Value Management

Topics: Project management, Management, Dow Chemical Company Pages: 3 (644 words) Published: June 22, 2011
Student ID: 15672856
To realize the success of a project, the value must be attained through the core objectives and goals of the project to the stakeholders. This could be achieved by using the right processes throughout the project life cycle. VALUE MANAGEMENT

Value Management (VM) is a well structured or established process that is used for defining and maximizing value of money (OCG, 2007 p.3). It is applicable to all sort of projects regardless of being big or small and the duration and it runs throughout the project life cycle from the inception to completion. Its benefits have been found to be efficient and effective when an external facilitator being a consultant or contractor is appointed (CDG, 2010) PROCUREMENT PERFORMANCE

Procurement process looks at the activities that are required to have a product or a service from the seller to the final destination (buyer). It is a cycle process of analysis, planning, implementation and measurement (Knudsen, 1999). Thus the procurement performance looks at how effective and efficient these processes are carried out taking into consideration the cost effectiveness (Value of money) and its efficiency to the organisation. RELATIONSHIP BETWEEN VALUE MANAGEMENT AND PROCUREMENT PERFORMANCE There is a direct correlation that exits between value of money and procurement performance management in that the application of one is the resultant of the other. Value management and risk management methods in project management ensures ‘best value’ for performance based methods of procurement management which takes into account the whole life costing, meeting the project requirement for its intended use, ensuring change control methods and last but not the least not depending on the idea the lowest bid sellers (Sollish et. al., 2011). Achieving procurement performance and best value depend also on the supplier’s performance data which include but not the least,...
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