Optimizing Implementation of Value Management Processes for Capital Projects

Abstract

A variety of innovative management processes are increasingly being introduced into the capital facility projects, thereby causing a great concern about which to implement on a particular project among project stakeholders. It is essential to identify the most effective process because varying circumstances on each project determine the level of suitability. This paper details a new systematic approach to determining the best process from among the 44 value management processes (VMPs) that can proactively achieve the articulated 12 project value objectives (PVOs). Throughout this paper, identifying and quantifying the selection principles (e.g., targeted PVOs, timing of initiation, project characteristics, and relative impact), the detailed research methodology and the findings from industry survey and VMP expert input are also illustrated. A computerized tool, programmed by Visual Basic Application on MS Excel, is described, and its ongoing validation process is also discussed. As a first-ever research, this paper contributes to a growing area of research, not only by providing a comprehensive and structured knowledge on the subject of VMPs, but also by developing a new method to effectively select the most beneficial VMPs. From the industry perspective, the results of this study, specifically the computerized selection tool, facilitate the implementation of the VMPs on the construction industry and maximize the potential benefits to a particular project.