Value engineering is a systematic method to improve the "value" of design 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 basic functions be preserved and not be reduced as a consequence of pursuing value improvements.
Value engineering is sometimes taught within the project management or industrial engineering body of knowledge as a technique in which the value of a systemís outputs is optimized by crafting a mix of performance (function) and costs. In most cases, this practice identifies and removes unnecessary expenditures, thereby increasing the value for the manufacturer and/or their customers.