Value Analysis/Value Engineering

What is VA/VE?

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VAVE: Value Analysis/Value Engineering is a systematic and organized procedural decision-making process. It has been used in almost any kind of application. It helps people creatively generate alternatives to secure essential functions at the greatest worth as opposed to costs. This is referred to as value. It is also known as Value Analysis, Value Management, Value Planning, and a host of other names.

It answers 3 big questions: What must the item do? What does the item cost? What is the item worth?

VA/VE evaluates your products and supply chain from a unique perspective allowing for cost reduction, improved quality, and meaningful supplier relationships.

Different ways you can use VA/VE within your manufacturing environment

VA/VE can be applied in various ways to achieve product/process cost savings.

First decide the manufacturing area that is most critical: New Product Development or Items Currently in Production.

Next, decide if you will focus within your four walls, outside your four walls, or both.

Steps to take when doing a VA/VE project

Below is a typical VA/VE methodology framework.

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Typical Benefits of a VA/VE Project

Who Should Use Aether's VA/VE Services?

If you are not happy with the current level of profitability on your products,
or if you are looking for an innovative way to drive cost out of your products and improve quality,
or if you are looking to build meaningful relationships with your key suppliers,
then you should consider Aether's Value Analysis / Value Engineering services.

Reducing product cost has taken on many different looks - six sigma, lean manufacturing, design to cost and the most common method is to demand price reductions from suppliers.  Price demands have resulted in some success but have also resulted in strained relationships with suppliers.  And unhealthy supplier relationships will not allow you to optimize your supply chain, product quality, or the long-term health of your company.

VA/VE is an innovative way of reducing product costs while simultaneously strengthening the relationships with your key suppliers, and improving product quality.  Improvement occurs both internally to your organization as well as externally with your suppliers.  It's a win - win situation for all involved.  VA/VE allows you to get price reductions from your suppliers while allowing them to remain profitable.

Aether Consulting brings years of VA/VE experience to your company.  We can help you change the way you approach product cost reduction, change the way you look at your supply base, and provide valuable results.

Aether's VA/VE solutions look at your products and supply chain from a unique perspective allowing for cost reduction, improved quality, and meaningful supplier relationships.

Aether has partnered with leading VA/VE organizations like OpEx and Total VE Solutions to deliver VA/VE projects worldwide. 

We offer 5 levels of VA/VE projects:

Full VAVE

Description:
Comprehensive VAVE project starting with Selection to ensure the focus is on the highest value areas through Investigate, Create & Evaluate to identify the cost savings, quality improvement alternatives.

Benefits:

  • Product cost savings — typically 10:1 ROI,
  • Improved quality,
  • Improved designs,
  • Improved supplier relations.

Scope:

  • A complex assembly,
  • One or many suppliers,
  • Select phase — evaluate phase.

Timing:
1.5 to 3 months
 

VAVE Selection

Description:
A comprehensive spend analysis on a complex assembly to identify the parts & suppliers that will return the highest savings from VAVE.

Benefits:

  • Ensures future VAVE activity is focused on the biggest savings opportunities.

Scope:

  • A complex assembly,
  • Select phase only.

Timing:
1 to 2 weeks
 

Quick VAVE

Description:
Comprehensive VAVE project that starts with Investigate.  This assumes you have already identified the specific parts and/or suppliers to focus on.  Cost savings and quality improvement alternatives will be identified.

Benefits:

  • All the benefits of Full VAVE - on the specific pre-selected parts.

Scope:

  • A specific commodity, part, or minor assembly,
  • Internally focused or supplier focused on 1 - 3 suppliers,
  • Investigate phase — Evaluate phases.

Timing:
3 to 6 weeks
 

Cost Reduction Workshops

Description:
Experienced VAVE facilitators will run workshops either internally focused or with a supplier.  Facilitator will ask questions that are key to drive the cost savings ideas of out of the subject matter experts.

Benefits:

  • Experienced facilitators will ask the right questions to get the highest value possible for the least effort.

Scope:

  • A specific commodity, part, or minor assembly,
  • Internally focused or supplier-focused on 1 supplier.

Timing:
2 to 3 days

Lean Manufacturing Assessment

Description:
Interviews and plant walkthroughs will be conducted to assess the effectiveness of a facility's use of lean manufacturing techniques. Improvement areas will be identified.

Benefits:

  • Identifies areas of improvement in manufacturing,
  • Improves supplier relations.

Scope:

  • One manufacturing facility,
  • Focused on evaluating the application of key lean manufacturing elements.

Timing:
2 to 3 days

To discuss your project call us today: Aether Consulting 586-939-8028Display full image
586-939-8028

We'll work hard to achieve your cost reduction and quality improvement goals.  Our consultant partners have performed VA/VE projects globally, nationally and locally.


Case Studies

Aether Consulting is selected by Dana Off-Highway Systems Group to perform Value Analysis / Value Engineering

Aether Consulting has been selected by the Dana Off-Highway Systems Group, Holland, OH, to conduct a Value Analysis / Value Engineering project, focusing on the products supplied by a strategic eastern European supplier. Dana's Off-Highway Systems Group manufactures axles and transmissions for off-highway applications such as front loaders and mining equipment.

Dana is using Aether's VAVE services as a supplier development tool aimed at reducing costs, improving quality, and improving delivery of the key products from the supplier. The project also includes an assessment of the supplier's current manufacturing capability to identify additional areas of improvement.

Both Dana and the supplier are benefiting from the project. Dana is receiving a lower piece price as a result of sharing the savings associated with the cost savings ideas. The supplier benefits by using the manufacturing improvements to reduce costs for all of their manufacturing business. The project also resulted in improved supplier relations as both Dana and supplier worked closely together to identify product design and manufacturing improvements.

Andreas Glitsch, Director of Supplier Quality & Development, who was present for the VAVE sessions said, "Aether's approach to VAVE was one of the most effective methods I've ever seen and Aether did an outstanding job of driving the sessions and driving the team to identify the cost savings.  I plan to use Aether again on other VAVE projects."

FANUC Robotics America Selected Aether Consulting for Value Analysis/Value Engineering (VA/VE) Sessions

Aether Consulting developed and conducted VA/VE training sessions for select employees and suppliers of FANUC Robotics America, Rochester Hills, Michigan. FANUC Robotics America, Inc. is the leading supplier of robotic automation in North and South America. The company offers over 175 robot model variations to meet the needs of a wide range of applications, and also produces software, controls and vision products that aid in the development of state-of-the-art robotic systems.

FANUC Robotics adopted VA/VE as a key initiative to reduce cost, improve quality and improve supplier relations.  Participants at the VA/VE sessions included purchasing and engineering personnel from Fanuc and key suppliers for the products being analyzed.  The training included an overview of VA/VE and a detailed review of Aether's VA/VE methodology.

The most value came from hands-on workshops where the theory of VA/VE was put into practice by Fanuc-supplier teams on various Fanuc products. "It took a while for the teams to come up to speed on the approach but after we crossed over the learning curve ideas really began to flow", says Jeff Nichols, Principal Consultant for Aether. "Without exception, every team identified substantial cost savings. Some of which could begin to return value within a couple days with virtually no investment. Other ideas would take more work and investment but would still provide a substantial return. And yet other ideas would cost too much to implement on current product but would have a significant cost avoidance impact on future product."

At the end of the sessions the teams were sent away with action items and time frames for analyzing and implementing the cost savings ideas that were generated and agreed upon during the sessions. The savings realization is on its way.