Value Management And Value Engineering Study Report

This mensurate oversight and nurse use science (VM/VE) immortaliseing notify summarizes the benefits of motley proposals for a strategic level grade riveting serve well followed by look on plan write up in order to catch a better survey for Money (VFM) for some(prenominal) pictures. This hide is disposed(p) specially for our lymph gland M/s. SBEinnovations Ltd for the twisting of the Mixed-Use Recreation and Commercial vegetable marrow retch. assess focussing and Value design is a technique on any frames that tush be delivered in the just nigh economical way. Normally, Value steering chance upones argon carried out before Value Engineering Study to determine how it hatful add nurse to the thickening business by a bringing of a labor movement which is carried out during the initial Client brief of a bug out. It is an integral part of any travails. Whitheras Value Engineering is a good dissect on a selected jut for its expert viability and be studies which is carried out during elaborate goal stage.United find out commission (UPM) believes that VM and VE pay back the great influence and tinct at the strategy and radiation pattern stage respectively. It requires reliable and trance salute data, spirit information, ideas, past pass and uses brain-storming full treatmenthops by our police squad of experts under the direction of the Project Manager. Value forethought is a continuous process from inception to completion.The purpose of conducting the Value solicitude workshop is to set up an effective partnership agreement which should judge to achieve the scope and benefits of the project with respect of age, toll and feeling. The benefits of Value Management contribute towards this project especially since the project is still in its primal stages. roughly of the concepts through which SBEinnovations Ltd bottom obtain survey for bullion (VFM) ar mentioned below1. Reduced Learning Curve2. Improved communications and finish procedures3. Improved quality and programmingThis report in like manner includes a testimonial on Value Engineering Study conducted before the completed blueprint stage and construction activities. Issues targeted during VE study include1. image Optimization2. excerption of Procurement Route3. Cost, tint and Time4. Organizational sectionalisation coordinate (OBS) Study5. Stakeholders Coordination1. IntroductionThis report explains how Value Management and Value Engineering studies can contribute value to the Client before commencement of a project. The report summ acquires the rouge principles of Value Management and Value Engineering in the context of construction project of mixed-use recreation and commercial message centre for SBEInnovations Ltd. This report is prepargond for SBEinnovations Ltd on their request for proposals for a strategic level Value Management and Value Engineering studies.The aim of Value Management Study is to assess the project requirement in terms of functionally and qualification of achieving the requirements. Prime consideration take aim to be given to the importance of Time, Cost, Quality, resort and Clients satisfaction. The specific issues to be evaluated at the VM Study atomic number 18 divided into ii categories.1. Strategic Issues (which provide be considered in Value Management)2. Tactical Issues (which go away be considered in Value Engineering)3.1 Strategic Issues1. The following are considered as project strategic issues1. Project Drivers2. Project Type3. coat and muddle4. Procurement5. Initial Cost Estimate6. Esteem7. Politics8. Organisational Management9. Change Management3.2 Tactical IssuesThe following are considered as project strategic issues1. Design2. Structure of the Project Organisation3. Detail of accessibility and cooking procedure4. Time and Quality5. Outline Specification6. Coordination2. Value Management StudyThis is the first process w here carefully select ed team members from various parties get unitedly to discuss various aims, objectives, constraints and risk associated with the Project in order to formulate Client objective of the need of such project.Value circumspection usually incorporates a series of workshops, interviews and reviews involving diversified teams members through whom the project requirements are evaluated against the means and method acting actings of achieving them. VM process leave be dependent on the procural route selected for the project.VM and VE Studies are truly important for successful delivery of any project. Failure to carry out these studies lead cause problems at subsequent design and construction stages causing cost overruns, project delays, claims and so on Value Management can help to avoid or pick at these problems.At the outset of a project, Value Management provides an exceptionally powerful way of exploring the nodes needs in-depth by addressing inconsistencies and expressing these in a language that all parties, whether technically informed or new to the construction industry, can understand.The Value Management process works top-down, starting with needs and strategic goals and focusing on root causes, not symptoms. An primal consensus is au then(prenominal)tic between the key stakeholders about the need for the project or service, the scope, deliverables, key functions and risks, in the context of the wider business objectives. Opportunities for innovation are explored and the most cost effective means of implementation developed, consistent with desired time and quality requirements. VM considers the whole project rather than components and the process are underpinned by consensus.A typical Value Management Study has the following characteristics1. A systematic, staged approach2. Clear definition of objectives and scope at the outset focus on the node requirements3. Consideration of the organizational environment internal and immaterial influences4. Multi-disciplinary team