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Value Management

Whenever a common management decision is to be established, a statement of design goal formulated, a new service developed or an old product improved, the starting point is not the way in which the problem will be solved, but rather what objectives and functions are to be achieved. The purpose of Value Management (VM) is to identify and formalize the essential design intent and project requirements with the active participation of the key stakeholders. VM looks at the project as a whole, focusses on the value rather than the cost and more specifically enables:

  • A clearer understanding of the real needs

  • Better focussed and more efficient management

  • Higher quality business decisions

  • The trade-off between performance level and cost

  • Project teams to understand the business objectives

Value Management uses a unique combination of tools and techniques to measure, analyze, and improve performance, safety, cost, time, quality, and, ultimately, to create sustainable value for the organization. These include:

  • Value Engineering

  • Risk Management

  • Life Cycle Costing

  • Planning Reviews

The aim of Value Engineering (VE) is to increase the value of the (new) product or process by achieving an optimum balance between performance, function, quality, reliability, sustainability and life cycle cost. In today’s environment of continuous budget and staff reductions, the VE can play a key role in ensuring programmes stay within budget or even save money. On the other hand, it is important to recognize that value improvement is the real objective of VE, and that may not result in an immediate cost reduction.

VE should be applied as early as possible in the project life cycle when there are maximum opportunities for change, and the changes cost less to implement.

VM and VE workshops provide a valuable opportunity for key project participants to come together, then step aside and view the project from a completely different perspective. Our unique combination of practical experience and subject matter expertise enables us to focus on either creating, improving, or optimizing the value of the basic functions of our client’s projects, products, and business processes.

We take a proactive role in both giving direction and leadership during the value improvement studies and providing solutions that create a positive and lasting impact on your overall strategy, reputation, and growth.

During World War II, many manufacturers were forced to use substitute materials and designs as a result of material shortages. When the General Electric Company found that many of the substitutes were providing equal or better performance at less cost, it launched an effort (in 1947) to improve product efficiency by intentionally and systematically developing less costly alternatives. This approach for ensuring value in a product quickly spread through private industry as the possibilities for large returns from relatively modest investments were recognized. This methodology was originally termed Value Analysis or Value Control (later Value Engineering).

IPMS Koningin Julianaplein 10 2595 AA The Hague The Netherlands

+31 (0) 70 891 5318