BS EB 12973:2020 download free.Value Management.
1 Scope
BS EB 12973 aims to:
a) guide and give ideas for leaders, managers, and teams to plan the deployment of Value Management approaches and the effective application of Value Management core / specific methods;
b) help organizations improve performance, productivity, profitability and effectiveness;
c) address Value Management at the managerial level;
d) support people in strengthening value culture;
e) give guidance for strengthening Value Management and Value Management methods at different levels within the organization;
f) identify the conditions for effective Value Management;
g) give guidance for value-based decision-making;
h) stimulate and support innovation; and
i) establish a basis for developing training and certifying procedures for individual competences in Value Management.
Figure 1 presents the envisaged organization of documents relative to the Value Management field and the standards available at the CEN level for all users of BS EB 12973.
— deploys Value Management methods through focused activities to enhance performance within a discrete part of an organization or network under consideration.
The value culture supports a way of thinking in the organization which enables individuals to apply a study- based Value Management approach to improve the performance of the organization.
An effective study-based Value Management approach requires that the organization applies the Value Management principles and drivers (levers) for Value Management and deploys appropriate core / specific methods, which are described in Annex A (informative). A Value Management study involves the selection and application of one or more methods to a specific subject of interest. It will be led by a Value Management team leader and will have defined objectives and will use a sequence of steps, which is often called a job plan, study plan or work plan.
The Value Management team leader should agree a timetable for the study and the resources to be used. The timetable of the study shall be consistent with available resources and related activities or events within or outside the organization.
4.1.5 Communicating the Value Management approach
An effective and efficient Value Management approach has a defined management structure clearly setting out ownership, accountability, roles and responsibilities including governance. In particular, this structure should ensure that people with the right knowledge, ownership, authority and accountability participate in Value Management activities.
The organization should communicate the Value Management approach or approaches to all employees and other relevant stakeholders.
The Value Management structure within the organization comprises the set of interrelated or interacting elements of an organization, which coordinates and strengthens the Value Management approach within the organization.
NOTE I The Value Management structure is a framework within which core / specific methods of Value Management are deployed to improve performance.
The organization should develop its Value Management approach to develop and deliver sustainable solutions that represent sustainable value in terms of corporate social responsibility for the economy, society and the environment. This should take account of opportunities, threats and impacts for those affected, in any way, by the solutions to be selected.
The organization should consider relevant priorities for social, environmental and economic performance in addition to the long-term viability of the organization and its competitive position when making an assessment of sustainable value.
Sustainable value is achieved through consideration of sustainability at each level in an organization for any internal or external context. Decision-making shall take account of the potential impact on future generations, their environment and their resources locally and globally.
The organization should consider opportunities and threats in the way in which new and existing value chains may be pursued, identified, analyzed, evaluated, treated, exploited, rejected or avoided, while respecting constraints.
4.2.4 Manage complexity, risk and uncertainty
Successful organizations manage complexity, risk and uncertainty effectively. Complexity, risk and uncertainty are particularly influential when making strategic choice for an organization. This forms part of value orientation and culture, for example, what might the organization be prepared to pay to manage that level of complexity, risk and uncertainty.
Effective management of uncertainty, risk and complexity requires that the organization considers the effects of these influences on both performance and resource consumption.
Risk assessment should take into account:
— residual risk which can be tolerated;
— the character of such risk;
— how such risk is distributed, shared and understood among those exposed, among those caring for those exposed, and among customers, users and stakeholders over the life cycle of the product or situation
6.1.3 SituatIon of conceptualization
The organization should define the performance and levels of flexibility required for the overall system and the main sub-systems, identify and evaluate potential solutions, based on an understanding of the factors which influence value (Including, for example, limits on acceptability, time, quality, income, capital costs, total cost of ownership, environmental and societal impacts, risks, uncertainty and complexity), to enable the best value concept design to be identified and selected for development.)
6.1.4 Situation of optimization
The organization should make the “final” choice of a preferred solution or preferred architecture for a system by evaluating proposals in terms of comparison with functional needs, taking into account Ilexibilities, priorities and policy for decision-making between priorities.
The use of Value Management methods in a situation of optimization of the “need – solutionTM relationship, which acts on parts of the system or the project, without questioning its general structure, is generally realized at the designer’s / manufacturer’s premises.
The application of Value Management methods at optimization stage usually involves greater definition of the design into the detailed design. As a design moves from the preliminary design stage to detailed design, the design is optimized, often as a continuation of the process begun at conceptualization. Optimizaation is often required when the organization has to comply with rigid constraints to help demonstrate compliance with legal and statutory obligations.
The risks and uncertainties (costs, performance, deadlines) during the optimization stage may be appreciably lower than those to be considered during conceptualization. The level of detail of the deliverable from the optimization activity shall allow the stakeholders to decide upon the preferred solution or architecture for a system.
This situation often exists for the study of well-established products that do not question the environment into which they fit.
6.1.5 Situation of re-design
7.5 Management information
It is important to ensure that top management, in addition to operational management, have the necessary awareness of the Value Management approach and the potential benefit it will deliver to the business.
The organization should inform managers of all levels and sectors, including project managers, of the benefits of change and innovation achieved through Value Management actions of different kinds, and motivate managers to discuss with Value Management specialists to detect the feasibility of introducing such beneficial actions in the activities the managers are in charge of.
The organization should maintain a system for regular reports to management on the effect and effectiveness of the Value Management approach.
7.6 Implementation of Value Management methods
Different sectors of the economy will find that some Value Management methods are more appropriate than others and that their key decision points in their business models or project development are different. There are therefore different route maps for different sectors. The organization shall utilize Value Management trained employees or external experts to select and apply the appropriate method or methods for the situation under consideration.