Transcript Title

VALUE MANAGEMENT
THE APPLICATION OF VM/VE FOR CAPITAL
EXPENDITURE PROJECTS FOR MAHB
17 – 18 DECEMBER 2008
PUTRA WORLD TRADE CENTRE (PWTC)
KUALA LUMPUR
By : Abdul Nasir Abdul Razak
General Manager
Planning & Development
Technical Services Division
PLANNING AND DEVELOPMENT
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The Outline Contents
• Introduction
• The Emerging of VM at MAHB
• Flow , Frameworks, CFT involvements
• Workshop
• Challenge & Overcome
• Results
• Sample of case study
• Conclusion – Moving Forward
PLANNING AND DEVELOPMENT
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MAHB’s VISION
WORLD CLASS AIRPORT BUSINESS
VM UNIT’s VISION
MANAGING COST-EFFECTIVE & OPTIMISATION
PROJECTS, FACILITIES, SYSTEM, PRODUCTS
AND PROCEDURES
PLANNING AND DEVELOPMENT
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Our View : What is a Value Management?
• Value Management is a rigorous, systematic effort to improve the value
and optimize the cost Projects, Facilities, Systems, Products and
Procedures.
• Value Management generates these cost improvements without
sacrificing the needed performance levels.
• Value Management can also make contributions to improve human factors,
Such as attitudes, creativity and teamwork.
PLANNING AND DEVELOPMENT
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WHY WE NEED THE VM?
Increase in Cost vs. Ability to Spend
• Operating and Capital Expenditure
–2005 – Budget RM 324 mil >> Ability to spend RM 148 mil
–2006 – Budget RM 483 mil >> Ability to spend RM 175 mil
–2007 – Budget RM 486 mil >> Ability to spend RM 245 mil
–2008 – Budget RM 448 mil >> Ability to spend ????
–
Target 20% savings through Value Management Initiative
VM to formulate a method of budgeting based on the ability
to spend
>> proper financial planning and efficient resource allocation
PLANNING AND DEVELOPMENT
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PLANNING &
DEVELOPMENT
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PLANNING & DEVELOPMENT – ORGANISATION CHART
PLANNING &
DEVELOPMENT
General
Manager
Project Management
Office
Airport Development
& Planning
Technical
Excellence
Airport Planning
Airport Standard
Design Management
Value Management
Construction Management
Knowledge
Management
Simulation
Excellence
Centre
Techno Economics
PLANNING AND DEVELOPMENT
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VM UNIT / SECRETARIAT ROLES
MAJOR SCOPE
VM TRAINING
Continuous VM
Improvement &
Competence
VM STUDIES
Formal Application
Of VM Methodology
In PASP Challenge
** PASP (Procurement Activities and System & Procedures)
PLANNING AND DEVELOPMENT
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Members : Training & Workshop Hours Record
Nos
Name
Unit / Division
Hours
Status of IVMM’s
Membership
Airport Standard
72
Member
Project Management Office
100
Member
1
Zainol bin Mohd Isa
2
Ahmad Fadzil bin Arshad
3
Norazah binti Attan
Value Management
124
Member
4
Syamsul Azuar Arshad
Value Management
179
Member
5
Noraziah binti Badaruddin
Value Management
171
Member
6
Enati binti Mohd Zahari
Procurement & Contract
60
Member
7
Khatijah binti Mat
Excellent Centre
48
Member
8
Noor Khasimah Mohd Sidek
Excellent Centre
64
Member
9
Nor Azlina binti Mohd Isa
Airport Planning
16
Member
10
Zaiton Hayati binti Muda
Quality Management
16
Member
11
Md Azmi bin Baba
Value Management
132
Member
12
Nabillah Zolifah binti Zolkifli
Commercial Services
16
Associate Member
13
Mohd Fauzi bin Abdul Hamid
Excellent Centre
24
Associate Member
14
Mohamed Ramlan bin Rafie
Procurement & Contract
8
Associate Member
15
Zainuddin bin Ismail
Procurement & Contract
64
Associate Member
16
Mohammad Muttagin bin Rapie
Simulation
8
Associate Member
17
Mohd Ismail bin Kunjumon
Knowledge Management
8
Associate Member
PLANNING AND DEVELOPMENT
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VM AS A STRUCTURED PROCESS
Thought Processes
Analytical
1 - Analyse information
3 - Organise Functions
5 - Evaluate Alternatives
7 - Appraise Options
Creative
2 - Brainstorm Functions
4 - Generate Ideas for
Alternatives
6 - Develop Proposals
8 - Recommend Solutions
PLANNING AND DEVELOPMENT
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WHEN ?
