Value analysis is a technique that helps reduce costs by identifying and eliminating unnecessary expenses in products or processes. By creatively finding cheaper materials and manufacturing methods, costs can be cut by 15-20%. This approach focuses on defining the function of a product and finding ways to achieve it at a lower cost. Tools like brainstorming and decision matrices are used to generate cost-saving alternatives. When applied early in the design stage, value analysis can lead to significant cost reductions and better choices in materials and processes.