Value Management (VM) is a rigorous, systematic effort to improve the value and optimise the cost of projects, facilities, system and procedures. VM generates cost improvements without sacrificing the needed performance levels in achieving client’s and stakeholder’s requirements. It is a style of management particularly dedicated to motivating people, developing skills and promoting synergies and innovation, with the aim of maximising the overall performance of an organisation.
Value management will ensure every ringgit that spent comes with optimised value and reduced wastage. Indirectly, it will impose cost control and saving without compromising the performance level of contractors.
Through value management approach, Malaysia Airports managed to achieve savings of RM62 million or 28% from projects worth RM232 million in 2008, RM33 million or 10% from projects worth RM339 million in 2009, and RM51 million or 17% from projects worth RM303 million in 2010. Malaysia Airports has also applied value management for the on-going construction of KLIA2, where it has managed to reduce an estimated RM1.5 billion. The reduction is a testimony of the value management approach that is able to define and rationalise functions, needs and requirements for each project.
Malaysia Airports is the first Government Link Company (GLC) to produce documented guidelines towards optimising value for all its projects. The manual outlines the value management methodology for reference and application in procurement, system and procedures of internal business process in line with Finance Limit of Authority (FLOA) and Procurement Policies, Procedures & Guidelines (3Ps).
Value Management Manual