BRE533 Value Management

(Year 2021/2002 Part time Semester 2)

Individual Assignment No. 1

Student Name Student ID Programme

WANG Tat (Hugo) 19012107G MSc in Project Management

BRE533 Value Management (Year 2021/2002 Part time)
Individual Assignment No. 1
Student: WANG Tat (Hugo) Student ID: 19012107G

1. Introduction
The report is to demonstrate the procedures and outcomes for the value management practice
throughout the value management workshop conducted on 26 February 2022 and 12 March 2022
for the revitalization and improvement of usage of Mei Ho House. The value management practice
has been gone through during the workshop and the final recommendation for objective was
concluded at the end of workshop for the client’s consideration.

2. Members of Workshop
In order to efficiently handle the value management workshop, professionals in the real estate and
construction field who are concerning the sustainable development of Mei Ho House was invited to
conduct the workshop. The member of workshop is list in Table 1:

Name of Member Role of Workshop (Professional Field)

Mr. PC Tsang VM Facilitator
Mr. KC Tang VM Facilitator
Mr. Hugo Wang Workshop Participator (Construction Management)
Mr. Ivan Wong Workshop Participator (Project Management)
Mr. KW Wong Workshop Participator (Construction and Real Estate)
Mr. Mark Yau Workshop Participator (Project Management)
Ms. Sherman Wong Workshop Participator (Property Management)
Mr. Wilson Tse Workshop Participator (Project Management)
Ms. Ashley Wu Workshop Participator (Environmental Management and Engineering)
Mr. Sam Sung Workshop Participator (Project Management)
Table 1 – list of value management workshop member

3. Workflow of Value Management Workshop

The Workshop was hold in 2 days on 26 February 2022 and 12 March 2022 respectively. The
timetable of workshop is listed as Table 2:

Date Time Activity

22 February 2022 09:30 – 10:00 Opening and break-ice session of members
10:00 – 12:00 Conduct Information Phase Practice
12:00 – 13:30 Lunch break
13:30 – 17:30 Conduct Function Analysis
12 March 2022 09:30 – 10:00 Recap of last progress
10:00 – 12:00 Conduct Creativity
12:00 – 13:30 Lunch break
13:30 – 17:00 Conduct Evaluation phase
17:00 – 17:30 Present of conclusion
Table 2 – timetable of value management workshop

4. Information Phase
During the information phase, the background of Mei Ho House, the issue facing, the existing
condition, the objective of value management, the constraint of the Mei Ho House and the
subjected criteria improvement was gathered and discussed, which is listed below.

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BRE533 Value Management (Year 2021/2002 Part time)
Individual Assignment No. 1
Student: WANG Tat (Hugo) Student ID: 19012107G

Background of Mei Ho House

The subjected Mei Ho House (Image 3) is an estate building which was list as Grade II historic
building in 2010. It is located in Shek Kip Mei Estate, Sham Shui Po. The site area is approximate
2,000m2. The current usage of Mei Ho House is Youth Hostel namely Mei Ho House Youth Hostel,
which opened for business from 2013. By the current usage, the opened area was separated into
hostel area and assessable area for public, which included small museum namely Mei Ho House of
Livelihood. (Refer Image 4)

Image 3 – outlook of Mei Ho House

Image 4 – layout plan of Mei Ho House

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BRE533 Value Management (Year 2021/2002 Part time)
Individual Assignment No. 1
Student: WANG Tat (Hugo) Student ID: 19012107G

Issue facing
The summary of issue that Mei Ho House is facing, is listed as below:

− During the pandemic period, the occupancy rate of Mei Ho House is relatively low.
− There is seldomly visitors come from other country to Hong Kong, which will make use of
Mei Ho House.
− Youngsters in Hong Kong won’t go to YHA Mei Ho House Youth Hostel to live.
− Mei Ho House is deemed to provide local hotel service to local people, but the features and
facilities are not deemed to be attractive to the native people.
− The location of Mei Ho House is inconvenient.
− To create jobs for the underprivileged and develop the hostel into a sustainable community
enterprise, it should become more attractive of people to visit.
− To pass down the historical, cultural and humanistic values of Mei Ho House, it should
become a more lively place to prove its sustainability.

Existing Condition
The summary of existing condition, is list as below:

− Existing functions of the site are not attractive to local people.

− The location of site is within public housing area.

The objective of value management

Further to analysing the issue facing by the workshop members, the objective of value management
is identified as “To activate the usage of the Mei Ho House”.

The constraints of Mei Ho House

The summary of constraints of Mei Ho House, is listed as below:

− The location of site is not at the central business district to attract the flow of visitors.
− There is limited spatial planning feasibility within the existing layout and structure.
− The current function of the site became less income as youth hostel during the COVID-19
pandemic.
− The site is not a popular accommodation for the surrounding citizens.
− The current function is not so attractive and therefore cannot become a landmark of the
district.
− There is limited space to hold large scale function.
− There is limited space to improve facilities / new function area.
− The nature of nearby people flow is not aligned to the function of the site (computer goods
shopping, second hand goods shopping).

