Free Online Value Analysis / Value Engineering (VAVE) Tool
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
- Define Structure: In the "Define Structure" tab:
- Add all components of your system in the "Components" panel
- Define contacts (interfaces) between components
- Define functions for each contact or component
- Visualize System: View the network diagram to understand your system structure
- VAVE Analysis: Assign costs and value scores to each function and calculate value index
- Optimize: Identify low-value functions for cost reduction or functional improvement
Instructions
For each function identified in your system, assign:
- Cost ($): The estimated cost associated with this function
- Value Score (1-10): How important this function is to the customer/system (1=least, 10=most)
- Value Index = Value Score / Cost (Higher is better)
Functions with low value index are candidates for cost reduction or functional improvement.
Click "Generate VAVE Analysis" above to start analyzing your functions.