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# 1 / 2021 EDITION (DECEMBER 2021) NEWSLETTER

IVMM

Editorial Board council members honorary fellows
2019-2021
President Tan Sri Dato’ Ir. Omar Bin Ibrahim
Dato’ Ir. Abdul Nasir Bin Abdul Razak Sr Dr. Mohd Mazlan Bin Che Mat, JKM, Ex-Director General, Public Work
Chief Editor CVM, CQS, FIVMM-Life, FRISM, FMIM, Department Malaysia
Sr Rohanis Binti Ab Ghani MIVM (Aust), SAVE Int., MCIM(UK) Tan Sri Dato’ Ir. Jamilus Bin Hussein
Editors Advisor 1 Ex-Chairman, Construction Industry
Sr Dr. Saipol Bari Bin Abd Karim Tn Hj Khairazan Bin Hj. Mansoor Development Board Malaysia (CIDB)
Prof. Ts. Dr. Rahinah Binti Ibrahim Roosnam-Damha, Tan Sri Bashir Ahmad Bin Abdul Majid
Columnists FIVMM-Life, CVM Ex-Managing Director, Malaysia Airports
Sr Dr. Mohd Mazlan Che Mat, JMK Advisor 2 Holdings Berhad (MAHB)
Sr Rohanis Binti Ab Ghani Dato’ Ir. Abdul Nasir Bin Abdul Razak, Dato’ Ir. Hamzah Bin Hasan
Zulfatah Bin Ibeni @ Zakaria DIMP, CVM, P. ENG., Ex-Chief Executive, Construction Industry
Sr Dr. Saipol Bari Bin Abd Karim FIVMM-Life, MIEM, MBEM Development Board Malaysia (CIDB)
Tan Shi Yen President Allahyarham Prof. Dr. Johan Torrence
Administrator & Graphic Designer Sr Rohanis Binti Ab Ghani, Abdullah
Zulfatah Bin Ibeni @ Zakaria CVM, FIVMM-Life, PQS, MRISM Ex-President CIOB UK; Professor UiTM
Vice President Dato’ Dr. Mohd. Ariffin Bin Hj. Aton
© Institute of Value Management Malaysia Sharifah Muna Binti Syed Murtadza, Ex-President and CEO, SIRIM Berhad
CVM, MIVMM Datuk (Prof) Hj. Abdul Rahman Bin Abdullah
vision Secretary Ex-Chief Executive, Construction Industry
Sr Nurhayati Binti Abu Seman, Development Board Malaysia (CIDB)
To be recognized locally and globally PQS, MIVMM, MRISM, MAFM Allahyarhamah Dato’ Noriyah binti Ahmad
for advancing Value Management (VM) Assistant Secretary Ex-Director General, Economic Planning
Sr Mahasan Bin Mohamed, Unit, Prime Minister’s Department
Methodology CQS, MRISM, MIVMM Datuk Dr. Rahamat Bivi binti Yusoff
Treasurer Director General, Economic Planning Unit,
mission Sr Dr. Saipol Bari Bin Abd Karim, Prime Minister’s Department
PQS, FIVMM, MRISM, MACPM, SAVE Intl Datin Ir. Mariyam Binti Ismail
To serve the professional interest of its Planning/Programme Director Ex-Director, Value Management Section
collective membership and community Sr Muhammad Zuhry Bin Mohd, Economic Planning Unit
CVM, CQS, MIVMM, MRISM Ir. Hj. Nazari bin Hashim
objectives Membership Director Ex-Director, Value Management Section
Zulfatah bin Ibeni @ Zakaria Economic Planning Unit
1) To advance the recognition and MIVMM
acceptance of Value Management as Publication Director fellows
a profession. Ir. Dr. Hjh. Siti Fairuz Hj. Zakaria
P. Eng., MIEM, ACPE, CCPM, Asean Eng., Sr Dr. Mohd Mazlan Bin Che Mat, JMK
2) To advance and improve the existing P. Tech., MBOT, RPD (Aust. IPM-JKR), Tn Hj Khairazan Mansoor Roosnam Damha
Value Management knowledge base. MPMI, MIQM, MIVMM, MSTTT Dr. Aini Binti Jaapar
Public Relation Director Dato’ Ir Abdul Nasir Abdul Razak
3) To develop and expand the Ir. Mukhzani Bin Abd Latif Sr Norazah Binti Attan
Value Management community. CVM, MIVMM, P.ENG., MBEM, ACPE Ir Md Azmi Bin Baba
Professional Development Director Prof. Dr. Hjh. Rahinah Binti Ibrahim
Prof. Ts. Dr. Hjh. Rahinah Binti Ibrahim, Sr Rohanis Binti Ab Ghani
FIVMM, FRSA, MIVMM Sr Dr. Saipol Bari Bin Abd Karim
Educational Director

