Value Management/ Value Engineering - Assignment Example

The aspect of VM operates under a well structured schedule of process. This allows the functional needs and alternative resolutions, linked with their costs to be recognized and incorporated to strict timetable (Pinto 2008, p. 128). 2. Defining the Concepts Value management is different from value engineering in that value engineering entails attaining specific functions at reduced cost or holistic life cost while value management entails the process of defining the actual meaning of value within a confined context in the building industry.

The concept of value management ensures that there is definitive agreement of objectives and making sure that the solutions are aligned with these objectives. The value engineering answers on how while value management answers the questions on WHY. Value management concept is a sequence of process with proven techniques that are systematically brought together to recognize better project, services, and the industry projects. Both the VE and VM have the same process thus using the same methodology (Kendrick 2006, p.243). The process of VM works in a top-down approach, which starts from the requirements and the objectives and aims on the root causes and not the signs.

In this process there is an earlier agreement that is developed between the stakeholders concerning the need for the project, the scope, potential outcomes, main functions and risks, in relation the wider business environment (Sham 2008, p.89). There is exploration for potential opportunities for exploration and the most cost-effective approach of implementation is structured, which is reliable with the estimated time and quality of the work to be undertaken. This method in building industry is concerned with the whole project as opposed to the components of the building techniques and in most instances, VM is a process that is based on consensus (Kendrick 2006, p.244). In this process, selection for the workshop is crucial to its effectiveness to ensure that the wide range of impacts are specifically addressed to the individuals with the right skills and knowledge, experiences and judgment skills.

Specific members are chosen to undertake a particular task if the stakeholders are not able to undertake the task. 3.0. Characteristics A well structured value management system has the following characteristics in the building industry: 1. Well defined aims and objectives and the capacity at the outset of the project that focus on the client needs 2. A systematic and well staged strategies to the whole project other than the individual components of the project 3. There is the availability of multi-faceted team efforts that is influenced by positive human flexibility 4.

The process adequately considers of the organizational structure and environment ,which takes consideration of both external and internal environments 5. The element of function analysis 6. Effective use of techniques and tools to promote independent facilitation. 7. A workshop structure that has well defined job plan that distinguishes innovation from assessment and development 4.0. Stakeholders The stakeholders in this project are individuals who have real interest in the project results that might include promoter, supervisor, engineer, and constructor, user of the project, operator and financier.

The project focuses to reflect the holistic key needs and