VALUE MANAGEMENT/VALUE ENGINEERING

Value Management (VM) at present is widely used in many developed nations and attracting considerable attention in certain developing nations. There is a view held by some that VM is simply just another cost cutting tool, however it misses an important feature of VM that is creativity and systems approach to validate a certain proposal. The structured functional analysis is very significant during the VM methodology in achieving the cost optimization.

Definition

S.Male, J.Kelly, S.Fernie, M.Gronqvist and G.Bowles in a book - The Value Management: A good practice framework for clients and practitioners" (1998) defined Value management as a proactive, creative, problem-solving or problem-seeking service which maximizes the functional value of a project, products, services, systems or facilities by managing its development from concept to use. The process uses structured, team oriented exercise, that make explicit and appraise existing or generated solutions to a problem, by reference to the value requirements of the client.

The fundamental contribution by the VM exercise is to eliminate the unnecessary costs which does not contribute to the value of the projects, facilities, services, products and systems. Value Management with this regards also applies to Value Engineering (VE), Value Analysis (VA) and Value Study (VS). There is a view by some that VM is simply just another cost cutting tool, which, however it misses an important feature of VM which is creativity, team-oriented exercise and systematic approach by using the structured functional analysis that make explicit and appraise existing or solutions to projects, products, facilities and systems.