means of reaching targeted cost levels. It is a systematic approach to assessing all aspects of the value chain cost of reaching targeted cost levels and the value chain cost buildup for a product: R&D, design of products, design processes, production, marketing, distribution, and customer service. The purpose is to minimize costs without sacrificing customer satisfaction. Value engineering requires distinguishing between incurring costs and locked-in costs. Costs incurred are the actual use of resources, whereas locked-in (designed-in) costs will result in the use of resources in the future as a result of past decisions. Traditional cost accounting focuses on budget comparisons, but value engineering emphasizes controlling costs at the design stage, that is, before they are locked in.