scholarly journals Introduction of the Best Value Approach in India

2013 ◽  
Vol 5 (2) ◽  
pp. 137
Author(s):  
Syed Nihas ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi
Keyword(s):  
Construction Industry ◽  
Research Group ◽  
Measurement Theory ◽  
Industry Structure ◽  
Performance Information ◽  
Information Measurement ◽  
Best Value ◽  
Procurement System

In September of 2013 the Performance Based Studies Research Group (PBSRG) made its first entry into India to introduce the Best Value approach. The purpose of the entry was to identify if the Best Value (BV) approach and technology could optimize the performance of the Indian Construction industry. This paper documents the results of the exploratory effort. In 2014, industry visionaries in coordination with the SJCE university group, will commence testing of the implementation of the licensed Best Value technology in India. The technology includes the Information Measurement Theory (IMT), the Performance Information Procurement System (PIPS) and the Construction Industry Structure (CIS).

scholarly journals Best Value Procurement/Performance Information Procurement System Development

2011 ◽  
Vol 3 (1) ◽  
pp. 12 ◽  
Author(s):  
Dean Kashiwagi
Keyword(s):  
The Netherlands ◽  
System Development ◽  
Measurement Theory ◽  
State University ◽  
Arizona State University ◽  
Performance Information ◽  
Information Measurement ◽  
Best Value ◽  
Procurement System ◽  
And Control

Best Value Procurement/Performance Information Procurement System (BVP/PIPS) has been developed by Dean Kashiwagi and the Performance Based Studies Research Group (PBSRG) from 1991 - 2010. BVP/PIPS is a licensed technology from Arizona State University that includes a deductive logic called Information Measurement Theory (IMT), an industry structure model which shapes the PIPS functions, and a process and structure that transfers risk and control to expert vendors. The BVP/PIPS has gone through numerous stages: the performance information centered PIPS (1994-2001); the PIPS testing phase (2001-2005); and the implementation stage (2005-2009); and the theoretical refinement and standardization of BVP/PIPS technology (2010). BVP/PIPS was introduced into the Netherlands in 2005 by a large general contractor Heijmans, the Rijkeswaterstaat, and aggressively proliferated by Scenter and others. BVP/PIPS usage in the Netherlands is modified to fit within the European procurement law. However, the main advantage of PIPS is the IMT based philosophy of minimized management, direction, and control of expert vendors.

scholarly journals A Procurement Method that Considers Innovation

2020 ◽  
Vol 7 (1) ◽  
pp. 11
Author(s):  
Jorn Verwey ◽  
Wim De Vries ◽  
Isaac Kashiwagi ◽  
Dean Kashiwagi
Keyword(s):  
Measurement Theory ◽  
Performance Information ◽  
Past Performance ◽  
Information Measurement ◽  
Best Value ◽  
Treatment Equipment ◽  
And Performance ◽  
Procurement System ◽  
Procurement Method

A challenge facing buyers in the delivery of innovative construction and facility services is to utilize expertise without increasing project risk. The traditional price-based Design-Bid-Build approach minimizes the utilization of expertise of expert construction vendors by using an owner driven specification. The non-traditional approaches such as design-build, construction management @ risk (CM@Risk), and integrated project delivery are more flexible but still have no methodology to minimize the risk caused by innovative practices. The Best Value Approach utilizing the Performance Information Procurement System (PIPS) and the Information Measurement Theory (IMT) has been tested for over 20 years with high customer satisfaction and performance. However, the use of past performance information still gave the perception of high risk when considering innovative concepts that have never been previously utilized. This research uses a case study of a hospital owner competing the risk of innovative systems with existing, proven systems. The research group had the opportunity to interject the Best Value Approach into the case study delivering the innovative service/equipment requirement, allowing them to see how the approach and created Best Value environment reacted to the expertise that uses innovation. The case study involves the delivery of cutting edge cancer technology, the proton cancer treatment equipment/system. Even though the delivered service is not standard construction, the delivery approach can be easily used in construction.

scholarly journals The Research Model that Revolutionized the Dutch Construction Industry

2012 ◽  
Vol 4 (2) ◽  
pp. 133
Author(s):  
Dean Kashiwagi ◽  
Jacob Kashiwagi ◽  
Abraham Kashiwagi ◽  
Kenneth Sullivan
Keyword(s):  
Construction Industry ◽  
Measurement Theory ◽  
Research Model ◽  
Information Measurement ◽  
Leadership Model ◽  
Best Value ◽  
Traditional Research ◽  
Procurement System ◽  
And Control ◽  
Use Of Expertise

The Dutch construction industry is making a change from an owner controlled to a contractor-controlled environment. It is a movement from a top down culture (management, direction and control) to a bottom up culture (alignment and use of expertise). Owner decision making, management, direction and control are being replaced with a leadership model, which aligns and utilizes the expertise of the contractors. The changes in the Dutch construction industry validate a non-traditional research model, which used deductive logic and case studies involving dominant information and visionary industry participants, non-traditional concepts of Information Measurement Theory (IMT), the Construction Industry Structure (CIS) model and the best value Performance Information Procurement System (PIPS).

