Value Analysis and Value Engineering (VAVE) is a rigorous and systematic method to improve the “value” of products, processes, and services by examining a functional breakdown of the offering. Value, as defined, is the ratio of function to cost. The goal is to increase Value and can therefore be increased by either “improving” the function (numerator) or “reducing the costs” (denominator). VAVE keeps in mind not violating fit, form, or functional needs while pursuing value improvements.
In Step 4 in our Systematic Innovation Process, learn how to use the VAVE methods to create new ideas, especially if cost reduction is an important objective.