September 11, 2024
Value Methodology (VM), also known as Value Engineering (VE), is a structured approach aimed at improving the value of a product, process, or system by optimizing its functions relative to cost. Rooted in the SAVE International standards, VM applies a systematic and collaborative process that integrates multidisciplinary input to identify and optimize value while maintaining or enhancing performance, quality, and safety.
The foundation of VM lies in Function Analysis, where the basic and secondary functions of a system are critically examined to achieve the highest value efficiently. By categorizing functions a value team can propose alternatives that provide the same or improved functionality at reduced costs. One of the key principles is the distinction between the basic function, which is fundamental to the product’s main purpose, and secondary or unwanted functions that may add complexity or cost without contributing to core objectives.
By focusing on enhancing the functions and minimizing unintended consequences, VM encourages innovation, alternative materials, improved technology, and more efficient processes. The methodology is adaptable to various industries, including construction, manufacturing, transportation, and services, where it can result in significant cost savings, reduced time to market, and increased product longevity. Through a phased process that includes Information, Function Analysis, Creativity, Evaluation, Development, and Presentation phases, VM systematically builds a case for decision-making that is not only economically viable but also environmentally and socially responsible.
Emphasizing stakeholder collaboration, VM fosters a deeper understanding of the project’s goals and aligns teams toward achieving higher value outcomes. With increasing emphasis on sustainability, VM has gained traction for its potential to reduce waste, optimize resources, and drive innovative solutions that address contemporary challenges such as climate change, urbanization, and resource scarcity. By adhering to the principles of value and function optimization, VM offers a proactive approach to problem-solving that goes beyond traditional cost-cutting techniques, enabling organizations to achieve better results with fewer resources.
