Value Analysis and Value Engineering (VA/VE)
The value of a product is defined as the ratio of function to cost. Improving function or reducing cost keeping the other factor constant, increases the overall value of the product. We focus on value engineering and provide support to OEMs in automotive cost reduction at multiple stages of development.
Our vehicle teardown activities are focused and customized to suit the client's requirement of achieving the value engineering objectives.
Infrastructure & Equipment
Advanced Structures' vehicle teardown facility is part of our World Class VAVE (Value analysis & value engineering) lab, spread across 10,000 sq.feet area. This facility houses dedicated areas for Vehicle teardown, Product evaluation, Part & System Level photography & 3D Scanning. The VAVE lab is designed in a modular fashion, to enable working on different projects without compromising information security. At its full capacity, teardown of 11 vehicles can be conducted simultaneously.
Automotive Teardown for value engineering
Advanced Structures' vehicle teardown facility is part of our World Class VAVE lab, spread across 10,000 sq.feet area. This facility houses dedicated areas for Vehicle teardown, Product evaluation, Part & System Level photography & 3D Scanning. The VAVE lab is designed in a modular fashion, to enable working on different projects without compromising information security.
We offer value engineering services by performing automated vehicle teardown, to the maximum extent by using our proprietary tools, to prevent errors in data entry. This tool automatically, identifies outliers, and helps us in taking corrective measures. Comparative reports are generated instantaneously, and are checked by experienced engineers. The facility has been used by leading Automotive OEMs and Consultancies for their automotive benchmarking activities.
The data can be directly fed to our "Cost- Algorithm", which helps in identifying only those components, where maximum cost optimization is possible.
The Value Engineering Process
BIW Reverse Engineering
Our competencies in vave process
- Vehicle Teardown (Disassembly)
- BOM Generation (Hierarchy Wise)
- Data Analysis (Weight, Material, Mfg. process, Fastener Usage & Complexity)
- Flow Analysis & Circuit Diagrams
- Electrical detailed info
- Value Engineering Idea Generation
- Zone Wise Sectional Study
- Weld Mapping (Spot/CO2/MIG/TIG)
- Thickness Mapping
- Automotive Weight Optimisation
- Automotive Cost Optimisation
- Material Usage Analysis
- Serviceability & Maintenance Check
- Vehicle Ergonomics-Effort
- Vehicle Ergonomics-Dimensions (H-Point)
- Workshop @ Client Location
- Interior & Exterior fittings
- Reverse Engineering (CAD & CAE)
- Automotive Design Optimisation
- Coating Analysis
- Manufacturing Steps Mapping
- Utility Study
- Design Layout Specific Checks
- Subjective Evaluation
- Interior Colour, Gloss & Grain Structure Mapping
- Torque Measurement
- Wear & Tear Study
- Gaps & Flushness Analysis
Value Analysis & Value Engineering (VA/VE)
Advanced Structures' experienced team of engineers and analysts use a number of methods including algorithms, developed in-house to reduce cost of automotive components and processes.We have worked with major OEMs, Suppliers and Management Consultancies, and have optimized component and processing costs. For this activity Advanced Structures has set up a dedicated Vehicle Teardown and Testing Lab.
Success with Numbers:
Client 1: Optimization in Supply Chain: With one of our clients we could reduce the cost of overall product by 5% only by focusing on packaging efficiency & transportation. Please refer our blog for this particular case study.
Client 2: Data Handling: We digitized more than 35000 drawings (in the form of CAD or PDF’s) to fetch 45 key specifications per part in less than 40 days. Helping them reduce, average part cost by 12 to 20%. We leveraged our proprietary software tools to drastically reduce project time while eliminating entry errors.
Client 3: Data Handling: As a part of value engineering, we scanned through more than 3000 parts and derived specifications w.r.t operator ergonomics, assembly locus & design philosophy. Variety of equipment and tools ranging from laser scanners to purpose built software tools were utilized to deliver output in extremely short period of time.
Client 4: Marketing: Advanced Structures India helped a customer, modify a feature, which more than 80% of the customers wanted, and suggested changes to the existing expensive feature, which only 20% of the customers perceived. Thus increasing profit exponentially. Our association with leading car portals in India helped us give the best possible consumer connect and actionable intelligence.
Value Engineering Ideas Generation
This is a unique activity which many of our customers have utilized and have been benefited. Depending on the requirement, whether Ideas of Automotive Cost reduction or Mapping of complexity of design, manufacturing, serviceability,etc, our teams prepare the parameters that need to be captured and using analytics, help Clients engineering teams.
Snippet from our VAVE Idea Generation workshop for Comparing Powertrain of Two Cars
Using data analytics and logic filters, comparative study of on each subsystem was done to predict the design philosophy, for cost reduction ideas. Please note: All the values mentioned are for purpose of representation only.
- Raw Material cost shares 40-70 % of the total part cost.
- Calculating (assuming Raw Material rates from Advanced Structures sources), out of Car A & Car B the Raw Material cost is high for Car A by 5.5% approx.
- Usage of plastic is more in Car A due to Plastic engine cover & Plastic attachment for gear selector mechanism.
- Weight difference b/w Car A & Car B is due to the usage of steel (Car A uses 10 Kg more steel than Car B).
- Steel Oil sump is large in case of Car A, in Car B crankcase acts as the oil sump (Hence a larger crank case is used in Car B, this leads to higher usage of aluminium for Car B).
- Overall no of parts used in Car A is 32% more than Car B.
- Considering the cost of complexity, it is quite evident that cost of assembling Car A powertrain & cooling system is more than Car B.
- Example: Car B has a single piece differential housing associated with final drive gear unlike Car A where Housing & final drive gear are connected using 10 screws. (Assembly Time + Cost will be high for Car A).
Weight and Manufacturing Process Targets
- Total weight Target for Engine, Transmission and Engine cooling at the System Level “Less than or Equal to 136 kgs".
- Can be Achieved by:
- Reduction of Steel as Raw Material in the entire design Philosophy by approximately : 10 -12 kgs.
- Reduction of Overall no. of parts by 20-25% to reduce Assembly cost.
- Use of Less Expensive Manufacturing process:
- Example- Sheetmetal Fuel tank, instead of injection moulded Plastic tank, as the weight penalty is less than the cost implications of Injection moulding.
- Design Inputs to achieve this:
- Example – Usage of separate Oil-sump rather than integrating it with the crank case.
- Example – Instead of using a separate Final Drive Gear which is bolted using 10 bolts, Advanced Structures suggested to use integrated single piece FDG, so that complexity cost reduces as no assembly is required, although machining becomes more complex.