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Abstract: The application of value management (VM) in Malaysia increased dramatically after it was made a mandatory requirement for
public projects exceeding 50 million Renminbi. This paper reports the findings of an empirical study to determine the critical success factors
(CSFs) for VM workshops in the Malaysian construction industry. Data were collected using a questionnaire survey of public-and private-
sector players in the industry, and analyzed using descriptive analysis, the Mann-Whitney U test, and scale ranking. The results reveal that
clear objectives, client participation and support, discipline and attitude, team mix, and decision-making authority are critical components for
successful VM workshops. Other factors include the participation of end users during the workshop, background information, input from
relevant governmental departments, and the facilitator’s VM-workshop experience. The CSFs determined by this study provide a framework
for successful VM workshops in the Malaysian construction industry, and may be applicable to construction industries in other similar
jurisdictions. DOI: 10.1061/(ASCE)ME.1943-5479.0000288. © 2014 American Society of Civil Engineers.
Author keywords: Value management; Construction; Critical success factors; Workshops.
© ASCE
Standard Standard Standard Standard Standard
Number Success factor Mean deviation Rank Mean deviation Rank Mean deviation Rank Mean deviation Rank Mean deviation Rank
1 Workshop intervention into project-development cycle 3.27 0.515 11 3.06 0.544 16 3.20 0.500 14 3.07 0.322 10 3.15 0.480 12
2 Venue of the VM workshops 2.87 0.660 19 2.88 0.653 19 2.60 0.500 19 2.66 0.668 19 2.78 0.648 19
3 Client’s support of the VM workshops 3.67 0.508 2 3.57 0.608 2 3.44 0.583 4 3.25 0.611 5 3.49 0.595 3
4 Client’s participation (representation) in the VM workshops 3.67 0.539 3 3.65 0.522 1 3.56 0.507 1 3.25 0.548 4 3.53 0.559 2
5 End-user’s participation (representation) in the VM workshops 3.52 0.618 4 3.51 0.543 4 3.36 0.757 8 3.14 0.616 8 3.39 0.636 4
6 Clear objectives provided for the VM workshops 3.68 0.563 1 3.57 0.608 2 3.56 0.507 1 3.43 0.568 1 3.56 0.574 1
7 Professional qualifications of the facilitator 3.24 0.560 13 3.20 0.601 14 3.32 0.557 9 3.36 0.554 2 3.27 0.568 9
8 Academic qualifications of the facilitator 3.05 0.633 17 2.98 0.616 18 3.12 0.600 17 3.27 0.587 3 3.10 0.617 16
9 Years of experience of the facilitator in VM-workshop facilitation 3.24 0.588 14 3.35 0.522 8 3.44 0.583 4 3.21 0.680 7 3.29 0.600 7
10 Number of VM workshops facilitated by the facilitator 3.02 0.635 18 3.02 0.547 17 2.92 0.572 18 2.80 0.644 18 2.94 0.611 18
and average duration of each workshop
11 VM knowledge of the participants 3.08 0.630 16 3.12 0.683 15 3.36 0.569 6 3.00 0.688 14 3.10 0.658 17
12 Years of relevant experience of the participants in their own field 3.25 0.621 12 3.25 0.688 10 3.16 0.473 15 2.93 0.462 16 3.15 0.595 14
13 Team mix of the participants 3.37 0.517 8 3.22 0.541 12 3.24 0.597 11 2.96 0.466 15 3.19 0.540 11
14 Discipline and attitude of the participants 3.51 0.564 5 3.37 0.631 6 3.36 0.569 6 3.23 0.539 6 3.37 0.582 5
15 Decision-making authority granted to each participant 3.41 0.586 7 3.35 0.658 7 3.32 0.627 10 3.05 0.553 12 3.28 0.615 8
by their respective organizations
16 Input from the relevant governmental departments 3.33 0.568 9 3.31 0.648 9 3.24 0.663 12 3.07 0.568 11 3.24 0.608 10
and local authorities (e.g., local planning)
17 Background information collected 3.43 0.499 6 3.39 0.603 5 3.44 0.507 3 3.11 0.593 9 3.33 0.570 6
18 Preworkshop meeting conducted 3.32 0.563 10 3.22 0.610 13 3.12 0.440 16 2.91 0.549 17 3.15 0.577 13
19 Site visit conducted 3.13 0.582 15 3.24 0.651 11 3.24 0.663 12 3.02 0.587 13 3.14 0.615 15
05014015-5
SF6 0.256 0.181 Background information refers to the project information gath-
SF7 0.739 0.542 0.251
ered during the pre-workshop stage, and the information phase of
SF8 0.566 0.631 0.057
SF9 0.330 0.142 0.946
the workshop. Finally, CSFs with the lowest score are the facilita-
