Soft Value Management


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Soft Value Management

  1. 1. Soft Value Management1 Wali Memon Wali Memon
  2. 2. Structure of this Presentation Hard and Soft Problem situations Development of definitions of VA/VE/VM Key Learnings from our action-research Notions of value Some applications2 Wali Memon
  3. 3. Differentiating “Hard” and “Soft” Situations A very “soft” A very “hard” problem problem What can we How do we do about repair this situations such flat tyre? as the Middle3 East ? Wali Memon © Roy Barton 2000
  4. 4. “Hard” Problem Situtaions Clearly defined problem boundary Design and construct a new bridgeNote: The “What” has already been decided. The problem is 4 Wali Memon “How to”. © Roy Barton 2000
  5. 5. Soft Problem Situations “Soft”, fuzzy problem-boundaries The problem is Allowing traffic to “What” do cross a river, we do? taking into account environmental, heritage, cultural and social issues5 Wali Memon
  6. 6. Traditional Value Analysis and Value Engineering VA and VE have tended to addresses “hard” problem situations6 Wali Memon
  7. 7. 7 Wali Memon
  8. 8. Setting up a road project Road-user Organisation Utility agencies Infrastructure Funders Providers Community Other users Road Construction designers authority Environment agencies Traffic planners Urban Road planners Government Authority8 Wali Memon
  9. 9. Setting up a hospital project Patients Health professionals Infrastructure Funders Providers Hospital CEO Other users Designers Construction authority Visitors Health planners Health Hospital Board Government Authority9 Wali Memon
  10. 10. Development of VA/VE/VM Definitions10 Wali Memon
  11. 11. Miles’ VA Definition Value Analysis is a disciplined action system, attuned to one specific need: accomplishing the functions that the customer needs and wants... at the lowest cost.11 Wali Memon
  12. 12. Value Management Definition - AS/NZS 4183-1994 A structured and analytical process which seeks to achieve value for money by providing all the necessary functions at the lowest total cost consistent with required levels of quality and performance12 Wali Memon
  13. 13. Value Management Value Management is a structured, facilitated, process in which decision- makers, stakeholders, technical specialists and others work collaboratively to bring about value- based outcomes in systems, processes, products and services Barton (2000)13 Wali Memon
  14. 14. Some Key Learnings during the action- research • Need to focus on strategic and conceptual planning phases of projects • Need for integrated rather than co- ordinated outcomes from projects • Need for larger groups as for strategic and conceptual planning14 Wali Memon
  15. 15. Some Key Learnings during the action- research • Need for a more inclusive approach to value definition • Recognition of the inadequacy of v=f/c in defining value • Recognition of soft systems thinking • Shift from earlier to even earlier15 Wali Memon
  16. 16. Some Key Learnings during the action- research • Use of co-facilitators • Need for a consensus-seeking methodology • Formal (mathematical) methods are generally inappropriate16 Wali Memon
  17. 17. Key words in the current state of play • Integration • Concensus • Ownership • Group decisions • Learning • Shared understanding • Process-content facilitation17 Wali Memon
  18. 18. Soft Value Management Focus on team/project learning a large number of stakeholders (20-30) Creating a participatory environment Effective facilitation is pivotal to this approach18 Wali Memon
  19. 19. The notion of Value19 Wali Memon
  20. 20. Conventional VA/VE view of value V=F/C20 Wali Memon
  21. 21. Value for money relationshipValue for money : Function Cost 21 Wali Memon
  22. 22. What is Value The value of an item must not be based on its price but rather on the utility which it yields Bernoulli D. (1738)22 Wali Memon
  23. 23. What is Value Usefulness (utility or function)23 Wali Memon
  24. 24. What is value Benefit Usefulness24 Wali Memon
  25. 25. What is value Benefit Usefulness Importance25 Wali Memon
  26. 26. What is value Benefit Usefulness Importance26 Wali Memon
  27. 27. What is value Benefit Usefulness Importance KK Women and Childrens hospital,27 Wali Memon Singapore
  28. 28. What is value Benefit Usefulness Importance Pacific Motorway Interchange,28 Wali Memon Queensland
  29. 29. What is value Benefit Usefulness Importance Queensland Main Roads Intelligent29 Traffic System Wali Memon (ITS)
  30. 30. 30 Wali Memon
  31. 31. What is Value An ascribed attribute or property of something which is based on perceived usefulness, importance and benefit.31 Wali Memon
  32. 32. Value for Money Benefit Usefulness Importance $32 Wali Memon
  33. 33. Value for Resources Used or Exchanged Resources Benefit Usefulness Importance33 Wali Memon
  34. 34. Value (for money) - another view Usefulness $ Benefit Importance Worth34 Wali Memon
  35. 35. Key Value Questions Is it Useful? Is it beneficial? Is it important? Is it worth it?35 Wali Memon © Roy Barton 2000
  36. 36. Key Value Question Are these outcomes worth these resources?36 Wali Memon
  37. 37. Examples of Soft Value Management Studies Route selection, National Hwy NSW TAFE Environmental Strategic Plan Design brief for a new hospital, Singapore Asset strategy for sports facilities, ACT37 Wali Memon