University of Twente Student Theses


Impact of Value Management on defining the project scope in the early stages of infrastructure development projects

Konings, S. (2018) Impact of Value Management on defining the project scope in the early stages of infrastructure development projects.

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Abstract:Value Management (VM) is a systematic process to optimize value. Value is defined as the balance between required functionality and corresponding costs. The appropriate balance is determined in a workshop setting with a multidisciplinary team in which various stakeholders work together. The results of the VM workshop are recommendations for value optimizations. These value optimizations are only achieved when recommendations from the VM workshop reach and survive final decision-making, at highest management levels in an organisation. In the US merely 37% of VM recommendations in 2016 were accepted and applied. Rijkswaterstaat (RWS) (the executive organisation of the Dutch Ministry of Infrastructure and Water Management and one of the largest public clients in the Netherlands), applies VM frequently. One of the reasons to apply VM is to determine the scope of projects. Determining the scope is a refined issue for RWS, since the scope has to be articulated in such a way that it provides sufficient direction for development, while at the same time it provides design space for the contractor. Through design space the contractor can implement creative construction ideas and design optimizations. Although RWS applies VM regularly, it is not monitored to what extent VM workshop recommendations reach and survive formal decision-making at management level. Therefore, in this research it is examined to what extent VM recommendations that resulted from the VM workshop are included in formal decisions. This is done by carrying out a multiple case study in which it is studied how VM workshop recommendations are progressed through the different layers of the organisation. It turns out that despite VM workshop success and implementation of VM recommendations in the design process at project level, there is no guarantee that VM workshop recommendations are included in formal decision-making at management level. Formal decision-making is influenced by many factors, of which some have been identified in this study.
Item Type:Essay (Master)
Rijkswaterstaat Grote Projecten en Onderhoud
Faculty:ET: Engineering Technology
Subject:56 civil engineering
Programme:Construction Management and Engineering MSc (60337)
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