VALIDATION - Testing to confirm that a product or service satisfies user or stakeholder needs. Note difference from verification. (August 2007) VALUATION OR APPRAISAL - The art of estimating the fair-exchange value of specific properties. (November 1990) VALUE, ACTIVITY - That portion of the contract price which represents a fair value for the part of the work identified by that activity. (November 1990) VALUE ADDED BY DISTRIBUTION - The portion of the value of a product or service to the consumer or user which results from distribution activities. This value includes such components as time utility and place utility. (November 1990) VALUE ADDED BY MARKETING - That portion of the value of a product or service to the consumer or user which results from marketing activities. This value includes such components as price reduction through economies of scale and buyer awareness of more desirable innovations in products or services. (November 1990) VALUE OF PERFECT INFORMATION - In decision or risk analysis, a measure of what a decision maker should be willing to invest to reduce the amount of uncertainty associated with one or more decision or risk drivers. See also: DECISION DRIVER; PERFECT (AND IMPERFECT) INFORMATION; RISK DRIVERS. (December 2011) VALUE OF WORK PERFORMED TO DATE - The planned cost for completed work. (November 1990) VALUE EFFECTIVE - Generally used to describe decisions which have a cost impact; value-effective decisions tend to optimize the value received for the decision made and to maximize return on investments. (November 1990) VALUE ENGINEERING - A practice function targeted at the design itself, which has as its objective the development of design of a facility or item that will yield least life-cycle costs or provide greatest value while satisfying all performance and other criteria established for it. (November 1990) VALUE ENGINEERING COST AVOIDANCE - A decrease in the estimated overall cost for accomplishing a function. (November 1990) VALUE ENGINEERING COST REDUCTION - A decrease in the committed and/or established overall cost for accomplishing a function. (November 1990) VALUE ENGINEERING JOB PLAN - An aid to problem recognition, definition, and solution. It is a formal, step-by-step procedure followed in carrying out a value engineering study. (November 1990) VARIABLE COSTS - Those costs that are a function of production, e.g., raw materials costs, by-product credits, and those processing costs that vary with plant output (such as utilities, catalysts and chemical, packaging, and labor for batch operations). (November 1990) VARIANCE - The difference between what was originally expected and what actually happened. See also: COST VARIANCE; SCHEDULE VARIANCE. (June 2007) VARIANCE ANALYSIS - Analysis of the following: (1) Cost variance = BCWP - ACWP; (2) Percent over/under = 100 x (ACWP - BCWP)/BCWP; (3) Unit variance analysis; (4) Labor rate; (5) Labor hours/units of work accomplished; (6) Material rate; (7) Material usage; and (8) Schedule variance = BCWP - BCWS. See also: SCHEDULE VARIANCE. (June 2007) VARIANCE AT COMPLETION (VAC) - The schedule or budget at completion less the estimate at completion. A negative result indicates that the project is exceeds schedule or budget contractual obligations. See also: VARIANCE AT COMPLETION \[VAC(t)\]. (October 2013) VARIANCE AT COMPLETION \[VAC(t)\] - The difference between the baseline project duration and the estimated project duration in time increments. See also: VARIANCE AT COMPLETION (VAC). (November 2014) VARIANCE THRESHOLD - In earned value, it is the schedule, cost, and at-complete variance amounts at which formal variance analysis and typically a variance analysis report (VAR) is required. Below the threshold is typically not reportable. (October 2013) VARIATION IN ESTIMATED QUANTITY - The difference between the quantity estimated in the bid schedule and the quantity actually required to complete the bid item. Negotiation or adjustment for variations is generally called for when an increase or decrease exceeds 15 percent. (November 1990) VELOCITY DIAGRAM - A graphical presentation of production schedules, which shows the relationship of the output of work crews/equipment spreads as a function of time. (June 2007) VENTURE LIFE - The total time span during which expenditures and/or reimbursements related to the venture occur. Venture life may include the research and development, construction, production and liquidation periods. Syn.: FINANCIAL LIFE. (November 1990) VENTURE WORTH - Present worth of cash flows above an acceptable minimum rate, discounted at the average rate of earnings. (November 1990) VERIFICATION - Testing to confirm that a product or service meets specifications. (August 2007) VERTICAL EVENT NUMBERING - Assigning event numbers in vertical order. (November 1990) WAGE RATE - Syn.: LABOR COST. (June 2007) WATCH LIST - In risk control, a list of risk triggers and/or risks to be tracked or monitored. May refer to one usage of a risk register. See also: RISK REGISTER; RISK TRIGGER. (December 2011)