Activity Based Costing is a powerful tool that focuses on the management of activities as a route to improve both performance and the value received by customers. Value Analysis is a technique that helps identify and clarify user needs and develop alternative ways to meet those needs. It is the use of Function Analysis that makes Value Analysis unique from other problem solving techniques. Combining Activity Based Costing with Function Analysis significantly improves the chances of a successful outcome with ABC.
It is generally recognized that managing a project ought to be conducted by a series of well-‐established and defined processes. Despite application of project management systems, even with due consideration of managing risks, projects still go awry and value is lost. For example scope increases, cost overruns, schedule delays and general stakeholder dissatisfaction are indicative of lost value.
See also: Shishevan_Phillips_Integrated_VM_Greater_Performance_Gains.pdf