Value Engineering is a systematic method to improve the "Value" of goods and services by using an examination of FUNCTION. Value, as defined, is the ratio of Function to Cost. Value can therefore be increased by either improving the Function or reducing the Cost. It is a primary tenet of Value Engineering that quality not be reduced as a consequence of pursuing Value improvements.
In the United States, Value Engineering is specifically called out in Public Law 104-106, which states “Each executive agency shall establish and maintain cost-effective Value Engineering procedures and processes.”
Value Engineering is also referred to as "Value Methodology".