77-7399-00SValue ManagementAssignment One Clarification and Guidance Pointers

Clarification Of Scenario

The Scottish Court System

We have four of these in the programme.

We have Forty Nine of these in the programme.

Listed Building

• Historic buildings are an irreplaceable part of the nation's cultural heritage and tangible connections with our past. A statutory listed building can be a building, object or structure that has been judged by English Heritage to be of national historical or architectural interest.

• Listing gives statutory protection to historic buildings and allows their special interest to be taken into account before any changes are made to them that would affect their character.

Clarification relating to Individual Tasks

Task One• Explains Value Management.

• Introduce concept.• Explain alignment to specific scenario• Comment on Scottish Legislation

• HM Treasury Green Book• Scottish Government Guidance• Construction Strategy - May 2011• Other relevant legislation, Policy or sources.

A summary Overview of the Topic

• Value Management is essentially Group Decision Support.

• Value Engineering is a hard systems approach undertaken in an environment in which problems are well defined.

• Value Management is a soft systems approach. It is undertaken in a social environment in which problems are NOT well defined.

What is Value Management?

“Value management is concerned with defining what 'value' means to a client within a particular context. This is

achieved by bringing the project stakeholders together and producing a clear statement of the project's objectives. Value for money can then be achieved by ensuring that design solutions evolve in accordance with the agreed

objectives. In essence, value management is concerned with the 'what', rather than the 'how'.”

(Green, N.D.)

What is Value Management?1. VM is a service which maximises the functional value of a project by managing its

development from concept to completion and commissioning through the audit (examination) of all decisions against a value system determined by the owner/ developer

2. VM is an organised approach to providing the necessary functions at the lowest cost

3. The straight omission of an enhancement is not VM. The VM procedure takes into account that an enhancement may have a value whether it be a functional value or, for example, an aesthetic value. Merely omitting such enhancement may result in a stereotyped development with perhaps functionality but no aesthetic appeal

4. VM is an organised approach to the identification and elimination of unnecessary cost. Unnecessary cost provides neither use, nor life, nor quality, nor appearance, nor customer features to a development

5. VM is a systematic, multi-disciplinary effort directed towards analysing the functions of projects for the purpose of achieving the best value at the lowest overall life cycle project cost (B R Norton and W C McElligott)

De Leeuw, (2001)

Task Two

• How could Value Management be Implemented within the Project/Programme Scenario Given?

• Maybe include a flow chart or diagram and explore the role at each stage specific to this scenario but using literature.

Task Three• Systematic

“Having, showing or involving a system, method or plan . . . .using a system or method; methodological”

• Explicit“fully and clearly expressed or demonstrated; leaving

nothing merely implied; unequivocal”

Task Three

The purpose of a systematic approach making explicit the SCS Value system is that once “these values once expressed and made explicit become the criteria against which the project is judged a success. The logic behind the approach is that if the success criterion is known at the beginning then the design can be undertaken and audited at intervals against the criterion, hence improving the probability of a successful outcome”

(RICS,2011)

RICS draft guidance note - Value engineering and value management.

Available at: https://consultations.rics.org/consult.ti/value_engineering/viewCompoundDoc?docid=863924

Client Value System

“The criteria against which success is measured”

• Do not find these criteria just discuss:

• HOW you would find them!

• How you would make them explicit

• What systematic approach you would adopt.

You are going to use literature and critical appraisal of the literature to explain how these will be carried out.

Systematic Explicit (Approach A)the time, cost, quality triangle. The points of the triangle are labeled time, cost and quality and the client team invited to indicate the position within the triangle which best represents the relative importance of time, cost and quality

Systematic Explicit (Approach B)

the client value system matrix. Based on the time, cost, quality principle the value system matrix invites the client representatives of the workshop team to a pairs comparison exercise. The time, cost, quality principle is expanded into nine non-correlated facets to be compared one with another.

Systematic Explicit (Approach C)• SMART• Simple Multi Attribute Rating System.• Aligns to Utilitarianism in its application• Analytical framework – Similar to B above but more

sophisticated.• Modified and applied by Green for his PhD (1996)• Green, S.D. (1992) A Smart Methodology for Value Management

(Occasional Paper No. 53). Ascot: Chartered Institute of Building.

Task Four

• Critically Evaluate How Value Management can assist in the development of the business case.

Task FourThe strategic outline case (SOC) makes the case for the project and comprises as its minimum contents:

• An introduction of the circumstances which give rise to the need for the project;

• Definition of the project team, specifically the senior responsible officer;• Identification of the project stakeholders;• The mission of the project and those functions which support the mission;• The criteria for evaluating the project on completion;• The current systems in place which are relevant to the satisfaction of the

project mission;• A gap analysis of current services/systems and the project mission;• Formalising the strategic brief and setting the parameters for the

understanding of the whole life value of the project;• Understanding those project options which require further investigation in

an option appraisal study.

Final Point

• Report Format Please – If unsure review Shuspace for guidance on format.

• Remember Literature could be seminal papers, academic publications, textbooks amongst others but I would also expect professional literature and government reports as this is a real time scenario not an academic debate.