VM interventions should be undertaken when:
1.
2.
Key decisions need to be made
Conflicts or problems need to be resolved
3.
Consensus needs to be achieved
4.
Team building is required
5.
Cost or Time overruns need to be addressed
6.
Other identified benefits need to be secured
PLANNING AND DEVELOPMENT
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VALUE MANAGEMENT : HOW?
VM Awareness,
Seminar &
Familiarization
2007
(1st Year)
Planning
(Zone by Zone)
Central Region –
MATC, KLIA
Penang Airport
On Aug 2007
North Region
South Region
Central Region
MoU with Pejabat
Harta Bina, UTM
Sabah
Sarawak
PLANNING AND DEVELOPMENT
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VALUE MANAGEMENT INITIATIVE
2008
(2nd Year)
Cross Functional Team
TMO Initiative
• Top Management buy the
Idea & initiative that the
VM as a tools of cost savings
& optimization elements
• Part of Key Performance
Index (KPI)
Objective : To achieve 20%
Saving from CAPEX (selected)
i.e Project more RM500K
Multi Discipline
- Members
VM/VE Manual
For MAHB & Groups
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MAHB – VALUE MANAGEMENT MANUAL’s COVER
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BACKGROUND OF GLC TRANSFORMATION PROGRAMME
1. GLC Transformation Programme was launched in May 2004
2. The main objective is to transform GLCs into high-performing entities
3. Three key principles govern the GLC Transformation Programme :
* Programme is part of the larger national development strategies
* Programme is focused on enhancing performance at the GLC’s
* Programme takes full cognizance of matters relating to
governance, shareholder value and stakeholder management.
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Implementation of 6 Colour Books in the Transformation Programme
Key Focus Areas
Profitability
Strategic Initiatives
• Increase concession income by improving
GLC Transformation
Initiatives - (Colour books)
• Optimising capital management
positioning, product mix and space
utilisation
practices (addressed after the
Financial Restructuring) Purple Book
• Develop value proposition for all Malaysia
ROE
Airports and market intensively
• Update and implement airport and land
Regional
Airports
development masterplan
•Reengineer
processes
and
• Centralise
Procurement
in line with
Red
Book
review
costs to be more efficient
Efficiency
Service Level
People
Development
• Enhancing operational improvement
(Yellow Book )
• Reviewing and revamping
procurement
Red Book
• Manage stakeholders proactively
• Improving regulatory environment
• Enhance capabilities and leadership
• Strengthening directors’ capabilities
qualities
•
•
Source: Ethos
Analysis
PLANNING
AND DEVELOPMENT
Green Book
Managing and developing leaders
and other human capital Orange Book
Intensifying performance
management practices Blue Book
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CROSS DISCIPLINARY TEAM
Varies Ideas
Distinct Perspectives
Comprehensive Approach
Shared Vision
Consensus
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VALUE MANAGEMENT METHODOLOGY & TECHNIQUES
Budget Owner
Rep.
