VAVE Cost Optimization for Automotive Components
The Way We executed the Project
Client: Leading Global Automotive OEM
Industry: Automotive
Services: Value Analysis/Value Engineering (VAVE), Cost Optimization, Functionality Enhancement, Supplier Collaboration
Project Background
Our client, a global automotive leader, was experiencing rising production costs for several key vehicle components. They required a systematic approach to cost reduction while maintaining the same functionality and performance. SBDC Engineering Services was brought in to apply VAVE methodologies following the SAVE International’s structured process, ensuring both cost savings and efficiency improvements across multiple components.
Our Scope
Our VAVE scope covered the entire process, starting with information gathering and function analysis, moving through creative and evaluation stages, and finally developing and implementing the cost-saving measures. The focus was on reducing material and manufacturing costs while maintaining or improving the overall performance.
Key Tasks Included
1. Information Phase:
- Gathered all relevant data on the components, including existing design, material, manufacturing processes, and cost details.
- Analyzed production costs and conducted market research to benchmark against competitors.
2. Function Analysis Phase:
- Conducted a Function Cost-Worth analysis to determine the basic and secondary functions of each component.
- Identified high-cost areas that could be optimized without sacrificing essential functions.
3. Creative Phase:
- Engaged in brainstorming sessions with cross-functional teams to generate ideas for material substitutions, process improvements, and design optimizations.
- Explored various alternatives, including lightweight materials and modular design strategies.
4. Evaluation Phase:
- Assessed the feasibility of each creative idea using decision matrices, considering cost, performance, manufacturability, and supplier availability.
- Prioritized the ideas that offered the highest value improvement with the lowest risk.
5. Development Phase:
- Developed detailed CAD models of the optimized designs, ensuring that the new designs met both cost and performance criteria.
- Performed Finite Element Analysis (FEA) to validate the structural integrity and performance of the proposed changes.
- Collaborated with suppliers to confirm the feasibility of alternative manufacturing processes and material choices.
6. Implementation Phase:
- Released the final manufacturing drawings with the optimized designs, including any necessary changes to the production process.
- Coordinated with the client and suppliers for the smooth integration of new designs into the production line.
- Provided support during the prototype testing and validation stages to ensure the revised components met all required standards.
What Value Added
We applied SAVE International’s structured VAVE approach, working closely with the client’s engineering and procurement teams to streamline component designs. Our focus was not only on reducing costs but also on enhancing the functionality and ease of manufacturability. This systematic process ensured that all proposed changes were carefully vetted, tested, and implemented with minimal disruption to production.
Key Outcomes
Cost Reduction
22%
Inceased Efficiency
12%
Innovative Rating
9/10
What Our Clients Appreciate
Our collaboration with SBDC Engineering Services using their VAVE approach has not only reduced our production costs significantly but has also improved the functionality of our key components. Their methodical approach, from function analysis to implementation, has been invaluable to us
Global Vave Head, Leading Automobile Manufacturing company
Partner with Us for Your Next Big Idea
Whether you’re at the concept stage or ready for production, we’re here to make it happen. At SBDC Engineering Services, we specialize in turning ideas into reality with precision, innovation, and sustainable solutions. If you’re ready to take the next step, we’d love to collaborate and bring your vision to life