VE/VM

Question 1

What is a value?

Answer 1

Value is the ratio between benefit (outputs) and the cost or effort (inputs) required to achieve it.

Question 2

What is Earned Value Management?

Answer 2

EVM is a technique used in PM to measure the progress of a project in a defined and objective manner and assess whether recourses are being used efficiently. This is done by comparing:

• the planned value for work over the time
• the earned value of work completed
• the actual cost of cost completed.

Question 3

What are the main challenges in VM and VE?

Answer 3

• to understand a range of impacts that any particular decision may have including their financial impact
• find a balance between requirements of different stakeholders

Question 4

What is VE?

Answer 4

Value engineering is consideration of alternative materials, design and methods of construction to achieve the same outcome

Question 5

What is VM?

Answer 5

Value management is a process how to achieve value for a project by developing a right project brief and processes, normally at early stages of the project.

Question 6

What are the benefits of VE and VM?

Answer 6

• elimination of unnecessary cost
• better vfm
• increased efficiency

Question 7

Please provide examples of VE

Answer 7

• lockers at GMH
• maximise office space by improving IT system, hot desking and flexible ways of working to reduce the overall office space
• specification of LED lamps may reduce the frequency and cost

Question 8

What are the differences between VM and VE?

Answer 8

VM – multidisciplinary approach at strategic level – How? What is the bet route?

VE – problem solving at more detailed level; more technical analysis are involved

Question 9

What are other activities that are linked to VM and VE?

Answer 9

1. Risk management
2. Life cycle costing
3. Configuration management
4. Lean construction
5. BIM

Question 10

What is Life cycle costing?

Answer 10

LLC is technique for assessing the long term financial impacts of alternative technical design in order to choose the best alternative solution

Question 11

What is configuration management?

Answer 11

Configuration management is a process od dividing a design so there is a max opportunity to select alternative suppliers of particular equipment,

Question 12

What is lean construction?

Answer 12

Lean construction is technique for identifying and removing unnecessary steps from a construction activity to reduce cost and improve quality

• can apply to design, installation , manufacturing and management
• can be big or small e.g. improvement to approval of suppliers invoices.

Question 13

How to carry out VM and VE?

Answer 13

1. Understanding the problem
2. Identity different solutions
3. Evaluate different solutions
4. Develop shortlisted solution in more details
5. Identify the best solution and make recommendation

Question 14

How/when can you discuss the potential VE options?

Answer 14

• During VE workshops
• VE study

Question 15

What is RACI matrix?

Answer 15

A responsibility assignment matrix, also known as RACI matrix describes the participation by various roles in completing tasks or deliverables for a project or business process.

• Responsible
• Accountable
• Consulted
• Informed

Question 16

How can you identify what does and what does not add value?

Answer 16

• Functional analysis to understand functionality of the project which can be compared with alternative cost proposed – done by breaking done the primary functions of a project into hierarchy
• prioritising and weighting alternative options

Question 17

What resources are needed to carry out the VE/VM?

Answer 17

• time
• background details
• skills and knowledge
• facilities -workshop venue, access to experts

Question 18

What is included in VE recommendation/report?

Answer 18

• Introduction and context
• required outcomes and value criteria
• alternatives solutions considered
• value assessment of alternatives
• conclusions and recommendations
• appendices

Question 19

What are the potential problems when carrying out VE and VM?

Answer 19

• Not enough time
• lack of precisions
• Not staring early enough
• Not include appropriate stakeholders
• Revising previous decision

Question 20

What are VM/VE workshops techniques?

Answer 20

1. Generating ideas through brainstorming, reversals, role storming
2. Clarifying and grouping ideas
3. Prioritising ideas.

Question 21

Is there any RICs guidance on VM/VE?

Answer 21

Yes, the RICS professional standards and guidance, Value management and value engineering