In this day and age when new technology and new products are blanketing the market, reducing cost is a major focus to staying competitive. 70% of product cost is determined during the design phase, yet companies typically direct their cost reduction efforts at the smaller 30% components of cost that can be influenced after a product is in production. VA/VE targets the larger slice of the cost pie while actually enhancing value for the customer. Focusing on value to the customer identifies opportunities that may be missed in traditional material cost reduction approaches.
Argo’s VA/VE process begins with a seemingly simple notion, but one that lays the groundwork for success throughout the project. Define. During the define phase the product will be analyzed to determine market and voice of customer, both internally and externally, as well as product profitability. In addition, a supply chain analysis and process capabilities will be clearly defined. Once the define foundation is in place, the project can move to the next phase of development: Design.