Today, for Original Equipment Manufacturers (OEMs) in the electronics sector, Value Engineering (VE) matters more than ever. In an industry where materials, technology, customer expectations, and regulations shift rapidly, VE is not optional, it is essential. It helps reduce waste, sharpen competitiveness, and futureproof products against market volatility. It is also a key driver of sustainability, promoting smarter resource use and environmentally conscious design.
So, how can OEMs apply VE in practice? Let’s explore the six essential steps.
1. Information Gathering
Before any changes can be made, a clear picture of the product’s full cost structure is needed. This includes R&D, materials, labour, compliance, quality assurance, logistics, and after-sales. A robust Cost of Goods Sold (COGS) analysis, often using Pareto principles, can help OEMs identify the biggest cost drivers.
2. Thinking Creatively
Once the data is in hand, cross-functional teams, including engineering, procurement, and operations, should cooperate to generate smart ideas. The focus here is on function. Specialists should analyse what each element of the product does, and whether there is a smarter way to achieve the same result. Ideas might include:
- Swapping to more sustainable or cost-effective materials;
- Redesigning to simplify production;
- Optimising packaging to reduce waste;
- Sourcing components locally to lower transport emissions;
- Incorporating modular options for different user needs.
3. Evaluation
In VE, every idea is then evaluated for feasibility, risk, return on investment, and impact on quality or compliance. Tools like weighted matrices help prioritise solutions with the highest potential for value and the lowest disruption. Structured evaluation methods can significantly improve the decision accuracy.
4. Development
During the development step, the most promising concepts are explored in greater depth. This includes design modifications, cost modelling, technical testing, and projections for time-to-market. Return on investment (ROI) is carefully assessed to make sure each solution delivers clear financial and functional benefits.
5. Presentation
Findings should be compiled into a report for internal stakeholders, to provide a clear, data-backed case for action. Options are laid out with expected benefits, risks, and timelines, helping decision-makers to move forward.
6. Implementation
Once decisions are made, it is time to roll out the changes. This may involve working closely with Electronics Manufacturing Services (EMS) providers like Poland-based Assel, who help integrate updates into production, sourcing, prototyping, and quality testing. The goal is smooth implementation, without compromise on performance or reliability.
Why Every Step in Value Engineering Matters
Following these six steps of Value Engineering is crucial for making smarter, more strategic decisions. By breaking down product design and production into clear, focused phases, OEMs can systematically uncover cost-saving opportunities without compromising on performance or quality.
Omitting any of the six Value Engineering steps can expose OEMs to significant risks, both operational and strategic:
- Skipping thorough data collection may lead to poor decisions based on incomplete cost insights;
- Neglecting creative exploration can limit innovation and leave untapped opportunities for savings;
- Without careful evaluation and development, changes may backfire, compromising quality, functionality, or compliance;
- Failing to present a clear plan can stall stakeholder buy-in;
- Meanwhile, weak implementation can derail the entire initiative.
For that reason, partnering with an experienced EMS provider can make a significant difference. To cooperate with a trusted expert who ensures your value engineering efforts translate into real, measurable results, visit asselems.com and discover how Assel can support your path to cost-efficient, high-quality manufacturing success.