Value
Analysis was conceived in the early 1940s by Lawrence D. Miles while he was
employed by General Electric, a major defense contractor which was facing the
scarcity of strategic materials needed to produce their products during World
War II.
Mr.
Miles realized that if value and related innovation improvements could be
systematically “managed,” then General Electric would have a competitive
advantage in the marketplace. With that in mind, Mr. Miles accepted the
challenge and devised the function analysis concept, which he integrated into
an innovative process he later termed value analysis.
Mr.
Miles understood that products are purchased for what they can do—either
through the work they perform or the pleasing aesthetic qualities they provide.
Using
this as his foundational information, he focused on understanding the function
of the component being manufactured. He questioned whether the design could be
improved or if a different material or concept could achieve the function.
To
focus on the function itself, he used an active verb and a measurable noun in
combination to characterize the benefit that a part’s function provides. He
then searched for other ways or methods to achieve the benefit of that intended
function. From this research, function analysis, the key foundation of value
methodologies, was developed and has become a tool to help individuals and
teams manage the way a concept is understood.
These
specialized teams typically address project-related issues such as increased
sales revenue, improved product performance, and reduced resource usage.
The
U.S. Army and Navy, and other companies, soon realized the success of Larry
Miles’ methods. As the application of value analysis expanded, there was also a
change in context—from review of existing parts to improving conceptual
designs. This was one of two factors that marked the emergence of value
engineering. The other was a desire by the U.S. Navy to use the Value Analysis
techniques for project improvement in the early 1950s when there was a
moratorium on hiring “analysts.” Since engineering positions were available,
individuals practicing this new discipline were employed as “Value Engineers.”
As
the value methodology gained in popularity, a group of practitioners formed a
learning society to share insights and advance their innovative capabilities.
Thus, in 1959, the “Society of American Value Engineers” was incorporated in Washington , DC
Soon,
the value methodology was used to improve the value of projects in government,
the private sector, and the manufacturing the construction industries and value
concepts spread worldwide.
Concurrent
with this growth, a number of other value improving tools, techniques, and
processes emerged, many of which were complementary to and were integrated with
the value concepts. In an effort to attract the developers and practitioners of
these emerging methods to our membership, the name of the society was changed
to “SAVE International” in 1996. ( SAVE
International , 2007 )
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