Based on a little internet research, I discovered that this formalized method of cost reduction was originally developed by Larry Mills (General Electric) in 1943 and since then has been refined several times. "VA/VE is an approach that enhances decision making, improves products and processes and increases customer satisfaction. "
VA
Value Analysis examines current products to detect and correct value problems and reduce costs.
VE
Value Engineering focuses on new products and helps identify and prevent value problems before production.
The method of VA/VE uses a formalized and highly efficient approach to establish the true value of a component's or assembly's functions vs. an established value. When the cost of the function outweighs its established value, an opportunity for cost reduction becomes clear. The objective of VA/VE is to improve value and is defined by this expression: Value = Function ÷ Cost

I first came into contact with VE/VE when I joined a Tier 1 Automotive company back in the late 80's.  With constant cost pressures being put on the Automotive supply base VA/VE became one of the methods used to take cost out of the products. The method was so effective that 2 individuals in the Engineering Dept were dedicated to conducting VA/VE workshops and implementing the resulting improvements; all with significant cost reductions. As many of these types of initiative do, the methods seem to disappear with changes in management, customer driven initiatives, etc. In 2005, the technique emerged again as a viable method to help meet the OEM's requirement of year over year product cost downs. Again dedicated resources were put in place to drive cost out.

I am now wondering if other companies are using this method successfully and what others think about VA/VE.