Key performance indicators for value management implementation in construction industry

Today, Value Management (VM) is an approach that has been widely used by various industries in managing their projects or programs to get the best value. In reaping the advantages of the VM implementation, Malaysia is no exception to implement the VM in construction projects, especially for projects carried out by the government. Therefore, the implementation should be implemented properly so that the implementation objectives can be achieved. To ensure the implementation of the VM is implemented well, the performance of its implementation should be measured. Various methods have been introduced to measure the performance of the work and one of them is the implementation of the Key Performance Indicators (KPIs). KPIs implementation has been widely used in measuring the performance of a project or work processes. Due to this reason, research is conducted to identify the trends of VM implementation in the construction industry in Malaysia, and then formulate the KPIs to measure the performance of its implementation. To achieve that purpose, a set of 187 questionnaires were distributed to the selected respondents to get their opinion on the VM and the implementation of KPIs to measure the performance of the VM in the Malaysian construction industry. The frequency analysis and average index showed that all 47 of the proposed have been agreed by the respondents. However, the obtained results are merely meant as a guide to identify KPIs for the implementation of VM in the Malaysian construction industry. The selection and screening of these KPIs should be conducted again to see the interest of each KPI in the projects undertaken

[1]  Albert P.C. Chan,et al.  Factors Affecting the Success of a Construction Project , 2004 .

[2]  A. B. Wahab,et al.  An evaluation of waste control measures in construction industry in Nigeria , 2011 .

[3]  Mei-yung Leung,et al.  Reasons for applying VM - An international comparison , 2009 .

[4]  Alphonse J. Dell'Isola.  Value engineering in the construction industry , 1973 .

[5]  Ghassan Aouad,et al.  Performance management in construction: a conceptual framework , 2001 .

[6]  Geoffrey Qiping Shen,et al.  Identification of Key Performance Indicators for Measuring the Performance of Value Management Studies in Construction , 2011 .

[7]  R. Kaplan,et al.  The balanced scorecard--measures that drive performance. , 2015, Harvard business review.

[8]  David Parmenter,et al.  Key Performance Indicators: Developing, Implementing,and Using Winning KPIs , 2007 .

[9]  R. Kaplan.  Accounting Lag: The Obsolescence of Cost Accounting Systems , 1986 .

[10]  William C. McElligott,et al.  Value Management in Construction , 1995 .

[11]  Qiping Shen,et al.  Critical Success Factors for Value Management Studies in Construction , 2003 .

[12]  Qiping Shen,et al.  Measuring the performance of value management studies in construction : critical review , 2007 .

[13]  Syuhaida Ismail.  Key Performance Indicators for Private Finance Initiative in Malaysia , 2011 .

[14]  Darren George,et al.  SPSS for Windows Step by Step: A Simple Guide and Reference , 1998 .

[15]  Stuart D. Green.  Beyond value engineering: smart value management for building projects , 1994 .

[16]  Intan Rohani Endut,et al.  The Impact of Value Management Implementation in Malaysia , 2009 .

[17]  Srinath Perera,et al.  Application of value management in construction , 2006 .

[18]  R. Dorf,et al.  The Balanced Scorecard: Translating Strategy Into Action , 1997, Proceedings of the IEEE.

[19]  Ray R. Venkataraman,et al.  Cost and Value Management in Projects , 2008 .

[20]  Intan Rohani Endut,et al.  Value management guidelines for the Malaysian construction industry , 2008 .

[21]  Carolyn Hayles,et al.  Value from Construction - Getting Started in Value Management:Concise Guidance for Small and Occasional Construction Customers, their Consultants and Contractors , 2000 .

[22]  Andy Neely,et al.  The Performance Prism: The Scorecard for Measuring and Managing Business Success , 2002 .

[23]  CSF's, KPI's, Metrics, Outcomes and Benefits , 2010 .

[24]  Simon A. Austin,et al.  Construction value management revisited: the designer's role , 2001 .

[25]  Wickham Skinner,et al.  The Productivity Paradox , 1986, The Productivity-Inclusiveness Nexus.

[26]  Scott Fernie,et al.  The Value Management Benchmark: a Good Practice Framework for Clients and Practitioners , 1998 .

[27]  R. Kaplan.  Measuring manufacturing performance: a new challenge for managerial accounting research , 1983 .

[28]  L. Davis.  Handbook of Research Design and Social Measurement , 1992 .

[29]  Che Mat,et al.  The challenges and potential of value management in local construction industry , 1999 .

[30]  Alagesan Krishnapillai.  Understanding key performance indicators through driver measures , 2009 .

[31]  Matthew A. Parker,et al.  Key Performance Indicators for the City of Melbourne's Building Team , 2009 .

[32]  Lawrence D. Miles,et al.  Techniques Of Value Analysis And Engineering , 1961 .