Competitive Tear Down

Integrating Value Analysis and Tear-Down

The Advanced Value Group’s Tear-Down method is the method made famous by Yoshihiko Sato of Japan. This Tear-Down method is much more complex and detailed when compared to most western world tear-down methods.

Tear-Down activity is a comparative process to completely analyze all aspects of cost of your products with those of your competitors. Attention to minute detail is a major portion of this methodology. Regardless of cost it is important to note that in almost every component we can find some advantage by studying and understanding those same parts of our competitors. In some instances our competitors choose to perform the same or similar functions with a different design direction. These are observed and analyzed as well.

There are several tear-down types.

Dynamic Tear-Down applies the principle of comparative analysis to the assembly process. The examination of all the design features that contribute to the time and cost of assembling the product in production is the focus of Dynamic Tear-down. AVG’s Tear-Down Method integrates Design for Assembly DFA in the Dynamic TD element, achieving better results for our clients

The objective of Cost Tear-Down is to assess the total cost to market the product, less general overhead. In this tear-down method product comparisons and differences are identified measured with cost estimates.

Material Tear-Down focuses on saving materials and labor costs by changing material, surface treatment, etc. It also looks at scrap rates and offal and selecting materials that do not harm the environment.

Matrix Tear-Down deals with the comparison of a company’s own products and looks to standardize and communize wherever possible. The goal is to reduce part numbers and prevent new part numbers from being created that are not necessary.

The objective of Process Tear-Down is similar to the Matrix Tear-down except that it is focused on standardizing and simplifying internal fabrication and assembly processes.

Finally, the original and commonly used tear-down method is Static Tear-Down. Static tear-down is the display of a company’s products and those of their competitors. There are good and bad display techniques. Proper displays can lead to improved information gathering and value improvement efforts.