Everything you wanted to know
but were afraid to ask about…
The Value Methodology
What is the Value Methodology?



The Value Methodology (VM) is
known as “value engineering”,
“value analysis”, and “value
management”.
The Value Methodology originated in
the 1940s.
The Value Methodology uses
function analysis to improve
projects, products, and processes.
Common misconceptions





VM “cheapens” projects.
VM creates adversity.
VM ignored the design
professional’s concept.
VM is a bureaucratic conspiracy.
VM is a pain in the #@%*!
Basic VM is:
How does VM work?


Reduce complicated projects into
basic components by analyzing its
functions.
Identifying the functions of
components and systems leads to
identifying better ways to
accomplish project goals.
The owner’s perspective







The budget is fixed.
No change orders!
We need it yesterday.
Local economy is important.
Respect our traditions.
Meet code requirements.
No complications!
The designer’s perspective


Today it is not unusual for project to
exceed established budgets
during the design process.
Designers are not known for their
cost estimating skills.
The VM consultant has a plan




Keep all eyes on the ball.
Develop winning plays.
Emphasize team collaboration.
Develop a budget strategy.
Everybody wins!
How VM defines “value”

The reliable performance of that
which a product or process must do
to make it work and sell at the least
possible cost.
How VM handles cost



There is always a better way to do
anything.
The secret is to understand
functions…
And then determine best value!
Best value does not mean
“cost cutting.”
Value and cost are not the same!






A simple match can produce fire.
A book of matches can light 20
fires.
A book of matches costs 1¢.
A butane lighter also produces fire.
A butane lighter can produce 5,000
fires.
A lighter costs $1.
Value and cost are not the same!




A light from a match costs
$0.01/20 = $0.0005
1,000 lights cost $0.50
A light from the lighter costs
$1/5,000 = $0.0002
Which choice has the greatest
worth?
The VM job plan

Information phase: Review and
define the current conditions of the
project and identify goals of the
study.
 Objectives, criteria, codes, mandates,
program, budget, schedule, cost
estimate.
It isn’t a REAL VALUE STUDY without a
CERTIFIED VALUE PROFESSIONAL.
The VM job plan

Function Analysis Phase: Define
the project functions using a twoword verb-noun definition and
analyze them to determine which
require improvement to meet the
goals of the study.
 What does it do? What must it do?
What is its value? Who is it for?
 80% of the opportunity to improve
value and achieve cost savings is here!
It isn’t a REAL VALUE STUDY without a
CERTIFIED VALUE PROFESSIONAL.
The VM job plan

Creative Phase: Apply creativity
techniques to identify different ways
or ideas to perform key functions of
the project.
 Brainstorm, generate ideas, identify
continuing concepts, identify
contiguous concepts, identify opposite
concepts.
It isn’t a REAL VALUE STUDY without a
CERTIFIED VALUE PROFESSIONAL.
The VM job plan

Evaluation Phase: Use a
structured evaluation process to
select which ideas could best
improve the project.
 Compare, research the facts, seek out
experts, document resources, use
common sense, determine the pros and
cons.
It isn’t a REAL VALUE STUDY without a
CERTIFIED VALUE PROFESSIONAL.
The VM job plan

Development Phase: Develop selected
ideas into VM alternatives (or proposals)
and document them at a sufficient
enough level to enable decision makers to
determine if the alternatives should be
implemented in future project activities.
 Prepare sketches, refine cost, research life
cycle costs, weigh advantages/ disadvantages,
determine whether alternatives meet the
criteria.
It isn’t a REAL VALUE STUDY without a
CERTIFIED VALUE PROFESSIONAL.
The VM job plan

Presentation Phase: Develop a
report and/or oral presentation that
conveys and documents the
alternatives developed by the team.
 Each proposal stands alone.
 Savings are cumulative.
 Each proposal is presented and
debated.
It isn’t a REAL VALUE STUDY without a
CERTIFIED VALUE PROFESSIONAL.
The VM job plan

Implementation Phase: Execute
the approved alternatives.
 Assist the design professional.
 Response to requests for information.
 User partnering to negotiate change.
 Monitor project progress.
 Report to client regularly.
 Document cost impact.
It isn’t a REAL VALUE STUDY without a
CERTIFIED VALUE PROFESSIONAL.
Who’s on the VM team?
Study
Team
Leader
(CVS)
Design
Team
PROJECT,
PRODUCT,
OR PROCESS
UNDER
STUDY
Client
Customer
VM results



