The value management is concerned with sustaining and improving the desirable balance between needs and wants of the needed resources and stakeholders to satisfy them. The value judgement of stakeholder differs, and VM reconciles differing priorities to deliver the best value for all the stakeholders. The valued management is based on the adding and defining measurable value principles, focusing on the objectives before concentrating and solution on the function to improve innovation.
Value management is one of the major concept that is used in the project management. Value management is defined as the process of delivering some advantage to users. Value management mainly focusing on the overall advantages that are derived by users from successful execution of the project. Value management involves important concepts such as Time, Scope, Time. It enhances project values of the project management.
Value management is process of managing value of project and organization in competitive market. Value management plan is created in which planned value, actual cost and earned value are documented. As we know that, there are many challenges associated with project management such as- value for money, cost, and schedule variance over time, estimated elapsed time, ahead or behind schedule etc. thus, all these challenges degrade the value of project and organization in market. Value management plan facilitates organization in achieving benefits such as-
1. With the use of value management plan, organization can improve performance of the project by implemented changes in project.
2. Customer relation, customer satisfaction can be achieved with the use of value management plan. This plan also provides information about the project in terms of accomplishment.
3. This plan facilitates the organization to identify problem in project, by analyzing the data captured with the use of Information system.
Value management is based on the needs and resources. It is defined as the procedure which emphasize on a desirable balance between the wants and needs of stakeholders and the resources needed to satisfy them. It is a powerful tool to understand stakeholder’s perspective and develop project according to analysis of value management. As per my learning, Value management is based on relationship between fulfilling needs and expectations and resources required to achieve them. It defines measurable values, focusing on objectives before solutions and achieving value for cost. It mainly focusses on the expected outcome of a project.