VALUE MANAGEMENT

Value Management & Managing the Project Stakeholder Expectation

Value Management & Managing the Project Stakeholder Expectation

Introduction and Background Research

Value management (VM) is offered as a methodological management style for enhancing value in projects and managing the project stakeholder expectation. It sketches together conceptual thinking on the project as a value chain with historical and international developments in value management and value engineering (VE). Lessons are distilled from the author's and other ones published material and from their experience of conducting a range of VM investigations over the personal and public sectors, at all project stages from inception to operation/facilities management, under all types of procurement, and more lately as an underpinning in the development of a national asset strategy for the UK's Environment Agency and for advancing property asset management across the central civil government estate for the UK's Office of Government Commerce. A series of study styles for conducting value management are offered with the potential to take VM to its next stage of development (M. Thiry, 2001, pp: 72).

Analysis and Synthesis

Defination of Value and Identification of Key Project Stakeholders Involved

Value perceptions are in the eyes of the beholder, in this case the individual customers. To be specific, value is not inherent in a product or service. In fact, marketing thought leaders are recognizing that the service components of value propositions have become the dominant differentiator for business enterprises. This is due in part to the value that supply chain management, in addition to other service aspects, can help create for customers. Customer value is created only when customers perceive that suppliers” products and services help them achieve their goals at an acceptable expense; that is, supply chain management creates value only when customers perceive worth in supply chain management processes and services (Male SP, 2003, pp: 81).

The expectations of the Team

The critical analysis of value management draws from a team-based process-driven methodology utilising function analysis to analyze and consign a product, service or project at optimum whole life performance and cost without detriment to quality. VM developments were primarily dominated by North American thinking. It diversified throughout the late 1960s and into the 1970s internationally primarily through the manufacturing sector into Japan, the UK, Italy, Australia and Canada (M. Thiry, 1997, pp: 22).

Different perspectives furthermore started to emerge internationally throughout the 1980s and into the 1990s with the use internationally of VM in construction. Also, some early adopter countries in manufacturing took ahead a franchised version of VM from the US methodology, for example Japan and Korea, while others took up the methodology and subsequently melded it to take account of their national markets and cultures. Localisation occurred in Australia; Eric Adam remained more nearly allied to a North American perspective, while Roy Barton from the University of Canberra became a hardworking proponent of contextualisation in Australia as a result of his study trip to North America. The Australian New Zealand (ANZ) benchmark reflects this stance. Kelly and Male in the UK pursued a alike and nearly simultaneous trajectory ...