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.