Value Analysis Definitions

As with other methodologies and processes, Value Analysis involves a number of terms and acronyms. The definitions shown in this section provide short descriptions of terms that are commonly used in Value Analysis, Value Engineering, Value Management and the Value Methodologies. For more detailed information on Value Analysis, Value Engineering or Value Management techniques refer to Value Analysis in Depth.

General

Basic Function: The primary need that must be achieved by the project, process or service. The basic function answers the question, what must "it” do. For example, the basic function of a pencil is “mark surface”. If the pencil cannot mark surface it is not meeting the key need. A project to widen a highway may have a basic function of "reduce delay”. A basic function is sometimes referred to a primary function.

Professional in Value Management (PVM): Value Management Professional certified by the European VM Training and Certification System

Certified Value Specialist (CVS)®: A facilitator or Value Analysis Team Leader who is certified by SAVE International. A CVS is the highest level of certification. Other SAVE International certification levels include Value Management Associate.

Cost: The expenditure of resources, required to achieve an outcome, project, product, or process. Encumbrance or expenditure economically justified by production or resource utilization (product, service or combination of the two). Costs attributable to a function or an activity represent the total necessary or approved expenditures for the realization of a function.

Creative Phase: The third phase of a VA/VE workshop in which team members generate creative alternatives to satisfy the functions. One of the creative techniques used during this phase is Function Based Brainstorming.

Decision-maker: Person who ultimately decides whether the recommendations from the Value Analysis study will be accepted.

Development Phase: The fifth phase of a VA/VE workshop during which ideas/alternatives are developed in sufficient detail so that they can be compared against the originally proposed solutions.

Evaluation Phase: The fourth phase of a VA/VE workshop during which creative ideas/alternatives from the Creative Phase are examined and select the ideas with most potential to improve value for development into a recommendation.

Facilitator: Value Analysis team leader who manages and facilitates the VA workshop or job plan.

FAST: FAST - Function Analysis System Technique, is a graphical modelling technique used within Function Analysis, to identify relationships between functions based on the questions: How, and Why. FAST In Depth

Functional Performance Specification Technique (FPS): Functional Performance Specification is a technique to define the requirements of a project, product or service, based on the required Functions and the specific needs related to those Functions. An FPS documents the user’s needs related to functions in terms of, evaluation criteria, levels of performance, and flexibility of those levels. FPS In Depth

Function Based Brainstorming: A technique used to stimulate creative ideas on how to achieve a function by asking how else the function might be satisfied. This technique is often used during the creative phase of a Value Engineering workshop but can also be used as a standalone technique to stimulate creative thought. For more information, visit Function Based Brainstorming in VA in Depth. Function Based Brainstorming

Function Analysis: Function analysis is a process that identifies the functions of a project, product, or process. As an element of Function Analysis, Function Analysis System Technique (FAST), is undertaken to establish and diagram the logical relationships between functions. Characteristics, including cost can be analysed and identified for each Function. The use of Function Analysis differentiates Value Analysis from other problem solving approaches. Function Analysis in Depth

Function: A function is the purpose that a product, project or process is expected to perform. Function allows the definition of each task in a process or one of its activities in terms of end goals or outcomes and not solutions or outputs. In Value Analysis, a function is described by two words, an active verb and a measurable noun. As an example, the function of this web page is to: “inform reader”.

Higher Order Function: The reason or purpose that the basic function exists. It answers the "why" question of the basic function and is depicted immediately outside the study scope to the left. For example, the highest order function for this website could be Promote Value Analysis.

Information Phase: The first phase of a VA/VE workshop where background info is examined and major issues are identified to gain an understanding of the problem and the solution that has been proposed. Value Analysis In Depth

Mod I or Module I: A 40 hour Value Engineering training workshop approved by SAVE International® and taught by a Certified Value Specialist (CVS).

Need: User/customer expectations. The need may be expressed explicitly (the asset must last 50 years) or be implied without clear definition ( i.e. the customer should be satisfied).

Presentation Phase: The sixth and final phase of a VA/VE workshop during which the recommendations are presented to the key decision makers for review and assessment

Value: Value is a personal perspective that represents the willingness to pay for the performance delivered by a product, process or project. Good value is achieved when the necessary performance can be accurately defined and delivered at the lowest life cycle cost. Value can also be described as the relationship between the satisfaction of needs and the use of resources in doing so.

Value Analysis Job Plan

The VA Job Plan is the structured set of steps, or phases which are followed during the Value Study. The job plan includes a combination of creative and analytical techniques.

The following six-phased job plan is as recognized by SAVE International®

Information Phase
Function Analysis Phase
Creative Phase
Evaluation Phase
Development Phase
Presentation Phase

Some organizations may elect to define the Job Plan as having more or less phases, but the overall methodology remains unchanged. The value study Job Plan typically includes pre-workshop, workshop, and post-workshop activities.

Value Analysis Team: A multi-disciplinary group representing different perspectives and skills and relevant to the project, product or process, which is the object of the analysis. Team members may include stakeholders, technical specialists, owner, users and specialists. The size, and composition of the team is determined based upon the specifics of the project, product, or process being studied.

Value Analysis Workshop: The event during which the VA Facilitator leads the multidisciplinary Value Analysis team through the Value Analysis methodology, following a VA job plan, to identify alternative solutions to the project, product or process under review. The duration of the VA workshop can be adjusted to suit the scope, and complexity of the project, product, or process being studied.

Value Engineering: Value Engineering is another term for Value Analysis. Value Management (VM), Value Engineering (VE), Value Planning and Value Analysis (VA) are all terms that are used interchangeably. VA/VE/VM all refer to a structured methodology that uses a combination of creative and analytical techniques to identify alternative ways to achieve objectives or outcomes.

Value Ratio: The Value Ratio describes the relationship between the Satisfaction of Needs (benefits) and the Use of Resources (expenditures). The project or process Needs can be expressed as Functions, and their associated specific requirements. The Use of Resources includes all the resources required to satisfy the needs, including: money, people, available time, and physical resources.