Value Engineering follows a structured thought process that is based exclusively on "function", i.e. what something "does" not what it is. The original Value Engineering process developed in North America in the late 1940‟s was primarily based on functional analysis. Value engineering is “Redesign of an activity, product or service so that value to the customer is enhanced while costs are reduced or at least increased by less than the resulting price increase. 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.