A new, finite-element-like computational methodology called Variable-Element-Topology Finite Element Method (VETFEM) is being developed that accounts for applications in solid mechanics that involve a change in the topology of the material domain. Such problems include: fracture, penetration, material removal such as machining, shape optimization, metal forming, etc. The VETFEM does not require topologically similar elements and thus allows suitable meshes to be formed from a predefined distribution of node points. The VETFEM is being developed for large dynamic deformations and inelastic response. The validation is done using problems drawn from areas of material failure and manufacturing processes.