ABSTRACT
The value management process (see Fig. 7.1) originated during World War II within the General Electric Company (GEC) in the USA. GEC was faced with an increase in demand but had a shortage of key materials. Larry Miles of GEC, instead of asking ‘how can we find alternative materials’, asked ‘what function does this component perform and how else can we perform that function?’ This innovative approach led the company to use substituted materials for many of its products. They found, surprisingly, that the cost of the product was often reduced but the product improved; care and attention to function provided better value for money.
