Value management and innovation

Abstract

Purpose – The purpose of this paper is to provide a holistic and comprehensive historical perspective of the evolution of value management, and to illustrate the impact that value analysis can have on innovation within organizations. Design/methodology/approach – A review of published material from credible sources describing the evolution of the value management methodology, and a desktop analysis of 35 documented value management case studies illustrating the role of value management in innovation. Findings – Published descriptions of the evolution of value management are incomplete and fragmented. A holistic and comprehensive historical perspective of value management as a value-adding methodology is provided. Mapped against a model for innovation, value management is shown to contribute substantially to innovation within organizations across a variety of contexts. Value management is currently evolving into a powerful approach to strategic planning. Practical implications – This paper illustrates the contribution of value management to innovation across a variety of industries and contexts. Originality/value – The paper provides a holistic and comprehensive historical perspective of the evolution of value management as a methodology, and demonstrates by mapping selected case studies onto a model of innovation impact, that the method is a powerful and versatile approach to obtaining innovative solutions to organizational problems.

Scope Reductions as Tool for Cost Control in Construction Projects

“…Value engineering and value analysis are approaches with many similarities to the logic behind the reduction lists. According to Jay and Bowen (2015), the term "Value Analysis" refers to studies that examine existing products and processes with the aim of reducing costs, while "Value Engineering" describes studies that aim to develop a new design. Even though the two approaches have the same origin, we will focus on value engineering, as it is the term most relevant in a project management context.…”

“…In this sense, value engineering generates reduction lists. Jay and Bowen (2015) describe that the USA General Service Administration demanded independent value engineering studies in construction projects, and he US construction industry developed different approaches for value engineering reviews. According to Kelly and Male, (1993), four different approaches to value engineering have been used in the USA.…”

“…The 35 per cent design stage is a point in the process where cost data are readily available and savings can be identified. Another approach mentioned by Jay and Bowen (2015) was to do the study earlier in the project life cycle. Palmer et al (1996) followed up implementation of the value engineering proposals, to find the actual level of savings achieved.…”