Information gathering:
This asks what the requirements are for the product or service. Function analysis, an important technique in value engineering, is usually done in this initial stage. It tries to determine what functions or performance characteristics are important. It asks questions like; What does the product or service do? What must it do? What should it do? What could it do? What must it not do?
Alternative generation (Creation):
In this stage value engineers ask; What are the various alternative ways of meeting requirements? What else will perform the desired function?
Evaluation:
In this stage all the alternatives are assessed by evaluating how well they meet the required functions and how great will the cost savings be.
Presentation:
In the final stage, the best alternative will be chosen and presented to the client for final decision.