scholarly journals Introducing Decision Free Solutions - A Generic, Systemic Approach to Minimize Risk by Avoiding Decision Making

2016 ◽  
Vol 8 (2) ◽  
pp. 102
Author(s):  
Jorn Verweij
Keyword(s):  
Decision Making ◽  
Measurement Theory ◽  
Systemic Approach ◽  
Risk Minimization ◽  
Minimization Method ◽  
Information Measurement ◽  
The Core ◽  
Best Value ◽  
Procurement System ◽  
Consistent Application

“Decision Free Solutions” (DFS) is a generic, systemic approach to minimize risk in achieving an aim by avoiding decision making. Applying DFS will benefit those who have an aim, and those who have expertise. DFS is based on Information Measurement Theory (IMT) and the Kashiwagi Solution Model (KSM), and is congruous with the Best Value Approach (BVA). Despite BVA being an approach aimed at utilizing expertise (and thereby minimizing risk), and not a procurement system, BVA and its applications are very much intertwined with procurement. This makes it challenging to apply BVA to other fields. Establish a generic, systemic approach to implement the technologies of IMT/KSM in any field. Analyzing existing BVA and IMT/KSM documentation, identify the logic and the principles by which expertise is utilized. Define a generic, systemic approach to minimize risk and demonstrate it by applying it to a field other than procurement. Avoiding all types of decision making was identified as the core principle to ensure the utilization of expertise. An approach consisting out of four steps (labelled DICE) and the consistent application of five principles (labelled TONNNO) has been proposed. The approach has been applied to the field of Lean. A generic and systemic approach to minimize risk by avoiding decision making has been introduced which can be applied in any field. It has been applied in Lean, where it addresses several of Lean’s weaknesses as perceived in practice and where it was demonstrated to reduce the risk of project failure. DFS can be considered a risk minimization method to which risk management is integral. DFS makes expertise matter.

scholarly journals Use of Best Value Process for Inspection and Preventive Maintenance of Pumping Stations

2012 ◽  
Vol 4 (2) ◽  
pp. 195
Author(s):  
Jannie Koster-Robaard
Keyword(s):  
Preventive Maintenance ◽  
Professional Services ◽  
Lessons Learned ◽  
Performance Information ◽  
New Paradigm ◽  
Water Board ◽  
Best Value ◽  
Pumping Stations ◽  
Procurement System ◽  
And Control

The water board Velt en Vecht is a Best Value (BV) client who used the Performance Information Procurement System (PIPS) process to select professional services in 2012. The client had a procurement mission of integrity, transparency, objectivity, and non-discrimination that aligned them with the BV PIPS system. With a strategic plan of leadership instead of management and control, the water board is an example of a visionary owner that can be successful with BV PIPS. Lessons learned from the water board implementation of PIPS are that BV PIPS is a change of paradigm, even for a visionary owner. Both the owner who selects and the contractors who compete for the award must learn the new paradigm of minimized decision making, proactive planning, and risk management.

scholarly journals The Best Value Approach in the Netherlands: A Reflection on Past, Present and Future

2012 ◽  
Vol 4 (2) ◽  
pp. 147 ◽  
Author(s):  
Jeroen Van de Rijt ◽  
Sicco Santema
Keyword(s):  
The Netherlands ◽  
Construction Projects ◽  
State University ◽  
Performance Information ◽  
Adoption Theory ◽  
Future Developments ◽  
Best Value ◽  
History Of ◽  
Procurement System ◽  
And Control

More than 15 years ago Dean Kashiwagi created a process called BVP/PIPS (Best Value Procurement/Performance Information Procurement System) at Arizona State University. PIPS is a procurement method that aims to select the most suitable vendor for the job, to spur this vendor on to highest performance, and to reduce the client’s management and control tasks (Kashiwagi, 2009b). Kashiwagi developed the method for several years with the objective of improving the procurement and management of construction projects by reducing risk in selecting the top performer. The method (herein BV approach) has a number of steps, each built around a specific "filter”, which focuses on a different element to separate high and low performers. The early phase of the adoption of the process in the Netherlands has been described by Van de Rijt and Witteveen (2011) in the special issue of the Journal for the Advancement of Performance Information and Value. In this paper an update is given and future developments are described. The paper covers the BV approach, a brief history of PIPS in the Netherlands, technology adoption theory, adoption and adaptation of the technology and future developments.

scholarly journals Development of the Use of Performance Information

2020 ◽  
Vol 12 (2) ◽  
pp. 11
Author(s):  
Jackson Harare ◽  
Jacob Kashiwagi ◽  
Joseph Kashiwagi
Keyword(s):  
High Performance ◽  
Measurement Theory ◽  
Research Performance ◽  
Lessons Learned ◽  
Disruptive Technology ◽  
Performance Information ◽  
Information Measurement ◽  
New Concepts ◽  
History Of ◽  
Traditional Industry