# 1 / 2021 EDITION (DECEMBER 2021)

IVMM NEWSLETTER 2
- 2021

Inside this issue : 3rd August 2021
Virtual Meeting Session with YAB Dato’ Sri Mustapa Mohamed,
HIGHLIGHTS OF ACTIVITIES BY IVMM 2-5 Minister in the Prime Minister’s Department (Economy)
2020 - 2021 IVMM was represented by President, Advisor 1,
Vice President, Secretary, Council Members and Officers from
ARTICLE 1 - “HIDDEN” FACTS ABOUT VALUE 6-7 EPU, JPM
MANAGEMENT (VM)

ARTICLE 2 - GRENFELL TOWER FIRE 8-9
10-11
TRAGEDY AND SMART MOTORWAYS FATAL
CRASH: COMMENTARY ON THE
MISUNDERSTANDING OF VALUE
ENGINEERING APPLICATIONS
ARTICLE 3 - VALUE MANAGEMENT
INTERVENTIONS IN ASSET AND
ORGANISATION’S LIFE CYCLE

POSTER ON MVMS 2022 12

5 August 2021
Virtual Meeting Session with Director
General Economic Planning Unit EPU
Prime Minister’s Department

IVMM was represented by President,
Advisor 1, Vice President,
Secretary, Council Members
and Officers from EPU, JPM

13th August 2021

Virtual Meeting Session With Director
General, Public Work Department Malaysia

IVMM was represented by President,
Advisor 1, Vice President, Secretary,
Council Members and Officers from PWD Malaysia

# 1 / 2021 EDITION (DECEMBER 2021)

IVMM NEWSLETTER 3

- 2021

PAPER PRESENTATIONS ON VM TOPICS DELIVERED BY IVMM COUNCIL MEMBERS
AS INVITED SPEAKERS AT INTERNATIONAL CONFERENCES

4-6 October 2021
International Value Factory Conference
organized by global VM / VE Institutions
VE Knowledge Sharing by Advisor 1
(Sr Dr. Mohd Mazlan Che Mat)

9 November 2021
International Construction Week (ICW)
organized by CIDB
Case Study knowledge sharing by Vice
President (Sr Rohanis Ab Ghani)
- VM Study at Programme and Project Levels

# 1 / 2021 EDITION (DECEMBER 2021)

IVMM NEWSLETTER 4

- 2021

20 September 2021

Virtual Meeting with PETRONAS. IVMM was represented by President, Advisor 1, and Council
Members.

16th June 2021

Virtual Meeting Session with
PROLINTAS

IVMM was represented by
President, Vice President,
Advisor 1 and
Council Members

9 February 2021

Vice President and Secretary of IVMM presented
National VM Guide and VM Competency
Standards to Director General of PWD Malaysia

5 February 2021
Secretary and Director of Professional Development of IVMM
presented National VM Guide and VM Competency Std to Deputy Director General (Sectorial)
EPU, witnessed by officers from VM Section, EPU, PM’s Department.

# 1 / 2021 EDITION (DECEMBER 2021)

IVMM NEWSLETTER 55
- 2021

20 December 2020
AGM # 19 was conducted in
hybrid mode (face to face and
virtual) during MCO 2.0

Publication of National VM
Guide and VM
Competency Standards
Documents in 2020

GET YOUR COPY NOW !!!