VM JOB PLAN
QS/Estimator
OUTCOME
Airport
Planner
Airport
Standard
VM PROCESS
RECOMMENDATION
Commercial
Services
Finance
Services
Procurement
& Contract
IMPLEMENTATION
Etc
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PROCESS FLOW OF VM
Divisional
Directive
Preparation Budget
By Unit / Division
Budget Owner
GM / HEAD
Not Approved
Budget Challenge Committee
VMC
Approving Budget Authority
VMAC
Capital Expenditure List
Before Issuance of Form A (2)
Sole Proprietor (1)
Tendering & Evaluation
& Approval
Award
VMC = VM Committee VMAC = VM Approval Committee
(1)
= VM may be applied during negotiation stage for Sole Proprietor Project
(2)
= Form A refer to MAHB 3P’s
PLANNING AND DEVELOPMENT
BUDGET OWNER
VMC
PCD &
BUDGET OWNER
PCD & PMO
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MAHB’s MANAGEMENT BUDGETARY
POLICIES & OBJECTIVES
VM POLICY
Consistent with and contributes to
Other Policies
VM PROGRAMME
Managed and Coordinated by
VM Unit
VM TRAINING
Continuous VM
Improvement &
Competence
PLANNING AND DEVELOPMENT
VM STUDIES
Formal application
Of VM Methodology
In CAPEX Challenge
VM METHODS AND TOOLS
Application of Appropriate Techniques
FEEDBACK FOR CONTINUOUS IMPROVEMENT
To be gathered by VM Unit
VALUE CULTURE
Towards delivering better
Value of Projects, System, Products & Procedures
THE VALUE MANAGEMENT FRAMEWORK
VM / VE STUDY RESULTS
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CROSS DISCIPLINARY TEAM
“Participants selection & stakeholder
involvement is the key to SUCCESS”
Cross Functional Team:
•
•
•
•
•
•
•
•
•
•
•
Airport Planner
Airport Operation
Quantity Surveyor
Risk Management
Procurement and Contract
Airport Engineering i.e BHS, PLB, Infra
Finance Management
Human Resources
Outside Consultants
Project Management
Other stakeholders i.e receptionist
PLANNING AND DEVELOPMENT
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MD’s APPROVAL – VM INITIATIVE
PLANNING AND DEVELOPMENT
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PRE-STUDY
PROJECTS STARTS
WEEK BEFORE
STUDY
CFT/VM Unit inform the Budget Owner the intention to hold VM study at their time appointments
To collect all data / info / drawings / etc
VALUE STUDY
Monday Morning - Phase 1 (Information)
Client and design team presents the scope of works to VM Team
Monday Afternoon - Phase 2 (Creativity)
Brainstorming session to search for alternatives
Tuesday Morning - Creativity continues
Tuesday Afternoon - Phase 3 (Evaluation)
Wednesday - Phase 4 (Development)
Ideas from Phase 3 developed into feasible costed technical alternatives
Thursday - Development continues
Friday Morning
Selection of optimum technical alternatives
Friday Afternoon - Phase 5 (Presentation)
Above alternatives presented to Client and design team, VM Team disperse
POST-STUDY
NEXT WEEK
LATER
CFT/VM Unit prepares detailed reports and sends to budget owner
Phase 6 (Feedback & Action Plan) CFT/VM Unit informed of ideas put into practical
DESIGN
CONTINUES
PLANNING AND DEVELOPMENT
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CHALLENGES IN IMPLEMENTING VM & TO OVERCOME
ROADBLOCKS
•The “I have no time “ Syndrome
• Change of Working Culture
• New barrier on their work
• “ Cut Cost “ perception
• There are not ready for implement the new tasks
• CFT tied with their core job responsibilities
• In initial stage, it is hard to get management involvement
in the workshop
OVERCOME
• More awareness session
• Knowledge Sharing Session
• KPI Setting – Value Added
• Recognition – i.e IVMM’s Membership
•Workshop & Brainstorm session at hotel /
resort
PLANNING AND DEVELOPMENT
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RESULTS : 2008
MONETARY SAVINGS BY VM INITIATIVES
70
60.8
60
50
45
40
30
20
10
0
1
Actual : Cost Saving of RM 60.8 Million
Target : Cost Saving of RM 45 Million
PLANNING AND DEVELOPMENT
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VM/VE CASE STUDIES
Project
Retail Optimization at KLIA = Project Brief
• Increase of Commercial Revenue from 30% - 50%
