The document discusses how to select an optimum solution for cutting costs through a value management workshop. It outlines the agenda, rules, and process to be followed in the workshop, including defining value, performing a functional analysis, creating a value hierarchy to prioritize objectives, identifying options, and evaluating options through a weighted scoring system to determine the most promising option. The workshop is to be led by Mike Walker, a risk management consultant specializing in reducing business and project risks.

1. Cutting costs – how to select an optimum solution Workshop Session E2 Mike Walker FIRM FRICS Principal - redamber consulting Date: Tuesday 22 March 2011

4. Drivers of risk management – (a reminder) Source: A Structured Approach to Enterprise Risk Management (ERM) and the requirements of ISO 31000 IRM, AIRMIC, Alarm 2009

9. What is value? Can be described as:- The reliable performance of what is required to perform a function, at the optimum overall resource expenditure. or: (Function) WHAT YOU GET (Resource) WHAT YOU PAY eg. - a penthouse or a prefab? - a mont blanc pen or a plain pencil?

12. Value hierarchy example showing weightings Space per person Internal environmental conditions Internal layout Staff car parking Accommodate different uses Provision for future expansion Environmental impact Visual impact externally Visual impact internally Flexibility for short term changes Adequacy of storage space Visibility of entrance Waiting area size Visitors car parking Building maintenance and repair Energy costs Security, cleaning etc Good staff accommodation (0.35) Flexible for future change (0.20) Good design impact (0.15) Efficient in use (0.12) Accessible for customers (0.10) Low maintenance costs (0.08) Accommodate the department in one location etc

15. Tel: +44(0)20 7709 9808 Fax: +44(0)20 7709 0716 The Institute of Risk Management 6 Lloyd’s Avenue London EC3N 3AX United Kingdom