VAVE Cost Reduction – Applied to Product Development

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VAVE Value Analysis and Value Engineering Services

VAVE Cost Reduction – Applied to Product Development

VAVE 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.



  • 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 VAVE analysis varies from project to project; there’s no one solution fits all.
  • The purpose is to reduce manufacturing costs while keeping quality intact.


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




In value engineering, value refers to the ratio of function to cost, so from this perspective, you can either increase the value of the product by improving the functions or by reducing its cost.


Value Engineering will always ensure the preservation of the product’s basic and necessary functions so it’ll meet the expectations of the customer.


TITOMA’s Value Engineering Analysis begins in the design stage; we look at all the components your electronic device needs and find a lower cost. Send us your BOM and let’s talk.

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Value analysis and value engineering work best when applied at the very beginning of the design of an electronic device, and when applied by a team of engineers that knows 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 is Value Analysis and Value Engineering Applied to Product Development?

Value Engineering


Value engineering 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 her/his 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 that meets our minimum order quantity.
  • Sign an NDA and jump on a phone call to discuss details, if we can do it we move on.
  • We ask for BOM , CAD files, and prototype if possible.
  • Here comes the value engineering


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



Nelson UV Testing


With the minimum product functions and good 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 ensuring 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 a real NRE quote.


Value Analysis


This is not very different from Value Engineering; its purpose is to ultimately come up with 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 taken into account this time.


We’ve been doing Value Analysis 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 taken into consideration 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 the stages of development or ideation are generally more successful because of the common understanding of goals, deliverables, and needs.


Electronic Design Prototype Testing



At this stage, major decisions on design and development have not yet been done; 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 without jeopardizing product performance and requirements is possible, many potential savings areas will be found.


  • 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 for example.


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, making a business case for a product; it’s a lot to deal with.


For any organization, the cost of their products will be key to their success, but so it will be a good quality product.




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


By using a group of engineers equipped with experience, it is possible to create a product at acceptable costs and with good performance.




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


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



new factory assembly room



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