A REINTERPRETATION OF VALUE MANAGEMENT

S. D. GREEN

Department of Construction Management & Engineering, University of Reading, Whiteknights, PO Box 219, Reading, RG6 6AW, UK

Abstract

This paper identifies the essential characteristics and underlying assumptions of traditional value engineering. Whilst these assumptions are often justifies when faced with well-defined problems, this is not the case when faced with the 'wicked' problems which often predominate during the early stages of building design. If the current popularity of value engineering is to be understood it is necessary to identify two alternative paradigms; one concerned with cost reduction and one concerned with creating a shared understanding of the design problem. Distinct definitions for value engineering and value management are suggested on the basis f these two paradigms.

The derived definitions are considered within the theoretical framework provided by systems thinking. It is asserted that the assumptions of value engineering reflect the 'hard systems thinking' which are epitomised by systems engineering and systems analysis. The weaker assumptions of value management, however, reflect the 'soft systems thinking' which has been developed for use in the context of human activity systems. It is considered important that practitioners appreciate the assumptions upon which they are operating. Guidelines are given for the future development of value management as a means of achieving organisational learning within the wider context offered by facilities management.

Keywords: Value engineering, value management, building design, systems engineering, soft systems thinking, facilities management.