Value Management

This draft standard aims at:
a)   guiding and giving ideas for leaders, managers, and teams to plan deployment of value management approaches and effective application of value management methods;
b)   helping organizations improve performance, productivity, profitability and effectiveness;
c)   addressing value management at the managerial level;
d)   supporting people in strengthening value culture;
e)   giving guidance for strengthening implementation and practice of value management and value management methods at different levels within the organization;
f)   identifying the conditions for effective value management;
g)   giving guidance and set requirements for improving value based decision making and organizational governance in strategy, tactics and operations; this includes consideration of subjects such as: strategic analysis; positioning in the market; operational activity identifying and responding to strategic intelligence;
h)   stimulating and supporting innovation; and
i)   establishing 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 this standard.
A system for certification of individual professional competence is maintained by the National Value Associations in Europe. The qualification "Professional in Value Management" (PVM) is recognized across Europe by National Value Associations as an indicator of competence. This qualification is also recognized in other countries outside Europe.

Value Management

Diese Norm zielt auf die folgenden Punkte ab:
a)   Bereitstellung von Richtlinien und Ideen für Personen in leitender Position sowie für Manager und Teams zur Planung der Umsetzung von Value Management-Ansätzen und zur effektiven Anwendung von Value Management-Methoden;
b)   Unterstützung von Organisationen bei der Verbesserung ihrer Leistung, ihrer Produktivität, ihrer Profitabilität und ihrer Effektivität;
c)   Berücksichtigung des Konzepts Value Management auf Managementebene;
d)   Unterstützung von Mitgliedern der Organisation bei der Stärkung der Wertkultur;
e)   Bereitstellung von Richtlinien für die Stärkung der Umsetzung und Anwendung des Value Managements und der Value Management-Methoden auf unterschiedlichen Ebenen der Organisation;
f)   Feststellung der Bedingungen für ein effektives Value Management;
g)   sowie Bereitstellung von Richtlinien und Definition von Anforderungen für die Verbesserung einer wertbasierten Entscheidungsfindung und der strategischen, taktischen und betrieblichen Lenkung und Leitung der Organisation. Hierzu zählt auch die Berücksichtigung von Sachthemen wie: strategische Analyse, Positionierung am Markt sowie betriebliche Aktivitäten zur Ermittlung strategischer Erkenntnisse und die entsprechenden Reaktionen;
h)   Stimulationen und Unterstützung von Innovation;
i)   sowie Schaffung einer Grundlage für die Entwicklung von Schulungs- und Zertifizierungsverfahren für einzelne Kompetenzen im Bereich Value Management.
Bild 1 zeigt die vorgesehene Organisation der Dokumente aus dem Bereich Value Management und der auf CEN-Ebene allen Nutzern dieser Norm verfügbaren Normen.
Ein System für die Zertifizierung individueller beruflicher Kompetenzen wird von den nationalen Wertevereinigungen in Europa verwaltet. Die Qualifikation "Professional in Value Management" (PVM) wird europaweit von den nationalen Wertevereinigungen sowie auch in anderen Ländern über Europa hinaus als Kompetenznachweis anerkannt.

Management par la valeur

Le présent document vise à :
a)   guider et donner des idées aux dirigeants, aux responsables et aux équipes pour planifier le déploiement d’approches du management par la valeur et l’application efficace de méthodes de base/spécifiques de management par la valeur ;
b)   aider les organismes à améliorer la performance, la productivité, la rentabilité et l’efficacité ;
c)   traiter le management par la valeur au niveau managérial ;
d)   aider les individus à renforcer la culture valeur ;
e)   fournir des recommandations pour renforcer le management par la valeur et les méthodes de management par la valeur à différents niveaux au sein de l’organisme ;
f)   identifier les conditions pour un management par la valeur efficace ;
g)   fournir des recommandations pour prendre des décisions fondées sur la valeur ;
h)   stimuler et soutenir l’innovation ; et
i)   établir une base pour le développement de méthodes de formation et de certification des compétences individuelles en matière de management par la valeur.
La Figure 1 présente l’organisation envisagée des documents relatifs au domaine du management par la valeur et les normes disponibles au niveau du CEN pour tous les utilisateurs du présent document.
Figure 1 - Documents en rapport avec le management par la valeur
Un système pour la certification des compétences professionnelles individuelles est soutenu par les Associations Nationales pour la Valeur en Europe. La qualification « Professionnel en Management par la valeur » (PMV) est reconnue en Europe par les Associations Nationales pour la Valeur comme un indicateur de compétences. Cette qualification est également reconnue dans d’autres pays hors Europe.