National VM Guide and

VM Competency Standards (VMCS)

Tel: +603 5511 9740 Original Price RM 30.00 each copy
+6018 363 8370 Get Combo (1 copy National VM Guide
and 1 copy VMCS) at RM 50.00
Email: [email protected]

IVMM Members are eligible for

additional discount ( ????%)

# 1 / 2021 EDITION (DECEMBER 2021)

IVMM NEWSLETTER 6

“HIDDEN” FACTS ABOUT VALUE MANAGEMENT (VM)
IN CONSTRUCTION

Author 1 : Author 2 :
Sr Rohanis binti Ab Ghani Zulfatah bin Ibeni @ Zakaria
CVM, FIVMM-Life, PQS, MRISM MIVMM
Vice President of IVMM Publication Director of IVMM

Introduction
This info-graphic is aimed to highlight ten (10) “hidden” facts about Value Management (VM) in construction project environment.
The “hidden” connotation is referred to the revealed facts (selected by authors) about VM implementation and application in
construction projects, which their significances are often overlooked and/or undermined by VM practitioners and facilitators and
related industry players who are organizers of VM Studies e.g., project clients, project teams etc.

The highlighted facts are derived from among the attained lessons learned and observations on VM implementation and application in
construction projects. They are extracted from actual VM practices and experiences of many VM practitioners, which are primarily
sourced from VM experts and facilitators in Public Works Department (PWD) Malaysia. The snapshots of facts are presented in
simple positive quotes, which are intended to recommend good practices and improvements in VM implementation, as distilled from
the lessons learned and observations.

The Facts
In revealing the “hidden” facts, the authors have segmented them into three (3) perspectives of VM implementation in construction
project environment, i.e., VM Study Interventions; VM Study Process and Procedure; and VM Study Methods, Tools and Techniques.
The suggested quotes are referred to relevant theories in linking the highlighted facts with existing literatures for
further understanding and exploration by readers.

As highlighted in the diagram, 10 quick facts about VM in construction are “hand-picked” by the authors to highlight their significances
as they are often overlooked and/or undermined by VM practitioners and related industry players. The revelation of “hidden” facts is
consequent to the outcomes of lessons learned and observations, which are distilled by the authors and other experienced VM
practitioners in PWD Malaysia.

Conclusion
The revealed “hidden” facts from various perspectives have also implied the possible gaps exist in VM implementation and
application in construction projects. Nevertheless, in closing the gaps, it is suggested that further investigation, research and
development are necessary for adaptation and practical applications of the highlighted facts in improving VM implementation in the
construction project environment.

Acknowledgement: VM Unit, Integrated Asset Planning Branch, PWD Malaysia. PWD Malaysia VM Facilitators.

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IVMM NEWSLETTER 7

C. VM STUDY METHODS,
TOOLS AND
TECHNIQUES

B. VM STUDY Driving Dynamics through
PROCESS AND VM Facilitation:
PROCEDURE
Effectiveness of study relies
much on efficacy of facilitation
Good facilitation skills drive
dynamics of working with groups

Impactful Application
of VM Tools and Techniques:

Application of appropriate tools and techniques brings great
impacts on study performance & outcomes
Right application of tools and techniques is advantageous
to VM facilitation

Finding Solutions Robust Pre-Study by Integration of Risk Balanced Styles for
through VM Structured Facilitation Team: Management (RM) Effective & Efficient
Processes: within VM Study (VRM): VM facilitation:
Essential prior to
Administer and VM Study VRM for managing Being versatile is the
govern participants associated risks that key for effective and
in solving value The more time and may jeopardize project value efficient VM facilitation
problems, and effort spent the
finding solutions better VM Study Appropriate mitigation VM facilitator must be able
will be measures for better to adapt with changing
Promote creative optimization of circumstances that may
and innovative thinking project value arise during VM study

A. VM STUDY Assess VM
Study Implementation
INTERVENTIONS Opportunities for Aligning Project Value Chain: for Continuous Improvement:

