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For many organizations, new product development is the heartbeat of growth. Fresh ideas lead to new revenue, expanded markets, and competitive advantages.����

But what happens when your team doesn’t have the resources, budget, or bandwidth to take on new designs? It’s a challenge many engineering and product development leaders face. Supply chain volatility and inflationary pressures have stretched budgets thin. At the same time, customers expect continuous improvement. 

When launching something new isn’t realistic, growth doesn’t have to stop. Instead, it can shift from creating new products to optimizing existing ones. That’s where VA/VE becomes a powerful lever.����

What Is VA/VE?

Value Analysis (VA) and Value Engineering (VE) are structured methodologies for improving the value of a product, either by reducing cost, improving function, or both.  

• Value Analysis (VA) focuses on existing, in-production products, evaluating opportunities to streamline cost and improve manufacturability without sacrificing quality.����

• Value Engineering (VE) typically applies early in the product development process, where changes are easier to implement and can influence design direction.����

Both approaches rely on the same principle: understanding the relationship between a product’s function and its cost. By analyzing each component and asking, “Does this feature truly add value for the customer?” engineers can uncover hidden inefficiencies and design smarter, leaner solutions.  

In other words, VA/VE is about doing more with what you already have, without compromising performance or customer experience.  

View our VA/VE case study with a local office furniture manufacturer >>

Why VA/VE Matters Now More Than Ever

In today’s economy and manufacturing environment, the fastest way to increase profitability isn’t always through innovation—it’s through optimization.����

VA/VE provides a disciplined way to reduce material and production costs, enhance supply chain resilience, and even extend the life of mature products. It’s a practical, high-impact alternative to traditional new product development when development resources are limited.  

If your organization is balancing strategic priorities, VA/VE offers several advantages:  

• Accelerated ROI: Cost savings from VA/VE projects can typically be realized in months, which is much faster than the timeline for developing and launching a new product.����
• Reduced Risk: Enhancing proven products minimizes market risk and leverages existing customer trust.����
• Improved Competitiveness: By lowering production costs or improving performance, you can offer better pricing or reinvest savings in other areas of innovation.����
• Cross-functional Collaboration: VA/VE fosters collaboration among engineering, manufacturing, supply chain, and procurement, breaking down silos and possibly uncovering inefficiencies you didn’t know existed.����

5 Signs Your Product Needs VA/VE

Knowing when to engage VA/VE can be just as important as knowing how. It’s not a one-size-fits-all solution, but rather a strategic tool best applied at key points in a product’s lifecycle.����

1. Product Maturation or Plateauing

If sales are steady but margins are tightening, VA/VE can identify design simplifications, materials substitutions, and/or manufacturing efficiencies to restore profitability.��

2. Supplier or Cost Challenges

If materials or component prices rise, or a supplier discontinues a key part, VA/VE can help you find new sourcing options without compromising function or quality.��

3. Post-merger or Portfolio Rationalization

When integrating product lines, VA/VE supports standardization and platforming, reducing redundant designs and simplifying manufacturing operations.����

4. Sustainability and ESG Initiatives

Many organizations are now using VA/VE to support sustainable product design, finding ways to reduce waste, energy use, or materials without hurting performance.��

5. Continuous Improvement Initiatives

Even high-performing products benefit from periodic VA/VE reviews. As technology and manufacturing methods evolve, revisiting older designs can uncover new opportunities for savings and performance gains.����

The Benefits of a VA/VE Mindset

While the immediate appeal of VA/VE is typically cost reduction, its long-term benefits can go far beyond those savings alone.����

Operational Efficiency

VA/VE promotes design simplification, resulting in fewer parts, easier assembly, and/or reduced material waste. This can lead to more consistent production, lower defect rates, and improved throughput.��

Customer Value

By focusing on what the customer truly values, you can enhance performance where it matters most and eliminate features that add cost but little benefit.����

Employee Engagement

VA/VE projects encourage collaboration and creativity. Engineers, operators, and suppliers all contribute ideas, leading to a culture of shared ownership and continuous improvement.��

Strategic Agility

Organizations that build VA/VE into their product development rhythm can often respond faster to market pressures and supply chain changes, without relying solely on new product launches.����

How to Get Started with VA/VE

Implementing VA/VE successfully requires both structure and support from leadership. Here’s how I’ve seen forward-thinking organizations get started:����

1. Identify priority products. Focus on high-volume, high-cost products or those facing profitability pressures.����
2. Build a cross-functional team. Includes representatives from design, manufacturing, procurement, quality, and even sales.����
3. Define value clearly. Use customer insights and cost data to define what “value” means in your market.��
4. Facilitate structured workshops. A dedicated VA/VE workshop can generate dozens of actionable ideas in a short period of time.����
5. Track and celebrate results. Quantify the impact—cost savings, efficiency gains, sustainability improvements, etc.—to reinforce buy-in from leadership.����

Remember that the most successful VA/VE initiatives are treated not as a one-time cost exercise but as an ongoing mindset. Make it part of your company’s DNA for driving efficiency and value!��

Need Help Growing Without New Product Development?

When new product development isn’t feasible, it doesn’t mean innovation has to stop. It can simply shift focus. VA/VE offers a proven framework to uncover hidden value, reduce costs, and improve the products that already define your brand.  

If you’d like help implementing a VA/VE initiative, we’d love to help. Alongside our VA/VE-focused engineers, you can design a smarter, easier-to-manufacture, and more valuable product. Reach out online to start the conversation.����