Value Management of Construction Projects, 2nd Edition

2Evolution of Value Engineering and Value Management

2.1 Introduction

An examination of the formation of value analysis in the late 1940s and the development of value engineering (VE) and subsequently value management give an insight into the foundation of the diverse types of value studies described in this book and practiced today. The term value study is used here to denote the implementation of a value improvement philosophy and methodology through a structured process. This chapter is structured into three parts:

• A brief historical background.
• A discussion of the three phases of development in value studies is presented, comprising
  • Phase 1 – The analysis of existing manufactured components with the aim of providing those functions satisfied by the component at the least cost.
  • Phase 2 – A development of the process of analysis to include a study of components during their design to ensure that when manufactured they precisely satisfy their required functions at the required quality and at the least cost. During this phase there was transference of the concept to construction where the design and construction of components and elements of construction were similarly analyzed.
  • Phase 3 – This brought about a significant change where the focus was not just on the component but on entire projects for the satisfaction of an organisational or business strategy through manufactured products, services and the optimal development of built assets in the built environment, the focus ...