The automotive industry is notoriously competitive. Cars are one of the most significant expenses in consumers’ budgets, and price is often at the forefront of a buying decision. This post outlines some areas automotive OEMs can leverage the power of VA/VE to improve their offer to consumers in a highly competitive—and dynamic—landscape.
VA/VE should be less a lever to pull when you need to improve profitability and more a strategic mindset shift in the approach to extracting the most value from a product's total cost of ownership (TCO). Given that emphasis, VA/VE principles are ideal tools to unlock profit while optimizing the supply chain.
Value analysis (VA) and value engineering (VE) are powerful tools to improve profitability and sustainability that maintain VA/VE cornerstones of function and quality while reducing cost. The concepts are distinct, but even seasoned engineers often use the terms “VA” and “VE” interchangeably.
Value analysis (VA) and value engineering (VE) are two methods to optimize product value through product-based cost savings. These terms differ because value engineering considers cost savings at the initial design phase, and value analysis considers existing products. Here are seven steps to perform a powerful VA/VE project.