Clients as BP, British Airways, Pfizer, Stanhope and various water and rail companies. This has resulted in the public sector adopting Value Management techniques in order to cut down construction costs and achieve better Value for Money.Benefits of Value Management according to the Institute of Value Management focus on greater communication and understanding within the Construction team but do not seem to focus on the cost benefitsBetter business decisions by providing decision makers a sound basis for their alternativeImproved products and services to external customers by clearly understanding and giving due priority to their real needsEnhanced competitiveness by facilitating technological and organisation innovationA common value culture thus enhancing every members understanding of the organisations goalsImproved internal communication and common knowledge of the main success factors for the organisationSimultaneously enhanced communication and efficiency by developing multidisciplinary and multitask teamworkDecisions which can be back up by the stakeholdersThe Institute of Value Management online http//www.ivm.org.uk/vm_whatis.htm Accessed on 18 July 2007Sir Michael Lathams report Constructing the Team (1994) states the benefits of Value Management and includes Value Management as a factor which is critical to the success of projects in providing the basis for improving value for money in construction.Hogg, K. (1999) Value Management A Failing Opportunity? Nottingham, The Nottingham Trent University.Value Management is still not being used to a great extent in the construction industry despite the great number of benefits.The reasons for the unmingled hesitance of the industry to adopt Value Management on a greater scale are unclear since the benefits of Value Management appear to be widely recognised and the practice continues to be promoted at a high level.Hogg, K. (1999) Value Management A Failing O pportunity? Nottingham, The Nottingham Trent University.Value Management Workshops before a VM workshop commences learning has to be gathered to determine its objectives and deliverables and therefore what shape and form the workshop will take.Male, S. Kelly, J. et al (1998) The Value Management bench mark A Good Practice Framework for Clients and PractitionersValue Management Workshop StructureKelly (1996), details the key stages involved in a Value Management WorkshopValue Management workshops are characterised by a three stage processThe Orientation and Diagnostic Phase in which the value manager prepares for the study by meeting with the project sponsor and key players who will be involved in the study, reviewing documents, conducting interviews and briefings and preparing the agenda for the Workshop Stage.The Workshop Stage is where alternative or complementary views on the value problem are brought together through a structured team based activity facilitated by a value mana ger and progressed through the application of specific team based techniques. Innovative ideas are brought forward to satisfy the functional requirements identified against a backdrop of the value criteria uncovered. A workshop report will be produced including an Action Plan to ensure that value solutions and options will be implemented in the post workshop phase.The Implementation Phase in which the Action Plan is followed through by those responsible for the investigation and implementation of ideas.Kelly, J. (1996) Value Risk Appraisal raise NotesThe International Benchmarking Study (1998) identifies the Implementation Phase as one of the key areas in which Value Management fails. At this stage the Value Management team have identified and adopted various approaches to ensure that the Value Problem is minimised as far as possible through various meetings and workshops in the forward phases. At this point an implementation strategy will be discussed with the applicable parti es and if possible those involved in the implementation will be interviewed and identified in the action plan at the close of the workshop phase.Value Management Intervention PointsThere are three main stages of Value Management workshops and they all produce a great deal of teaching that is discussed between the Construction parties to find alternatives ways of constructing the building and focusing on achieving Value for Money. These stages are depict on the next page. Strategic BriefingThe Strategic Briefing stage deals with identifying the broad scope and purpose of the project and its important parameters. The focus is on determine the strategic needs and wants, and the role and purpose of the project for the Client. Project BriefThe Project Brief translates the Strategic Brief into construction terms, specifying performance requirements for each of the elements of the project including spatial relationships and detailsA summary of the germane(predicate) parts of the Strateg ic Brief documentThe aim of the design. This would include priorities for project objectivesThe site, including details of accessibility and preparationThe size and configuration of activitiesOutline specifications of general and specific areasA cost centred budget for all aspects of the project including all elements of the construction projectServicing options and specification implications e.g. security, deliveries, access, etc.Kelly, J. (1996) Value Risk Appraisal Lecture Notes Outline Sketch DesignThe Outline Sketch Design (OSD) workshop is a value review of the initial plans, elevations, branchs, specification and cost plan of the proposed building using the signed off Project Brief as a reference point.Kelly (1996) explains what should be involved in an OSD WorkshopAs statement of the design directionThe site layout and access, identifying ground conditions and planning constraintsA detailed cost plan and schedule of activitiesDimensioned plans, elevations and sectionsAn synopsis specification for environmental systemsThe risks and a risk management strategyThe procurement planThe project execution plan with key milestonesPerformance measure.Kelly, J. (1996) Value Risk Appraisal Lecture NotesBenefits of Value Management WorkshopsThis is an extract from a journal that describes the benefits from an actual Value Management workshop that took placeAll team members support their commitment