What Is VAVE?
VAVE (Value Analysis Value Engineering) is a systematic methodology for improving product value by analysing functions and reducing costs without sacrificing quality or performance. The core formula: Value = Function ÷ Cost. Originally developed by Lawrence Miles at General Electric in 1947 during material shortages, VAVE was adopted by the US Department of Defense in the 1950s–60s, integrated into Japanese continuous improvement practices in the 1970s–80s, and is today standard practice across automotive, aerospace, and medical device industries.
The Six-Phase VAVE Process
- 1. Information Gathering: collect design data, costs, specifications, and competitive intelligence
- 2. Function Analysis: define what the product does using verb-noun descriptions; classify primary vs. secondary functions
- 3. Creative Ideation: generate 30–100+ alternatives without judgment using SCAMPER and morphological analysis
- 4. Evaluation: screen ideas against technical feasibility, cost impact, and risk criteria
- 5. Development: refine selected concepts with detailed design, prototyping, and business case analysis
- 6. Implementation: execute changes and track actual vs. projected savings
Real-World VAVE Results
Suspension bracket: machined aluminium at $45 redesigned as stamped steel at $18 — 60% cost reduction with improved performance. Medical device enclosure: CNC-machined aluminium at $385 replaced with injection-moulded PEEK at $95 — 75% savings with enhanced functionality. Gearbox housing: sand-cast iron optimised to ductile iron investment casting, reducing cost 31% while eliminating 60% of machining operations.
Teardown Benchmarking
Competitive teardowns systematically disassemble competitor products to analyse cost by component, manufacturing processes, design innovations, material selections, and assembly approaches. This intelligence informs target-setting, ideation, supplier negotiations, and strategic planning. Focus areas include design philosophy, manufacturing strategy and automation levels, supply chain and sourcing approaches, material selection logic, and technology adoption gaps.
Design Optimisation Techniques
- Part count reduction: consolidate functions — typical 25–40% BOM savings
- Material optimisation: substitute lower-cost materials — 15–30% reduction possible
- Process selection: match volume to optimal manufacturing method — 40–70% per-unit savings potential
- Tolerance relaxation: specify tight tolerances only where functionally critical — 10–25% cost relief
- Standardisation: use common components across product families — 10–20% reduction
