Brief Introduction to the Value Management & Value Engineering Methdodology
WHAT IS VALUE MANAGEMENT / VALUE ENGINEERING
Value Management/ Value Engineering is a Decision-Making Methodology
A dynamic process focusing the collective wisdom of multi disciplinary groups, Value Management / Value Engineering systematically defines common objectives, functionally prioritises what needs to be done and then creatively identifies how best to achieve the targeted results.
Applications of Value Management / Value Engineering are many and varied, and include; Strategic Decision Making – Cost Improvement – Project Management – Project Risk analysis – Product /Process design and Improvement – Customer/Supplier Interacts – Industry Forums – Team Building (with strategic focus/alignment)
WHY VALUE MANAGEMENT / VALUE ENGINEERING
- TO ENHANCE COST EFFECTIVE DECISION MAKING
- REDUCE DELAYS IN PROJECTS
- REDUCE COST WITHOUT SACRIFICING REQUIREMENTS
BASIC PRINCIPLES OF VALUE MANAGEMENT / VALUE ENGINEERING:
Value as used in Value Management / Value Engineering can be defined as: The lowest cost to reliably provide the required functions or service at the desired time and place and with the essential quality.”
VALUE = FUNCTION / COSTThe lower the cost for optimum function, the better the value.
BENEFITS OF VALUE MANAGEMENT / VALUE ENGINEERING:
Cost Optimisation: Value Management (VM) or Value Engineering (VE) is measuring its results by measuring Value being the end result of doing something functionally correct for the least cost.
ALIGNMENT: VE / VM also incorporate the principles of aligning diverse opinions normally expressed in a real decision making scenario.
OUTPUTS OF VALUE MANAGEMENT / VALUE ENGINEERING:
1. We get Correct and Cost Effective Solutions to the problems we encounter, as we ensure Functional Correctness before deciding on the solution to be implemented.
2. Through participation in a VM / VE study / workshop we obtain Buy-in and achieve Alignment of the people who have to implement and run with the solution.
