Value Engineering (VE) was developed at General Electric Corp, during World War II and is widely used in industry and government, particularly in areas such as defense, transportation, construction, and healthcare. VE is defined as "an analysis of the functions of a program, project, system, product, item of equipment, building, facility, service, or supply of an executive agency, performed by qualified agency or contractor personnel, directed at improving performance, reliability, quality, safety, and life cycle costs."
During the past several years the Department of the Navy has experienced over $3.5B in cost savings through VE methodologies. One of the largest cost savings occurred in the Virginia Class submarine program to shorten construction cycle time by 2 years, which saved over $2B. Another area of savings occurred in PEO LMW's AN/SQQ-32(V) program to simplify component fabrication through VE methodologies resulting in $49M in cost savings.