Value Engineering Toolkit

RT-184 Topic Summary
RT 184

Overview

Companies in the construction industry need to move in a fast pace to effectively and efficiently improve performance in industry drivers (security/safety, cost efficiency, quality, schedule, environmental stewardship, or risk containment). In order to manage these drivers and to meet clients’ expectations, companies need to adopt innovative management processes and tools. Thus, Value Management efforts are needed in order to maximize the potential of a project team and to achieve higher levels of performance pertaining to the owner’s project value objectives.

CII Research Team 184 investigated the topic of Value Management Processes (VMPs). The study findings suggested that industry’s awareness of most VMPs is deficient, and that with so many VMP options to choose from, industry is in need of a VMP selection tool.

The main objective of the research is to increase the industry awareness of achieving higher values and to help in the process of selection and implementation of VMPs through the Value Management Toolkit. The Selection Tool is designed to make the decision-making process for VMPs more rigorous and to provide the project team with a wide range of VMPs to be considered for application on projects.

The Toolkit’s objectives are threefold:

  • Increase industry awareness of the forty four VMPs
  • Facilitate selection of the right VMPs for a project
  • Offer how-to tools for implementation

The research recommends that the industry expand the collection of VMPs for implementation on projects and to use it more frequently provided that the selection process is thorough and transparent. In addition, it recommends to aggressively track the performance metrics when implementing VMPs. There are also recommendations to academia focusing mainly on providing feedback and continuous improvement to VMPs along with the need for more investigation into performance metrics for all VMPs.

VMPs are proven methods that increase the value of a project to an owner through a variety of techniques. 

Key Findings and Implementation Tools

1 : VMPs selection principles

Describes how each of the VMP selection principles functions in the Selection Tool. (RS184-11, p. 33) 

 
Reference: (RS184-1)

2 : Project Value Objectives

The research identified 12 project value objectives for the toolkit. The objectives include the following as a sample, while all 12 are detailed in the research. (RS184-1, p. 3)  

  • Construction safety and health
  • Product or service quality
  • Environmental stewardship
Reference: (RS184-1)

3 : 44 VMPs

The Value Management Toolkit presents 44 VMPs that support the 12 project value objectives. The VMPs are also grouped into five primary application categories. (RS184-1, p. 8) 

  • Broad application
  • Organizational
  • Planning
  • Design/construction
  • Operations/maintenance
Reference: (RS184-1)

4 : Timing Influence of VPMs benefits

Implementing VMPs provides value across the entire project life cycle. However, implementing most VMPs during feasibility and planning will yield the greatest benefits. (RS184-1, p. 10)
Reference: (RS184-1)

5 : VMP Descriptive Profiles

The Toolkit includes the following nine descriptive fields of information for each of the 44 VMPs. (RS184-1, p. 11)

  1. Purpose & objectives
  2. Primary benefits
  3. Key Deliverables
  4. Circumstances for leveraged application
  5. Optimal timing for implementation
  6. Lead Organization(s) for implementing
  7. Other participants
  8. References for more information
  9. Sequence of steps in process
Reference: (RS184-1)

6 : Guidance of implementing VMPs at the Project Level

The research identifies 11 steps to assist with successful implementation of VMPs. A few of the 11 steps include:  (RS184-11, p. 81)

  • Form the core project team
  • Assess implementation team’s resources
  • Develop plans for implementing each VMP
Reference: (RS184-1)

7 : VMP Selection Tool

The premier feature of the Toolkit is a computer-based VMP selection tool. The four principles of the selection tool are: (RS184-1, p. 12)

  • Primary desire benefit
  • Timing of implementation
  • Magnitude of impact
  • Suitability to the project

 
See "Implementation Tools" for more information on the tools associated with IR184-2, Value Management Toolkit.
Reference: (RS184-1)

8 : Validation Methodology Flowchart

This flowchart describes the 6 iterative validation steps supporting the Selection Tool. (RS184-11, p. 61) 
Reference: (RS184-1)

9 : Implementation Tool #1

IR184-2, Value Management Toolkit

The Value Management toolkit is a web-based tool designed to provide guidance for organizations and project teams on how to effectively implement a value management program on an organizational level or for a specific project. The selection tool is intended to facilitate the selection of CII Value Management Processes for implementation on a project. This tool takes into consideration 4 primary selection factors:

  • Desired primary benefits
  • Timing of implementation (phase of project)
  • Relative magnitude of impact of VMPs
  • Project suitability factors
Reference: (IR184-2)
rt-184

Key Performance Indicators

Improved safety, Improved cost, Improved quality, Improved schedule, Reduced/improved risk, Improved operations & maintainability, Improved environmental, Improved performance/achieved success

Research Publications

Development of the Value Management Toolkit - RR184-11

Publication Date: 12/2003 Type: Research Report Pages: 398 Status: Reference

Introduction to the Value Management Toolkit - RS184-1

Publication Date: 11/2003 Type: Research Summary Pages: 22 Status: Supporting Product

Value Management Toolkit - IR184-2

Publication Date: 11/2003 Type: Implementation Resource Pages: 0 Status: Tool


Presentations from CII Events

Session - The Value Management Toolkit

Publication Date: 06/2003 Presenter: Number of Slides: 27 Event Code: AC03


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