Value Management (VM) Workshop Process

VM studies are performed into three distinct parts:  1) pre-workshop preparation; 2) workshop study; and 3) post-workshop implementation.  Task flow activities are as follows:

Pre-Workshop

Project Coordination:   Team members, schedule, agenda

Data Preparation:        Facility criteria, drawings, budget

Modeling:                      Quality, Program (Space), Cost, Energy, LCC, Risk

Workshop (as per SAVE International Standard)

Information Phase:        Secure facts, determine cost, fix costs on specific criteria and requirements.

                     Function Phase:           Verb/noun definitions of function, evaluate relationships (FAST diagramming) and cost these functions.

Creativity Phase:         Establish positive thinking, develop creative ideas in a team setting.

Evaluation Phase:        Evaluate ideas by advantages and disadvantages, Refine and combine ideas

Development Phase:    Develop best ideas into alternatives, identify performance improvements, estimate costs, life cycle costs, sketches                                                         

Recommendation Phase:   Present proposals that resolve the study issues and motivate to action.

Post-Workshop

Study Report

VM Proposal Acceptance Meeting

Implementation of Proposals

Project Follow-up

Pre-Workshop

The success of the VM study is largely dependent on proper preparation and coordination.  Information and documents are furnished by the designer and Owner and are distributed to the team to prepare them for their area of study.  All participants are briefed on their role and responsibility during the study.  The pre-study effort, includes the following activities:

• Identification of constraints to the VM study

• Review of project documentation and distribution of information to team members, finalization of team and team assignments

• Preparation of quality, program (space), and cost models

• Preparation of other models, as appropriate (energy, LCC, time, distance, risk, etc.)

• Finalization of arrangements for workshop and location

The VE team relies on the project manager, design team, construction manager and the Owner for the completeness and organization of the material to be furnished.  The following data is normally provided for the study:

• Community Impact Statement

• Facility Program and Objectives (Basis of Design)

• Design Standards & Criteria

• Master Site Plan (Including Site Analysis)

• Design Calculations (as appropriate)

• Soil Borings

• Design Drawings and Specifications

• Estimate of Construction Cost (including back-up)

• Architectural and Engineering Concepts Description

Quality Model

The quality model is a narrative expression of "owner expectations" for the project.  The model identifies key issues to be addressed by the project design regarding:  operational effectiveness, engineering performance, site and building image/aesthetics, schedule, cost, O&M, flexibility, employee comfort, safety/security, environment, etc.   The VM team uses this model to help identify qualities of the present design in need of value improvement.

Program (Space) Model

A program model is prepared for the project to identify the functions of major spaces within the building.  The programmed area is compared against the actual space allocated at this point in the design.  The VM team uses this model to focus their attention on selected spaces which differ (higher or lower) from the program.

Cost Model

Cost information used during the study is normally prepared by the design team estimators or construction manager prior to the study.  A cost model is then prepared from this information.  The cost model distributes costs by function and is used by the VE team to help identify areas of potential savings, when compared to similar facility value standards.

Risk Model

A risk model is prepared from discussions with the project stakeholders and review of the design documents.  The risk model identifies low, medium and high risk project issues for later discussion by the VE team. The VE team during the creativity phase tries to identify ways to mitigate the high risks.

Economic Factors

During the value study, construction cost and life cycle cost summaries are prepared for each element of the project.  Economic data and assumptions, used for the life cycle cost comparisons, are provided by the Owner.  Following is an example of this data:

• Discount Rate                          10% (compounded annually)

• Analysis Period                        20 years

• Present Time                            Midpoint of construction

• Equivalent Approach                Present worth method

• Inflation Approach                     Constant dollars

Workshop

During the actual workshop portion of the project study, a five step approach is followed.  This methodology is an organized approach for searching out high cost areas in the design and developing alternate solutions for consideration.  The workshop session uses a multi-disciplined team following an agenda which details the five step methodology to arrive ultimately at recommendations for implementation.

The Workshop follows six key steps, as per SAVE International Standard:

• Information Phase

• Function Phase

• Creativity Phase

• Evaluation Phase

• Development Phase

• Recommendation Phase

 Information Phase

At the beginning of the workshop, it is important to understand the background and decisions that have influenced the development of the design.  For this reason, the designer normally presents orally the design to the VM team.  The site, building layout, and architectural, structural, mechanical and electrical systems are discussed.

The information phase also includes further refinement of the quality, program, and cost models that are prepared before the workshop session.  These models are updated based on information received during the designer's initial presentation.  These models also form the basis of the VM team function analysis, which follows.

Function Phase

The required functions of the project are the controlling elements in the overall value approach.  This procedure is beneficial to the VM team because it forces the participants to think in terms of function, and the cost associated with that function.

In order that the team might better understand the overall functions of the project, a "Function Analysis Systems Technique" (FAST) diagram is prepared.  Reading from left to right, it is used to help explain how the designer chose to solve the functions.  The FAST diagram, when read from right to left, also helps answer why these functions are important to the Owner.

Preparing the function analysis of high cost systems also helps to generate many of the ideas that eventually result in recommendations.  This forces the team to speculate on alternative solutions to the proposed design.

Creativity Phase

This step in the workshop involves the listing of creative ideas.  During this time, the team thinks of as many ways as possible to provide the necessary functions within the project at a lesser cost to the owner.  During this creative session, judgement of the ideas is not permitted.  The VM team is looking for quantity and association of ideas which will be screened in the next phase of the study.  Many of the ideas brought forth in the creative phase are a result of work done in the function analysis.  This list may include ideas that can be further evaluated and used in the design. 

Evaluation Phase

In this phase of the project, the VM team judges the ideas resulting form the creative session.  The advantages and disadvantages of each idea are discussed.  Ideas are ranked based on savings potential, redesign time and client acceptability.  Ideas found to be not worthy of additional study are ranked low and those ideas that represent the greatest potential are ranked high, then developed further.  A weighted evaluation is applied in some cases to account for impacts other than costs.  Ideally, the team would like to develop all ideas, but time constraints usually limit the number that can be prepared.  The ideas ranked highest by the team are selected for further review with members of the design team for their input.

Development Phase

During the development phase many of the ideas are expanded into workable solutions.  This development consists of the recommended design, estimated initial and life cycle cost comparisons, and a descriptive evaluation of the advantages and disadvantages of the proposed recommendations.  It is important that the VM team convey the concept of their recommendation to the original design team.  Therefore, each recommendation is prepared with a brief narrative to compare the original design method to the proposed changes.  Sketches and design calculations, where appropriate, are also prepared in this part of the study.