Cost Effective Design
Cost Effective Design
Cost Effective Reliable Design
“Cost Reliability” means:




Basic Function = Common Sense
Common Sense = Cost Reliability
Cost Reliability = Good Value
Good Value = Everybody Wins!
SAVE International
Mission: SAVE International will be the leading
advocate for the practice of value enhancing methods.
Vision: SAVE International will promote, support, and
advance the practice of value enhancing methods
through global exchange, networking, certification,
member services, professional growth, and
recognition.
Spreading the Vision

SAVE International promotes and advances value enhancing
methods through international affiliations:













Canadian Society of Value Analysts
Design-Build Institute of America
European Governing Board
Hong Kong Institute of Value Management
Indian Value Engineering Society
Institute of Industrial Engineers
Institute of Value Management UK
Korean Institute of Construction Engineering and Management
Society of Hungarian Value Analysts
Society of Japanese Value Engineers
Society of Korean Value Engineers
Value Engineering Society of Beijing
Value Management Institute of Taiwan
SAVE International membership
Membership Distribution
USA & Canada
Europe
Middle East
Far East & Pacific Rim
77.9%
5.6%
8.2%
6.1%
West Indies, Mexico, Central America,
South America
0.7%
Elsewhere
1.5%
SAVE
International
has
members in
nearly 50
countries
worldwide
and about
half have
earned
certification
through the
society’s
certification
program.
SAVE International programs

Certification program
 Certified Value Specialists
 Value Methodology Practitioners
 Associate Value Specialists
SAVE International’s membership and
certification program encompass over 40
countries worldwide!
Contact the Certification Administration Office
(cao@value-eng.org) for more information about
the SAVE International Certification Program!
Certification Program

Associate Value Specialist (AVS)
affirms that the individual has
achieved basic understanding of the
value methodology.
 Module I workshop completed.
 Pass Parts I and II of certification
exam.
 Certification does not expire.
Certification Program

Value Methodology Practitioner (VMP)
recognizes individuals with basic VM
training and some experience in the
application of the value methodology.







Module I workshop completed.
Minimum 240 hours study contact hours.
Minimum 6 value studies.
Minimum 150 hours in VM learning.
Minimum 50 hours for sharing VM.
Pass Parts I – IV of certification exam.
Must re-certify every four years.
Certification Program

Certified Value Specialist (CVS) is
the highest level of SAVE
International certification and is
reserved for value specialists or
value program managers who have
demonstrated expert level of
experience and knowledge in the
practice of the value methodology.
Certification Program

Certificated Value Specialist (CVS)








Complete Module I and Module II workshops.
Minimum 480 hours value study contact hours.
Minimum 12 value studies.
Minimum 300 hours in VM learning.
Minimum 100 hours in sharing VM.
Original, scholarly paper.
Pass Parts I – VII of certification exam.
Must re-certify every four years.
Comparison of certifications
Total Active Certifications
Certifications Among
SAVE International Members
CVS
23.7%
VMP
0.3%
AVS
47.6%
CVS
50.3%
AVS
76.0%
VMP
2.1%
SAVE International programs

Annual Conference
 Awards 24 hours of VM learning to
participants.
 Affords worldwide networking
opportunities.
 Showcases innovations and success
stories through technical presentations.
 Offers educational workshops.
SAVE International programs

Web-Based Lecture Series
 Open to all SAVE International
members.
 One connection can serve a group of
people.
 Short (1-hour) presentation broadcast
over the web.
SAVE International publications




Value World: peer-reviewed,
scholarly journal.
InterActions: member newsletter.
Consultant Directory: annual,
paid directory of value consultants.
Conference Proceedings:
technical papers presented at each
annual conference.
SAVE International member benefits







Subscription to publications.
Subscription to interest-based, electronic
discussion groups.
Discounts to training and educational
programs.
Discounts on conference and workshop
registrations.
Access to online member resources.
Access to a worldwide network of value
professionals.
Discounts on bookstore merchandise.
For more information





Call (937) 224-7283.
Fax (937) 222-5794.
Email info@value-eng.org.
URL www.value-eng.org.
Mail to 120 South Keowee Street,
Dayton, OH 45402 USA.
Become a member. Join online!
Thank you!
SAVE International thanks its dedicated
members for their contributions to
promotion of and education in the Value
Methodology.