Stages of Issue Analysis

Step 1

Without knowing the issue categories, stakeholders individually brainstorm issues or concerns they have on the project.
The facilitator introduces the generic issue categories.
The facilitator asks the stakeholders which brainstormed issues relate to which categories.
The originating stakeholder is asked to explain each issue and provide further commentary upon it.
This rapidly shares information about the overall project context between stakeholders.

Step 2

After the discussion, stakeholders nominate the most critical issues to be addressed by their project.
Each stakeholder is given seven black sticky dots and three red sticky dots.
Stakeholders place their dots on the yellow sticky notes on the issues they think are mission critical (red dots) and the issues that are important (black dots).
Mission Critical issues are those that if they're not resolved, will cause the project to fail.
Important issues are those that the project must find a solution for.
After it is complete, the facilitator identifies the most critical issues which stakeholders are asked to discuss and raise any further concerns.

Eliciting the Client's Value System

Eliciting clients values is pivotal to value management as it underpins all other project activity.
Eliciting the client's value systems reveals the influence of the client's values on their preferences.
Helps stakeholders understand each other, the project complexity and the need for compromise.
Typically performed in the VM1 workshop.

The Client Value System

Value Management practitioners find most clients are concerned about the same basic factors: time, cost and quality
To help elicit the client's value system, Kelly et al. establish 9 basic components of what they term the client value system.
By exploring these components, stakeholders can negotiate a common understanding of required building functionality which if achieved, would aid in reaching a satisficing project outcome.
These components do not represent the client's value system as values remain tacit and intangible.
But the components are a useful guide to reveal the consequences of each stakeholders' values.

Kelly et. al.'s Generic Value System Criteria for the Pair-Wise Comparison:

Time
Capital Cost
Operating Cost
Environment
Exchange
Flexibility
Esteem
Comfort
Politics/popularity/community

Pair-Wise Comparison Process

To ensure all parts of the client's value system are considered, a pair-wise comparison is performed.
It is a systematic comparison to prioritise the generic issues/value criteria which will reflect stakeholders underlying values.
The generic value criteria are arranged into a matrix.
The facilitator explains the meaning of each criterion.
Selecting matrix cells in a random order, the facilitator asks the stakeholders to state which two criteria in the randomly selected pairing is more important to them and could potentially be satisfied at the expense of the other.
The process stimulates the stakeholder debate required to agree a satisficing solution.
The pair-wise comparison is systematically repeated for all cells in the matrix.

Clients Needs Vs. Clients Wants

A function analysis is undertaken to translate the client's value system into a statement of functions that the building must perform.
This aids in developing a solution that delivers the required functionality in a manner that reflects the client's values.
The functional requirements are evaluated to distinguish those that are needed agains those that are wanted.
This discussion enables stakeholders to determine which requirements could be sacrificed if project resources were unavailable.

Value in Lean Construction

Lean construction does not directly consider client's values.
It assumes that once the values have informed the concept design which has been agreed, the opportunity for further value lie in the efficiency of the production process by removing waste.
Lean accordingly defines value as the absence of waste, which is not the definition.
Lean construction views the supply chain as a 'value chain' through which customer value flows from one activity to the next.
It also recognised the value adding contribution made by each organisation along the chain.
The understanding of value held by those performing adjacent production processes should align if the process is to flow without waste and intrinsic value is to result.
This chain ensures a continued understanding of the client's expectations as the project progresses so the client is satisfied with the end result.
This is achieved by promoting a 'dual customer' model which emphasises that it is important to mindful of not only the client's values but of your own and those in the next stage of the value chain.
Organisations are expected to volunteer suggestions of improvement to process efficiency to continuously improve their own actions and their alignment with those dependent on their work.
This avoids the wasted resources in rework due to misaligned understandings of the clients expectations and resulting incompatibilities of how the following person/organisation in the value chain expected to receive work.

Lean Process Optimisation - Removing Gaps - Concerns the minimisation of rework.
Lean Process Optimisation - Avoiding Overlaps - Concerns the minimisation of waste.
Lean Process Optimisation - Aligning Interfaces - Concerns the internal customer.

THE WORKSHOP APPROACH

The Value Chain

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.
If this is not achieved, the perceptions of value associated with the different construction stages will become disconnected.
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.
Strategic corporate value must be aligned with the business which must then be translated into the various views of value held at each stage of the tactical 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 Roles

Periodic 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 and use analytical tools under the guidance of a facilitator to socially construct common understandings/values and reach a satisficing solution.
Sufficient understanding of value cannot be gained by other communication methods other than direct, face to face communication.
Workshop tools are designed to stimulate this debate to reveal the consequences of stakeholders' underlying values.
Effective workshop facilitation must establish a socially safe space where stakeholders are all equally engaged and contribute to the developing 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.

	Created by d.moran-10 over 10 years ago

Undergraduate Value Management & Engineering (Summary Notes) Note on Summary 1, created by d.moran-10 on 04/06/2014.