The original VaVe approach focuses on function-driven re-design of products. We enhanced that approach over the past 20 years to a holistic product-related improvement strategy. We just call it Value Engineering (VaVe), and it covers many levers for EBITDA improvement: market analysis, competitive landscape, value proposition heat map (variants, base vs options, packages, services, etc.), spare parts business, voice of customer (VoC), product benchmarking (internal, external, similar industries), product teardown, design for manufacturability and assembly, level of vertical integration, direct supplier participation voice of the shopfloor (VoS), cost of poor quality (COPQ) before and after sales, demand for retro-fitting, functional product analysis and challenges, lab tests and other available data vs simulation software data and use, supplier input, parametric and reverse costing.
In addition to directly bolstering a product’s profit margin, the rewards of Value Engineering (VaVe) can extend to supply-chain improvements, increased manufacturing efficiency, and the ability to effectively tap new markets and enhance revenue.
In our experience, the best approach to Value Engineering (VaVe) is a formal, holistic one, with the process guided by experts with extensive experience in engineering, product design, purchasing and manufacturing. Without this experience, individuals often struggle to grasp the gamut of design choices that were made for a single product; for example, optimized material choice is key, as different materials can be used to produce the same component at different costs. The appropriate technical background allows a Value Engineering (VaVe) expert to ask the right questions and help an organization achieve not just incremental cost savings but also more extensive benefits that might not be readily apparent, even to the most experienced manufacturer.
Our Value Engineering (VaVe) approach follows a sequence of specific steps that generate all the possible ideas for enhancing the products’ performance and/or reduce its costs. Learn more.