Energy balance in theoretical terms is the first law of Thermodynamics. This is in relation to which energy cannot be produced or only modified in form. This is the fundamental and major step of the energy demands estimation, which gives out the actual required energy.

Value engineering is often done by systematically following a multi-stage job plan. Larry Miles' original system was a six-step procedure, which he called the "value analysis job plan." Others have varied the job plan to fit their constraints. Depending on the application, there may be four, five, six, or more stages. One modern version has the following eight steps:

• 1. Information
• 2. Function Analysis
• 3. Creative
• 4. Evaluation
• 5. Development
• 6. Presentation

• Information: The team gathers information about the present design and cost, then determines the needs, requirements, and constraints of the owners/users/stakeholders, as well as the design criteria.
• Function Analysis: The team defines the project functions using a two-word active verb measurable noun context. The team analyzes these functions to determine which need improvement, elimination, or combination. Tools used during this phase include: Random Function Identification, Function Analysis System Technique (FAST).
• Creative: The team uses a variety of creative techniques, such as brainstorming, to generate alternative ideas to perform the project functions.
• Evaluation: The team refines and combines ideas, develops functional alternatives, and evaluates by comparison. Appropriate tools of comparison include advantage and disadvantage comparison and an evaluation matrix with weighted criteria.
• Development: Based on the evaluation phase, the team begins to develop in detail the alternatives with the greatest potential value. During this phase it is essential to establish costs and backup documentation needed to individually convey the alternative solutions.
• Presentation: The final phase of the VE study in which the VE team presents to management the findings of the study in a written report. This phase may include a verbal presentation.