History of Value Management
Theory and Techniques
As early as 1731, Daniel Bernoulli, presenting a paper at the Imperial Academy of Sciences in St. Petersburg, stated that the value of an item must not be based on its price, but rather on the utility which it yields (in Bernstein, 1996). This concept of the relationship between value and function is at the heart of all value disciplines.
As a formalized methodology, value management is not new; its origin dates from World War II when it was codified as value analysis/engineering. Its success was challenged at times, yet flexibility and continued improvements have enabled value analysis and value engineering to overcome roadblocks with remarkable results. As the old saying goes,