to continuous improvement. Only three did not feel that it had been as a result of the workshops. The team unanimously believed that more options had been explored within the team and all agreed to that being as a result of the workshops. A principal finding under the section of workshop effectiveness agreed to by all members of the team, was that the workshop provided a good basis for teamwork, created and atmosphere of equality, ensured open and frequent communication and focused the participants on action and achieving results. The team members that indicated tea m working, cultures and communications as issues prior to the workshops agreed that they had all been resolved through the facilitated workshops.Hunter, K. Kelly, J. (2006) Value Management Workshops and Partnering Conundrums.From this extract we can see that there is a great deal of benefits for all parties by using Value Management workshops. There are also advantages to a VM workshop if the environment is isolated, these includeIt focuses the team on the project maternal quality occurs during the workshop processIt commits the teamMilitates against partial attendanceContinuity is ensured.Male, S. Kelly, J. et al (1998) The Value Management Benchmark look into Results of an International Benchmarking StudyRDT Pacific (2007) stated that there are other advantages of Value Management and Workshops.Value Management consistently provides significant improvements to projectsAverage capital cost savings of 14% (NSW organization look into)The forging of dedicated, synergistic projec t teamsAuditing on the project brief and the decision making processProvision of additional functionality within existing budget allocations teaching of a structured process to move projects efficiently to the next stage and ultimately completion.RDT Pacific online http//www.rdtpacific.co.nz/services/servicesportfolio/valuemanagement.shtml Accessed on 5 October 2007From this enquiry we can see that there is a great deal of benefits of using Value Management for all parties involved in a Construction Project. It is the intention of this research newspaper to find out why Value Management is not being used a great deal by Contractors and therefore this research will provide beneficial when it comes to interviewing Contractors on their views of Value Management workshops. A comparison will be made between the benefits and injustices of Value Management in the look for Analysis chapter in order to suggest suitable implementation of this process for Contractors.CHAPTER 3RESEARCH METHO DOLOGY3.1 Secondary Method of seekThe Secondary Research Method proposed includes investigating historic papers and publications to assess the extent to which Value Management is used in the Construction Industry. Information will be obtained from books, journals, websites and voice communication notes. The Glasgow Caledonian Library will be used to obtain books. The RICS (Royal Institute of Chartered Surveyors) and various websites will be used to obtain journals and information on Value Management.These methods of research are being used as they are readily available. About 6 books from the Glasgow Caledonian Library were used for research and a lot of information was found, however, the negative aspect of using books is that the information may not be up to date. Lecture notes from the Value and Risk Appraisal were used for the Literature critique in order to explain the processes of Value Management. They were produced by Professor John Kelly who either wrote the notes from h is own experience or took extracts from books. A great amount of information was found from the internet on Value Management and this was also used to prepare the Literature Review. Information from the internet can be up to date although the discriminate is that it can be someones opinion and may not be entirely true. Journals on Value Management were found on the RICS website, Athens and also on the Construction and Building News websites. Some journal information was also taken from the Glasgow Caledonian Library. The advantage of Journals is that there was a lot of information available and peoples views are expressed which is helpful for determining any problems that exist in Value Management.This research will extend the authors knowledge and understanding of Value Management and will also give an insight into the varying views on the subject.3.2 Primary Method of ResearchThe initial Primary Research Method proposed for this paper is to use actual Construction Project Case S tudies in an attempt to find out how beneficial Value Management was for those projects. A few case studies were found on Projects that have used Value Management and they will be used to determine whether Value Management has been a success or not for the Project. Case Studies are useful for this research as they can be used to contrast and also get peoples views on Value Management.A second Primary Research Method proposed for this paper will involve interviews with relevant Construction Industry personnel to gain their views and perspectives of Value Management in Construction Projects. Suitable candidates will be mainly Contractors who have worked with Value Management on their previous Construction Projects and also the Chairman of the IVM (Institute of Value Management) in order to achieve the objectives of this paper.The purpose of these interviews is to gain a greater insight into the Value Management process and how there can be an improved implementation for Contractors. It is important to choose the correct questions to collect data to prepare a relevant analysis. Interviews are better for communicating as you are face to face to a person and the interviewer is responsible for getting the quality of information that is required. A disadvantage of interviews however can be arranging meetings with the suitable candidates as they may not always be available when you are. To control this, contacting the interviewees at the earliest opportunity is always recommended.3.3 Research Methodologies RejectedHaving chosen the above methods for research it is important to note that alternative options such as questionnaires and electronic surveys were considered for potential sources of information. However, it was felt that these options would not provide the quality