View source for Value management

'''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<ref> Kelly J.(2005), p.2</ref>.

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<ref> Kelly J.(2005), p.2</ref>:
* 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<ref> Kelly J.(2005), p.2</ref>:
* 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<ref> Norton B. (1995), p.15</ref>:
* '''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<ref> Norton B. (1995), p.14</ref>:
# provide to reduce costs
# provide to implement various functions to the project without increasing costs
# 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.

==Examples of Value management==
Value management is a [[systematic approach]] to providing the [[best value]] for money and using resources effectively. It is used to identify, assess and manage risks, opportunities, costs and benefits associated with a project or business venture. Here are some examples of value management:
* Optimizing the value of a project by reducing its costs and increasing its benefits. This can be done through [[cost]]-benefit analysis, [[risk]] assessment and [[quality control]].
* Analyzing the costs and benefits of different [[options]] to identify the most cost-effective solution.
* Utilizing resources efficiently through careful [[planning and scheduling]].
* Increasing [[efficiency]] by reducing waste and inefficiencies.
* Maximizing [[customer]] satisfaction by identifying customer [[needs]] and providing value-added services.
* Developing cost-efficient procurement strategies to minimize costs.
* Utilizing [[value engineering]] to reduce costs and increase quality.
* Employing total [[quality management]] to ensure quality and [[reliability]].
* Utilizing alternative sources to reduce costs and improve quality.
* Utilizing [[technology]] to reduce costs and increase efficiency.

==Limitations of Value management==
Value management is an important tool used to ensure that resources are used in an efficient and cost-effective manner. However, there are a number of limitations associated with this tool which must be understood in order to ensure that it is used effectively. These limitations include: 
* A [[lack of understanding]] of the value management process by those involved. Without a thorough understanding of the process, it is difficult to identify areas where value can be improved, and there is a risk that resources are not used in the most effective way. 
* Difficulty in quantifying the value of intangible benefits. Intangible benefits are those which can not be measured in monetary terms, such as increased [[customer satisfaction]] or improved morale. As such, it can be difficult to accurately assess the value of these benefits.
* The potential for bias in the value management process. When assessing value, it is important to remain objective. However, there is a risk that personal preferences or agendas can influence the decision-making process and lead to sub-optimal results.
* A lack of [[communication]] and collaboration between different [[stakeholders]]. Value management is a collaborative process and requires close communication between those involved in order to be successful. Without [[effective communication]], it is difficult to ensure that everyone is on the same page and decisions are made for the benefit of the organisation as a whole.

==Other approaches related to Value management==
Value management is a process of identifying the value of project outputs, reducing non-value-adding activities and achieving the best possible [[value for money]]. There are several other approaches related to value management such as:
* '''[[Quality Function Deployment]] (QFD)''': QFD is a structured approach to identify and clarify [[customer requirements]], and then to transform them into design characteristics of the [[product]] or process.
* '''[[Total Quality Management]] (TQM)''': TQM is an integrated organizational effort designed to improve quality at every level. It is based on the principles of [[continuous improvement]], customer satisfaction and [[employee]] involvement.
* '''[[Six Sigma]]''': [[Six sigma|Six Sigma]] is a disciplined, data-driven approach for eliminating defects (driving toward six [[standard]] deviations between the mean and the nearest specification limit) in any process.
* '''Lean Manufacturing''': [[Lean manufacturing]] is a [[production]] practice that minimizes waste and optimizes the [[production process]].
* '''[[Theory of constraints|Theory of Constraints]] (TOC)''': TOC is an approach that identifies the most important limiting factor (constraint) that stands in the way of achieving a goal, and then systematically works to improve that constraint.

These approaches to value management focus on identifying customer requirements and eliminating waste in the production process to achieve maximum value for money. They are all complementary, and when used together can provide a powerful tool for achieving success in both project and [[product development]].

{{infobox5|list1={{i5link|a=[[Strategic cost management]]}} &mdash; {{i5link|a=[[House of total quality model]]}} &mdash; {{i5link|a=[[Managerial controlling]]}} &mdash; {{i5link|a=[[Methods in management]]}} &mdash; {{i5link|a=[[Business process reengineering]]}} &mdash; {{i5link|a=[[World class manufacturing]]}} &mdash; {{i5link|a=[[Zero defects]]}} &mdash; {{i5link|a=[[Value stream mapping]]}} &mdash; {{i5link|a=[[Work simplification]]}} }}

==References==
* Kelly J, (2005),[https://books.google.pl/books?hl=pl&lr=&id=z1uRAgAAQBAJ&oi=fnd&pg=PP1&ots=ELj0jIS0Y4&sig=BUUe9k5Bi0wzHy8ixXPhR7N2guc&redir_esc=y#v=onepage&q&f=false ''Value Management in Design and Construction''], E & FN SPON, United Kingdom
* Kelly J, (2015),[https://books.google.pl/books?hl=pl&lr=&id=M.nTCBwAAQBAJ&oi=fnd&pg=PA239&dq=value+management&ots=WE3-YQA-97&sig=eVOLNyGo-qYQzUZcJKzdgjtpMms&redir_esc=y#v=onepage&q=value%20management&f=false ''Value Management of Construction Projects''], John Wiley Et Sons, United Kingdom
* Norton R B, (1995),[https://books.google.pl/books?hl=pl&lr=&id=9jhdDwAAQBAJ&oi=fnd&pg=PR10&dq=value+management+construction&ots=g1c59GZIJB&sig=0RNp_7OE4D0UeX1D-hAUqHw3kDg&redir_esc=y#v=onepage&q=value%20management%20construction&f=false'' Value Management in Construction: A Practical Guide''], Macmillan Press, United Kingdom

==Footnotes==
<references/>
[[Category:Project management]]
{{a|Tomasz Kuś}}