Presenter Muhammad Adam Bin Abd Kadir (MA 102003) Supervisor Assoc. Prof. Dr.

Aminah Md Yusof Panel Assoc. Prof Aziruddin Resang (C) Dr. Shaiful Amri Assoc. Prof. Dr. Ir. Rosli Mohamad Zin

Now construction industry become more complex and challenges. To faced this situation, Value management (VM) is a practice has been used in construction project which is a structured, organized team approach to identifying the functions of a project, product, or service with recognized techniques and providing the necessary functions to meet the required performance at the lowest overall cost (SAVE International 2001). To measure the performance of VM implementation the performance indicator is needed to quantify the efficiency and / or effectiveness of that implementation. Therefore, the Key Performance Indicators (KPIs) are the core elements of a performance measurement for VM
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This research seeks to develop the Key Performance Indicators (KPIs) for implementation VM in Malaysian construction project. Which a questionnaire survey will be conducted to solicit opinions from the Malaysian experienced in practising the VM in Malaysian construction project regarding to the potential indicators that developed by the authors in previous research. Based on the data gathered from the survey, a scale rating will be used to analyze the critical success factors (CSFs) and also analyze factor that hinder to implement the value management so that the KPIs can be develop.
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National Development Planning Committee of Malaysia has found the weakness on planning and implementation the project in Malaysian construction project which, it is lack of integration of work and tend to work individually Since 1986 VM is introduce in Malaysia, the implementation of VM has not yet widely practiced in Malaysia (Jaapar and Torrance 2005) Further study identify VM implementation still in infancy or early stage even though it is to provide a good platform for the consultants and the stakeholder to achieve value for money on proposed construction project (Jaapar & Torrance 2006)
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Implementation of Value Management in Malaysian Construction Project

A study conducted by Jaapar, Endut, Bari & Takim (2009) resulted 78% of the respondents knew about value management, but only 16% of them understood the value management term very well Factor hinder that successful implementation of VM (Arazi, Olanrewaju, Faris & Syahrin, 2010)

Lack of local guideline and info about VM Lack of knowledge and practice in VM Interruption to normal work schedule Too expensive to carryout VM Conflicting of objective by different parties Not suitable for low-cost project
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Implementation of Value Management in Malaysian Construction Project

Now the circular of VM implementation guideline already provided by the government. But is that enough to give success to the VM implementation in Malaysian construction project? Various alternative that has been made to disseminate information about the VM, but it is still not well known and understood by those involved in the construction. Why it is still occur? Implementation of VM will give the best value for the money. But how to measures the project that implement the VM is success or not?
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Implementation of Value Management in Malaysian Construction Project

The aim of this study is to evaluate the implementation of value management in Malaysian construction industry with particular references to selected project. In achieving this aim, the following objective should be identified:
1. 2. 3.

4.

To study the value management implementation in Malaysian construction industry To analyze the Critical Success Factors (CSFs) of value management implementation in Malaysia To analyze the factors hinder the implementation of value management in Malaysian construction industry To develop Key Performance Indicators (KPIs) for Value Management implementation in Malaysian construction project.
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Implementation of Value Management in Malaysian Construction Project

Exploration of Sources Problem Identification Title of Research Objective and Scope Data Collection Primary Data Interview Questionnaire Secondary Data Book Journal Article News Data Analysis Conclusion and Recommendation
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Definition of Value Management

Che Mat, M.M.(2004) defined Value Management as a rigorous, systematic and innovative methodology with multi disciplinary approach to achieve better value for projects, products, facilities and systems without sacrificing the required performance level. It is a creative way of working together in achieving client and stakeholders requirements.

Implementation of Value Management in Malaysian Construction Project

1. 2. 3.

4.

Promote systems thinking Establishing the customer needs Offer alternative proposal to component through VM Change Proposal (VMPC) but not compromising on the quality nor function Development of Staff which the team building is promoted during the VM study to generate the idea and make discussion in certain issues
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Implementation of Value Management in Malaysian Construction Project

5.

6.

7.

It is a process for improving relationships among those involved on a construction project to the benefit of all. It is a vehicle for change with generate as many ideas as possible and the creation of new an innovation methods To eliminate unnecessary costs without reducing reliability and saleability

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Five Step of VM Job Plan

Sources by: Value Management The Way Forward (Che Mat, 2010)

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Discussions with the project client prior to the actual workshop is very important so that each party to the study has a clear understanding of how and why a Value Management study is conducted and make known to them of their required input.

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Information Phase  Understanding the decisions that have influenced the development of the project design is crucial.  Designers are to present an oral overview of the project.  Function Analysis is established and in many instances Function Analysis System Techniques are developed.

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Speculation Phase  The information phase of Value Management study never ends as it keeps on adding as he study progresses. The VM team then accomplishes the creativity phase to generate as many ideas as possible. Judgement Phase  Those ideas that have potential for cost savings or improvements to the project are then developed further.
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Development Phase  The ideas that have been evaluated and selected earlier are expanded into workable solutions.  Alternative design sketches and illustrations are prepared whenever necessary.  The alternative proposal is estimated preferably its life cycle cost that includes not only initial cost but operation and maintenance during its economic life span.  Although each job plan phase has specific items that must be accomplished and specific cut off time and dates it does not mean that the job plan is not flexible.  It may be necessary, after receiving new information, to revert back to the earlier phases of the job plan to gain information or brainstorm new ideas. Recommendation and Reporting Phase  The functions of the recommendation and reporting phase are to sell recommendations, Incite action and convey information.

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The report need to be prepared after VM workshop to capturing the information gathered, ideas that have been generated, evaluated and developed in the VM Workshop.  Action plan should be content in the Value Management Report.


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Has been issued on 29 December 2009 by Economic Planning Units, Prime Ministers Department. This circular for government and agencies implement the VM in government planning and project to get the value for money. Implemented for project cost at RM50m and above Also encouraged to project cost under RM50m if its not interference with execution of the project Economic Planning Units can assign any project that they think is needed to implement the VM

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VM Procedure: Pre-Study Phase: Gather information, obtains related documents and drawings, identify the skills that required to prepare before starting the analysis phase. Analysis Phase: All the stakeholder with the expertise and / or experience in field related to the project to make the analysis of the project through workshop. Monitoring Phases: Periodically monitoring the implementation of VM action plan.
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1. 2.

3.

4.

The clear understanding about how the VM it implementing in Malaysian construction project. The CSFs will be found to be bases on the development the KPIs for VM implementation in Malaysia construction project. The main factors hinder the implementation of value management in Malaysian construction project will be found and be as a guide to further improvement The KPIs will be developed for VM implementation in Malaysian construction project as measurement to measures the performance of the VM implementation so that the best value can be achieve in future construction project.
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Implementation of Value Management in Malaysian Construction Project

ACTIVITY Research Proposal Preparation Data Collection Interview Questiannaires Preparation Questionnaires Distribution Collecting Questionnaires Literature Riview Analysis Data Conclusion and Recommendation Slide Preparation & Research Presentation Writing Thesis

Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12

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THANK YOU