VAVE (Value Analysis / Value Engineering)
A Systematic Method for Improving Product Value
What is VAVE?
Value Analysis and Value Engineering (VAVE) is a powerful, systematic methodology used to analyze and improve the value of products, projects, or services. "Value" is defined by the ratio of function to cost. The goal is to achieve the required functions at the lowest possible lifecycle cost without compromising quality, reliability, or customer satisfaction.
The core principle is expressed in the value equation: Value = Function / Cost
- Value Analysis (VA): Typically applied to existing products to reduce their cost or improve their function. It's a reactive approach to enhance value.
- Value Engineering (VE): Applied during the design and development phase of a new product. It's a proactive approach to build value in from the start.
VAVE combines both approaches into a unified process for continuous value improvement.
Brief History & Purpose
The concept of Value Analysis was pioneered by Lawrence D. Miles at General Electric (GE) during World War II. Faced with material shortages, Miles developed a systematic approach to find less expensive substitute materials and designs without sacrificing the function of a product. The success of this method led to its formalization and widespread adoption after the war. Value Engineering evolved from this, applying the same principles proactively during the design phase.
The primary purpose of VAVE is to eliminate unnecessary costs while ensuring or improving function and quality, thereby maximizing the value delivered to the customer and the organization.
How to Use This Tool
- Enter the overall Product Name.
- In the "Add New Function" section:
- Type a clear Function Description.
- Use the Cost Slider to set the cost for that function.
- Use the Value Score Slider to rate its importance (1-10).
- Click the Add button to add the function to the list below.
- Continue adding all relevant functions for your product. You can remove any function using the button in its row.
- Click Analyze Value to perform the calculation on the current list of functions.
- Use Add to History to save the result for comparison.
VAVE Analysis Tool
Analysis History
| Item/Product | Functions Analyzed | Total Cost | Total Value | Value Index |
|---|