The Workshop Approach

The Value Chain The value chain is influenced by the value systems of the organisations. A value chain is formed when the understanding of value held by those performing sequential activities is aligned, with each each activity adding more value to it.  By aligning the understanding of value, gaps in workflow and rework are avoided which make the chain efficient.  An aligned project value chain must mirror the changing nature of work performed as the project progresses. If this is not achieved, the perceptions of value associated with the different construction stages will become disconnected.  A building design that was perceived to offer value at one stage may not be perceived to offer value at the next which could result in rework/delays and potentially dissatisfied stakeholders or supply chain members . The understanding of value at a strategic levels developed in early VM workshops must be translated into the tactical project and subsequently, into those operating the building.  At strategic level of an organisation, the construction project must reflect corporate values, which will be implied by the business's mission statement. The corporate value must be aligned with the business value by clarifying how the the project will interact with other parts of the procuring client's business. The project value chain is then assembled to map business value into the various views of value held at each stage of the tactical construction project.  Achieving operational value (i.e. project fulfils its required role) requires all stakeholders' expectations of value to be translated through the project value chain to this final outcome.  Dual VM Workshop RolesPeriodic VM workshops must maintain an evolving understanding of value through the value chain by performing two roles: They must provide a forum so that stakeholders can update their common understanding of value in response to evolving project work and any changes in project context. They must convey the updated understanding of value to the guide those performing subsequent value chain activities. The Need for the Workshop Forum Workshops establish the social setting required for stakeholders to communicate to socially construct common understanding. Sufficient understanding of value cannot be gained by other communication methods other than direct, face to face communication.  Workshops provide a forum for stakeholders to use analytical tools under the guidance of a facilitator to develop a socially constructed understanding of value.  Workshop tools are designed to stimulate this debate to reveal the consequences of stakeholders' underlying values. Workshops are pivotal for making compromises and reaching a satisficing solution.  Workshops establish equality of stakeholder views by the facilitator ensuring all are equally engaged and contribute to the developing understanding.  Workshops establish a socially 'safe' space to explore idea & contribute thoughts without the fear of a view being judged or considered wrong. Achieving this situation as a facilitator is essentially for the social construction of understanding.  Value Management Study Styles Study Style 1 - Value System Audit (independent value manager) Study Style 2 - Value System Reconfiguration (independent value manager) Study Style 3 - Value System Audit (independent value management team of specialists) Study Style 4 - Value System Audit and Reconfiguration (independent value management team of specialists) Study Style 1 - Value System Audit Used to understand the nature of value to the client body. Undertaken by an independent value manager Helps project stakeholders understand the problem. Does not emphasise solving the problem. Stakeholders' motivation moves project onwards. Construction project confirmation and formation. Study Style 2 - Value System Reconfiguration Used to verify and challenge the project value system. Undertaken by an independent value manager Facilitator helps stakeholders in challenging assumptions about value systems and likely solutions. Project briefing leads to concept design verification. Stage 3 - Value System Audit Used to confirm value system compliance. Undertaken by an independent value management team of specialists. A rare format in the UK. Validates technical system design. Step 4 - Value System Audit and Reconfiguration Used to audit and redirect technical system compliance.  Undertaken by an independent value management team of specialists. External team of specialists address technical issues. Applied value engineering would us an internal team. Used to respond to problems in technical system design. Value Creation Opportunities for value creation decrease as a project progresses from design brief stage through construction to occupancy. Cost of design changes increases as projects progress. Design and build contracts limit the ability to reflect client values throughout the design.

