The paper "Value Management for Efficient and Cost-Effective Refurbishment" is a good example of management coursework. Over a long period of time, there had been a significant increase in costs construction industry such as buildings, community projects and installation of IT systems in various constructions to an extent that the cost was almost doubling. This had been attributed to increases in the prices of material, costs of labour, and advancement in technology. In order to accommodate these increases in costs, the designers and owners were forced to increase their budgets in order to harbour these trends.
These increases in prices have also been attributed to other factors such as loss of affordable and cheap energy due to energy crisis evidenced in the world. For project stakeholders to identify opportunities for maximization of the project’ s essential elements while at the same time evaluating value, addressing issues on finance, lessening the cost of the project cycle, and reducing unnecessary wastes, value management act as an effective tool. Value management which is at times referred to as value analysis involves an organised and a creative approach with the aim of optimizing the costs of the life cycle and performance of a facility, system or a building.
Value can be defined in four perspectives; exchange, cost, use and esteem (Dell'Isola 2004). The Scottish court's service (SCS) is on the move to adopt a program on the entire court estate refurbishment in order to modernise the court by addressing the issue of IT. IT refurbishment involves changing some components of existing systems in IT infrastructure with the aim of improving technology and at the same time-saving money through reduced costs and reduction of hazardous wastes in the environment.
This calls for value management for efficient and cost-effective refurbishment (Interserve 2012). Value management Most of the times the value of the term management, value engineering and value analysis are used interchangeably although they slightly differ in their application. Value management involves the definition of the actual meaning of a value in a certain context with a clear and steady statement of objectives while ensuring that there is the consistency of the objectives with the solutions. Value engineering involves the achievement of functions that are defined at the minimum cost.
As value management is concerned with the question of ‘ why’ , value engineering involves questions on ‘ how’ . However, these two terms are treated as similar. Value management is regarded as a distinct approach in management that brings together the following components into a single framework; the style of management, positive dynamics of human, effective tools and methods, consideration of internal and external environment (Hammersley 2002). Refurbishment of the SCS in addressing IT issues has the main aim of achievement of the best value in terms of the money used in this project.
In addition, there is also a need for having a modernised system with improved technology while at the same time focusing on the value of money used. This can be regarded as an innovation. These factors are very essential while we consider the rising inflation and funding cuts in the current world. Thus, value management and engineering are techniques that will give an insight into what is really essential in the improvement of the value of SCS refurbishment (Tidd et al 2005).
APM 2012, Value Management - What it is and how does it work? - An interactive day. Accessed on 20 April 2012 from: http://www.apm.org.uk/event/value-management-what-it-and-how-does-it-work-interactive-day
Dell'Isola, A. 2004, Value Engineering Fundamentals - Project Scope & Budget. Construction Oriented Value Engineering Training Course, pp. 1-23.
Dell'Isola 2011, Value Engineering for Cost Control. Accessed on 20 April 2012 from: http://www.amazon.com/Value-Risk-Management-Practice-ebook/dp/B0014TS2IS
Dell'Isola, A. 1997, Value Engineering: Practical Applications...for Design, Construction, Maintenance and Operations. RSMeans publishers
Dallas M. F. 2006, Value and Risk Management: A Guide to Best Practice, 1st edition, Wiley-Blackwell.
Hammersley, H. 2002, Value Management in Construction, Association of Local Authority Business Consultants, Pp. 1-18
Interserve 2012, Scottish Courts Service, Edinburgh: Parliament House refurbishment, Edinburgh. Accessed on 20 April 2012 from: http://www.interserve.com/about-interserve/case-studies/487/scottish-courts-service-edinburgh%3Cbr%20/%3E
Kendrick, J. 1996, Total Value Management Program. Accessed on 20 April 2012 from: http://www.p2c2group.com/Docs/value.html
Kwanto 2010, Phase 2: Design: Value Management. Accessed on 20 April 2012 from: http://www.kwanto.co.nz/services/phase-2-design/value-management.aspx
Royal Institution of Chartered Surveyors 2012, RICS draft guidance note - Value engineering and value management. Accessed on 20 April 2012 from: https://consultations.rics.org/consult.ti/value_engineering/viewCompoundDoc?docid=863924&partid=866900
SAMI 2010, Identifying Opportunities. Accessed on 20 April 2012 from: http://www.value-eng.com/services.htm
Tidd, J., Bessant, J. & Pavitt, P. 2005, managing innovations: Value Analysis. Accessed on 20 April 2012 from: www.wileyeurope.com/college/tidd