Value Management

•        Concept of Value Management

·        Value Planning is a value study that occurs during the early

design or development stages of a project life cycle, before a preferred

alternative is selected. Value planning typically focuses on identifying

project objectives and developing functional components and general

approaches to meeting those objectives. It ensures that value is planned

into the project from its inception by addressing and ranking stakeholders’

requirements in order of importance. This makes it extremely important

for project team members to know who those stakeholders are. Value

planning should be used for most projects.

▫        Value Engineering is the title given to value techniques

applied during the design or engineering phases of a project. This value

study is conducted after the design alternatives have been developed,

and perhaps before a preferred alternative has been selected. Because

more information becomes available about the project as the project

design process progresses, VE studies are much more detailed than

VP studies.6 Value engineering employs many techniques that focus on

quantifying and comparing—it investigates, analyzes, compares, and

selects among various options that will meet the value requirements of

stakeholders.

▫        Value Analysis refers to value techniques that are applied

retrospectively. Value analysis analyzes or audits a project’s performance

by comparing a completed, or nearly completed, design or project against

predetermined objectives. Value analysis studies are normally conducted

during the post-manufacture/construction period, when a project is fully

operational. In addition, the term ‘‘VA’’ can be applied to the analysis of

nonmanufacture/construction-related procedures and processes, such as studies of organizational structure, or procurement procedures.