How we can define Value Engineering?

According to national institute of building sciences, WBDG, Value Engineering is defined as a conscious and explicit set of disciplined procedures designed to seek out optimum value for both initial and long-term investment. First utilized in the manufacturing industry during World War II, it has been widely used in the construction industry for many years.

Value Engineering (VE) is not a design/peer review or a cost-cutting exercise. VE is a creative, organized effort, which analyzes the requirements of a project for the purpose of achieving the essential functions at the lowest total costs (capital, staffing, energy, maintenance) over the life of the project. Through a group investigation, using experienced, multi-disciplinary teams, value and economy are improved through the study of alternate design concepts, materials, and methods without compromising the functional and value objectives of the client.

Value engineering (VE) is systematic method to improve the "value" of goods or products 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.

Agreed with Mr. Tariq

It is  technique to get more value with less cost by optimizing the different segments wich they add values.

Thanks

The definition has been diluted over time and now means different things to different people, depending on their role in the project. 

The generally agreed-upon definition of value engineering is a corrective process taken to reduce total cost while still maintaining the original functionality outlined in the program document that was created in conjunction with the owner. Ideally, it is an iterative process where program and design adjustments are made to fit the project budget realities. More simply put, it means finding a cheaper way of accomplishing the same functional design goals.