MANAGEMENT

APPENDIX X3 - REQUIREMENTS MANAGEMENT ASSOCIATED COMMUNITIES OF PRACTICE
X3.3 Value Management/Value Engineering
Value management/value engineering, as defined by the PMBOK ® Guide – Fifth Edition, is a technique used
to optimize project life cycle costs, save time, increase profits, improve quality, expand market share, solve
problems, and/or use resources more effectively. This technique is applied by multidisciplinary teams to a planned
or conceptual scope for a product, project, or process. Its purpose is to analyze and understand an established
baseline of existing or proposed functions and requirements to develop additional ideas and alternatives to optimize
the use of resources, build team consensus through the participation in the work phases, and identify gaps and
opportunities for improvement. Therefore, this technique is most useful when applied in the early phase of the
project when the general scope of requirements is understood well enough to develop alternatives to the baseline,
and can be used at the project, program, or portfolio level. To use this technique, follow a formal and systematic
process following a job plan that includes function analysis with a multidisciplinary team and led by an expert
experienced in the methodology.
For additional information, see:
• Value Methodology Standard [11],
• Value Methodology Body of Knowledge [12],
• A Framework for Value Management Practice [13], and
• ASTM E1699-14: Standard Practice for Performing Value Engineering (VE)/Value Analysis (VA) of Projects,
Products and Processes [14].
62 ©2016 Project Management Institute. Requirements Management: A Practice Guide