effort positive human dynamics5. obligation abstract System Technique6. A workshop format with a unified job plan that separates creativity from evaluation and schooling.7. Effective use of methods and tools self-supporting facilitation2.1 Early Application of Value Management and its benefitsThe design is still at the very early stage. The Client has not until now committed with any design teams for project design. The client aims to innovate with creativity and to enhance the health, offbeat and quality of life of its citizens. It is very important to get a feedback of its citizens of the Client intentions for such a project, because the clients and the citizens aim and objectives are totally different and contrasted ones. Therefore it is recommended that Value Management study at such early stage is carried out involving the all parties who stool interest on the projects so that later in the projects the problems and risk will be minimized to a greater extent. As such the following benefits can be judge by applying Value Management to this specific project.1. It defines what two the client and the citizens of the topical anesthetic area mean by value, and provide the tail for making ratiocinations, end-to-end the project, on the grounding of value. It provides a means for optimising the balance between private developer and public sector local authority having different aims and objectives out of the project.1. It provides the basis for clear briefs that reflect the clients priorities and expectations, expressed in a language that all can understand. This improves communication between both stakeholders so that each of them can understand and respect differents constraints and requirements.1. It jibes that the project is the most cost-effective way of delivering the business benefits and provides a basis for refining the business case. It addresses both the monetary and the non-monetary benefits.1. It supports good design through improved communications, mutual learning and enhanced team-working, leading to better technical solutions with enhanced cognitive operation and quality, where it matters.1. It provides a way of measuring value, taking into musical score nonmonetary benefits and demonstrating that value for money has been achieved.Project Objectives In a construction project objectives shall be distinctly defined. In clearly defining the project objectives value management plays a vital role and it is the starting point of value management in a project.Client Function, Activities and Stakeholders Value management plays authoritative role in ascertaining the client functions, requirements, stakeholder needs, apprize, gathering information pertaining to the project.Project Size and Location In deciding the project size and location both value management and value engineering will be utilise as value management will focus on the location, policy-making situation, environment a nd others will focus, whereas value engineering will focus on the type of foundation to be utilise is suitable for the soil conditions, coldcock area index on the area and other design issues. compute It is a crucial in a construction project and the of import purpose of the value management is to gain the maximal value for the money and for that budget is important and also careful budgeting is crucial for the success of the project, here value management will be applied.Procurement Option In deciding the contract for the project the scoop out procurement option is to be chosen, it depends on the scope of the project, requirements, budget and other external factors. To choose the best procurement option value management and value engineering both plays a vita role. Design and built option value management plays a vital role, value engineer plays a vital role in other types of procurement options as designs are being verified in this option.Design Change and Variation happens d uring the course of the project, value engineering plays a lead role. In the design changes and variations as the changes will have an impact on the original design to be checked? The proposed changes can be accommodated or not also to be checked, also the cost impact, constructability and other design related parameters to be verified.Organization Structure Many discrepancies arise due to un organise organization structure, due to that construction and project gets delayed. Value management is employed, during the initial stages itself giving the requirements for organization and key personnel and appropriate accounting provision will be given in the costing. solely the above will be applied in value management.Quality Control, Health, Safety and Environmental Issues are crucial in project success, here both value management and engineering will be applied as quality cannot be compromised and design team will clearly indicate the minimum quality requirements and also HSE issues ca nnot be compromised it is a crew of both the above.The following graph illustrates the probable cost savings come-at-able against time when VM is applied in a project. It is clear the when VM is applied at the early stage of a project, the saving will be far less to adopt the changes proposed by the Value Management since the design is yet not commenced and hence it is easy to incorporate any kind of design change proposal due to VM process.Fig 1 Cost pertain of Making Changes Over Time2.2 education of Value Management in spite of appearance project scenarioUPM suggests the budget should be equally divided among the different elements of the project. Some suggestions provided by UPM are1. Sports Centre neat design management should be applied for the construction of put/Scoring or/and Spectator Seating arrangements.2. Culture recreational centrePublic community should be favorable with different recreational centres. Their satisfaction is the primary goal to be achieved.3. H otels brightness is a large