What is Value Engineering?
New product value engineering (VE) is a topic of interest. It is use in the creation of products. Through teamwork-based product review and analysis, the emphasis is on lowering costs, enhancing function, or both. This occurs before any money investes in tools, equipment, or facilities.
This is important since many reports claim that up to 80% of a product’s costs (for the remainder of its lifecycle) are fixed at the design development stage. This makes sense when you realize that the design of any product affects a variety of elements. Including costs for decommissioning and recycling as well as tooling, plant and equipment, labor and skills, training expenses, supplies, shipping, installation, and maintenance. Due to its importance at this stage of the product development process, value engineering. Should be seen as a time-consuming but worthwhile commercial investment. It is highly advise that you incorporate value engineering into your new product development process to strengthen it and for sensible business reasons.
What is Value Analysis?
Value Analysis (VA) focuses on already-available products. A team must analyze and assess an existing product in order to cut costs, enhance functionality, or do both. Value Analysis exercises employ a strategy that meticulously and step-by-step examines the product in a number of categories. Costs, functionality, alternative components, and design elements like the simplicity of manufacture and assembly are some of these.
A key component of VA is a process known as functional analysis. In which the final product divides into several assemblies and examine as a whole. Each product assembly’s function is identify and describe here. Each one also has costs associated with it. Designing and seeing products as assemblies can help with this (or modules). Similar to VE, VA entails brainstorming modifications and options to enhance the value of the product, specifically for the consumer.
How to Identify and Overcome Cost Deficiencies
Before we continue and look more closely at value analysis’s characteristics, it is important to note that some of the finest performers in the business sometimes combine value analysis and value engineering services with other top-notch manufacturing strategies, such as Rheomold. They use this to cut expenses across the board for the company, especially in production but also in all areas of product development.
The majority of this material focuses on new product introduction and development. Contrarily, VA is base on the things you already offer, as was already mention. The benefits of valuing current products may appear clear on the surface. However, you can come across a circumstance when you need to persuade people and present your case for engaging in a VA exercise. Senior managers might need proof that the time and effort involved are worthwhile. The following information may be helpful. Think about putting them to use in your own scenario.
Why Value Analyze Existing Products?
- Value Analysis lowers costs (in all areas, including materials, parts, and production), while also enhancing the performance of the product. As a result, the product’s value to the client boosts.
- Products with lower costs sell better and make more money overall. Giving your business the choice between lowering prices to sell more products or investing in R&D.
- In a number of areas, including design and engineering, material selection, testing, manufacturing, assembly, shipping, installation, usage by the customer, service, maintenance, and recycling, value analysis and value engineering services improves to be made to the product.
- Instead of being the outcome of strategic planning. The product portfolio of many manufacturing companies has developed over time as a collection of solutions to fulfill new client needs. Many times, items have been develop in a short amount of time, necessitating the sourcing and utilization of a wide range of components and materials. This gives a wide range of component rationalization opportunities. This in turn makes it possible to negotiate price reductions based on larger orders and economies of scale. This can be deliver by a value analysis process.
- The value analysis and value engineering project enables your company to find alternate parts and materials and profit commercially from some technologies’ steadily declining costs.
- The mentioned elements all contribute to people’s perceptions of the product’s value over its entire life (including, of course, the customer).
- Ownership becomes more appealing as the product’s prestige value rises, which should boost sales (and indeed the process of marketing and selling it).
- When a customer believes that a product has more prestige than its competitors. They are more likely to pay more for it or prefer it over them.
- It is simpler and less expensive to develop, assemble, transport, install, use, service, and recycle a product that is overall of higher quality. As a result, all related costs are decreased over the course of the product lifecycle (importantly, including ownership costs for the customer).
- Together with other top-notch manufacturing practices, value analysis and value engineering services can assist achieve large company-wide gains and give a sizable competitive advantage.
VA/VE Phases & Approach:
There are different phases of VA/VE. They are:
- Exhaustive accumulation of data, assumption detection, and improvement.
- Thorough analysis What directional cues does this information give us? What particular issues will result in significant financial gains if they are resolve?
- All judgment is momentarily suspend during creative thought in order to provide the foundations for a wide range of potential answers to each of the individual issues identified in the previous study.
- A mental process resembling judgment, where what comes from original thought is explore for concept roots. To reduce drawbacks and maximize benefits to the extent necessary to fulfill the need for cost and/or operational improvement.
The project and its requirements are examine during the information phase. Followed by a function analysis that looks at potential areas for improvement. Ideas for improving performances are created during the creative stage; just a small selection of them are then assessed to see which ones have the best chance of succeeding. The formulation of alternatives, their presentation to decision-makers, and ultimately their implementation come next.
The use of VA/VE tools is essential to achieving goals like reducing costs, raising quality, and accelerating time to market.
Rheomold is renown for offering top-notch, knowledgeable value engineering services by utilizing its ecosystem of producers and testing facilities. Our team’s straightforward yet efficient method for providing value analysis and value engineering services. Aids in the identification of different design constraints, facilitates a better understanding of design variables, and manufacturing constraints, and identifies areas that can be significantly improve. Additionally, Rheomold offers value analysis and value engineering services at cost-effective rates.
