Section A outlines the criteria for VE projects, while Section B provides examples of actual VE projects conducted by the DoD Components.

A. SELECTING VE PROJECTS
Successful projects require an adequate return on investment, and selecting VE projects should consider the potential yield from time, talent, and cost. Opportunities for VE projects are often derived from known problems, cost driver studies, or product or process improvement. In the early stages, sophisticated project selection criteria aren't needed. VE can offer substantial benefits when applicable.
• High cost;
• Deficiencies in performance, reliability, or producibility;
• Multiple product applications; or
• Executive management interest.

Once the organization’s use of VE is more fully established, additional criteria may be applied to select subsequent tasks. Worthwhile candidates usually involve one or more of the following:
• Excessively complex product;
• Design that uses the most advanced technology;
• Accelerated development program;
• Item that field use indicates is deficient in some way, such as high failure rate, low reliability, or low availability;
• Item that uses older technologies for which modernization appears promising;
• Process with long cycle time; or
• Sole-source procurement.
Candidates with both the potential for high impact and leadership interest in finding a solution should be ranked highest.

VE can also be used to measure the merit and the risk of a new or changed process (before a problem is identified),5 as well as:
• Eliminating or controlling potential process failures;
• Identifying process parameters that need additional or improved controls to
prevent process failures;
• Confirming which elements of a process are robust; and
• Improving product safety, quality, cost, and schedule.
VE should be applied as follows:
1. Form a multidisciplinary team.
2. Identify process functions.
3. Identify potential failure modes.
4. Calculate a risk priority number as a function of the probability the potential failure will occur, the seriousness of the failure, and the probability of detecting a defect.
5. Identify controls to detect or eliminate the failure cause.
6. Develop actions to reduce risk.
7. Reassess the risk priority number with the corrective actions in place.
8. Assign actions and track them.
VE has proved effective in environments such as engineering laboratories, test facilities, procurement operations, construction projects, manufacturing facilities, and maintenance depots. It has been applied to a broad spectrum of items, procedures, systems, software, equipment, and so on.

B. EXAMPLES
VE is applicable to systems, equipment, facilities, and procedures. The following
are some of the areas in which VE has been applied in the Defense Department: 
- Construction;
- Design or equipment modifications;
- Equipment and logistics support;
- Facilities and hardware;
-  Manufacturing processes;
- Materiel handling and transportation; Packaging/packing and preservation; Procurement and re-procurement;
- Publications, manuals, procedures, and reports; Quality assurance and reliability;
- Parts obsolescence;
- Salvage, rejected, or excess material;
- Site preparation and adaptation;
- Software (computer) programs and flow charts; Software - architecture development; Specifications/drawings;
- Technical and logistics data;
- Testing, test equipment, and procedures; 
- Tooling; and Training.
The Defense Department’s annual VE awards program recognizes individuals and organizations that have made significant contributions to the Department through the identification of VE-related changes resulting in cost savings or cost avoidance, quality improvements, or efficiencies. In addition, special recognition is given to initiatives that demonstrate innovative approaches and applications that expand the benefits of VE beyond their traditional scope (i.e., software; environmental protection and conservation; energy conservation; organization; process; service; performance; reliability; quality; etc.). The remainder of this chapter summarizes, by DoD Component, some of the projects identified in the justification for the FY 2004 VE awards.