Analytic Quality Glossary

 

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

Citation reference: Harvey, L., 2004, Analytic Quality Glossary, Quality Research International, http://www.qualityresearchinternational.com/glossary/

This is a dynamic glossary and the author would welcome any e-mail suggestions for amendments or additions.

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Value for money

 

core definition

Value for money is one definition of quality that judges the quality of provision, processes or outcomes against the monetary cost of making the provision, undertaking the process or achieving the outcomes.

 

explanatory context

Value for money tends to be equated with value for money expended, although it could take into account ÔrealÕ cost including hidden costs and opportunity costs.,

 

analytical review

Erlendsson (2002) states:

Value for money (VFM) is a term used to assess whether or not an 
organisation has obtained the maximum benefit from the goods and
services it both acquires and provides, within the resources available to it.

He goes on to add:

Some elements may be subjective, difficult to measure, intangible and misunderstood. Judgement is therefore required when considering whether VFM has been satisfactorily achieved or not. It not only measures the cost of goods and services, but also takes account of:
-  the mix of quality, cost, resource use,
- fitness for purpose,
- timeliness, and
- convenience to judge  whether or not, together, they constitute good value.

 

 

Value for money is one definition of quality (Harvey & Green, 1993).

Quality as value for money sees quality in terms of return on investment. If the same outcome can be achieved at a lower cost, or a better outcome can be achieved at the same cost, then the ÔcustomerÕ has a quality product or service. The growing tendency for governments to require accountability from higher education reflects a value-for-money approach. Increasingly students require value-for-money for the increasing cost to them of higher education. 

 

Campbell and Rozsnyai, (2002, p. 23) also identify a value-for-money definition of quality:

Quality as value for money. The notion of accountability is central to this definition of quality with accountability being based on the need for restraint in public expenditure, (Lomas, 2000).

 

associated issues

Value for money is often linked to efficiency.

 

related terms

See also

efficiency

quality

 

sources

Campbell, C. & Rozsnyai, C., 2002, Quality Assurance and the Development of Course Programmes. Papers on Higher Education Regional University Network on Governance and Management of Higher Education in South East Europe Bucharest, UNESCO.

Erlendsson, J., 2002, Value For Money Studies in Higher Education   http://www.hi.is/~joner/eaps/wh_vfmhe.htm 04 January 2002

Harvey, L. and Green, D. (1993), ÒDefining QualityÓ, Assessment and Evaluation in Higher Education, Vol. 18, No. 1. HEQC (1997), ÒGraduate Standards Programme: Final ReportÓ, Higher Education Quality Council.

Lomas, L. 2002 ÔDoes the Development of Mass Education Necessarily Mean the End of Quality?Õ, Quality in Higher Education 8(1).