VAVE Cost Reduction – Save Money Without Losing Quality

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VAVE Value Analysis and Value Engineering Services

VAVE Cost Reduction – Save Money Without Losing Quality

VA.VE stands for value analysis and value engineering. VAVE is the process of reducing costs in any product development process; it does so by assessing the cost and availability of the product components, parts and materials, and the design and production processes.

 

Key Takeaways

 

  • VAVE stands for Value Analysis and Value Engineering.
  • Value Engineering happens before electronic design and manufacturing.
  • Value Analysis happens after an electronic is launched and aims at improving a second/third generation of a product.
  • A VA.VE analysis varies from project to project; no one solution fits all.
  • The purpose is to reduce manufacturing costs while keeping quality intact.
  • China components play a crucial role in achieving lower manufacturing costs without affecting quality.

 

It’s called value engineering because it aims at enhancing the value of a product.

 

 

3 Steps VA.VE Cost Reduction

 

1- Optimize your Bill of Materials

 

Way before you begin your mass manufacturing process; you need a team of experts to have a look at your product BOM and optimize it for mass manufacturing.

 

This means finding more affordable components and parts to substitute those you already have in your design. 

 

Many come to us with a BOM full of components from Mouser and Digikey; we swap those for more affordable, high-quality Chinese components; otherwise, mass manufacturing will be costly.

 

This article might help how to Optimize my BOM? You’ll find a free BOM template there.

 

2- Implement DFM and DFA

 

Design for manufacturing is a strategy that aims at designing, from the start, a product that is easy to manufacture.

 

You can read more about it here, DFM.

 

Design for Assembly aims at designing, from the start, a product that is easy to assemble for your manufacturing plant capabilities or the manufacturing partner.

 

To accomplish both DFM and DFA, you need a team of experienced engineers.

 

3- Prepare for Long Lead times

 

This is especially important now (2021); we are in the middle of a components shortage that might extend for another year or two.

 

If you want to manufacture electronics that will not miss their time to market and want to do it all at a cost that makes business sense, you have to design your device considering current lead times and possible future ones.

 

In the article “How to deal with long lead times for components,” we streamline some strategies that will come in handy.

 

Important design tip: Allow for extra components space on your PCB; we explain this in more detail in the article.

 

In value engineering manufacturing, value refers to the ratio of function to cost. Therefore, you can increase the product’s value by improving its features or reducing costs.

 

Value Engineering will always ensure the preservation of the product’s essential functions, so it’ll meet the customer’s expectations.

 

TITOMA’s Value Engineering Analysis begins in the design stage; we look at your electronic device needs and find a way to lower costs. Please send us your BOM, and let’s talk.

[email protected]

 

Value analysis and value engineering work best when applied at the beginning of the design of an electronic device and when used by a team of engineers who know the electronics development and manufacturing process very well.

 

 

VAVE High Product Performance

 

 

Only by knowing what is required from idea generation to mass production can one accomplish success.

 

Value analysis and value engineering are very well related to Design for Manufacturing. 

 

How are Value Analysis and Value Engineering Applied to Product Development?

Value Engineering

 

For us, value engineering manufacturing happens before any manufacturing is done.

 

Once we, Titoma, get a project from a client that has already been through Proof of Concept and validated their hypothesis, our product development team will analyze to find ways to optimize product design while reducing costs.

 

product development process architecture

 

It usually goes like this

 

  • We receive an electronic product development request for a quotation
  • We make sure it’s a device we can manufacture and meets our minimum order quantity.
  • Sign an NDA and jump on a phone call to discuss details; we move on if we can do it.
  • We ask for BOM, CAD files, and a prototype if possible.
  • Here comes the value engineering manufacturing

 

Our mechanical, hardware, firmware and manufacturing engineers get together to analyze the challenges of making this particular electronic device and apply VAVE.

 

 

Nelson UV Testing

 

With the minimum product functions and exemplary performance in mind, specified by the customer, our engineering team will do a product teardown, generate ideas, and focus on

 

  • Lowering the cost of the BOM ensures the use of components that won’t go EOL soon
  • Redesigning the product for ease of manufacturing and Assembly
  • Maintaining expected levels of quality and performance

 

Calculator for NRE costs

 

There’s no “one solution fits all products” approach; each electronic device varies in level of complexity.

 

Try our NRE calculator; click above on “Get Quote” to check the level of complexity of your device and get an accurate NRE quote.

 

Value Analysis

 

This is not very different from Value Engineering; its purpose is to ultimately develop a better and easier product design at a lower cost while keeping quality and performance intact, but it happens after the product has been launched.

 

 

electronic design hein

 

 

We’re talking about a second or third product generation here; the product might include new features or a new function that will also be considered this time.

 

We’ve been doing Value Analysis (VAVE) for years for all of our clients; you can read some client reviews here in this case study. 

 

 

SEMNOX 2018 dubai booth

 

 

Since it’s not the first product generation, there will be some input from the sales team and market feedback on what worked or didn’t work with the product; this should all be considered when the engineering group goes through the process of increasing value.

 

Why is VAVE Necessary?

 

Any established organization or start-up benefits from doing value analysis and value engineering.

 

Projects that use value engineering early on in the stages of development or ideation are generally more successful because of the common understanding of goals, deliverables, and needs.

 

Electronic Design Prototype Testing

 

 

Significant decisions on design and development have not yet been made at this stage; they’re still in their basic stage, allowing for many alternatives to be identified and considered and considered.

With an experienced team that knows how to think flexibly and creatively, product cost reduction is possible without jeopardizing product performance and requirements; they will find many potential savings areas.

 

  • Hardware requires a lot of capital and time investment; cost reduction is strictly necessary.
  • Any new features, function, materials choice, or even a software update can be the difference between success or failure.
  • If you’re going to enter new markets with the same product, you might need to do a Value analysis and engineering, especially if you need your device to meet some new market regulations; this might mean a new PCB redesign.

 

The Key to a Successful Analysis

 

The key is a service provider full of experts.

Lowering costs, keeping product performance high, meeting customers’ expectations, managing a flow of product ideas, and making a business case for a product; it’s a lot to deal with.

For any organization, the cost of its products will be critical to its success, but so will be excellent quality.

 

So, reducing costs at the expense of good performance is not an option.

Using a group of engineers equipped with experience makes it possible to create a product at acceptable costs and with good performance.

 

VA.VE Execution

 

Manufacturing jobs are better left to manufacturers; you can focus on your core competence, sales and marketing, and other growing business-related activities.

Find a manufacturing service provider that offers a complete turnkey manufacturing service.

 

 

new factory assembly room

 

 

You don’t want to have different parts of your product development done by other companies and then expect that you can link everything together and have a successful product.

 

Visit this website page to find out more about what we do. 

 

The analysis execution will be carried out at every stage of the product development process; our definition is

 

 

    • Product Architecture
    • Electronics Design
    • Hardware Engineering
    • Minimum Viable Product
    • Golden Sample
    • Testing and Certification
    • Manufacturing Definition
    • IP Protection
    • Mass Production Optimization
Eulises Quintero

Currently working as the content manager for TITOMA. With an extensive background in content marketing and a real interest in electronic products I'm able to produce some of the pieces of content you'll find here, all with the help of the TITOMA team of course. On my free time I like to travel, explore and work out.

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