1.
Value Management within
Highways England
Jason Hones
Head of Programme Strategy and Development
11th April 2019

2.
Highways England
 Who we are
Departme
nt for
Transport
Strategy
+ Plans
Major
Projects
Operation
s
Directorat
e
Highways
England
Ltd
National Infrastructure Programme
Complex Infrastructure Programme
Regional Investment Programme
Smart Motorways Programme

3.
3
The SRN is a critical part of the UK economic
infrastructure
Connects the nation Drives the economySupports the wider transport network
Usage of SRN continues
to grow
9 in 10 people recognise the
importance of SRN to the
economy
4,300 miles of SRN
Source: Road Investment Strategy 2015-19 (DfT) & Updated figures from Transport
Statistics 2017

4.
Regional Investment Programme
Strategy
Head of
Strategy
Strategy
Team
Benefits
Management
Team
Value
Management
Team
Admin
Support

5.
“Value Management is concerned with improving and
sustaining a desirable balance between the wants and needs
of stakeholders and the resources needed to satisfy them.”
Institute of Value Management (IVM)
What is Value Management?
Value(i)
=
Function(
i)
Resourc
e

6.
Example of Value Management
Value is not “one size
fits all”
 What is the function of a watch?
– What must it do?
– What can it do?
– What does it look like?
 How much can you spend?
 Do you need a watch at all?

7.
Benefit and Value Management
• Benefit Management and Value Management are
closely intertwined. Benefits providing the
evidence for undertaking a project
Benefits +
Disbenefits
Resourc
es
Manpow
er
Money
Time
Risk
Custome
rs
Safety
Congesti
on
Economi
c
Value
Heritage
Landscape
Biodiversit
y
Environme
nt

8.
A303 Stonehenge

9.
Line of Sight
Project Objectives (examples)
Reduce Delay Reduce KSIs
Reduce community
severance
Improving reliability
Enabling
development
Highways England Strategic Outcomes
Encouraging
economic growth
Making the Network
Safer
Improving user
satisfaction
Helping cyclists,
walkers and other
vulnerable users
Delivering better
environmental
outcomes
Customer Department for
Transport
Regulators

10.
 Value Management and Value Engineering:
Value Management vs Value Engineering
– Value Management – the systematic and structured process aimed at delivering the
business and project objectives using minimal resources
– Value Planning - helps to identify which option delivers the best-fit to the objectives
– Value Engineering - helps to ensure the proposed solution delivers the objectives in
the most efficient manner (this can be lower cost, delivering to a specific timeline or
increasing functionality)
Value Management
Value Engineering
Strategy
Options
Identification
Options
selection
Design and
construction
Prep
Construction
and
Handover
Closeout
Value Planning
• How do we deliver VM?

11.
Planning for Value
Management

12.
Value Management Delivery Plan Tool
 Project Summary
– Bring together pertinent information to plan out which VM
interventions are most needed
 Project Assurance / Budget Data
 Project Complexity Data
 VM Delivery Plan
– What we will do as part of VM
– Record what we have done

13.
 Benefit Cost Ratio
– Assured and Emerging
 Value for Money Category
 Current Cost Estimate
– Outturn and P50
 Operational Plan Budget
 Automated feed from project performance
dashboards
Assurance / Budget Data

14.
 A scale to measure 8 x aspects of a project
– High complexity = project risks
– Requirement to reduce complexity
– Consistent application across HE
 Aligned to Risk Potential Assessment
categories (determines Independent
Assurance Review requirements through IPA)
Complexity Data

15.
Complexity
Initial
Planning
Option
Development
Option
selections
Detailed
Design
Construction
 Complexity
 Scoring scale 1 - 5
 Based on 8 categories
– Problem Definition
– Range of Solutions
– Technical Difficulty
– Third party investment
– Timescales
– Stakeholder
– Dependencies
– RIS Alignment

16.
Continuous Feedback Loop
The complexity
scoring informs
the requirements
for VM
interventions and
measures the
outcomes
Life cycle
stage
Complexity
Need for
interventio
ns
Delivery
Team
Plan for
interventio
ns

17.
Delivering Value Management

18.
Typical Support we Provide
Value Management
Value
Engineering
Strategy
Options
Identificati
on
Options
selection
Design
and
constructio
n Prep
Constructi
on and
Handover
Closeout
Define
problem
Define
objectives
(needs and
wants)
Identify
solution and
align with
objectives
Identify how
to deliver
efficiently
Iteratively
solve
problems
during
delivery
Learn Lessons
Handover
Acceptance
Objectives
tree
Options
sifting
Value
Engineering
registers
Specific
design
solutions –
contractor led
Lessons
learnt log
Value
Planning

19.
Pair Comparison to compare the objectives to align measure outcomes
–Used to prioritise the requirements across the stakeholder group
–Unique for each scheme and its circumstances
–Used to help with sifting of options with Value Assessment tool
Objective Prioritisation

20.
Used to sift out options in earlier stages of scheme
Can be scaled for decisions at later stages
Mapped to priorities and evidenced through Benefits
Management
Value Assessment Tool

21.
 A tool to collate value engineering ideas
 Can be used and shared to inform other
projects
Value Ideas Log

22.
Safety Moment
 Going away for Easter?
 Have you done your Safety Checks?

23.
Questions