Applying Value Management - Value Management Knowledge Share

Where can PML use VM techniques for clients who have lost their way?

What is Value Management?

A recognised framework for Business Improvement – BS EN 12973:200
Based on principles of defining and adding measurable value, focusing on objectives before solutions, and concentrating on function to enhance innovation.
Concerned with improving and sustaining a desirable balance between the wants and needs of stakeholders and the resources needed to satisfy them.
Reconciles differing priorities to deliver best value for all stakeholders.

Value = Function/Objective > Cost, i.e. Getting what you require > for what you will pay

How does it Achieve This?
The Value Management Work Plan

Stage 1 Planning
The project plan is developed and any teams are chosen
Stage 2 Information Gathering
Key information on the product/service to be examined (costs, usage, staffing etc.)
Stage 3 Analysis
Where functions, processes and costs of the service are analysed
Stage 4 Innovation
A small team, including users, ‘brainstorm’ better ways of doing things
Stage 5 Evaluation
The best ideas are evaluated
Stage 6 Reporting
Management approval is sought and any required staff consultation performed
Stage 7 Implementation
Putting new methods into practice
Stage 8 Follow-up
Project implementation is reviewed regularly against a plan

Stage 3 Analysis

“Value Management is like a bag of golf clubs”

Analysis Tools
Function Diagrams
PEST/LE
SWOT
Flowcharting and Process Mapping
Ratio Analysis
The 5 Why’s
Ishikawa or Fishbone (Cause and Effect Diagrams)
Others ….

Stage 4 Innovation

Practical Exercise

You have 2 minutes to write down as many uses you can think of for a penny – be uninhibited, go for as many as you can, it doesn’t matter if they seem silly!

Findings

Well facilitated teams tend to generate many more ideas than even the most creative individual
Quantity can result in quality when people ‘spark’ of each other
Gains stakeholder engagement from inception
Illustrates differing viewpoints of what the objectives might be and how value can be delivered

Practical Exercise

Your client is a Newsagents and they are struggling to compete with the local Tesco that has moved into the area. Create a Function Diagram.