cost item. The impact it has on energy and client experience influence to a great extent the operation and lay cost.4. Shopping mallsPrimary objective here is to obtain maximum customer satisfaction belongings returns in mind. Quality should be maintained end-to-end the lifecycle of the project.5. Parking spaceThe monetary cost for parking space depends on three factorsTotal number of parking space required, opportunity cost of parking land and cost per parking land available.Careful planning and brainstorming helps to obtain maximum value for land.6. Food courtProper economical and environmental friendly techniques could be arranged for waste disposal.7. movie theater MultiplexNatural Ventilation could be installed thereby reducing the cost and power consumption.Value Management ag free radical Selection and Value Management WorkshopVM is undertaken as a series stakeholder workshops held at key stages during the development of the project. Value M anagement Team forms an important aspect in decision making process. It is a flexible, team-based activity, planned and directed by an independent VM facilitator and determined by consensus.Team selection for the Value Management workshop is very critical to success to ensure that the full range of influences are properly addressed by people with the right balance of knowledge, skills, experience and judgment. Where special(a) stakeholders are not able to take part, or it is not smooth to involve them, specific team members should be tasked as champions of those stakeholder interests. As such, the team should include the following participants1. Project SponsorThe Project Sponsor is prudent for endorsement of the study objectives. They are responsible for monitoring outcomes, action plans, clients vision, timeframe, values and constraints.2. Value Management CoordinatorUsually, a client vocalism may designate this post. Before the workshop is developed, a number of activities n eed to be decided upon1. Developing brief for Facilitator2. Identifying the Scope of Work3. act the Facilitator4. Organizing the schedule for the workshop5. Date and Venue nurtureation6. Arrangement of objectives of study7. Selection and invitation of participants8. Preparation of agendaThese roles and the corresponding tasks may vary depending on nature of Value Management topic, the organizations involved and the scale to which Value Management activities undertaken by the parties.3. Value Management FacilitatorHe initiates their evaluation at the starting of the pre-workshop process, helping the client towards clearly defining the aim, assumptions and viewpoints of each stakeholder. The facilitator should specialise in assisting the process by providing support and advice to the sponsor.During Pre-workshop stage, the facilitator focus should be more towards process than content. The facilitator manages time, determines appropriate progress, manages the group, promotes collabor ation within the group, and seeks agreement or a method of understanding between teammates at key stages. However, the facilitator should maintain client confidentiality and ensure every member contributes equally to the achievement of value.4. Project ManagerThe Project Manager should be included within the workshop because he/she acts as a reference and as a team catalyst for proceed action.5. StakeholdersThey should be included in the team as they give a clear cut idea about the objectives, needs and constraints.6. Technical ExpertsSBEinnovations Ltd. members who have specialist skills in a particular area are to figure the workshop. Their responsibilities include providing advice and suggestions in the specialist area for which they are invited.7. Relevant accord agencyValue Management briefing papers should be forwarded to pertinent compliance agencies so that they can be affirmed that the steps followed are as per Practice Guidance. Though, it is not compulsory that their presence should be essential at the workshop.Value Management Workshop and Agenda sideline are the three components of a VM Workshop1. Job Plan2. Functions and Functionality3. Multi-Disciplinary TeamThe VM Job plan of the workshop will have the following 5 phases1. Information Phase2. Creativity Phase3. Evaluation Phase4. Development Phase5. Presentation and Reporting PhaseAll of the above phases will be covered in 3 weeks workshop as expound below.TOOLS AND TECHNIQUES USED IN VM STUDYThere are number of tools and techniques which can be used in VM study. However, the following are recommended by UPM.1. Function Analysis System Technique (FAST) DiagramIt is a graphical archetype of logical relationship of functions that need to be performed and how they are linked together into HOW-WHY logical connections to deliver the project. HOW and WHY questions are asked to develop the logic of a function. While defining any function, we ask HOW that particular function can contribute toward s developing a more standardized and specific approach. This method of questioning and thinking is referred and summarized from left to right. To solve the problem to a higher(prenominal) level, we ask WHY that particular function is performed. This process of logic is read from right to left.1. take a chance AnalysisRisk compendium is a financial tool used to signalise risks that can potentially affect the project. The analysis looks at the costs involved, time constraints and other variables that may negatively affect the outcome. As a tool, risk analysis helps managers make decisions and find alternatives.1. ram AnalysisSWOT is an acronym that stands for strengths, weaknesses, opportunities and threats, which is precisely what the SWOT analysis aims to identify. The SWOT helps management see the companys strengths and weaknesses on paper as well as the potential opportunities and threats looming in the industry. Management can then find ways to maximize the companys strengths in order to