• To increase amount of spending per passenger
• Limit the credit risk borne by the management of KLIA
• Maximize the retail space
• Improve retail placement to maximize customer penetration rate
• Improve product placement to maximize sales
• Improve retail management
•
VM studies was commission to achieved the following objective:
To optimization of space inline with cost
Saving: RM 8,651,874.00
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ROP AT SATELLITE, KLIA
PLANNING AND DEVELOPMENT
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PLANNING AND DEVELOPMENT
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VM/VE CASE STUDIES
No
Description
Savings / Extra
Group 1
1
To Omit Provisional Sum of Board Walk
2
To omit 3 columns of Mezzanine level slab and redesign 1 column per section at
central core
3
To change from 2hr fire rated door to 1 hr fire rated door
4
To limit contingency RM 4.0M as provided to 5% project cost
5
To consolidate design, centralized of or utilize FIDS monitor (Prov RM2.0M)
(3,000,000.00)
(2,000,000.00)
-
Group 2
2
To change Imported granite to Alucobond for internal finishes
(15,568.00)
3
To change Imported granite tile to local granite for floor
(46,080.00)
4
Ditto
(62,000.00)
5
To change brickwall (1hour rated) to Lightweight prefabricated concrete panel
(1 hour fire rated)
6
To change Luxalon aluminum strip ceiling to Galvanized iron strip ceiling
(91,746.00)
Group 3
7
Omission of 10 nos Lifts and relocation of 8 Nos of Lifts
TOTAL SAVINGS
PLANNING AND DEVELOPMENT
(2,020,000.00)
(8,651,874.00)
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VM/VE CASE STUDIES
Project
Upgrading and Enhancement of Washrooms / Toilets at MTB, KLIA
PROJECT BRIEF
-
To upgrade the existing Washrooms / Toilets to enhance the aestatic & image
in line with market
VM studies was commissioned to achieved the following
objective:
-
- To minimize odour inline with cost & hygiene & no ponding water
Enhance the image
Saving: RM 1,976,936.80
PLANNING AND DEVELOPMENT
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VM/VE CASE STUDIES
No
Description
Savings / Extra
Group 1
1
Repaint ceiling, no skim coat for wall & maintain electrical works
2
Provide auto air freshener, suitable hygieneic bin and introduce curve-railing
(114,000.00)
2,000.00
Group 2
3
Repaint the ceiling
(415,156.80)
4
Install non-slip tiles to cubical area
(398,880.00)
Group 3
5
Double counted items in BQ
(233,400.00)
6
Demolition works
(160,800.00)
7
Install corrian vanity top c/w built in wash basin
(102,000.00)
8
Omit the wash basin
9
To omit urinal c/w glass divider and replace with urinal c/w fin
10
Remove suspended hanging cabinet
11
Change to advertising panel
(60,000.00)
12
Remove graphic embrossed coloured glass
(18,000.00)
TOTAL SAVINGS
PLANNING AND DEVELOPMENT
(58,200.00)
(408,000.00)
(1,976,936.80)
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ENHANCEMENT TOILET AT MTB, KLIA
PLANNING AND DEVELOPMENT
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EXCHANGE EXPERIENCE & KNOWLEDGE WITH UTM
PLANNING AND DEVELOPMENT
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COLLABORATION WITH UTM
(UTM HEADED BY TNC DATO’ PROF. IR. DR. ZAINI UJANG &
MAHB HEADED BY EN ABDUL NASIR ABDUL RAZAK)
PLANNING AND DEVELOPMENT
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VM AWARNESS & WORKSHOP AT
MATC, KLIA ON 18-21ST MARCH 2008
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CONCLUSION : MOVING FORWARD
•Conditions of Contract – VMCP
•Life Cycle Costing to all our Airports
•Manual of Value Management
•Passionate – staff is encourages to further study (Msc & PHD)
• Strategic Partner with other company in varies industries (i.e Other GLCs)
•Leader in Industry (VM)
•Business Venture – Oversea
•Prime Consultant
PLANNING AND DEVELOPMENT
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Q&A
SESSION
PLANNING AND DEVELOPMENT
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