Publications
Please login to access member publications.
Not a member? Find out more about the benefits of joining.
Project / Business Management / Services > Business Analysis and Strategy
Strategic planning is used to set organizational goals and priorities. Maintaining the status quo is not a viable tactic for organizational survival. Rapid and strategy informed change is necessary for success. This presentation demonstrates how value management can be used to develop a strategy map for an organization. The use of function diagramming establishes the how and why behind the strategy map. By using elements of the VA job plan, your team can agree upon, develop and prioritize strategies and tactics.
TVO (Total Value of Ownership) is also defined and explained.
This presentation illustrates a holistic approach to planning and optimization for a variety undertakings. It uses a systematic, business-oriented process to inspire stakeholder confidence and supportable change proposals in remarkably short time.
Martyn Phillips has a long history of guiding program / project success and change management for many different types of endeavors around the globe. His presentation may challenge viewpoints of some practitioners and observers.
As demand increased significantly in the last year, a metal powder manufacturing company had to quickly optimize the production capacity of the plant. At first, more than 200 ideas were generated from intensive brainstorming sessions. About 35 of them were retained for cost evaluation and preliminary engineering. Since the capital expenditure for those projects ranged from $20K to $2M, it was needed to identify those which had the highest gain to cost ratio although the expected returns could not be quantified with certitude.
By combining Value Engineering and the Paired Comparison Matrix techniques it was possible to identify projects that had a significant impact for the plant as well as meeting budget constraints. The scope of work has been approved, some plant modifications have been implemented and detailed engineering initiated for more complex issues.
The presentation will demonstrate the necessity of setting things up right from the outset in order to provide clear articulation of value priorities and avoid the destruction of value through avoidable mishaps.
The methods contained in MoV have been used in the health sector and other complex situations facing hard and soft issues.
Learning points:
The role of Managing Value in improving programme and project performance
How to set up programmes and projects right from the outset
The relationship of MoV to other commonly used techniques and processes
Case studies to demonstrate how the benefits of using MoV can be delivered
The key messages within MoV and the qualifications relating to it, in the context of other internationally available Value Management qualifications
Decisions, decisions, decisions. Regardless of what industry or sector you are in, there are no shortage of decisions to be made. Big and small. It often feels like a balancing act with so many factors to consider. When evaluating alternatives, one of the key ingredients in the decision making process is value. This presentation will share some examples of how Enbridge has been applying elements of the Value Methodology to various types of business decisions.
Presenter
Michael Tozer, P. Eng., VMA, Enbridge Pipelines Inc.
Mike Tozer is a Value Management Specialist and has been a member of Enbridge’s Value Management group since its creation in October 2016. In this role his primary focus has been on establishing a value management framework that can be sustainably integrated into the organization. To support this, Mike obtained his Value Methodology Associate (VMA) designation from SAVE International in 2017 and was elected to the Board of Directors of Value Analysis Canada in 2019. His career at Enbridge spans 18 years and three business units. He spent his first 10 years in Ontario at Enbridge Gas Distribution, progressively moving through positions in Integrity, Operations, Engineering and Project Execution. This was followed by a move to Alberta in 2013 where Mike has held various roles in Major Projects and Asset Performance. Mike is a licensed Professional Engineer in the Provinces of Alberta and Ontario and received a degree in Mechanical Engineering from the University of New Brunswick. He lives in Calgary with his wife and four children.
The VA/VE methodology has been used successfully for the past 70 years yet it is only being utilized in some business and government sectors, in North America. Traditionally VA/VE was used in the manufacturing sector but this methodology been proven to be successful in many environments including capital projects, business process and IT projects, in the public and private sectors.
It has always been a mystery to me that the VM methodology has remained largely a project-focused, problem-solving tool rather than an executive boardroom tool.
This presentation discusses how the Value Management can be utilized more effectively at the corporate level to assist in the decision making process in:
- Strategic planning
- Capital planning
- Human Resource planning
- Client satisfaction
- Risk Management
Many enterprises, either public or private, face huge project portfolios. Prioritizing these projects is not always easy. But it is important to identify which project will get financing and resources and which ones will have to wait or even be completely eliminated. Most often, these projects are so diversified that it’s hard to find a common thread that will be used to make choices.
Value of these projects, for the enterprise, will be the criteria used to compare projects. The presentation shows how to identify and measure value of the projects and how to use it to prioritize them. A case study example is used to illustrate the process.
The City of Calgary had identified a need to replace or renew some downtown fire stations. This presentation shows to asset managers the application of Value Management to develop a strategic asset management plan.