Upravljanje vrednosti

Namen tega osnutka standarda je:
a) vodenje in podajanje zamisli za vodje, direktorje in ekipe pri načrtu uvajanja pristopov k upravljanju vrednosti ter učinkoviti uporabi metod upravljanja vrednosti;
b) pomoč organizacijam pri izboljšanju delovanja, produktivnosti, dobičkonosnosti in učinkovitosti;
c) obravnavanje upravljanja vrednosti na ravni vodstva;
d) zagotavljanje podpore pri krepitvi kulture vrednosti;
e) podajanje smernic za krepitev uvajanja in izvajanja upravljanja vrednosti ter metod upravljanja vrednosti na različnih ravneh v organizaciji;
f) prepoznavanje pogojev za učinkovito upravljanje vrednosti;
g) dajanje navodil in določenih zahtev za izboljševanje odločanja na podlagi vrednosti in organizacijskega vodenja pri strategijah, taktiki in operacijah; to vključuje upoštevanje tem, kot so: strateška analiza; pozicioniranje na tržišču; identificiranje operativnih dejavnosti in odzivanje na strateške podatke;
h) stimuliranje in podpiranje inovacij; ter
i) vzpostavitev podlage za razvijanje usposabljanja in potrjevanje postopkov za posamezne kompetence pri upravljanju vrednosti.
Na sliki 1 je prikazana predvidena organizacija dokumentov glede na polje upravljanja vrednosti in standarde, ki so na voljo na ravni CEN za vse uporabnike tega standarda.
Sistem za podelitev certifikatov posameznikove poklicne usposobljenosti vzdržujejo državna združenja za vrednost v Evropi. Naziv »strokovnjak na področju upravljanja vrednosti« (PVM) državna združenja za vrednost po vsej Evropi priznavajo kot znak usposobljenosti. Ta kvalificiranost je priznana tudi v drugih državah zunaj Evrope.

General Information

Status
Published
Public Enquiry End Date
31-Oct-2017
Publication Date
03-Feb-2020
Technical Committee
Current Stage
6060 - National Implementation/Publication (Adopted Project)
Start Date
31-Jan-2020
Due Date
06-Apr-2020
Completion Date
04-Feb-2020

Relations

Effective Date
15-Apr-2009
Effective Date
29-Jan-2020

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SLOVENSKI STANDARD
SIST EN 12973:2020
01-marec-2020
Nadomešča:
SIST EN 12973:2000
Upravljanje vrednosti
Value Management
Value Management
Management par la valeur
Ta slovenski standard je istoveten z: EN 12973:2020
ICS:
03.100.40 Raziskave in razvoj Research and development
SIST EN 12973:2020 en,fr,de
2003-01.Slovenski inštitut za standardizacijo. Razmnoževanje celote ali delov tega standarda ni dovoljeno.

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SIST EN 12973:2020

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SIST EN 12973:2020


EN 12973
EUROPEAN STANDARD

NORME EUROPÉENNE

January 2020
EUROPÄISCHE NORM
ICS 03.100.40 Supersedes EN 12973:2000
English Version

Value Management
Management par la valeur Value Management
This European Standard was approved by CEN on 27 October 2019.

