The use of function analysis as the basis of value management in the Australian construction industry

Abstract

Function analysis (FA) is considered to be at the core of value management (VM). However, research in the construction industry in the United States and Hong Kong indicates that this fundamental process is sometimes abbreviated or omitted from the VM process. In examining this situation in the Australian construction industry context, the research described in this paper aimed to gather a cross‐sectional view of the role of FA in VM in the Australian construction industry by means of a postal questionnaire survey. The results confirm that FA is not always used in the VM process in Australia. Moreover, the functional hierarchy is preferred to the function analysis systems techniques (FAST) diagram when FA is implemented. It is also found that the greater the knowledge the participants have of FA, the more likely FA would be used in the VM process; while the greater the difficulty in implementing FA, the lesser is the commitment to use FA. In addition it is found that, in many ways, the use of FA and VM in general in Australia mirrors that of its operation (difficulty in applying FA, lack of expert facilitators, etc.) in other countries around the world. Exceptions to this include the length of time VM has been used in Australia and the duration of the VM workshops, both of which are shorter than in most countries.

Keywords:

• Australian construction industry
• function analysis
• functional hierarchy
• value management