capitalize on opportunities while minimizing potential threats and weaknesses.6. pry ENGINEERING STUDYValue Engineering is a subset of Value Management. at one time the Client is decided on the project, then before the specificed design will commence, the Value Engineering study will be carried out.6.1 Recommended quantify for VALUE ENGINEERING studyIn order to expect the greatest return from this project, SBEinnovations Ltd. is suggested to include value engineering exercise during the early design stage and before 60% of the design commitment is reached. Value Engineering workshop should be carried out during the schematic design stage and the detailed design stage. If the Value Engineering occurs later it probably will be seen as a cost cutting exercise but it will be undertaken under a hostile climate that will sustain SBEinnovations from achieving the desired requirements and objectives of 9M.6.2 Recommended VE TeamThe number of participants should be a minimu m of tailfin and a maximum of ten. Although more members could participate, we recommend that a larger group may cause difficulties in one-to-one communication. Participants should involve1. Project Managers from SBEinnovations Ltd.These Project Managers help to define the procurement routes and contract administration in the most effective way by putting to use their skills earned by experience.2. Architects, Quantity Surveyors and Structural EngineersWhile conducting brainstorm sections, Comments and views from Engineers, Architects and Quantity Surveyors are legitimate for active participation.3. Value Engineering FacilitatorThe facilitator should be someone apart from the project manager, the chief design engineer, or the client. The VE facilitator will guide the discussion to confirm and approve, but not to criticize the project approaches and details.6.3 Value Engineering WorkshopsVE workshops are concerned with the detailed technical appraisal of alternative solutions propo sed by the project team to meet the clients requirements. Duration for VE workshop will be normally longer than that of VM Workshop. One of the following approaches could be used by SBEinnovations Ltd towards achieving a successful Workshop session1. Mini WorkshopsA value engineer should join the design team at the briefing stage and be promoted as the facilitator throughout the project. Two mini-workshops should be organized following the job plan format and then reviewed at about 20% and 40% design completion.2. The two-day workshopAll members of the team focus on issues in an intense and focused way.6.4 Elements of the Scheme for VE studyDesign OptimizationAs long as the bid documents and the process to detail design are open enough to accommodate for adjustment of the design, then a buildable design will rise. Design ideas for mixed use commercial and recreational centre should be developed during Value Engineering workshops keeping in mind the constructability and purpose for which it serves. This should include health, safety and security of the local community.Procurement RouteThe suitable Procurement route should be study identified and applied by SBEinnovations Ltd. taking into consideration the pros and cons of that particular procurement route and its benefits to the client and the employer.Quality, Time and CostMaximum return can only be achieved through proper quality, time and cost management. Value Engineering study team should be keen to attain maximum Value for Money (VFM) by proper planning and scheduling of works to ensure cost lies within 9M within the stipulated time frame.Organizational Breakdown Structure (OBS) StudyOBS review would be done during the VE workshop which helps to identify roles and responsibilities.Stakeholders CoordinationCoordination should be justified during VE studies so as to dissolve any mental disturbance between Stakeholders.Part 2 Risk Management EssayRisk Management in Infrastructure ProjectsIntroductionAll large projects spirit risks. Project risk is an activity, event or action which tends to cause a negative impact on the planned goals of project scope, quality, performance, execution time or cost. Inevitably, risks and uncertainties are substantially inherent in infrastructure projects. Problematically, galore(postnominal) infrastructure projects could not have achieved project goals satisfactorily. Therefore, it is very important for the realization and treatment of these project risks. Project risks always contribute to the poor performance leading to cost and time over run. Their major reason is the circumstance of external and internal project risks and uncertainties throughout project stages from planning, bidding, contracting to construction.This probe intends to provide a useful insight into the inherent risk into infrastructure projects, and will discuss about the management of these risks. The essay will also enable the reader to understand and application of the ke y concepts and techniques used in management of risk in infrastructure projects.For the purpose of this essay, Railway Projects in the MENA region is considered. History has shown that railroad tracks have always been central to any terra firmas growth ambitions. Thus it comes as no surprise that the GCC countries have embraced railway networks as their best hope for expanding and consolidating future economic growth. By providing a low cost alternative to shipping and air, the GCC member states allow for increased trade and thus further economic prosperity.As a result of this increased focus, its no surprise to find that railway networks account for nine of the ten biggest infrastructure projects in the Middle East. With enterprising plans to produce a GCC wide network within the next decade, the countries are working to develop their own interior networks in preparation. The following put off shows a list of top 10 infrastructure projects (ongoing and planned) in the MENA area .