In this issue of our Journal Clive Wellings (our Editor) has planned a Focus on Value Management and Risk Management. The subject of Value Management has long been a challenge and a contradiction within Cost Engineering. Whilst it has been the case that the Cost Engineer can find the ‘fat’ within an existing component, after a while there is no fat and further cost reduction eats away at the aspects that the customer values. At this point Value Management and Risk Management line up in opposition as further cost reduction increases the Risk by reducing the sales volumes and/or the revenue that can be achieved. Value and Risk also play their part when considering the capacity that should be laid down. Too much and the capital outlay will become its own risk, but too little capital outlay will also form a risk should the demand be unexpectedly high. At this stage I don’t know how Clive will seek to weave the story, but I’m expecting some great insights from around the ACostE community. Thank you all for your continued support of the ACostE through 2021 and beyond.
Dr Robert Mills,
President ACostE (firstname.lastname@example.org)