Best Value Model

Introduction

Dean-visionariesDuring the past 17 years, our research group has been refining a business model that enhances the way that organizations operate. The underlying concepts are simple:

  1. Hire smart people, and allow them to demonstrate their expertise.
  2. Pre-plan projects from start to finish, while identifying potential risks and their solutions.
  3. Measure performance as well as any deviation from the plan.

Our documentation has shown that our best value business model applies to any level of organization, within any industry. The details of the model are adaptable, allowing it to be used within the restraints of bureaucracy and legislation. Results of the model include:

  1. Reduction of client management requirements.
  2. Motivation towards continuous improvement.
  3. Creation of accountability, through measurement.

Performance Information Procurement System (PIPS)

Our model has been most frequently utilized in the procurement of construction and services. This particular classification is referred to as the Performance Information Procurement System or PIPS. The PIPS process provides clients with a tool to identify and select the Best Value vendors for their projects, based on performance instead of just lowest price. Unlike other Best Value methods out there, PIPS also has mechanisms to measure the vendor's performance throughout the duration of the project.

Current PIPS Projects ยป

Performance Information Risk Management System (PIRMS)

When PIPS was identified not only as a Best Value procurement system, but a methodology to measure output and minimize risk the name of PIPS was modified to the Performance Information Risk Management System (PIRMS). This system emphasizes the preplanning and risk management aspects of PIPS.

Three Main Phases of the Best Value Model

The Best Value Model consists of three main phases: Selection, Pre-Planning & Quality Control, and Management by Risk Minimization. This video introduces those phases and provides perspectives on each phase from some of our recent users.



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