Value Management Train the Trainer Course – bookings are now being taken
The IVM was first formed as the Value Engineering Association in October 1966 thanks to the good offices of the then Ministry of Technology. It became the Institute of Value Management in 1971 to broaden its appeal.
Value Analysis, as it was labelled by founder Lawrence D. Miles, was developed in 1947. Miles was an employee in procurement at the General Electric Company. His system drew upon analysis of an item’s function and had proven itself to be a powerful technique for solving problems and reducing cost. Its successful application throughout 92 GE departments in the USA resulted in the training of thousands of employees in the basics of value engineering.
However, more than a decade after its development, value engineering struggled for acceptance in a wider field. The Electronics Industries Association Sub-committee on Value Engineering had been created in 1958 to address that problem. In 1959, three members of that sub-committee developed the idea of creating a professional association for value analysis and they called it the Society of American Value Engineers or “SAVE”. On March 1959, the society was incorporated.
In 1973, SAVE embarked upon a formal certification program as a way to test for the competence of professionals calling themselves value engineers or value analysts. The program has evolved to include:
In 1963, the most crucial component was added to value analysis: a function-logic diagramming procedure called “Function Analysis System Technique” (FAST). FAST was created by Charles W. Bytheway who was asked to document his technique to show what he was doing and how.
The first federal law in the USA requiring value engineering was passed in 1981: The Clean Water Active. Subsequent success of application of value engineering resulted in the first issuance of Circular A-131 by the Office of Management & Budget in 1988. That was followed by Public Law P104-106 in 1996.
In 1996, SAVE voted to change its name to “SAVE International” to remove the perceived barriers of restriction to the USA. Value engineering had by then expanded across the world, particularly in the Far East.
Today value engineering is widely accepted by its various names in Asia, Europe, and the Middle East. SAVE has formed affiliations with value engineering organisations in Hungary, India, Japan, South Korea, and Taiwan. Approximately half of SAVE’s membership resides beyond U.S. borders, with a third living in the Middle East.