SF10 0.923 0.437 0.073 tors experience in facilitating the VM workshop. The best practice
SF11 0.647 0.060 0.581 of VM workshop is the engagement of the facilitator to facilitate the
SF12 0.858 0.401 0.001a processes according to the VM job plan. Many researchers high-
SF13 0.160 0.396 0.000a lighted the structured process and the job plan as the core values of
SF14 0.257 0.249 0.006a VM that differentiate it from other management tools. The facili-
SF15 0.721 0.539 0.001a tation provided by the facilitator enhances the productive output of
SF16 0.977 0.592 0.014a every phase of the workshop (Fong et al. 2007) and keeps the es-
SF17 0.906 0.923 0.003a
sential elements within the time constraint. Thurnell (2004) con-
SF18 0.394 0.097 0.000a
SF19 0.308 0.392 0.352
tended beforehand that VM facilitators need to possess attributes
that include leadership qualities, competence in a variety of man-
a
α ≤ 0.05. agement skills related to human dynamics, and a high emotional
quotient in dealing with different characters and attitudes of the
workshop participants.
Chen 2007; Ahadzie et al. 2008; Lu et al. 2008; Yu et al. 2008; Li The remaining two factors that scored below 3.0 were “number
et al. 2011). The ranking results are shown in Table 8. of VM workshops facilitated by the facilitator and average duration
Success factors with means of 3.00 or more were considered to of each workshop” and “venue of the VM workshops.” It can be
be CSFs; 17 success factors achieved a value of ≥3. To present a concluded that these two factors are least critical and have mini-
manageable number of CSFs, the top 10 success factors are pre- mum effect on the success of the workshop. Generally, the findings
sented at the top of the list in Table 8 (Rank 1–10). The top three from this research are in agreement with the findings of Simister
(Rank 1–3, Table 8) are dominated by the client’s influence, which and Green (1997), Male et al. (1998), Shen and Liu (2003), Fong
shows the critical role that the client plays in the successful imple- et al. (2001), and Chen et al. (2010), as presented in Table 1.
mentation of VM workshops. According to Shen and Yu (2012),
VM effectiveness increases when the objectives are clearly aligned
with the goals. Conclusion
Five of the remaining seven CSFs can be categorized as partici-
pant-related factors. The participants represent different stakehold- It is anticipated that the ever-increasing number of VM applications
ers of the project. They play important roles to ensure the success in Malaysia will benefit the country’s construction industry after
level of a particular workshop in achieving the goal. Typical more than a decade of criticisms for cost overruns, poor quality,
VM workshops involve stakeholders such as end-user, consultants, and frequent delays (Ibrahim et al. 2010; Ali and Rahmat 2010).
tion, discipline and attitude, the authority to make decisions, and input Chen, W. T., Chang, P. Y., and Huang, Y. H. (2010). “Assessing the overall
from relevant governmental departments. The other two factors are performance of value engineering workshops for construction projects.”
background information collected and experience of the facilitator. Int. J. Proj. Manage., 28(5), 514–527.
Uniquely, this study revealed that participation of the end-users Chen, W. T., and Chen, T. T. (2007). “Critical success criteria for construc-
(ranked number 4) during the workshop was one of the crucial fac- tion partnering in Taiwan.” Int. J. Proj. Manage., 25(5), 475–484.
tors for success. The presence of these stakeholders was vital be- Dell’Isola, A. J. (1982). Value engineering in the construction industry,
cause they provided good input regarding user requirements, and it 3rd Ed., Van Nostrand Reinhold, New York.
was more practical from the operational perspectives of a particular Economic Planning Unit (EPU) (2011). Panduan perlaksanaan penguru-
project. This factor was not captured in previous relevant studies. san nilai dalam program/projek kerajaan, Prime Minister’s Dept. of
Malaysia, Putrajaya.
