1. (industrial definition) An analytical procedure to study the costs versus the benefits of a currently purchased material, component, or design in order to reduce the cost/benefit ratio as much as possible. It is also called value engineering. When performed by a seller, it is often referred to as value-in use analysis. 2. (product development definition) A systematic study of a product wherein the analyst keeps asking, "Can the cost of this part, this subassembly, or this step be reduced in any way, or even eliminated?" Value analysis is usually performed by engineers who are seeking new, less expensive ways to design or create the product being studied. It may be performed on the products the firm produces, or on products that it purchases from its suppliers.