Multiple VM study opportunity points At post workshop stage,
integration for value chain integrity VM ideas implementation
are best to be monitored
Ensures transmission of value systems

Right Timing of VM Study Interventions: and assessed

Intervention timing need to be streamlined with Access to attain lessons
project development phases and activities learned and propose
continuous

“The earlier intervention the better”

Contextualization of VM Study Objectives:

Contextualize to set and achieve VM Study
Objectives

Right study objectives for effective game plan to
reconfigure value misalignment

*This diagram is an introductory to the full manuscripts to be published in future publication by authors for IVMM

Note on References (to be quoted in detail in full manuscript) :
Dallas (2006) ; EPU (2011); Jaapar (2006); Kelly et al (2015); Male et al (2007); Male et al. (1998a); Male et al. (1998b); PWD Facilitation Kit (2015);
PWD Guidelines (2013); Ranesh et al (2012); SAVE (2007); Standing (2001); Thompson (2004)

# 1 / 2021 EDITION (DECEMBER 2021)

IVMM NEWSLETTER 8

GRENFELL TOWER FIRE TRAGEDY AND SMART MOTORWAYS FATAL CRASH:
COMMENTARY ON THE MISUNDERSTANDING OF VALUE ENGINEERING APPLICATIONS

Tan Shi Yen and Saipol Bari Abd-Karim*
Department of Quantity Surveying, Faculty of Built Environment, Universiti Malaya, 50603 Kuala Lumpur, Malaysia

* [email protected]
Introduction
The UK’s Grenfell Tower fire tragedy in 2017 has resulted in many of its residents losing their lives. An inquiry committee was formed to
investigate the value-for-money practices by the parties involved in the building refurbishment project which was completed in 2016.
Similarly, the fatal crash on SMART Motorways in the UK in 2019 is said to have stemmed from a similar approach to Grenfell Tower.
The investigation report found that Highways England had taken a compromised approach to safety.
Case 1: Grenfell Tower Fire Tragedy
The infamous incident of the UK’s Grenfell Tower in 2017 involving a catastrophic fire and the loss of 72 lives has led some to conclude
VE should be driven out of the construction industry for good. The root cause of this disaster is a value engineering (VE) exercise
whereby the existing zinc and aluminium panels were replaced by a cladding with highly combustible polyethylene core. The fire
initially started from an electrical fault in a large fridge-freezer in one of the unit’s kitchens. The hot smoke resulted from the fire
caused the uPVC window jamb to deform, providing an opening into the cavity between the insulation layer and the cladding panel.
The fire eventually entered the cladding, using the polyethylene core as a source of fuel. Coupled with the failed building
compartmentation mechanism, the fire spread rapidly and eventually engulfed the building.
Following this incident, many have placed the blame of the event on the VE exercise carried out in the refurbishment of Grenfell
Tower. In fact, Dame Judith Hackitt, a former Chair of the UK Health and Safety Executive, remarked that she would be “happy to
never hear again” the term ‘VE’. It is understandable why the society would view VE exercise negatively in the Grenfell Tower tragedy.
The so called ‘VE’ in the refurbishment of Grenfell Tower is actually a cost reduction dressed up as VE, requested by the Kensington
and Chelsea Tenant Management Organisation (KCTMO), who is appointed to manage the project. The cost cutting was carried out
merely to meet the budgeted cost of £9 million and also, to cover up the costing mistake made by the contractor, Rydon. The
performance or safety aspect of the materials were not scrutinised in this ‘VE’ exercise.
Case 2: Smart Motorways Fatal Crash
Similarly, the UK Smart Motorways have also received many of such complaints from the public. Smart Motorways were initially
introduced as an outcome of a VE exercise to increase the capacity of traffic due to the rise of traffic congestions occurrence. The
Smart Motorways utilised variable speed limits, instructions on overhead gantries, and the use of hard shoulder as a running lane to
increase the capacity of traffic during peak hours of the day, without having to widen the existing motorway. However, calls to scrap
the system have been rising from 2014 to 2019 due to the deaths of 38 people on Smart Motorways. Although the trial for the
motorways back in 2006 has shown that the system could reap significant benefits by reducing journey times, pollution, and fuel
consumption, but the opposing committee argued that the supposed benefits of Smart Motorways have been significantly reduced
due to the change of design in 2012 without consultation. The increase in the distance between the Emergency Refuge Areas (ERAs)
from 500m to 2500m in 2012 has been constantly challenged by the public as they claim the reduced number of stopping places has
led to an increase in accidents on the motorway. In fact, two lorry drivers have lost their lives due to the implementation of Smart
Motorways.
Just like the Grenfell Tower tragedy, the public also put the blame on VE exercise of the Smart Motorways accidents. The positive
result of the VE trial has led Smart Motorways to be continued without additional safety features. Helen Smith, a public and human
rights lawyer even claimed that “a cost-driven, VE approach is compromising the public’s safety”. This statement in itself has already
clearly displayed the public’s deep-rooted misunderstanding towards VE exercise.

