The Institute of Value Management as we know it today was formed over 40 years ago, in 1971. The formation of the IVM was a move to broaden the appeal of what had been known as the Value Engineering Association, a body that had been founded in 1966 by the then Ministry of Technology. There had been growing interest in ‘value’ since the concept of value analysis had first been discussed in the UK, in 1957.
The origins of value analysis go back to the USA during the 2nd World War, when there were shortages of skilled labour, raw materials and parts. Lawrence D Miles, and employee in procurement at the General Electric Company, established that focus on an item’s function helped to identify substitutions that could reduce costs, improve the product, or both. Miles developed this into a systematic process that became recognised as ‘value analysis’ in 1947 but it was many years before there was sufficient interest to form the first association, the Society of American Value Engineers (SAVE), which was founded in 1959.