System Sequencing & Project Crossover Technical systems are usually designed in a set order. Independent systems (that don't rely on another) can be resequenced. If independent, a technical system the client particularly cares about can be designed earlier. Independent systems also reach a crossover point beyond which the cost of improving the design of that system exceeds the benefits of doing so.  If designed before the crossover of the whole building, they can influence subsequent systems. If the system is independent, value can continue to be added for that system even after the crossover point for the whole building. The principle supports the ongoing application of value management in the later stages of a construction project by reducing the scope of the problem from the whole project to systems within the project and the stakeholders affected by the system. In these later stages, value management turns into value engineering as the nature of the problems become more technical.  The Problem of Design Fixity Design fixity usually relates to the whole building but can exist within technical systems. As a project progresses, the scope to make decisions and impact the value decrease.  At a certain point in the project, the benefit of responding to a new insight that relates to the whole project, no longer exceeds the cost of doing so and as such cannot be implemented.  When considered within the scope of a single system, the design fixity crossover for that system can happen after the crossover for whole building. Value can still be considered within the design of a building system even after it's not sensible to do so for the whole building.

VM workshops occur at different stages of a project and perform different roles. Each examines value from a different perspective but maintains the continuity in the understanding of value through the value chain. VM workshops inform decision making, design evaluation and technical problems within the project. The problem of design fixity as the project progresses causes the scope of each VM study to gradually reduce as the costs for change increasingly exceed the benefits of it.  Pre Project Workshops - VM0 VM0 - Functional Examination of Strategy Occurs before a building has been identified as a potential way to advance the client's business strategy.  Assesses the procuring client's strategy to determine whether a construction project is an appropriate way forward. Does not assume that a construction project is needed. Uses function analysis to identify the functional needs of the client in terms of business development. The resulting insight will inform the procuring client's decision as to whether constructing a building is required to facilitate the organisations functions.  If a decision is made to construct a building, a business case will need to be prepared with a more detailed rationale for exploring the possibility of construction a building to enable more informed decision to be made.  If a decision is made to construct the building, future VM workshops map directly into the RIBA Plan of Work. Early Value Management Workshops - VM1 VM1: Happens at the Pre-Briefing Stage Addresses the concept of the whole building. Engages stakeholders of the construction project and the resulting building. Often be the first time these stockholders meet which can help as they will potentially have an 'open mind'. Purpose: Informs the architect's briefing activities, the conceptual design development and the feasibility study which informs the procuring clients final decision to build. Establishes the basic project success criteria using issue analysis. Elicits the client body's value system and the functional role of the building using functional analysis Early Value Management Workshops - VM2 VM2: Concept Design Evaluation Updates project understanding of project value in light of the stakeholder sense-making and any potential changes in project context. Evaluates the proposed concept design to confirm it reflects the clients values and performs required functionality.  The client's value system criteria will be revisited to determine if prioritisation has change. The function analysis and FAST Diagram will be reviewed to determine if it has changed.  VM2 verifies the concept and informs subsequent design development. Late VM Workshops & Applied Value Engineering - VM3 VM3: Technical Design Strategy Verification Verifies the scheme design and  the detailed design. Ensures that the design of elements and components will reflect the client's values. Ongoing design fixity prevents consideration of concepts and spaces.  Can assist with passing understanding of client value to those designing later technical systems. Late VM Workshops & Applied Value Engineering VM4: Final Design Critique Before Construction Referred to by Kelly et. al as structured cost studies. Often only performed if elemental or component problems are emerging (e.g. over budget) that could dissatisfy the client.  It is a formal instance of applied value engineering.  Applied Value Engineering occurs on an ad-hoc basis throughout the later stages of a project when problems arise.  Workshops involve fewer and more specialised stakeholders that are involved with the element/component discussed. Client stakeholders would be involved if problem is visible to them. Standard value management methods clarify the purpose of the system causing the problems to ease the finding of alternative solutions. Workshops may not use a facilitator but rely on the ability of a design team leader or package manager to lead the workshop. The workshop will likely take place on site or in an office rather than a neutral location The Benefits of Value Management WorkshopsDirect Benefits A better understanding of the project Value improvements and a better quality product/service. Programme enhancements and time-savings. Cost savings (capital and operational) Increased functionality Reduced risk Lower maintenance costs Enhanced focus Indirect Benefits General improvement of project management Team working Information sharing amongst the team resulting in an increased knowledge base for the participants. Shared goals. 'Buy in' to project by workshop participants.   

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