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IVMM NEWSLETTER 9

Lessons learnt
It is actually prejudicial to put the blame on VE exercise on the occurrence of these catastrophic events as the original intent of VE is
never just simply a cost-cutting but to improve on the development’s performance, quality, safety, and functionality. While cost
reduction concerns itself with the cost of the proposal, VE concerns the analysis of function and maximisation of the value of the
proposal. VE is not a cost driven approach, rather it is the public’s misunderstanding towards the concept of VE that has resulted into
the confusion with cost-cutting exercise.
In the Grenfell Tower incident, the replacement of zinc and aluminium panels with polyethylene core in order to meet the client’s
budget, with no consideration for performance and safety has already violated the fundamental principle of VE, which focuses on
improving the overall value of the final outcome. VE is supposed to involve the evaluation of a range of alternatives, and the selection
of the alternative that yields the best value, not one that is of the lowest cost. While cost is certainly one of the aspects to be
considered but it shall not be confused as the only goal of VE exercise. The ‘VE’ exercise carried out for the Grenfell Tower should not
be recognised by the public as a true VE exercise when fundamental aspects such as the safety of occupants has not been taken into
consideration. The lesson learnt from the Grenfell Tower incident shows that VE should never be carried out at the detriment of
safety.
Although the trial carried out for the Smart Motorways incident has shown promising outcomes for its implementation, the public’s
reaction to the system says otherwise. Most of the public’s dissatisfaction originated from the reduced number of ERAs as this change
was made without any consultation. The lesson learnt from the Smart Motorways incident is that the public’s opinion should be taken
into account and stakeholder’s participation shall be emphasised for VE exercise in projects involving public facilities. While Smart
Motorways could achieve its intended purpose, that is to ease congestion, and also be implemented in a short time with relatively low
cost, the government failed to take into account the users’ concern and the stakeholders’ acceptance on the system’s safety, which
eventually escalated into the calls of halting the future rollout of Smart Motorways.
Both situations illustrated the failure of the project team to take into consideration the safety aspect when evaluating alternatives.
Due to the poorly executed VE exercise, this has further reinforced the public’s misunderstanding of VE. In order to pull up the public’s
perception towards VE, it is important to first ensure the project team itself has a correct understanding of a true VE exercise. If the
client has the intention of carry out a VE exercise, all relevant project team members shall be mandated to attend a short course on VE
organised by a certified VE expert. All the changes implemented through VE exercise shall also be clearly documented, including the
rationale behind the alternative selected. By having a more stringent regulatory body governing the implementation of VE, unethical
clients will find it more difficult to take advantage of VE as another cost cutting exercise. Doing so will also gradually transform the
public’s negative perception towards VE, enabling them to differentiate between both and prevents the misconception from
perpetuating.
In conclusion, the misunderstanding towards the concept of VE by both construction industry players and the public is inherent. This
misunderstanding has unfortunately led to tragedies and the loss of lives. Therefore, it is important to put a stop to the perpetuating
misconception of VE and stop dressing VE as cost cutting without taking into consideration other equally important criteria such as
performance, quality, safety, and functionality of the proposal before more tragedies result.
References
Grenfell Tower Inquiry. https://www.grenfelltowerinquiry.org.uk/
Symonds, T. (2021) Grenfell Tower inquiry: Fire predicted a decade before, memo shows. https://www.bbc.com/news/uk-56350123
Written evidence submitted by the Automobile Association. https://committees.parliament.uk/writtenevidence/25885/html/
Cockcroft, H. (2021). Construction of new smart motorways halted until safety upgrades installed
https://www.swlondoner.co.uk/news/28042021-construction-of-new-smart-motorways-halted-until-safety-upgrades-installed/

