Site Content project value management

Objectives

The objectives of project value management are to:

• Maximise the Value of a project (or its elements) by minimising the cost of the achievement of the required functionality by the project
• Increase the likelihood of the achievement of the project and its packages’ objectives
• Improve project decision making by:

1. Identifying the functions of the project and packages and ensuring alignment of the functions.
2. Identifying project’s implementation and operation alternatives to reduce the cost and/ or improve the functions of the project
3. Maximising the value of the project by reducing cost and maintaining, or improving, the function of the project
4. Ensuring that the project conform to the Project Owner’s value system
5. Focusing the project teams on the project imperatives, namely, cost and function.

Process

The PVM process consists of the following steps

Define the Project Value System

- Identify, prioritise and quantitatively weight the Value Drivers for the project

Baseline the Value Index for the Project

- Quantify the project’s Value Rating in terms of the Value Drivers

- Project Value Index = Project Value Rating / Project Cost

Undertake Value Engineering workshops at specific stages in the project’s lifecycle

- Increase Value Index by increasing the Value Rating and/ or decreasing project cost

Monitor and report on the Project’s Value Management

- Implementation of Value Engineering Alternatives

- Changes in project parameters

- Risks that could impact on Value delivery