Value Analysis/Value Engineering (VAVE)
The Situation Today
With product lifecycles shrinking by the day, companies need to embrace continuous innovation. While there is a need to optimize their R&D spending, they need to adopt a methodology which can help them manage rising costs. Emerging markets are becoming an important factor but products need to be localized, and costs reduced.
How HCL Can Help
HCL’s Value Analysis/Value Engineering (VAVE) is an effective framework which identifies and eliminates areas of high cost and improves the profitability of a product by creating alternatives that perform the required function at a lower total cost.
- Time-to-market reduction
- HCL’s consulting framework for Value Engineering
- Cost Reduction
- Robust sourcing tools and frameworks used to deliver best-in-class pricing and solutions
- HCL proprietary global cost database
- Technology Adoption
- Centers of Excellence for thermal, structural, reliability, radio frequency, antenna, signal integrity and industrial design
- Compliance lab for pre-compliance and certification needs
- National Accreditation Board for Testing & Calibration Laboratories (NABL) accredited labs for CE, FCC certifications and marking
- Value Engineering - Application of select value analysis features during the product development stage itself
- Teardown Analysis - Seven customer-specific and four HCL-generic teardown and benchmarking labs, globally
- Cost Modeling - HCL proprietary global cost database, cost modeling templates for 14 different commodities (mechanical, electrical and electro mechanical). Services include target costing, should costing, best in-class costing, supplier benchmarking
- Value Analysis - Framework based approach to cost reduction through idea generation and implementing engineering change
- Product Benchmarking - White box analysis through information in public domain, black box analysis through thorough teardown analysis, best-of-best analysis.
What You Can Expect
- Current functionality maintained at a lower cost
- Functionality increase at no additional cost or at a lower total cost
- Access to HCL proprietary global cost database which addresses 14 different commodities including castings, sheet metal, machined parts, plastics, rubbers, fasteners, burn to shape (laser, plasma cutting), forgings, extrusions, PCB, electronics and electro mechanical
- Unique fixed price and time bound VAVE consulting framework
- Increase in margins
What We’ve Done For Others
- An industrial heating, ventilation and air conditioning (HVAC) customer approached HCL to perform a complete value analysis on its existing V type condenser, and identify potential areas of cost reduction. Using the value analysis framework, HCL recommended short term and long term design/process modifications which led to an annual potential savings of 11.5% for the customer.