CEN members are bound to comply with the CEN/CENELEC Internal Regulations which stipulate the conditions for giving this
European Standard the status of a national standard without any alteration. Up-to-date lists and bibliographical references
concerning such national standards may be obtained on application to the CEN-CENELEC Management Centre or to any CEN
member.

This European Standard exists in three official versions (English, French, German). A version in any other language made by
translation under the responsibility of a CEN member into its own language and notified to the CEN-CENELEC Management
Centre has the same status as the official versions.

CEN members are the national standards bodies of Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway,
Poland, Portugal, Republic of North Macedonia, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and
United Kingdom.





EUROPEAN COMMITTEE FOR STANDARDIZATION
COMITÉ EUROPÉEN DE NORMALISATION

EUROPÄISCHES KOMITEE FÜR NORMUNG

CEN-CENELEC Management Centre: Rue de la Science 23, B-1040 Brussels
© 2020 CEN All rights of exploitation in any form and by any means reserved Ref. No. EN 12973:2020 E
worldwide for CEN national Members.

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SIST EN 12973:2020
EN 12973:2020 (E)
Content Page
European foreword . 5
Introduction . 6
1 Scope . 9
2 Normative references . 10
3 Terms and definitions . 10
4 Value Management . 11
4.1 Value Management approach . 11
4.1.1 General guidance . 11
4.1.2 Informal approach . 15
4.1.3 Formal approach . 15
4.1.4 Study-based approach . 16
4.1.5 Communicating the Value Management approach . 17
4.2 Principles . 17
4.2.1 Strengthen Value orientation . 17
4.2.2 Apply Function Thinking . 18
4.2.3 Apply a Structured holistic approach . 18
4.2.4 Manage complexity, risk and uncertainty . 19
4.3 Drivers (levers) for Value Management . 19
4.4 Guidance and requirements for successful Value Management . 20
4.4.1 Involvement of customers, users and other stakeholders . 20
4.4.2 Thought processes, behavior and benefits . 21
4.4.3 Production of tangible results and benefits . 21
4.4.4 Monitoring Value Management . 21
4.5 Delivering sustainable solutions . 21
4.6 Value assessment . 22
5 Value Management at top management level . 22
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EN 12973:2020 (E)
5.1 Value culture and strategy in the organization . 22
5.2 Strategic analysis . 23
5.2.1 General . 23
5.2.2 Vision, mission and strategy of an organization - Indicators . 23
5.2.3 Definition of the vision and the mission . 24
5.2.4 Definition of the strategic axes of the vision . 24
5.2.5 Definition of the objectives to be achieved . 24
5.2.6 Implementation of the vision and the strategy objectives . 24
5.2.7 Identification of value drivers (levers) . 25
5.2.8 Definition of Action Plans . 25
5.2.9 Definition of the indicators . 25
5.3 Risk, uncertainty and complexity . 25
5.3.1 Addressing risk and uncertainty. 25
5.3.2 Addressing complexity . 26
5.4 Contributions to portfolios . 26
5.5 Contributions to programs . 26
5.6 Contributions to innovation at all the levels of the organization . 26
6 Value Management at operational level . 27
6.1 Situations for use of Value Management methods . 27
6.1.1 General . 27
6.1.2 Situation of scoping . 27
6.1.3 Situation of conceptualization . 28
6.1.4 Situation of optimization . 28
6.1.5 Situation of re-design . 28
7 Developing Value Management capability . 28
7.1 General guidance on developing capability . 28
7.2 Wider training in Value Management and Value Culture . 29
7.3 Value Management team leaders . 29
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7.4 Supporting structure . 29
7.5 Management information . 30
7.6 Implementation of Value Management methods . 30
8 Methods used in Value Management . 30
8.1 Core Methods used in Value Management . 30
8.2 Guidance on use of Value Management methods . 31
8.2.1 General guidance . 31
8.2.2 Value Analysis/Value Engineering (VA/VE) . 31
8.2.3 Function Analysis (FA) . 31
8.2.4 Function Cost (FC) . 32
8.2.5 The Functional Performance Specification (FPS) . 33
8.2.6 Design to Cost (DTC) / Design to Objectives (DTO) . 33
Annex A (informative) Methods and tools to be used within Value Management - Specific Value
Methods and tools . 35
Bibliography . 69

