1. Definition, Use, and Nomenclature

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   1. Definition. The Value Method is a highly effective and productive decision-making process. It uses techniques that are consistent with sound management and problem-solving. Tuned to achieve maximum performance, it uses creative, systematic, and organized processes to secure needed functions at the greatest worth as opposed to the cost to obtain that worth, i. e., highest value. To keep the decision-making moving toward a productive result and ensure key components are completed, a "job plan" is used throughout its use.
      
      
   2. Use. The Value Method can be, and has been, used on almost any kind of activity. As with any endeavor, it is most commonly used, and achieves its best results, when a defined purpose for both the proposed activity and the Value Method procedure implementation has been identified. The most frequent approach employed in the Method is through operation of a Value Study Team (VST). An additional common activity with related uses and activities within a typical Value Program is the contractor generated Value Engineering Change Proposal (VECP).
      
      
   3. Nomenclature. The most common name used in the United States to refer to the Value Method is Value Engineering (VE). In Europe and other locations the name Value Management is more often used. Other typical names used are: Value Analysis (VA), Value Planning (VP), and Function-Analysis (FA). Each of these names has a historic basis and were targeted at a specific kind of program result. All employ the same value methodology, or value procedures, discussed in this short course. While these specific types of applications may differ in minor technical details, they can all be thought of as equivalent names for the same overall Method.
      
      

      Historically, most Federal government Value Programs almost exclusively apply the Value Method to engineering design work only. Accordingly, they often use the term Value Engineering to describe all their Value Method activities. Federal and state governments often have laws that use the value engineering terminology.
      
      
      Systematic Analytic Methods and Innovations (SAMI) uses a more generic terminology to describe its application. However, for most purposes, the terms Value Method and VE should be considered a reference to the same procedure. For the purposes of the general procedures, the terms Value Engineering, Value Analysis, Value Planning, and Value Management should be considered synonymous. To maintain a consistent terminology in this course book, the term "Value Method" will be used exclusively when referring to the general principles of the process.
      
      

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