The value methodology (VM), a systematic and structured approach, improves projects, products, and processes. VM is used to analyze manufacturing products and processes, design and construction projects, and business and administrative processes. VM helps achieve balance between required functions, performance, quality, safety, and scope with the cost and other resources necessary to accomplish those requirements. The proper balance results in the maximum value for the project.
Value = Function/Cost
Value is the reliable performance of functions to meet customer needs at the lowest overall cost.
Function is the natural or characteristic action performed by a product or service.
Cost is the expenditure necessary to produce a project, service, process, or structure.
The systematic and structural approach comes from the VM job plan. SAVE International®’s standard job plan consists of six phases:
- Information Phase: Gather information to better understand the project.
- Function Analysis Phase: Analyze the project to understand and clarify the required functions.
- Creative Phase: Generate ideas on all the possible ways to accomplish the required functions.
- Evaluation Phase: Synethesize ideas and concepts to select feasible ideas for development into specific value improvement.
- Development Phase: Select and prepare the “best” alternative(s) for improving value.
- Presentation Phase: Present the value recommendation to the project stakeholders.
The VM process produces the best results when applied by a multi-disciplined team with experience and expertise relative to the type of project to be studied. A Certified Value Specialist usually leads the VM team to ensure proper application of the methodology. Value team leaders and members may be found within the SAVE International® Consultants Directory or online at www.value-eng.org.
Enhancing Value in Your Company
VM is embraced by a global spectrum of businesses and industries: building designers and contractors; automobile manufacturers; chemical processors; pharmaceutical companies; etc. Benefits realized by those companies using VM far exceed the investment. Savings in time, cost, and quality contribute to improving an organization’s competitive position.