PRINCIPLES, PROCESSES, AND PRODUCTS
2.1 PRINCIPLES
2.1.1 What is Value Management?
Definition. The statutory and regulatory definitions encompass analysis of functions
performed by a team of qualified personnel directed at improving performance,
reliability, quality, safety, and life cycle costs of products, systems or procedures. The
study of functions helps to achieve “best value” for resources involved by improving
the relationship of worth or utility to monetary cost. The best value is associated with
an item that has the ability of performing its function at an optimum level of quality,
reliability, maintainability, and life-cycle cost. This analysis reduces processes,
equipment, facilities, services, supplies, or products to their most basic functional
elements and then looks for cost-efficient alternatives.
At minimum, proper value management practice will include all of following items:
identified initiatives
invested resources
implementable recommendations
identifiable return on investment
A summary view of value management is the systematic search for an undiscovered
answer through the collective efforts of a team composed of experienced and highly
qualified professionals. The goal of the VE analysis is to ensure that the owner, user,
and other stakeholders, receive a product that provides the greatest “value,” or return
on their collective investment. Value management processes and practices emphasize
the return on investment aspect in terms of life cycle costs to maintain or improve on
desired levels of capability and performance during planning, acquisition, execution
and procurement activities.
Integrated Product Team (IPT) approach. The reliance on a proper integrated
pr ...