Which is a valid criterion for assessing the return on investment of an MoV Study?

The return on investment (ROI) of a Management of Value (MoV) study is a key performance indicator that measures its effectiveness. ROI is calculated by comparing the financial benefits generated by the study's recommendations against the cost of conducting the study itself. A reduction in cost is a direct, quantifiable financial benefit. Therefore, assessing whether the study delivers a cost reduction is a primary and valid criterion for determining its ROI and overall success in improving value.

A. Completed on time: This is a measure of project schedule performance for the MoV study, not a measure of the value or financial return it generated.

C. MoV processes being followed: This is a measure of process compliance or quality. While important for consistency, it does not in itself guarantee a positive financial return.

D. Completed within budget: This is a measure of project cost performance for the MoV study. It indicates efficiency in execution but does not measure the value delivered.

1. AXELOS. (2010). Management of Value (MoV) Guide. The Stationery Office.

Section 8.4, 'Measuring the performance of MoV', page 92: This section explicitly discusses measuring the success of MoV. It states, "The return on investment (ROI) from MoV studies is often quoted as the ratio of the value of the improvements identified to the cost of the study." This directly links ROI to the value of improvements, such as cost reductions.

Appendix C, 'Return on Investment', page 137: This appendix provides examples of calculating ROI, which are based on "quantifiable benefits (e.g. cost savings)" versus the "cost of the MoV activities." This confirms that cost reduction is a fundamental component of the ROI calculation.

Section 1.3, 'What are the benefits of MoV?', page 6: This section lists "Improved value for money and return on investment" as a key benefit, often achieved through "more efficient use of resources" (i.e., cost reduction).