Lawrence D. Miles Value Foundation
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Your Corporate VM Policy, and How to Get One.

     No company unit, least of all a Value Methodology group, can operate in a vacuum. Value Methodology is a staff function and not a line function. VM needs visible management support as evidenced by a strong comprehensive policy statement from top management, in companies of any size.

     Top level of VE is a staff function not a line function. It is weaker than a line function in that it deals with people over whom it has no direct authority. The policy statement is a visible record of acceptance by the highest management of a company. It signifies acceptance, endorsement, encouragement and lays down rules for relationships with other departments.

History

     Value Analysis/Value Engineering (VA/VE), the Value Methodology, is an American grown discipline with roots back to WWII, where the notion that "Function" analysis was the key to Value improvement - the accomplishment of required functions at lower cost - was first realized. Identification of unnecessary

functions and costs and thereby cost improvement/reduction were the first benefits of the application of VA/VE.

     In the development of the disciplines in the ensuing 40-50 years, the benefits derived from application of Function based VA/VE, the Value Methodology, have resulted in billions of dollars being saved in Construction, Manufacturing, Government and Municipal projects and organizations, both here in this country and internationally. The first step is the adoption of a Corporate VE Policy.

Benefits

     You, as a leader of your organization, need to understand the benefits that can be derived in your organization by developing a policy that applies VA/VE in all of your organizations' activities. You are no doubt aware by this


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