What is the difference between value engineering and cost cutting?

"Value engineering" and "cutting cost" are not related terms!

"Cost cutting" is all about saving money whether it is in programming, design or operation phases.

  "Value engineering" is all about (cost) optimization.  "Value Engineering" may actually cost you more up front (investment) in order to long term save you on Production cost and/or operation 

Value Engineering is to perform a redesign to the project with respect to materials, specifications, etc.. in a way that grants cost saving without altering the scope of the project, while cutting cost can be done through various techniques, mainly by reducing the indirect cost in a way that will not affect the quality of the work.

Value Engg is basically  Value enhancement of a product or service. It can be done by either increasing functions/ features, or by reducing the cost with same function/features, or both at the same time.

While cost cutting may require elimination of non-value adding cost in first place. This will not affect the functionality or features of the product /service, but will  bring down cost elements. At the extreme end if done on compulsion, it may lower the functionality of the offerings.

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Value engineering means the modification of designs, materials used and systems according to value analysis. 

Cost cutting can be anything regarding cut in cost on the employee by way of removal of mandatory costs to be spent on an employee such as removal of free transportation, free employee tours etc.   

Thank you all experts for their participation.

When evaluation re cost reduction is made at design stage of a product, it is termed as value engineering. When evaluation re cost reduction is made after the product is in market or have been in market for some  time, is known as value analysis. Whereas cost cutting is a general term relating to costing of products and its cost components. Every cost manager wishes to reduce the cost in order to stay competitive in the market. So cost cutting is implied to any function or cost element. 

This is the system applied in a project as an alternative function with less expenses which does not affect main functionalities. Whilst Cost Cutting are measures put in place to reduce cost of a project to maximise profit.

Value Engineering may be termed as Improving the Value of products and services. 

Cost cutting is the reduction of benefits given to the employee.

value engg is total cost of project as per the contractors prospective. is the cost of tendered amount is less or more as per the costing of contractor                      cost cutting is to lessen overheads by suitable planning or try to complete the project on time, as you know if project delayed, profit will be reduced.