S.Male ,J.Kelly ,S.Fernie, M.Gronqvist and G.Bowles in a research book” Value Management : A good practice framework for clients and practitioners (1998) defined Value Management as a proactive, creative, problem-solving or problem-seeking services 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.
There is a view by some that VM is simply just another cost cutting tool, which however misses an important feature of VM which is creativity, team-oriented exercises and systematic approach by using the structure functional analysis that make explicit and appraise existing or solutions to a project, product, facilities and systems.
According to Dell I’sola, the relationship between Value, Function (Worth), Quality and Cost can be symbolized as follows:-
Function + Quality
Function = The specific worth that a design/item must perform
Quality = The owner’s or user’s needs, desires, and expectations
Cost = The life cycle cost of the product/project.
Therefore, we can say that:
Value = The most cost effective way to reliably accomplish a function that will meet the user needs, desires and expectations.
Value Planning is carried out in the early part of the project prior to the decision to build or at briefing or at outline design stage. Value techniques are used to reach a group decision in term of criteria for a proposed design or the criteria for a business strategy (Ashworth, 2000).
Value Engineering is term used to describe value techniques that are adopted during the schematic design and detailed design stage (minimum of 35% progress) and in some cases at the construction stage when completed design or elements of the design is made available for the study.
Value Analysis is the term first coined by Larry Miles in describing the value techniques that are carried out following the completion of a project / product (existing readily available product). Further enhancement and improvisation is promoted during this stage.