Value Management Strategies


VMS E-Learning Training

VMS offers exciting and innovative online courses that will provide learners from any discipline a knowledge base in Value Engineering, Value Methodology, Risk Management, or our own Value Metrics. As a PMI® Registered Education Provider, several of our courses are approved for Professional Development Units (PDUs) towards your PMP®, PMI‑RMP®, or CAPM®.

Find out more about VMS’s exclusive training programs.

“PMI”, “PMP”, “PMI-RMP”, and “CAPM” are registered marks of Project Management Institute, Inc.


The president of VMS, Rob Stewart, has authored two books on the management of value and risk published by John Wiley & Sons, Inc.

Value Optimization for Project and Performance ManagementValue Optimization for Project and Performance Management

Discover the proven process for maximizing the potential value of any project.

Showing readers how to apply value optimization techniques to project and performance management, dramatically increasing results, and efficiency, Value Optimization for Project and Performance Management is written to complement the Project Management Body of Knowledge Guide (PMBOK® Guide), the guidance published by the Project Management Institute (PMI)®, making it readily applicable for any project manager.

This book presents methodology applied with hundreds of clients across a range of industries:

  • Filled with practical facilitation and implementation tips
  • Presents a cohesive theory, structured framework, and diverse toolset
  • Walks you through the value optimization process, showing you how to transform the way a product or process is perceived

Brimming with examples, Value Optimization for Project and Performance Management provides a link to a free software demo for you to get started in applying value optimization in your own organization.

Buy it here

Risk Management for Design and Construction book coverRisk Management for Design & Construction

The essential risk assessment guide for civil engineering, design, and construction.

Risk management allows construction professionals to identify the risks inherent in all projects and to provide the tools for evaluating the probabilities and impacts to minimize the risk potential. This book introduces risk as a central pillar of project management and shows how a project manager can be prepared for dealing with uncertainty. Written by experts in the field, Risk Management for Design and Construction uses clear, straightforward terminology to demystify the concepts of project uncertainty and risk.

Highlights include:

  • Integrated cost and schedule risk analysis
  • An introduction to a ready-to-use system of analyzing a project’s risks and tools to proactively manage risks
  • A methodology that was developed and utilized by the Washington State Department of Transportation
  • Case studies and examples on the proper application of principles
  • Information about combining value analysis with risk analysis

Buy it here

The VMS Approach

To truly improve and optimize a project, our clients benefit most from a holistic approach of analysis and assessment of all of the factors in the VMS approach. This is what allows VMS to deliver solutions that can optimize the value of their projects and business.

VMS services and techniques are structured to address all or any part of the value optimization process and designed to assist at any time from project planning through implementation.

All projects, regardless of their type, have a reason for their existence. This is often referred to as the need for the project. The approach to satisfying the need is referred to as the purpose. The scope of the project is based directly on its need and purpose. How well the scope satisfies the need and purpose reflects its overall performance, which can be measured and evaluated.  These factors all influence the time it will take to deliver the project. All of these factors combine to influence and ultimately determine the cost.  However, because we cannot predict the future, the ultimate outcome of a project’s performance, cost and time cannot be considered deterministically. Therefore, we must consider all of these critical project factors probabilistically under the conditions of uncertainty and risk.

Value Metrics

The ability to assimilate scope, performance, cost, schedule, and risk into meaningful models greatly helps managers make the important decisions needed to be successful in today’s economy. The Value Metrics Model reflects the observations of the project stakeholders and team studying the project. The measurements permit relative comparison and a better understanding of the rationale and merit of the various alternatives.

Our value specialists elicit critical information from project stakeholders, while ensuring it is properly structured to address project needs. This project information facilitates proper development of a value model, which supports sound and logical decision making.

Value Metrics provides a standardized means of identifying, defining, evaluating, and measuring performance. Once this has been achieved and costs for all value alternatives have been developed, measuring value is a relatively simple matter. Value Metrics can improve value studies by:

  • Building consensus among project stakeholders (especially those holding conflicting views)
  • Developing a better understanding of a project’s goals and objectives as they relate to purpose and need
  • Developing a baseline understanding of how the project is meeting performance goals and objectives
  • Identifying areas where project performance can be improved through the VE process
  • Developing a better understanding of an alternative concept’s effect on project performance
  • Developing a deeper understanding of the relationship between performance and cost in determining value
  • Using value as the basis for selecting the best project or design concept

The basic and traditional VA/VE studies performed by our competition reflect just the basic Value Methodology process. The VA/VE studies conducted by VMS are enhanced with the Value Metrics process we developed and continuously refine as new needs, challenges, and innovations arise. This unique process has become the expectation for VA/VE studies from many of our clients today. Through Value Metrics we are able to create a value model through which we can holistically compare alternative concepts and improve project decision making.

Cost and Time

You can’t consider one without the other. Whether your organization manufactures produces, delivers services, or designs and constructs projects, resources are always precious, and there never seems to be enough time or money. Effective value management requires attention to both total cost and timely delivery from the customer’s or user’s perspective.

Let us help you get more for less!


Value optimization requires a special understanding of the reasons for why things exist, each of which is called a “function.” The analysis of functions allows cost, time, performance, and risk to be correlated in a way that reveals hidden insight. These insights open the door to innovation. Let us help you unlock this door!

Value Optimization

Value is composed of four elements, each of which asks an important question:
How well? How much? How long? How certain?
Value optimization requires answers to these questions in the form of good alternatives to choose from.

