VAVE (Value Analysis/Value Engineering)

Introduction to VAVE: It is a systematic approach used in manufacturing and product development improve a products value without compromising its functions with its cost.

Value Analysis (VA):- Deals to improving the value of a product after it's been designed and is in production or tooling.

Value Engineering (VE):- Deals to enhancing the value of a product during the design phase before tooling or production begins.

 Difference between Value analysis and Value Engineering:

Aspect	Value Analysis (VA)	Value Engineering (VE)
Timing	Applied after the product is in production or tooling	Applied before production, during the design phase
Objective	Improve value of an existing product	Enhance value of a new or redesigned product
Cost Impact	Usually results in limited cost savings	Offers greater potential for cost savings
Flexibility	Changes may be more difficult due to existing tooling or production	High flexibility to make design changes before finalization

VAVE process roadmap:

The VAVE process roadmap begins with idea generation, where cost-saving and value-enhancing concepts are identified. This is followed by evaluation, execution, and implementation, ensuring feasible ideas implemented for measurable impact.

👉 Stage 1: Idea Generation and Documentation

Any employee can submit ideas via the MCE company portal, providing detailed descriptions, before-and-after images, and benchmarks. Submitted ideas are visible to senior staff across departments to promote transparency and collaboration.

👉 Stage 2: Idea Discussed and Evaluate

Ideas are reviewed for completeness and refined if necessary. A cross-functional panel from Cost Engineering, Purchasing, Quality, Styling, Product Line, and Marketing evaluates the idea. Only ideas with full departmental approval, others are rejected.

👉 Stage 3: Idea Executed

Approved ideas move to implementation using Teamcenter PLM, where progress is tracked with 3D CAD models, drawings, and necessary documentation such as SORs, DVP sign-offs, and validation reports to ensure quality and compliance

👉 Stage 4: Idea Implemented

Final execution involves stock control, sample checks, and finance approval to ensure operational readiness. Once all approvals are secured, the idea is formally implemented, delivering measurable improvements in cost, quality, or function.

Note:

It is important to highlight that an idea can be rejected at any stage of the VAVE process based on feedback from any department. Rejection can occur due to various reasons such as budget constraints, failed tests, stock clearance issues, or feasibility concerns. However, a rejected idea is not necessarily discarded permanently. After addressing the concerns—such as clearing existing stock, overcoming test failures, or revising budget allocations—the idea can be regenerated and reintroduced for reconsideration at a later time.

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VAVE Opportunities classification

Following VAVE classification examples, that can generate new ideas with saving cost and optimized the manufacturing process

1.     1) Reduction in thickness of material

2.     2) Alternate material used

3.     3) Part deletion or replace

4.     4) Complexity reduction

5.     5) Change in design i.e., increase Yield strength, part shape and geometry

6.    6) Uncoated sheet use whenever necessary

7.    7) Localization

8.    8) Alternate technologies

·       1) Reduction in thickness of material
Optimizing material thickness lowers raw material consumption without compromising structural integrity. This results in reduced weight and manufacturing costs.

·       2) Alternate material used
Substituting high-cost materials with cost-effective alternatives can maintain performance while significantly decreasing production expenses. 

·        3) Part deletion or replace
Eliminating or replacing non-essential components streamlines the assembly process and minimizes material and labor costs. 

·        4) Complexity reduction
Simplifying product design reduces manufacturing steps and tooling requirements, enhancing production efficiency and lowering operational costs. 

·        5) Change in design (e.g., increase yield strength, part shape, and geometry)
Design modifications aimed at improving mechanical properties or geometry can enhance functionality and reduce material usage. 

·        6) Uncoated sheet use whenever necessary
using uncoated sheets where corrosion resistance or aesthetics are non-critical reduces procurement costs and simplifies processing. 

·         7) Localization
Sourcing materials and components locally minimizes logistics costs, shortens lead times, and improves supply chain resilience. 

·        8) Alternate technologies
implementing alternative manufacturing technologies can improve process efficiency, reduce energy consumption, and lower total production costs.

Conclusion

The structured VAVE process, as described, underscores the importance of cross-functional collaboration, rigorous evaluation, and thorough documentation. By following these stages meticulously, organizations can harness innovative ideas effectively, driving continuous improvement and competitive advantage. Having witnessed the impact of this process first-hand, I can attest that a disciplined approach to VAVE not only fosters innovation but also ensures sustainable business growth.