# 1 / 2021 EDITION (DECEMBER 2021)

IVMM NEWSLETTER 10

VALUE MANAGEMENT INTERVENTIONS IN ASSET AND ORGANISATION’S LIFE CYCLE
By

Sr Dr. Mohd Mazlan Che Mat, JMK,
CVM,CQS,FRISM,FIVMM,FMIM,MIVMA

Advisor I
Institute of Value Management Malaysia

ABSTRACT
This article aimed to provide the readers of the present and conventional Value Management Interventions as identifies by the
National Value Management Guide of Malaysia which also reflects the Value Management practice internationally. The future
Value Management Interventions, such as Value Improvement (VI) and Value Disposal (VD) are discussed which will have
significant impacts in enhancing Assets and Organization's operational efficiency and effectiveness.
INTRODUCTION
Che Mat, M.M. (2004) define VM as a rigorous, systematic effort to improve the value and optimize the cost of projects, products,
facilities, systems and processes. VM generates these cost improvements without sacrificing the needed performance levels. It is
a creative way of working together in achieving clients’ and stakeholders’ requirements.
2.0 THE COMPLETE LOOP OF VALUE MANAGEMENT INTERVENTION

Traditionally, Value Management is observed to intervene during the initial and slight advance stage of Assets Planning
not so much during operations what more looking into the organization's efficiency and effectiveness.
The Figure 2.0 displays the complete loop of Value Management Interventions for the Assets and
Organization's Planning, Operations and Disposal.

Mazlan (2021)
Figure 2.0: The Complete Loop of Value Management Interventions

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IVMM NEWSLETTER 11

The Author put forward two (2) additional Value Management Interventions namely: -
Value Improvement (VI)
Value Disposal (VD)
VALUE IMPROVEMENT
There are at present plenty of Management Tools that are embraced by organization's worldwide such as, Strategic
Planning, Key Performance Indicators, Business Process Reengineering, Lean Management, Balance Score Card, Risk
Management, Quality Assurance & Quality Control, Six Sigma, 5S, Benchmarking and some others.
As such, it is timely for the Value Management to actively participate during the organization's operations and very much
complement the already existing methodologies.
Obviously, the Value Management Process remains but of different emphasis. The Author reckon the positive impact is going to
be tremendous and the much needed benefits to the Clients and Stakeholders.
VALUE DISPOSAL (VD)
Each and every Asset has its life cycle and upon reaching such period, that asset need to be disposed off. Value Management can
play its significant role in determining the protocol and prioritizing of Asset Disposal.
The same principle can also be applied in determining whether the organization's are to maintain, cease operations or to put on
hold. These scenarios are rampant especially for the big organizations that have many subsidiary companies or Joint Venture
establishments.
The Value Management can also intervene for Assets Disposal and determine the status of organization's operationability.
4.0 CONCLUSION

It is envisaged that Value Management will continuously play its pivotal role in the Assets and Organization's Life Cycle
especially for embracing the Value Improvement Intervention as a continuous process of improving their efficiency and
effectiveness.
Value Disposal on the other hand will also becoming an important tool for making decisions for either Assets and
Organization's disbandment, continuity or put on hold kind of action.

REFERENCES

Institute of Value Management Malaysia (2019), National Value Management Manual.
Che Mat, Mohd Mazlan (2020), Value For Money: Value Management in Practice, Selangor, Malaysia. MCM Value Sdn. Bhd.

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