Value engineering and analysis (VE/VA) has traditionally been used for cost reduction in engineering design. But the power of its methodology means that it is an effective weapon for quality and productivity improvement in manufacturing and in services. Today the term value management (VM) recognises this fact.

The first step in any VA/VE/VM project is Orientation. This involves selecting the appropriate team, and training them in basic value concepts. The best VE/VA/VM is done in multidisciplinary teams. "Half of VE is done by providing the relevant information," says Jaganathan. By this he means that clarity of communication about customer (internal or external) is half the battle, particularly if customer needs have changed without anyone taking notice.

VM proper begins by systematically identifying the most important functions of a product or service. Then alternatives for the way the function can be undertaken are examined using creative thinking. A search procedure homes in on the most promising alternatives, and eventually the best alternative is implemented. One can recognise in these steps much similarity with various other quality techniques such as quality function deployment, the systematic use of the 7 tools of quality, and the Deming cycle. In fact these are all mutually reinforcing. VM brings added insight, and a powerful analytical and creative force to bear.

Value engineering was pioneered in the USA by General Electric, but has gained from value specialists such as Mudge and from the writers on creative thinking such as Edward de Bono. Today the concepts of TRIZ are most relevant (see separate section). The Society of American Value Engineers (SAVE) has fostered the development.

VM usually works at the fairly detailed level of a particular component or sub-system, but has also been used in a hierarchical fashion working down level by level from an overall product or service concept to the detail. At each level the procedure described would be repeated. Like many other quality and productivity techniques, VM is a group activity. It requires a knowledgeable group of people, sharing their insights and stimulating one another's ideas, to make progress. But there is no limitation on who can participate. VM can and has been used at every level from chief executive to shop floor.

What appears to give value management particular power is the deliberate movement from "left brain" (linear) analysis to "right brain" (creative) thinking. (Stringer has explained this.) Effective problem solving requires both the logical step forward and the "illogical" creative leap. Edward de Bono, of lateral thinking fame, talks about "provolution" - faster than evolution but more controlled than revolution.

Information	Left brain	typical techniques ------------------ engineering, market survey QFD, focus groups, Gemba
Functional Identification	Right brain	brainstorming, affinity diagrams, Kano model.
Functional Assembly	Right brain	FAST analysis (See Tree Diagrams)
Functional Analysis	Left brain	vs.. b c points a=4 c=2 b=0 a a,1 a,3   b c,2 Key : a,1 means a is better 1 by a little, 3 by a lot.
Creative Alternatives	Right brain	"po" thinking, TRIZ.
Analysis and Evaluation	Right brain	Ranking, concept screening, cost benefit.
Implementation