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SIST EN 12973:2020
EN 12973:2020 (E)
European foreword
This document (EN 12973:2020) has been prepared by Technical Committee CEN/TC 279 “Value
management, value analysis, function analysis”, the secretariat of which is held by BSI.
This European Standard shall be given the status of a national standard, either by publication of an identical
text or by endorsement, at the latest by July 2020, and conflicting national standards shall be withdrawn at
the latest by July 2020.
Attention is drawn to the possibility that some of the elements of this document may be the subject of patent
rights. CEN shall not be held responsible for identifying any or all such patent rights.
This document supersedes EN 12973:2000.
This document updates, extends and supersedes the previous document EN 12973:2000. New subject
matter has been developed to address Value Management within the context of existing management
systems and organizational culture. This standard significantly extends guidance for what an organization
should do or may do to optimize performance in its current situation and to develop capability and
approaches to secure future value improvement. The document also augments previous standard guidance
on a common basis for practice and methods.
According to the CEN-CENELEC Internal Regulations, the national standards organisations of the following
countries are bound to implement this European Standard: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia,
Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Republic of North Macedonia,
Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and the United Kingdom.
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SIST EN 12973:2020
EN 12973:2020 (E)
Introduction
The aim of this standard is to present, define and explain Value Management and provide guidance for the
introduction of the basic concepts, approaches, essential principles, drivers (levers), methods and tools for
effective Value Management.
Value Management is all about:
“Organizational Improvement, setting clear goals, improving productivity, creativity
and
return on investment.”
This standard sets out guidance on the essential elements of Value Management, which improve value,
competitiveness and performance for an organization and support leadership, cross-disciplinary work and
operational management.
Value Management in an organization is about proactively increasing value, it being the relationship
between the satisfaction of needs and the consumption of resources used in satisfying the needs. The fewer
resources used or/and the greater the satisfaction of needs, the greater the value. The application of Value
Management approaches and underpinning principles throughout an organization helps strengthen the
awareness and understanding among its members and teams of the factors which influence value for that
organization, while making decisions on a consistent basis.
This standard presents Value Management within the context of existing management systems and an
organizational culture: with value at the forefront of thinking and behavior. It aims to give specific guidance
as to what an organization should do, or may do to improve performance. It addresses the concepts of ‘value
culture’ (attitudes and understanding of value for the organization), ‘Value Management’ (the underlying
concept of the discipline), the ‘Value Management approach’ (the way the organization works to apply the
four principles of Value Management), and the deployment of ‘Value Management methods’ (specific value
methods and tools such as Function Analysis, Value Analysis, Value Engineering, as well as other methods
and tools). The standard gives guidance on developing capability for any organization including supply
chains and delivering innovative solutions.
The four principles of Value Management underpinning the Value Management approaches, namely
strengthen value orientation, apply function thinking, apply a structured, holistic approach and manage
complexity, risk and uncertainty complement and support other management standards being implemented
in the organization, for example, quality, risk and dependability. Crucially, the leadership in the organization
will be able to carry out their own informal, formal or study-based Value Management approach to improve
the organization and its products. European accredited training in Value Management is available to support
organizations and individuals.
WHAT is VALUE MANAGEMENT?
Value Management is an underlying concept applied within existing management systems and approaches
based on value and function-oriented thinking, behavior and methods, particularly dedicated to motivating
people, developing skills, promoting synergies and innovation, with the aim of maximizing the overall
performance of the organization.
Value culture implicitly combines function thinking with identifying the needs and finding the best ways to
satisfy these. When an organization aspires, and strives for a mature value culture, that culture naturally
aligns human behavior to improve value. Value culture using Value Management approaches underpinned
by Value Management principles, particularly function thinking, and drivers (levers) and methods as
described in this standard support organizations and people in increasing value.
Value Management is inherent within organizational culture, management approaches, selection of methods
and tools and decision-making with the aim of maximizing performance. Value Management enables the
organizational culture to enhance creativity and effectiveness in addressing the means to satisfy the needs,
from the users’ and customers’ perspective.
