Value analysis (VA) tends to focus on the end product, Value engineering (VE) tries to improve the design before it is incorporated into the next stage, and Value management (VM) tries to take a holistic approach. VA tends to be done by an individual, and VE and VM tend to be carried out using a quality circle approach. Quality circles are a multidisciplinary group brainstorming process for identifying and solving quality problems. They all try to do much the same thing and are traditionally most effective in the mass‐production manufacturing environment. Nevertheless, there is still some benefit to be obtained in the one off project environment since the work processes are repetitive in this context.
The main emphasis of VM/VE should be in the conceptual phase whilst the owner is formulating the project. However, it will depend on the contracting arrangements for the contractor, and the most effective area is likely to be during the feasibility study. It is about identifying the functional requirements of a project to achieve an optimum solution for the least cost.
Value is regarded as a measure of how well an organization, project, product, or service satisfies stakeholders and achieves the objectives in relation to the resources consumed. Nevertheless, value management should be regarded as a means of finding a better way of doing things rather than just a cost‐cutting exercise. It is a creative, innovative, group process.