OVERVIEW OF MY STUDY

Title: KEY PERFORMANCE INDICATORS (KPIs) OF VALUE MANAGEMENT IMPLEMENTATION IN MALAYSIA CONSTRUCTION PROJECT

1.1

Introduction

Value Management (VM) is widely regarded as useful tool for management to meet the challenges such as limited resources and tight schedule arising in the construction industry. A rigorous measurement on the performance of VM studies is likely to improve the implementation of VM methodology and should enhance the confidence of the clients about their investment in VM. Based on the study in 2009 about the impact of Value Management implementation in Malaysia, it was revealed that the construction projects in the country that have implemented value management has been recorded saving on initial project cost by between 10% and 30%, said Datuk Seri Najib Tun Razak, Malaysian Prime Minister (Bernama 2011). However, how they measured the performance of Value Management until they call that Value Management is successful implemented. What is the parameter or indicator that they used to concluded that. Is that just only the saving the cost is called as successful implemented the Value Management. Whereas the value in the Value Management related to a good value for the function of a project, good quality and optimal overall project cost. Thus, in this study

1.2

Aim and Objective of Study

The aim of this study is to evaluate the implementation of Value Management in Malaysia construction industry with particular references to selected project. In achieving this aim, the following objective should be identified: 1. To study the implementation of Value Management in Malaysia construction industry. 2. To analyze the main factors hinder the implementation of Value Management in Malaysia construction industry. 3. To analyze the critical success factor of Value Management implementation in Malaysia. 4. To develop Key Performance Indicators (KPIs) for Value Management implementation in Malaysia construction project.

1.3

Scope of Study

Previous research that had been carried out by Aini Jaapar and Torrence (2006) has reported the implementation of the Value Management in Malaysia construction industry and the embedded it within the university sector is still in early stage. After that, future researches about the implementation of Value Management in Malaysia construction industry have been providing the prototype of the Value Management guideline to implement it in Malaysia construction industry (Jaapar, Takim, Endut and Bari 2008). Lastly the circular about the guideline of implementation of Value Management in Malaysia had been provided by countrys economic planning unit of Malaysia. After many improvements has been carried out by the previous effort in implement the Value Management in Malaysia construction industry. This study is conducted to identify whether the previous effort in improving the implementation of Value Management is achieve the good level or not and to identify the obstacles occur if the effort is not achieve also to analyze the critical success factors so that the improvement in implementation of Value Management will be recommended and continuously improved. The parameter or indicator to use in measured the performance of the project also should be identified so that the successful of implementation of Value Management can be measured and the value that produced in Value Management is also known success in term of what.

1.4

Research Methodology

To carry out this study, several research methodologies were used includes literature review, interviewing, conducting survey, data analysis. The Figure 1.1 showed the activities flow used to achieve the objective of this study.

Exploration of Sources

Problems Identification Discussion with Supervisor Title Objective and Scope Data Collections

Primary Data Interview Questionaires

Secondary Data Book Journal News Article Data Analysis

Conclusion and Recommendation Figure 1.1 Research Methodology Flowcharts