The Calgary Fire Department was faced with a critical decision: What needs to be done with Fire Stations 1 and 2 to maintain fire service readiness in the downtown core? The Department operates three fire stations in downtown core and two of the stations are approaching end of life. Should the stations be replaced? Should the stations be renovated, or combined? What about augmenting them with a new station on vacant land or integrated into other buildings? Lots of opportunities! Almost too many?
An innovative approach was used to address the fundamental question: value management. In doing so, the Department reset its perspective from just looking at the infrastructure needs of specific stations to a broader review of its overall fire service strategy in the downtown core. This also enabled consideration of a range of potential strategic and infrastructure opportunities, as well as other Citywide initiatives involving collaboration between and co-location of other City Departments.
This presentation provides an overview of the value process and presents several key strategies used by the City to explore the opportunities to maintain and enhance fire service in downtown Calgary.
The Value Methodology, the oldest, most complete process for identifying problems or improvement opportunities in products, processes or services, has not been adopted nor does it enjoy the visibility of the more popular management tools in today's competitive environment. Total Quality Management, Theory of Constraints, Quality Function Deployment, Design of Experiments, Design for Manufacturing/Assembly, TRIZ, Target Costing, Lean Manufacturing, Six Sigma, etc., are a few of the tools being employed by organizations to resolve problems and improve their bottom line. While these tools may work well within their focus, many lack the broad scope necessary to resolve the overall business concern.
This paper will provide a brief survey of these tools and how they relate to the Value Methodology Job Plan. In many instances the most beneficial management approach would be to employ the value methodology as an overarching approach to addressing management concerns and inserting the appropriate tool when conditions warrant.
Measuring and capturing results throughout business transformation is essential, but it’s not just about metrics and measurement. In KPMG’s experience, the achievement and sustainment of expenditure reductions and enterprise wide change is maximized when performance management is embedded in the transformation governance model. KPMG’s Value Management approach is designed to meet these critical requirements, leveraging global, collective insight (in the form of trends, value drivers, reference models, benchmarks, and leading practices) to accelerate and sustain business transformation.
- The translation of transformation actions into outcomes, qualitatively documented in the form of value models and quantitatively justified in a “value case”;
- The measurement and reporting of benefits starting with baseline measurements; and
- The incorporation of “value” into the program governance and decision-making (roles, accountabilities, scope, risks, mitigating actions).
Many organizations face a long list of projects ahead without an effective way to make decisions on which projects should receive resources. This study shows how detailed function analysis through the effective use of functional performance specification techniques in a workshop can be used to help a multi-divisional team work across business lines. The study established a number of key performance indicators that could be used to prioritize expenditure and workload resource decisions.
The area of application and scale of this case are somewhat unusual: how can four ministries and a shipping company optimise the utilization of their 12 sea vessels and reduce that number?,Design for Value model was used resulting in VE-workshops in which the fifty participants developed and agreed on how to reduce the number of ships while improving performance for their business and organizations.
Download Presentation
Unfortunately the full Value potential is not realised. To reach this potential, three aspects need to be addressed: 1) timing of the Value-interventions, 2) implementation of results and 3) a continuous focus on Value throughout the project-lifecycle, looking at a project from a business goal perspective.
The management of Value needs to be an integral part of the project. Therefore we introduce Value Control as an addition to the Value Management Framework. In this paper we will first explain the ProRail context, then describe the research-results and finally introduce our proposal for Value
Control.
VM is one of the most effective processes to help identify the needs and expectations of multiple stakeholders. Michel Thiry uses a Functional Performance Specification or Business Benefits Breakdown Structure technique to help business define their business needs in a systematic fashion. It is also an efficient group decision-making and problem-solving methodology that helps clarify a strategy and define the means to achieve it.
Michel expanded on his strategic value management overview with his keynote on Strategic Value Management.
A PMI paper on the business benefits of Strategic Value Management is available from PMI.
Information on the Functional Performance Specification Technique is available from VA Canada under VA in Depth.
The Ontario Ministry of Transportation is the leading government proponent for Value Engineering in Canada. The expanding use of and advocacy for Value Engineering by the Ontario Ministry of Transportation has occurred because Value Engineering meets 3 key needs:
1. Maximizes use of resources
2. Establishes common understand of business needs
3. Delivers Innovation
This paper will highlight how the Ontario Ministry of Transportation uses value management to achieve innovation in infrastructure projects, improve the effectiveness and efficiency of business processes, define the requirements of IT systems, generate organizational change, and develop innovative standards.
The presentation provides Lean practitioners information on Value Analysis and Function Analysis as a method to generate ideas in a Lean environment.