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C5682
VALUE MANAGEMENT
W. MOHD HANIFF BIN W. MOHD SHAUPIL
QUANTITY SURVEYING DIVISION
DEPARTMENT OF CIVIL ENGINEERING
POLYTECHNIC KOTA BHARU
CONTENTS
worth
value =
cost
1. Esteem Value
z The monetary sum an owner or user is willing
to pay for prestige or appearance
z The motivated desire to process for the sake
of possession
z The worth of a sell function
2. Exchange Value
z The monetary sum for which a product or
service can be traded or exchanged
z Also the market value at a given point in time
3. Use Value
z The cost of basic function only
z The monetary measure of usefulness of a
product or service
Another relationship by Dell ‘Isola ,
Value = F + Q
C
(F) Function = The specific worth that a design/
item must perform.
(Q) Quality = The owner’s or user’s needs,
desires and expectation.
(C) Cost = The life cycle cost of the product/
project.
Value = The most effective way to reliably accomplish
a function that will meet the user’s needs, desires
and expectation.
Value can be increased by the following
approaches:
(i) (ii) (iii) (iv)
(F) + (Q)
Value =
(C)
Cost Function Compound Expanded
Reduction increase approach growth
approach approach approach
“The VM Family”
z Eric Adam (1993) relates the Value Analysis,
Value Engineering and Value Management
at the various stages of application.