This paper documents the history of the development of performance information [1982-2020], for the delivery of services. It identifies traditional industries as client controlled. In the past, clients utilized a structure of technical professionals who had education, certifications, and experience. Professionals set both policy and structure for their professionalism. The traditional industry does not differentiate between the values of vendors, professionals and stakeholders. This paper identifies that professionals are resistant to using performance information which differentiates. The initial proposal to successfully implement information management was to use automation. However, the industry resisted the automation and the research identified that simplicity and transparency was the only solution. This paper identifies that the Performance Based Studies Research Group’s (PBSRG) success in performance information development was due to a unique design and methodology to research performance information as a disruptive technology. A new methodology called the Information Measurement Theory (IMT) was designed to redefine risk, expertise and information. The major source of validation of the new concepts was joint academic and industry research tests. Three major research tests confirmed that the client creates over 90% of all risk. PBSRG worked with a manufacturing company to design a high-performance roofing program which ended after 16 years due to it being based on client centric concepts. An expert contractor took the lessons learned and maximized the use of performance information with a vendor centric approach.

scholarly journals A Performing Manufacturer Mitigates Risk by Using Performance Information Systems

2020 ◽  
Vol 12 (1) ◽  
pp. 10-20
Author(s):  
Dhaval Gajjar ◽  
Isaac Kashiwagi
Keyword(s):  
School District ◽  
Construction Industry ◽  
High Performance ◽  
Industry Structure ◽  
Economic Downturn ◽  
Test Case ◽  
Coating System ◽  
Performance Information ◽  
High Performing ◽  
And Performance

A manufacturer initially approached the researchers to identify how to use the performance information of their high-performance urethane coating system to increase quality. The research project used the construction industry structure to identify owners who understood the high risk and transactions caused by low bid practices. Intelligent owners understood that value was delivered by expert contractors using high performance products rather than warranties. However, during the economic downturn, high performing contractors reverted to the low bid practices of using warranties to win work rather than performance. To create a high-performance environment, the manufacturer again approached the researchers to mitigate the risk caused by their warranties. The research identified that risk was not mitigated by warranties, but by transparency and performance information. A structure was developed that mitigated risk caused by a change in paradigm that resulted in a "win-win" result in a test case that involved the school district. As the system was installed, the performance of contractors increased, and the sprayed urethane foam contractors became the only roofing contractors at the school district to consistently maintain their installed roofs and mitigate the risk to the client at their own cost without using the manufacturer's warranty.

scholarly journals Legal Perspective: Is Best Value Procurement achievable within the framework of the ARW 2005?

2011 ◽  
Vol 3 (1) ◽  
pp. 72 ◽  
Author(s):  
Ramona Apostol
Keyword(s):  
The Netherlands ◽  
Public Works ◽  
Test Case ◽  
Performance Information ◽  
The Public ◽  
Best Value ◽  
Legal Implications ◽  
Legal Perspective ◽  
Pros And Cons ◽  
Procurement System

This paper discusses the legal implications of using the elements of the Performance Information Procurement System (PIPS) procedure in the Netherlands. The article proposes the pros and cons of the potential compliance of these elements, in the form adopted in a test case with the municipality of ‘s-Hertogenbosch who attempted to meet the requirements of Aanbestedingsreglement Werken1 (hereafter: ARW) 2005. The author proposes that the national restricted procurement with pre-selection prescribed by the ARW 2005 may raise potential issues of interpretation and may therefore be too strict for the efficient application of the elements of the American methodology. Based on the legal discussion of the test case, the author is proposing to choose a more flexible policy for the public works contracts, which can benefit from the application of the American methodology.

scholarly journals Best Value Procurement Results within the GSA

2014 ◽  
Vol 6 (1) ◽  
pp. 72
Author(s):  
John Savicky ◽  
Dean Kashiwagi ◽  
Kristen Barlish ◽  
Kenneth Sullivan
Keyword(s):  
Construction Projects ◽  
Performance Metrics ◽  
Government Agency ◽  
Performance Information ◽  
Best Value ◽  
Overall Performance ◽  
Concurrent Testing ◽  
Procurement System ◽  
The Impact

A large government agency, seeking to become more efficient, implemented the Performance Information Procurement System (PIPS) Best Value (BV) process on various construction projects to determine if the program could increase the performance of outsourced services. The impact of this model for increasing the performance of procured projects is presented. The environment of the projects and testing of the process were unique, as they allowed concurrent testing and validation of multiple projects, similar in scope, and uniform application of key performance metrics. A case study is also used to illustrate the overall performance of the BV process. The findings in this paper show that the process resulted in approximately a 60% increase in performance with regards to customer satisfaction, project delays, and cost increases. In an industry with delays in excess of 20-50%, a model that results in an increase of performance for outsourced services is significant.

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