Value engineering (VE):-
Value engineering (VE) is a 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 manipulated by either improving the function or reducing the cost.
Its role in target costing :-
Value engineering helps businesses achieve cost
efficiencies and meet their cost and profitability targets. Target
costing establishes a relationship between cost, price and profit.