Value management

Value management
See also


Value management
See also

Value Management - is a service in which a person or a sponsor of the project conveys a clues and requirements to the project creators. In other words, this is a service that lets to control the project from conception to realization with simultaneously maximizing a value. The definition of maximize value was defined in 1975. It means retention of the highest level of quality and at the same time reduction of costs, and create a balance of these components[1].

Value management is often comprised with the vision of an audit or control but it has a few differences. There are three basic of them[2]:

  • having a creative team, which by using various tools can create plenty of alternative solutions
  • using advanced systems
  • the relation between a function and value

Largely, value management is based on a design brief which the clients give to project creators. It might to serve in the audit of the realization of assumptions. There are a few examples of them[3]:

  • compatibility with a strategy
  • the range of tasks which are related to project
  • the new patterns and design
  • the methods of productions

The Methodology of Value Management

The process of value management has a wide range of technics a processes which include a few stages. There are four main criteria[4]:

  • The first criterion - is the first stage, which includes the planning of the project. In this phase, we define a strategy and collect documentation, and we choose adequate solutions. Additionally, we choose a job plan.
  • The second criterion - is the second stage, in which we choose a comprehensive team who will work at the same place and at the same time.
  • The third criterion - in this stage, we choose a Value Management Team Coordinator (VMTC), who can help a team in realization tasks
  • The fourth criterion - is the last stage, this is the most crucial criterion in which true value management does not look for destructive modifications and its source are project's required or basic functions.

The Advantages of Value Management

Value management has a lot of advantages like a[5]:

  1. provide to reduce costs
  2. provide to implement various functions to the project without increasing costs
  3. provide to implement various functions to the project and reduce costs

Currently, value management is a crucial element of the system of management. Many companies lead plenty of projects at the same time so thank to the fact of the value of management companies may reduce costs of these projects and save money. Value management leave a lot of opportunities to person or sponsor of the project who set terms of performance and owing to the fact they have a whole control and significant influent. In the nearest future it certain that we know new tools and solutions which will lead to achieving better scores.

References

Footnotes

  1. Kelly J.(2005), p.2
  2. Kelly J.(2005), p.2
  3. Kelly J.(2005), p.2
  4. Norton B. (1995), p.15
  5. Norton B. (1995), p.14

Author: Tomasz Kuś