The Concept of Value Management
The concept of value management was introduced to compare alternative materials in order to arrive at the one that provides the best function at the lowest possible overall cost. This chapter discusses the initial introduction of the concept to the manufacturing industry but indicates that it has since gained popularity in other sectors, including the construction industry. Owing to the varying knowledge and different levels of perceptions of the essence and principles of operation of the practice, various terms were attributed to the discipline but the most common and all-encompassing one is that of ‘value management’. As beneficial as the practice has been in countries and projects where it has been adopted, there are some risks that required attention to achieve the purpose for which it was conceived. The risks, as well as direct and indirect costs of conducting the exercise, are also identified and discussed in this chapter.
KeywordsConstruction project value Value analysis Value engineering Value management Value management cost Value management risk
- De Leeuw, C. P. (2006). Value management—The new frontier for the quantity surveyor. Paper presented at the 22nd Biennial Conference/General Meeting on Quantity Surveying. Abuja: Nigerian Institute of Quantity Surveyors.Google Scholar
- Finnigan, A. (2001). Value engineering. The University of Queensland. Design methods fact. Retrieved May 12, 2015, from http://www.mech.uq.edu.au/courses/mech4551/.
- Kelly, J., & Male, S. (2006). Value management. In J. Kelly, R. Morledge, & S. Wikinson (Eds.), Best value in construction (pp. 77–99). London: Blackwell.Google Scholar
- Kelly, J., Male, S., & Graham, D. (2014). Value management of construction projects. Oxford: Wiley.Google Scholar
- Male, S. (2002). A re-appraisal of value methodologies in construction. Construction Management and Economics, 11(2002), 57–75.Google Scholar
- Miles, L. D. (1972). Techniques for value analysis and engineering (2nd ed.). New York: McGraw-Hill.Google Scholar
- Oke, A. E. & Ogunsemi, D. R. (2011). Value management in the Nigerian construction industry: Militating factors and the perceived benefits. In Proceedings of the Second International Conference on Advances in Engineering and Technology (pp. 353–359). Faculty of Technology, Makerere University, Uganda.Google Scholar
- Oke, A. E., & Ogunsemi, D. R. (2013). Key competencies of value managers in Lagos state, Nigeria. In S. Larry & S. Agyepong (Eds.), Proceedings of 5th West Africa Built Environment Research (WABER) Conference (pp. 773–778). Ghana: Accra.Google Scholar
- Palmer, A., Kelly, J. & Male, S. (1996). Holistic appraisal of value engineering in construction in United States. Construction Engineering and Management, 324–326.Google Scholar
- Short, C. A., Barett, P., Dye, A., & Sutrisana, M. (2008). Impacts of value engineering on five capital arts projects. Construction Management and Economics, 35(3), 287–315.Google Scholar
- Society of American Value Engineers. (2015). What is value engineering? Retrieved May 27, 2016, from http://www.value-eng.org/.
- The College of Estate Management. (1995). Value engineering. Retrieved May12, 2016, from http://www.cem.ac.uk/postalcourses.
- The Institute of Value Management. (2015). What is value management? Retrieved May 12, 2016, from http://www.ivm.org.uk/what_vm.htm.
- Yekini, A. A., Bello, S. K. & Olaiya, K. A. (2015). Application of value engineering techniques in sustainable product and service design. Science and Engineering Perspectives, 10(Sept), 120–130.Google Scholar