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EN 12973:2020 (E)
WHY use VALUE MANAGEMENT?
Value Management as a concept includes the organization’s Value Management approach considering its
four essential principles and four drivers (levers), supported by Value Management methods and tools.
In parallel with the evolution of Value Management there has been widespread development of system
standards and guidance to support organizations. Value Management contributes to and strengthens these
systems to help maximize the performance of the organization.
In simple environments, a focus on functional needs and value as a basis for decision-making sets clear
direction towards a sustainable solution for the organization. In dynamic or volatile environments,
consideration of uncertainty and complexity and development of a holistic approach to accommodate
multiple scenarios may become a guiding principle that sets a direction towards a sustainable solution for
the organization.
External or internal customers and users may all hold differing views in prioritizing the needs. Effective
Value Management will recognize, respect and integrate these perspectives as far as is relevant to improve
value.
The most visible benefits arising from effective Value Management include:
— better business decisions, which can be supported by customers and users by providing decision-
makers with a sound basis for their choices;
— increased effectiveness by organizing and using limited time and resources to best effect; delivering
better environmental, social, economic, and financial outcomes;
— improved products for users and customers by clearly understanding, prioritizing and satisfying their
real needs;
— enhanced competitiveness by facilitating technical and organizational innovation and resource
efficiency;
— aligning members of the organization to its goals, critical success factors and values through improved
internal communication and knowledge; and
— enhancing communication and efficiency through multi-disciplinary and multi-task teamwork.
The benefits of Value Management are available to all: providers and consumers in all sectors of society,
individuals, organizations, networks and governments.
WHO is VALUE MANAGEMENT primarily addressed to?
— any person aiming to achieve, deliver or improve sustainable performance;
— executive leaders and authorities seeking to increase satisfaction for users, customers and stakeholders
to enhance the performance of their organization;
— managers and people, at all levels, who use a Value Management approach to support decision-making;
and
— all those involved in Value Management development, deployment or training.
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EN 12973:2020 (E)
HOW is VALUE MANAGEMENT practiced?
The Value Management approach is the way an organization, which aims to deliver value, applies the four
essential Value Management principles and the four drivers (levers) for Value Management to strengthen its
approach. This standard sets out guidance for informal, formal and study-based Value Management
approaches to apply the Value Management principles and drivers (levers) for Value Management, relevant
for the organization within specific circumstances and scenarios with the aim of maximizing the overall
performance of the organization. The essence of a successful approach is based on establishing a clear
understanding of the relationship between the satisfaction of need and the resources used to satisfy it.
The development of the value culture within the organization is fundamental to optimizing performance.
The development of this culture requires training in function thinking appropriate to the activities,
responsibilities and accountability of the individuals.
A mature value culture shapes attitudes and working practices and encourages groups to collaborate and
tackle challenges to achieve agreed goals. An appropriate value culture reduces waste and unnecessary
effort and encourages the focus of limited resources on those areas which will give the greatest value.
Value Management embraces specific management tools, which may be applied in a rigorous and systematic
manner to address all kinds of issues ranging from design or production of a single component or service to
addressing vision, mission and/or development of strategic goals.
In larger organizations, a structured framework should be created and introduced to assist managers in
applying Value Management approaches, principles, drivers (levers) and methods consistently across the
organization. In such organizations, individuals may have specific and well-defined roles within the process.
In smaller organizations (such as Small and Medium-sized Enterprises), such roles may be less defined, and
an individual may effectively perform several of these as part of their duties.
This standard includes guidance for:
— successful Value Management;
— improving the contributions which Value Management can make for an organization;
— making sustainable decisions not only about environmental resources and responsibilities, but also
regarding social, and economic well-being of communities and financial performance of the
organization; and
— balancing and aligning the needs of customers and users of a product and other stakeholders with an
interest in or influence on a product.
Throughout this document the word ‘product‘ has a wide meaning, which embraces any tangible or
intangible result of activities or processes, including any goods, intellectual property, process,
service, system, strategy or organization.
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1 Scope
This document 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 this document.

