Value-Added Value Engineering (VAVE) services offer a wide range of options and solutions for business operations of all sizes. Some of the more common VAVE services offered include:
- Sub-Assembly Production
- Custom Assembly of Equipment
- Final Pack-Out
- Drop Shipment
- Component Manufacturing
- Inventory and Stocking Programs
- Inspection and Certification
What Is Value Engineering?
Value engineering (VE) is performed at the start of new product development before going into production. VE is identifying the most cost-efficient and production-efficient methods for building new products.
The primary focus is looking for ways to improve functionality, reduce costs, and make enhancements using various analysis and evaluation methods like rapid prototyping. Another type of value engineering is called value analysis (VA). VA is applying the concepts of VE to existing product lines to improve production processes while reducing costs.
What Costs Can Be Lowered with VAVE?
There are all sorts of manufacturing and production costs that can be lowered when applying VAVE. Costs can be broken down into these three general categories for both new and existing product lines:
- Design and Development
- Raw Materials
When applying VE and VA to VAVE, it helps identify various aspects of these costs that could be lowered. For instance, with raw materials, you might identify a machine engineering company that can mass produce a component you need for a lesser cost than you are currently paying to order it from a different supplier.
Lead Times Are Reduced with VAVE
Another benefit of using VAVE is being able to reduce lead times on new product design and development and existing product line enhancements. You can take advantage of the various VAVE services to streamline your operations and cut costs simultaneously.
Reduce Product Assembly Times
Your product assembly times can also be reduced by applying and using VAVE services to your new and current product lines. For example, you could take advantage of sub-assembly production for smaller parts and components that require specialized equipment you do not have or which would be too costly for you to purchase and maintain.
Your employees then only need to assemble the major parts and components of your product lines. Since they are not stuck doing the tedious detail assembly of the smaller parts and components by hand, your employees will be more productive and able to assemble more items.
Extends the Life of Product Lines
One trend, especially with electronics, is extending a product’s life for as long as possible to maximize the ROI (return on investment). We have seen VAVE being applied to smartphones, HD TVs, video game systems, etc.
Rather than design an entirely brand-new product from the ground up, manufacturers apply VAVE and discover ways to enhance and improve on the existing product design. They also look for ways to reduce production costs by taking advantage of advances in technologies.
As a result, a single product line could have many iterations and updates and continue to be sold to consumers for two to five years or longer.
The key to applying VAVE to your new and current product lines is having knowledge of the following areas:
- Costs of Product Parts and Components
- Customer Demands/Requirements
- Costs of Production
- Costs of Making Mistakes in Design/Functionality
- Equipment, Machine, and Tool Costs
Once you know each of these costs, then you need to be able to analyze them in detail. This is when most companies turn to a company experienced in VAVE for assistance since they already have the applications and expertise to perform the detailed analysis, as well as a wide range of VAVE services you need.
To learn more about VAVE services and how we can help take your business to the next level, please feel free to contact Laszeray Technology, LLC at 440-582-8430 today!