- Process that establishes the most reliable performance which a product or process must do to make it work and sell at the least possible cost - industryforum.co.uk
- The analysis of products and processes to see where the greatest costs are being incurred and where the greatest value is added. This can lead to cost savings and better value for money to the customer - pearsoned.co.uk
- Value Management has evolved out of previous methods based on the concept of value and functional approach - ivm.org.au
Last night Eric Bishop presented a discussion on Value Management as a quality system. Some comments Eric made that I thought worthy of writing down include:
- Value comes from relationships: If you don’t manage the relationships you won’t get value
- Lifecycle costing is an excellent way to check if clients are getting value from functions you are delivering
- Value is achieved through a thorough understanding of requirements, and requirements are about delivering a client capability, not a thing. My interpretation of this is don’t ask, “What do you want?” – ask “What do you want to achieve?”
- Spend a lot of time listening to, and getting into the minds of the client.
- Make sure you are speaking with the right stakeholders
- Build flexibility into design – so that future, unknown requirements can be addressed more easily
- Your ability to influence value declines over the life of the project (like all other types of influence.)
- Give your team value and get value back (His management style)
- Continue to assess cost/benefits of features and functions throughout the project
Value Management is one of the lesser used quality techniques in project management (along with lifecycle costing. See this study by Besner and Hobbs at the PMI website.
Related topic: Value Engineering:
- Value Engineering is a systematic method to improve the "Value" of goods and services by using an examination of FUNCTION. Value, as defined, is the ratio of Function to Cost. Value can therefore be increased by either improving the Function or reducing the cost. It is a primary tenet of Value Engineering that quality not be reduced as a consequence of pursuing Value improvements - wikipedia