VALUE MANAGEMENT FOR PROFESSIONAL CORPORATE SERVICES (PCS)
"Maximum value" is derived from achieving a mandated level of quality at the cheapest price (i.e. capitalistic setup). Or it can be the highest level of quality that can be achieved for a specified cost.
Or, at the minimum, an optimal compromise between the two aforementioned variables. Therefore, VM is the process to acquire the maximum value on a value scale ascertained by the client. VM is also about cost reduction and waste elimination.
"Life-cycle costing" is a fundamental component of VM. It is a methodized action used to deal with all the considerations of the cost of ownership based on the anticipated life-span of a project or product. It's important that adequate financial backing with proper risk management mitigation is taken with these considerations:
Investment costs: deployment site costs, design fees, legal fees (patenting), assembly costs, tax considerations development grants and available liquid funding acquisition.
Energy costs: electricity, heat, steam, air, nuclear, or whatever energy resource is readily available.
Operational and maintenance costs: these includes preventive & predictive maintenance, repair/replacement services, insurance rates, and other over-head costs.
Depreciation Factor: machines, vehicles, components and other items tend to lose monetary value over time.