The CSFs identified by this research can benefit future applica-
Field, A. (2005). Discovering statistics, using SPSS Windows, Sage
tions of VM within the Malaysian construction industry and that of
Publications, London.
other countries that share a similar culture. Carefully considering
Folan, J., Browne, J., and Jagdev, H. (2007). “Performance: Its meaning
the CSFs during the initial stages of planning VM workshops for a and content for today’s business research.” Comput. Ind., 58(7),
project will enhance the performance of the workshops and im- 605–620.
prove the chances of successfully completing the project. To date, Fong, P. S. (2004). “A critical appraisal of recent advances and future
the authors have identified the key performance indicators (KPIs) directions in value management.” Eur. J. Eng. Educ., 29(3), 377–388.
that serve as the guide to measure the workshop performance. Both Fong, P. S., Shen, Q. P., and Cheng, E. W. L. (2001). “A framework for
CSFs and KPIs will be mapped into the performance management benchmarking the value management process.” Benchmarking Int. J.,
framework for effective and efficient VM workshops conducted in 8(4), 306–316.
the future, by understanding how CSFs may affect the workshop Fong, P. S. W., Hills, M. J., and Hayles, C. S. (2007). “Dynamic knowledge
performance and by identifying the critical indicators to be mea- creation through value management teams.” J. Manage. Eng., 10.1061/
sured. The findings from this study have been disseminated to (ASCE)0742-597X(2007)23:1(40), 40–49.
116 respondents who requested them. Green, S. D. (1999). “A participative research strategy for propagating soft
This research involved four clusters of the surveyed sample. methodologies in value management practice.” Constr. Manage. Econ.,
17(3), 329–340.
Care was taken to include all clusters when determining the CSFs
Hunter, K., and Kelly, J. (2007). “Efficiency in VM/VE studies and the
at the initial stage to make the sample as large as possible. However, pressure for shorter workshops.” Value World, 30(1), 1–15.
after considering the fact that they might affect the overall findings, Ibrahim, A. R., Roy, M. H., Ahmed, Z., and Imtiaz, G. (2010). “An inves-
some were excluded for detailed analysis. For instance, as respond- tigation of the status of the Malaysian construction industry.” Bench-
ents in Cluster D had limited knowledge and no experience, their marking Int. J., 17(2), 294–308.
feedback may have been purely on the basis of instinct without Kelly, J., Male, S., and Graham, D. (2004). Value management of construc-
really understanding the VM concept and workshop implementa- tion projects, Blackwell Science, Oxford.
tion in construction projects. Knight, A., and Ruddock, L. (2008). Advance research methods in the built
environment, Wiley-Blackwell, Oxford.
Jaapar, A., and Torrence, J. V. (2009). “Contribution of value management
Acknowledgments to the Malaysian construction industry: A new insight.” Proc., Int.
Conf. of Construction Industry, Univ. Bung Hatta, Padang, West
The authors would like to thank the Government of Malaysia and Sumatera, 1–9.
Universiti Teknologi Malaysia (UTM) for the scholarship granted Leung, M. Y., Ng, T. S., and Cheung, S. O. (2002). “Improving satisfaction
for this Ph.D. study. This research is partly funded by the Research through conflict simulation and resolution in value management in con-
Grants Council of the Hong Kong Special Administrative Region, struction project.” J. Manage. Eng., 10.1061/(ASCE)0742-597X(2002)
18:2(68), 68–75.
China (PolyU 5294/09E) and the Hong Kong Polytechnic Univer-
Leung, M. Y., Yu, J., and Liang, Q. (2013). “Analysis of the relationship
sity. Thanks are expressed to all respondents for their valuable
between value management techniques, conflict management and
time spent in completing the survey. A special word of thanks workshop satisfaction of construction participants.” J. Manage. Eng.,
is included here to the Economic Planning Unit of Prime Minister’s 10.1061/(ASCE)ME.1943-5479.0000208, 04014004.
Department of Malaysia and the Public Works Department of Li, Y. Y., Chen, P. H., Chew, D. A. S., Teo, C. C., and Ding, R. G. (2011).
Malaysia for granting the research team access to the VM work- “Critical project management factors of AEC forms for delivering green
shops held, and to Dr. Paul Fox for his kind help in proofreading building project in Singapore.” J. Constr. Eng. Manage., 10.1061/
an earlier draft of this paper. (ASCE)CO.1943-7862.0000370, 1153–1163.
Lopez, S. P., Peon, J. M. M., and Ordas, C. J. V. (2005). “Organizational
learning as a determining factor in business performance.” Learn.
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