The criteria of the selected project

In order to meet the objective, 13 criteria were identified as listed below:

1. Maximizing Historical value (minimum alternation to existing building)

2. Maximizing Cultural value (how much Chinese Culture can be reflected from the site)
3. Maximizing Community value (how much the local community can make use of the site)
4. Maximizing Payback / Revenue Return from operation
5. Maximizing Land value utilization
6. Maximizing Development potential

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BRE533 Value Management (Year 2021/2002 Part time)
Individual Assignment No. 1
Student: WANG Tat (Hugo) Student ID: 19012107G

7. Minimizing Cost to improve

8. Minimizing Operation cost
9. Maximizing Environmental Performance
10. Minimizing Redevelopment cost
11. Maximizing User experience
12. Maximizing Popularity
13. Maximizing Diversified facilities

By implementing the objective, the marginal change / improvement by achieving of the objective on
the above-mentioned criteria, is illustrated in quality model in Figure 6.

Criteria of Mei Ho House Existing

Level
Redevelopment Expected
Level
Historical value
Diversified facilities 10 Cultural value
8
Popularity 6 Community value
4
User experience 2 Payback / Revenue Return
0

Redevelopment cost Land value utilization

Environmental Performance Development potential

Operation cost Cost to improve

Figure 6 – quality model of the expected improvement by achieving of the objective

5. Function Analysis
By the group collaboration, the function to tackle the objective is listed in Table 5. In brief, there
were three layers of function elaborated by three aspects, including attract people, provide new
usage and increase income, which was act as the primary function to achieve the objective of “To
activate the usage of the Mei Ho House”.

The secondary functions to achieve the primary functions included promote marketing, provide
venue, increase accessibility, upgrade facilities (for attract people), modify usage, add facility (for
provide new usage), sell products, and increase fee (for increase income).

The tertiary functions to achieve the secondary functions included increase popularity, increase
notice (for promote market), introduce events (for provide venue), provide diversified facilities (for
increase accessibility), upgrade appearance, upgrade function (for upgrade facilities), response
needs, create needs (for modify usage), build facilities (for add facility), provide activities (for sell
products) and provide more function (for increase fee).

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BRE533 Value Management (Year 2021/2002 Part time)
Individual Assignment No. 1
Student: WANG Tat (Hugo) Student ID: 19012107G

Table 5 – function analysis table

6. Creativity
Based on the established function, ideas of actions to be taken to provide the function was
brainstormed by the workshop members, which is listed in Table 6. For some of the ideas, opposite
questions were raised by the other members and new ideas were further generated. Total 38 ideas

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BRE533 Value Management (Year 2021/2002 Part time)
Individual Assignment No. 1
Student: WANG Tat (Hugo) Student ID: 19012107G

were generated during the workshop by the creativity process.

Table 6 – List of ideas

7. Evaluation Phase
Before evaluation of ideas, the workshop members performed voting to narrow down the items to
be evaluated. 5 votes were given to each member for voting their preferred items based on their
own preliminary evaluation of the effectiveness and feasibility of the available ideas (Table 7). The
highest 5 items were selected to perform the evaluation, including:

Idea 1: Buy advertisement (for increase popularity)

Idea 2: joint promotion (contact other place need promotion) (for increase popularity)

Idea 3: open Facebook / Twitter / Instagram account (for increase popularity)

Idea 4: Invite local artists and celebrities (for introduce event)

Idea 5: provide DIY workshops (for introduce event)

After the ideas to be evaluated was shortlisted, the workshop members provided individual scores of
importance and probability of criteria including the increase popularity, introduce events, provide
facility, update appearance and upgrade functions. And average score on the importance and
probability of criteria was therefore derived. Following with that, the workshop members provided
individual scores of the ideas subject to the mentioned criteria. Therefore, average score of ideas on
the ideas were derived. The figure of the individual score and the average score, is shown in Table 8.

The average score resulted from importance and popularity was calculated as the weighting of each
criterion. The average score of each idea were multiplied by the average weighting of each criterion
and the summation of the weighted score became the final function score of each idea (Table 9).

The resulted function scores were divided by the estimated cost to obtain the final value index of
ideas for the comparison. In this case, as the ideas implemented will induce additional operation

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BRE533 Value Management (Year 2021/2002 Part time)
Individual Assignment No. 1
Student: WANG Tat (Hugo) Student ID: 19012107G

cost to the property, the estimated cost was in form of the estimated additional money to be spent
per year to maintain the implementation of the idea. A resulted value index of the ideas is listed as
below:

Idea Value Index

Idea 1: Buy advertisement 0.27
Idea 2: joint promotion 0.58
Idea 3: open Facebook / Twitter / Instagram 1.14
account
Idea 4: Invite local artists and celebrities 0.06
Idea 5: provide DIY workshops 0.49

An observation in this case is that although the weighted function score of each idea is somehow
close to each other (ranging from 49.31% to 58.92%), after divided with the cost, the value index
varies significantly.

It is observed that the idea which attain the best value is therefore open Facebook / Twitter /
Instagram account.

8. Conclusion
Based on the result of value management workshop as elaborated as above, the best value action
which is recommended is open Facebook / Twitter / Instagram account for increase popularity for
attract people, in order to activate the usage of the Mei Ho House.

Table 7 – voting for items to be evaluated

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BRE533 Value Management (Year 2021/2002 Part time)
Individual Assignment No. 1
Student: WANG Tat (Hugo) Student ID: 19012107G

Table 8 – input of scoring of individual members

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BRE533 Value Management (Year 2021/2002 Part time)
Individual Assignment No. 1
Student: WANG Tat (Hugo) Student ID: 19012107G

Table 9 – weighted score of ideas

Table 10 – resulted value index

(End of report)

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