The value approach origins come from the climate that existed during the Second World War. General Electric (GE) was finding it very difficult to source certain raw materials since every industry was working at maximum capacity to help with the war effort. This situation forced companies to look at using alternative materials. GE soon came to realise that when forced to find alternative materials, if enough research went into the process, cheaper materials could be sourced that gave superior performance to the existing material. They concluded that by looking at the basic function that an item needed to perform was vital in helping to choose the right material. They came to realise that care and attention to function manifested itself at the end of the production line through improved quality and lower costs and providing better value for money.
Value is a subjective term that is very much as the discretion of those involved in the management of projects. Ask the question, what value does the product associated with the project have to the organisation? Can this be really answered by the project management team in one way, by the organisations management team in another and the customer in another way. The principle behind value is the worth that the item has to the individual comprised with the functionality.
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