The broad range of services that VMS provides supports our clients in optimizing the value of the projects, goods, and services that they deliver. VMS services and techniques are structured to address all or any part of the value optimization process and designed to assist at any point in time from project planning through implementation.

In order to optimize value, decisions must be made that balance performance, time, cost, and the related risks and uncertainties of these factors in the decision process. As management consultants, we have found that the Value Methodology has the best core tools to optimize the value of our clients’ projects, processes, services and organizations.  In addition, we integrate risk management, value analysis and value measurement, performance analysis and performance measurement, financial modeling and financial analysis, decision analysis, cost estimate validation and cost estimate management, and training into our services to assist our client’s improving the value of their organization’s projects and services.

Value Studies

  • VA/VE Capital Improvement Studies
  • Capital Project Planning Studies
  • Master Planning Studies
  • Function Analysis Concept Development (FACD)
  • Design Charrettes
  • Product Studies
  • Value Program Development and Management

Business Process Improvement

  • Strategic Business Improvement Planning
  • Performance Management
  • Decision Analysis
  • Lean Continuous Improvement
  • Six Sigma
  • Proposal Development
  • Process and Procedures Studies
  • Training

Risk Management

  • Risk Analysis and Management
  • Cost Estimate Validation and Management
  • Qualitative and Quantitative Modeling
  • Risk Management Program Development
  • Uncertainty Simulation and Modeling

Economic Analysis

  • Financial  Analysis
  • Cost Benefit Analysis
  • Capital Allocation Planning
  • Market Forecasting/Analysis
  • Economic Impact Studies
  • Rate Structuring Analysis
  • Discounted Cash Flow Modeling

What is value leadership?

Value leadership means integrating the Value Methodology into our core technique to help our clients optimize the projects, products, and services they deliver. It means offering the framework to solve virtually any problem and optimize the value of any project. It means being structured specifically to address managing, planning, coordinating, facilitating, and documenting comprehensive value improvement studies. It means managing value, riskperformancedecision analysiscost, and economic modelingprobabilistic estimatingand training (live and E-Learning). It means knowing when each of these is necessary to optimize value. 

That’s value leadership, and that’s VMS.

Study Led by VMS Wins 2013 Best Value Engineering Study of the Year

I-10 Express Lanes Widening

On February 14, the Caltrans Value Analysis Program selected the I-10 Express Lanes Widening Project in Caltrans’ District 8 as the recipient of the Federal Highway Administration/Caltrans “Value Engineering Study of the Year” Award for 2013.  This VE study, led by VMS, successfully satisfied and exceeded the criteria for the Award:

  • Solving Problems
  • Innovative Solutions
  • Performance Improvements (improving public image, reducing construction time, expediting project delivery, improving operations, improving environmental, increase maintainability)
  • Life-cycle cost savings
  • Total cost savings

According to the memo written by Timothy Craggs, Chief of Caltrans Division of Design:

“With cooperation from the San Bernardino Associated Governments (SANBAG), Parsons and Headquarters’ Local Assistance, the project will move forward with significant valuable improvements.  The implementation of the six VA alternatives offers over $158 million in project cost savings (10 percent) while increasing performance by 14 percent.  This results in an overall value improvement increase of 25 percent… The decision to implement six of the VA alternatives has a major impact on the delivery of the overall project.  From pavement types to funding issues, the VA team and stakeholders used the latest innovations and creative funding for the project to move in the right direction.”

We couldn’t be prouder to be a part of this winning project and help advance Caltrans’ mission to “improve mobility across California.”

Federal government adopts Value Engineering policy to improve program and project value to the taxpayer

The U.S. Office of Management and Budget (OMB) has issued the final revisions to Circular No. A-131, Value Engineering. The Circular was published in the Federal Register on December 26, 2013.  Program and project management professionals should take interest in this development as Value Engineering is a proven process that can significantly improve program and project value of all kinds.

What is it?

OMB Circular A-131 provides guidance to support the sustained use of value engineering (VE) by Federal Departments and Agencies to reduce program and acquisition costs, improve performance, enhance quality, and foster the use of innovation. Agencies are required to maintain policies and procedures to ensure VE is considered and integrated, as appropriate, into the planning and development of agency programs, projects, activities, as well as contracts for supplies and services, including performance based, architect-engineering, and construction contracts.

Value engineering, which is also referred to as value analysis, value management, value planning, or value control, is a methodology for analyzing functions of an item or process to determine “best value,” or which is represented by an item or process that consistently performs the required basic function at the lowest life-cycle cost while maintaining acceptable levels of performance and quality. VE contributes to the overall management objectives of streamlining operations, improving quality, and reducing or avoiding costs. VE challenges program and project managers, and organizations that provide support to them, to continually consider if they have properly identified the right need, and provides a disciplined and tested process for making changes to plans, contracts, and other documents used to carry out agency missions. The results of VE may indicate that best value requires an initial expenditure of funds in order to meet basic functions at a lower cost over the life of the project, program, or system.  The circular can be viewed in its entirety at:

How can I learn more about VE?

If you are interested in receiving training, VMS can help. We are accredited by SAVE International and also a Registered Educational Provider through the Project Management Institute (PMI).  VMS offers classes in both e-Learning and traditional face-to-face training formats. Please contact Rob Stewart at or by phone at (760) 741-1155 for more information.