What Is Your Understanding of Vm?

Each question worth 20 marks

Question 01: What is your understanding of VM? Compare your understanding with any TWO definitions discussed in the power point slides.

Answer-Value management is the structured management of the total value equation through all stages of the project. It can further be elaborated as value management is a structured and analytical process which seeks to achieve value for money by providing all the necessary functions at the lowest cost consistent with required levels of quality and performance. Secondly value management can also be defined as an organised function-oriented systematic team approach directed at analysing the functions and costs of a system, supply, equipment, service or facility, for the purpose of enhancing its value, through achieving the required functions specified by the clients at the lowest possible overall cost, consistent with requirements for performance.

Question 02: Do you agree that the project performance improves if poor value elements are identified and removed in construction project? Explain.

Yes, I agree that the project performance can be improved on removing the elements which lead to poor value. In each element there is an opportunity to improve value for money. VM states that the project performance can be improved if unnecessary costs are identified and then removed successfully. Such elements are:

– Time constraints

– Habitual thinking

– Poor communications

– Lack of coordination between stakeholders/project team

– Outdated standards or specifications

– New technology

– Assumptions and constraints

– Lack of experts

– Unnecessarily restrictive design criteria

– Scope of changes

– Lack of information

Question 03: Research and list any two variations on the Job Plan approach to value engineering.

The value methodology is commonly applied under the names Value Analysis (VA), Value Engineering (VE), and Value Management (VM). The value methodology is a systematic process that follows the Job Plan. The Job Plan is a systematic and organized plan of action for conducting a VE analysis and assuring the implementation