of response and feedback that the other methods would for this research. Questionnaires and electronic surveys would require time to fill in and most construction personnel would probably not have the time required to complete them or would simply disregard the emails or paper copies as they would feel it would be too time consuming. Another disadvantage of these research methods is that the questions could be interpreted the wrong way or the quality of answers could not be as good as asking someone in person.CHAPTER 4PROGRESS TO DATE PLANNED FUTURE WORKProgress to DateAt this stage, the indicative title, main aim and main objectives have been agreed. Research was undertaken throughout the summer on the topic of Value Management and the relevant materials were collected. Books, journals, case studies and website information were read and notes taken from each to form the basis for the publications review. The literature review has now been completed and also most of the information for the Date Analysis Chapter in the Final Dissertation report has been collected, such as books, journals, website information and journals. Everything required for the Dissertation Interim Repo rt is now complete.4.2Research MethodologyThe final piece of methodology to be collected will be from interviews with Construction personnel which are still to be agreed and also the interview questions need to be created. These are both due to happen at the start of the New Year and the planned interviews should take place towards the end of January 2008 at the latest.4.3Research Analysis and ResultsOnce the interviews have been conducted, an in depth analysis of the views will be undertaken, along with analysis of the information of other Construction personnel from the data collected via journals, case studies and books. This section will be undertaken from February 20084.4 Conclusions and RecommendationsAt this stage, it will now be time to come to a conclusion and give recommendations on how to implement Value Management for Contractors. This section will be undertaken near the end of March 2008.4.5 Structure of the Final DissertationBelow is the structure proposed for the fina l Dissertation document to be submitted in April 2008.Chapter 1 IntroductionChapter 1 introduces the principle for study of the dissertation topic and the indicative title. It also determines the main aims and objectives, the research methodologies to be used and a structured breakdown of each chapter.Chapter 2 Value ManagementChapter 2 will focus on the background of Value Management and mainly on the key principles, techniques and advantages and disadvantages of this topic in the Construction Industry.Chapter 3 Value Management WorkshopsChapter 3 will focus on value management workshops in the Construction Industry and highlight the main advantages and disadvantages of this approach for Contractors.Chapter 4 Value Management in Previous Construction ProjectsChapter 4 will focus on case studies of previous construction projects that have used Value Management. They will be used to determine whether Value Management has been beneficial or not in the completion of the Projects.C hapter 5 Research Analysis and ResultsChapter 5 will analyse the information and feedback obtained from the interviews to be conducted. Chapter 5 will also compare the responses to identify the differences in opinion.Chapter 6 Conclusions and RecommendationsChapter 6 will set out the conclusions that have been established with reference to previous chapter literature research and the interview feedback responses. Chapter 6 will also discuss to what extent the aim and objectives have been achieved in this research paper. The author will finally give recommendations for improved implementation of Value Management for Contractors.ReferencesThis section provides a list of all references used for this research which are quoted within the paper and will also provide readers with the sources of views and opinions expressed as a follow-up or extended research on the topic.BibliographyThis section will provide a list of all other references used in preparation of the paper but not directly quoted.AppendicesThe appendices section shall provide the reader with supplementary information to that provided within Chapters 1 to 5.Programme of Future WorkProduce research questions for interviews Start January 2008Conduct research interviews End January 2008 entropy Analysis of interview results other research methods February 2008Conclusions and recommendations End of March 2008Final Dissertation hand in April 2008LIST OF REFERENCESDallas, M.F. (2006) Value Risk Management A Guide to Best PracticeHogg, K. (1999) Value Management A Failing Opportunity? Nottingham, The Nottingham Trent University.Hunter, K. Kelly, J. (2006) Is One Day Enough? The Argue for Shorter VM/VE Studies.Hunter, K. Kelly, J. (2006) Value Management Workshops and Partnering Conundrums.Kelly, J. Male, S. (1988) A Study of Value Management and Quantity Surveying PracticeKelly, J. (1996) Value Risk Appraisal Lecture NotesKelly, J.R. Male, S.P. Graham, D. (2004) Value Management of Construction Projects.Male, S. Kelly, J. et al (1998) The Value Management Benchmark Research Results of an International Benchmarking StudyRDT Pacific online http//www.rdtpacific.co.nz/services/servicesportfolio/valuemanagement.shtml Accessed on 5 October 2007Seeley, I. (1997) Quantity Surveying Practice. Second Edition.The Institute of Value Management online http//www.ivm.org.uk/vm_whatis.htm Accessed on 18 July 2007.BIBLIOGRAPHYAdam, E. (1993) Value Management Cost Reduction Strategies for the 1990sDallas, M.F. (2006) Value Risk Management A Guide to Best PracticeHogg, K. The Nottingham Trent University (1999) Value Management A Failing Opportunity?Kelly, J. Male, S. (1988) A Study of Value Management and Quantity Surveying PracticeMale, S. Kelly, J. Fernie, S. Gronqvist, M. Bowles, G. (1998) The Value Management Benchmark A Good Practice Framework for Clients and PractitionersMale, S. Kelly, J. Fernie, S. Gronqvist, M. Bowles, G. (1998) The Value Management Benchmark Research Res ults of an International Benchmarking StudySeeley, I.H. (1997) Quantity Surveying PracticeThe Institute of Value Management online http//www.ivm.org.uk/vm_whatis.htm Accessed on 18 July 2007.