Value Management has evolved out of previous methods based on the concept of value and functional approachThese were pioneered by Lawrence D. Miles in the 1940′s and 50′s who developed the technique of Value Analysis (VA) as a method to improve value in existing products.

Initially Value Analysis was used principally to identify and eliminate unnecessary costs. However it is equally effective in increasing performance and addressing resources other than cost. As it evolved the application of VA widened beyond products into services, projects and administrative procedures.

The Value Management Approach involves three root principles.

• A continuous awareness of value for the organization, establishing measures or estimates of value, monitoring and controlling them
• A focus on the objectives and targets before seeking solutions.
• A focus on function, providing the key to maximize innovative and practical outcomes.

The concept of Value relies on the relationship between the satisfaction of many differing needs and the resources used in doing so. The fewer the resources used or the greater the satisfaction of needs, the greater the value. Stakeholders, internal and external customers may all hold differing views of what represents value. The aim of Value Management is to reconcile these differences and enable an organization to achieve the greatest progress towards its stated goals with the use of minimum resources.

For those of you who are not familiar with these techniques,

‘Lean’ (or lean production or lean manufacturing) describes a methodology aimed at reducing waste in the form of overproduction, lead time or product defects.

Lean is thus about doing more with less: less time, inventory, space people and money.

The term was born out of the production systems established by Toyota in Japan in the 1950s and was to a large extent inspired by Kaizen – the Japanese strategy of continuous improvement. Lean production is characterised by operations with low inventories, small batch runs and just-in-time delivery of supplies. It is supported by a quality management regime based on prevention, and by team-based working. The final element is a set of close relationships with suppliers. Though the concept arose in the manufacturing sector, it has since spread and has been applied successfully to other sectors.

Thinking lean involves:

• Identifying and eliminating non-value added activities or waste through continuous improvement efforts
• Focussing on continuous improvement of processes – rather than results – throughout the entire value chain
• Achieving continuous product flow through physical rearrangement and revision of system structure & control mechanisms
• Single-piece flow / small lot production: achieved through equipment set up time reduction; attention to machine maintenance; and maintaining an orderly, clean work place
• Pull production / Just-in-Time inventory control.

(‘Pull’ production is based on orders rather than forecasts; production planning is driven by customer demand or “pull”; its aim is not to suit machine loading or inflexible work flows on the shop floor.

‘Lean’ (or lean production or lean manufacturing) describes a methodology aimed at reducing waste in the form of overproduction, lead time or product defects.

Lean is thus about doing more with less: less time, inventory, space people and money.

The term was born out of the production systems established by Toyota in Japan in the 1950s and was to a large extent inspired by Kaizen – the Japanese strategy of continuous improvement. Lean production is characterised by operations with low inventories, small batch runs and just-in-time delivery of supplies. It is supported by a quality management regime based on prevention, and by team-based working. The final element is a set of close relationships with suppliers. Though the concept arose in the manufacturing sector, it has since spread and has been applied successfully to other sectors.

Thinking lean involves:

• Identifying and eliminating non-value added activities or waste through continuous improvement efforts
• Focussing on continuous improvement of processes – rather than results – throughout the entire value chain
• Achieving continuous product flow through physical rearrangement and revision of system structure & control mechanisms
• Single-piece flow / small lot production: achieved through equipment set up time reduction; attention to machine maintenance; and maintaining an orderly, clean work place
• Pull production / Just-in-Time inventory control.

(‘Pull’ production is based on orders rather than forecasts; production planning is driven by customer demand or “pull”; its aim is not to suit machine loading or inflexible work flows on the shop floor.