Value improving practices
Background
The development and implementation of major projects makes increasing use of a range of formal review and analytical processes that have been shown to improve the chances of achieving successful outcomes. These are generally referred to as Value Improving Practices or VIPs. They are most effective when implemented during the early stages of a project, usually as part of the Front End Loading (FEL) activity.
Broadleaf offers support for several of the commonly recognised VIPs as well as:
- Additional processes for review and analysis during project development
- Concept generation and review prior to the formulation of a business case
- Overall business investment opportunity management processes.
This note describes the support Broadleaf can offer in these areas and provides an indication of the approach we commonly recommend to implementing VIPs that will enhance business outcomes. In addition to offering proven methods and tools, Broadleaf’s team of senior personnel offer high grade facilitation and process management skills that can be applied to a range of requirements.
Basic principles
While the details vary with the characteristics of particular projects and the nature of the reviews or analysis processes being used, there are some basic principles that underpin the quality and value of VIPs and related exercises. These include the following:
Table 1: Principles
Timing |
Undertake value improvement activities at times that balance the availability of relevant information and the need to ensure there is sufficient flexibility and time for the outcomes to be used. The timing may also be driven by the need to succeed at the next project approval stage. |
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Process |
Use a well-prepared and well-structured process, taking account of any relevant standards, to ensure that all facets of the project are covered with a balanced application of effort and time to each one. |
Facilitation |
Use an independent facilitator to enhance the rigour and integrity of the process. This also allows participants to devote their energy towards the content of the exercise while the process is managed by the facilitator. |
Participation |
Engage the people required to ensure comprehensive coverage of all relevant areas of the project, from the business vision to engineering, implementation and on into operation, while promoting team integration and providing a viable group for a workshop or other form of interaction. |
Recording |
Ensure the conduct and outcomes of the process are recorded comprehensively. |
Action |
Transfer the outcomes effectively into project design and implementation in a formal action plan, with specified task owners and timings. |
VIPs for enhancing business outcomes
An overview of the VIPs and other processes for which we offer support is set out in Table 2.
The timing of these exercises can vary. If the optimum point in a project has passed without an appropriate review or analysis being conducted, value may still be gained by tailoring the approach to suit the stage of the project when the opportunity to do the review or analysis does arise. Figure 1 indicates what is likely to be the most appropriate timing for each of the processes outlined here.
Table 2: Value improving processes
Process |
Applications and outcomes |
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Strategic opportunity identification (project framing) |
|
Strategic option modelling |
|
Risk assessment |
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Quantitative risk modelling |
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Technology selection |
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Process simplification |
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Waste minimisation |
|
Constructability review |
|
Value engineering and value management |
|
Figure 1: When to apply each VIP
Our strong facilitation skills are widely applicable and from time to time we are called upon to assist in structuring and facilitating a process to meet special requirements. We are always pleased to explore such requirements in addition to those set out here. We have a track record of providing support that delivers sufficient rigour to ensure the integrity of the outcome, capitalising on the experience and creative input of the participants without placing an onerous burden on them.