Value Management in Procurement Process - UK Pizza Hut - Case Study Example

The paper 'Value Management in Procurement Process - UK Pizza Hut" is a good example of a management case study. Fully application of Value Management principles in Australia will result in a reduction in duration and cost of the project. This is well illustrated using construction case studies, which have employed value management in the procurement process; the case studies shows value management in practice. The case studies from different countries demonstrate that VM processes are essential to the successful delivery of projects and should be implemented in construction projects. Various key-value and risk management principles are depicted in the context of the construction project and they depict the various VM practical steps that construction projects in Australia should adopt during the lifecycle of the project to achieve excellence. The case studies presented promote the use of value management as a fundamental tool for the successful delivery of construction projects. In the case studies, most situations were overlooked and hence made it possible for the project to be completed in time.

• • Case Studies
    • Case study: Value Management in UK Pizza Hut

In this case, Value Management helped to expand the alternatives of solving problems, have a compound approach towards solving the problems, increase the functions in the problem and reduce the overall cost of the project. Pizza Hut was awaiting a programme of about 25 refit properties in early 1997. Each property was expected to cost £145,000 and hence the entire project was estimated to a value of more than £ 3.5 million. With the intent of reviewing the project before embarking on-site activities, the managers of the project convened a series of three half-day value management workshops; the property manager and area manager (client representatives), as well as the QS, Designer and Service Engineer (consultants), attended the workshops. Workshops’ and meetings are held at different stages of the project to plan and review the progress of the activities in value management. In this case, a qualified value management facilitator, hired from outside the project team, facilitated the workshops. A traditional set-up of devising different solutions, functional analysis, and assessment of the preferred solutions, their approval, and implementation was adopted. Value management led to the identification of different solutions. The nine hours in the workshop, as well as a similar amount of work out of the workshop by the team members, led to the team to save £ 14,000 for every project and a total of £ 350,000 for the entire programme. The workshops also raised standards in various areas and reduced long-term maintenance.