Figure 1 — Documents in relation to Value Management
9

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SIST EN 12973:2020
EN 12973:2020 (E)
A system for certification of individual professional competence is maintained by the National Value
Associations in Europe. The qualification “Professional in Value Management” (PVM) is recognized across
Europe by National Value Associations as an indicator of competence. This qualification is also recognized in
other countries outside Europe.
2 Normative references
The following documents are referred to in the text in such a way that some or all of their content
constitutes requirements of this document. For dated references, only the edition cited applies. For undated
references, the latest edition of the referenced document (including any amendments) applies.
EN 1325, Value Management - Vocabulary - Terms and definitions
EN 16271, Value management - Functional expression of the need and functional performance specification -
Requirements for expressing and validating the need to be satisfied within the process of purchasing or
obtaining a product
3 Terms and definitions
For the purposes of this document, the terms and definitions given in EN 1325 and the following apply.
NOTE When a term, which is defined in this vocabulary, is used in the definition of another term, it is printed in
bold type.
ISO and IEC maintain terminological databases for use in standardization at the following addresses:
— IEC Electropedia: available at http://www.electropedia.org/
— ISO Online browsing platform: available at https://www.iso.org/obp
3.1
value
an assessment (sometimes measure) of how well an organization, project or product satisfies both the need
of the users and the objectives of stakeholders considering the impacts, uncertainties and resources
required to satisfy the need
Note 1 to entry: Product is defined in EN 1325:2014 as result of activities or processes, any goods, process, service,
system, strategy or organization. A product can include service, hardware, processed materials, software or a
combination thereof. A product can be tangible (e.g. assemblies or processed materials) or intangible (e.g. knowledge
or concepts), or a combination thereof. A product can be either intended (e.g. offering to customers) or unintended (e.g.
pollutant or unwanted effects).
Note 2 to entry: The concept of value is very close to the notion of effective and efficient use of resources in defining,
prioritizing and delivering needs; (or achieving the best balance) between contributions arising from any artefact
(result of knowhow, phenomenon originating in human activity, whether in physical or intangible form) and the sum of
the consumed resources and of impacts concurrent to their provision.
Note 3 to entry: The diagram below illustrates the general concept of value assessment.

Figure 2 — Value
10

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EN 12973:2020 (E)
3.2
value management
underlying concept applied within existing management systems and approaches based on value and
function-oriented thinking, behavior and methods, particularly dedicated to motivating people, developing
skills, and promoting synergies and innovation, with the aim of maximizing the overall performance of the
organization
3.3
value culture
an attitude, awareness and sufficient knowledge of what the concept of value represents and abilities of an
organization and its stakeholders to relate function thinking with solutions seeking before decision-taking
Note 1 to entry: Value culture relies upon effective function thinking.
3.4
function thinking
mind-set of considering separately the need to be satisfied and the means for delivering this need, informed
by awareness of functions and relationships between functions
3.5
value driver (lever)
attribute which when changed has a significant impact on the value of the subject under consideration
Note 1 to entry: The term value driver (lever) may be translated as enabler, which has significant influence on the
value of the subject under consideration. The value driver (lever) may be an environmental condition, parameter,
element, any constituent of the subject under consideration, or of the system it is part of, which, when ch
...

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