Introduction to Value Analysis (VA)

Value Analysis (VA), also known as Value Engineering (VE) and Value Management(VM), is a systematic and function-based approach to improving the value of products, projects, or processes. Value Analysis uses a combination of creative and analytical techniques to identify alternative ways to achieve objectives.

Value Analysis is undertaken in a workshop setting, by an interdisciplinary team representing various perspectives of the project, process, product, organization or other subject being studied. The VA workshop follows a structured multi-phase process, the Value Analysis Job Plan, and is led by a qualified Value Analysis facilitator. The job plan or workshop phases include:

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VE Process

VE Process

In addition to the intensive workshop, Pre-workshop and post-workshop activities ensure a successful VA study. Pre-workshop activities include the assembly of project information, the selection of a study team, and the development of cost models and other resources to support the study. Post-workshop activities typically include the implementation of the accepted VA study recommendations. Although VA studies follow a consistent process, the definition and number of workshop phases may vary between individual practitioners or organizations. As an example, some organizations identify implementation as an additional phase, given its importance to the outcome of the VA study.

Within the process described above, the VA study facilitator will draw upon many tools and techniques, depending on the specific requirements of each study. Function Analysis is a critical and essential element of every Value Analysis undertaking, and is the technique which uniquely defines and empowers the VA approach.

Typically, Value Analysis studies seek to improve upon a “Base Case”, an existing or pre-established solution. This is the most common application of Function Analysis. The analysis of Function and Value can be used in other ways, depending on the goals of the study, and sometimes the type of subject, or timing of the study.

Explore the VAC website to find more discussions and examples of how Value Analysis is used to improve value for Canadian industries and governments. More detailed explanations of Value Analysis can be found in VA in Depth

Links to other organizations that promote the value methodologies can be found here:

Further Reading

  • Thiry, Michel, A Framework for Value Management Practice, 2013, Project Management Institute: ISBN 978-1-62825-018-3
  • Value Methodology, A Pocket Guide to Reduce Cost and Improve Value through Function Analysis, Goal/QPC, 2008: ISBN 978-1-57681-105-4
  • Stewart, Robert B, Value Optimization for Project and Performance Management, John Wiley & Sons,Inc. 2010: iSBN 978-0-470-55114-1
  • Phillips, Martyn R., Value Methodology Fundamentals, Create Space Independent Publishing Platform (December 10,2012) ISBN-13: 978-1477581032
Information Phase Function Analysis Phase Creative Phase Evaluation Phase Development Phase Presentation Phase