PartSpace at the VDI Value Analysis Conference: Where Cost Decisions Are Being Redefined

On May 5–6, 2026, the VDI Conference on Value Analysis in Wuppertal brings together engineers, procurement leaders, and cost experts to tackle one of the most critical challenges in modern industry:

How do you reduce costs without compromising performance or innovation?

This question isn’t new.

Value analysis has existed since the 1940s—and it works. Companies applying structured value analysis methods consistently achieve 10% cost reductions or more, often while improving product performance.

What is new is how this is being done today.

A Conference Built Around Real Industrial Challenges

The VDI Value Analysis Conference is not theoretical. It is grounded in real-world applications, case studies, and proven implementations from leading industrial companies.

The 2026 edition reflects a clear shift: organizations are under increasing pressure to act faster, more precisely, and more data-driven than ever before.

Participants can expect:

• Real case studies on value analysis across products and production processes

• Discussions on value analysis as a strategic management tool

• Deep dives into cost engineering and function-based optimization

• A dedicated focus on AI in value analysis

• Interactive workshops on collaboration and decision-making

• A panel on how AI is reshaping value analysis in practice

A key theme throughout the event is cross-functional collaboration—especially between engineering and procurement. This remains one of the most powerful (and underutilized) levers for cost optimization.

Siemens Sets a Clear Benchmark

One of the standout contributions comes from Siemens, demonstrating what modern value analysis can achieve at scale:

• 7% savings across its component portfolio

• 250,000+ components analyzed

• Savings driven by cost transparency and data-driven decisions

This signals a fundamental shift.

Savings are no longer generated primarily through:

• Negotiation

• Supplier pressure

Instead, they come from understanding cost structures at scale.

That means identifying:

• Which components are overpriced

• Which suppliers are truly competitive

• Where inefficiencies exist—based on data, not assumptions

Why Traditional Approaches Are No Longer Enough

Despite decades of progress, most industrial companies still face a structural mismatch:

• 70–80% of product costs are defined during design

• Procurement decisions happen after design is finalized

• Cost analysis remains manual, fragmented, and slow

At the same time, complexity is increasing:

• More complex products

• Expanding supplier networks

• Rising cost pressure and shrinking margins

• The need to balance cost with sustainability

Value analysis addresses this by linking function and cost, eliminating unnecessary cost drivers.

But today’s required speed and scale go far beyond what manual approaches can handle.

Where PartSpace Becomes Essential

This is where PartSpace fundamentally changes the game.

PartSpace brings value analysis into the age of data and automation.

Instead of manually reviewing components, the platform analyzes technical drawings directly and extracts the data that actually drives cost:

• Manufacturing processes

• Material usage

• Geometric complexity

• Tolerances and production requirements

From this, PartSpace enables:

• Target cost calculation based on real manufacturing logic

• Identification of price outliers across entire portfolios

• Comparison of similar components to uncover savings potential

• Faster, more consistent sourcing decisions

In practical terms, this means moving from isolated analysis → systematic cost transparency.

From Method to Measurable Impact

When value analysis principles are combined with scalable data processing, the results become tangible:

• 7–12% savings in direct material sourcing

• Full visibility across tens or hundreds of thousands of components

• Significant reduction in manual cost analysis effort

• Faster procurement decision cycles

• Stronger alignment between engineering and procurement

The key difference is scale.

Traditional value analysis is:

• Project-based

• Limited to selected components

With PartSpace, the same logic is applied:

• Across entire portfolios

• Continuously

• Automatically

What Will Be Demonstrated at VDI

At the conference, together with Siemens, the focus is on practical application—not theory.

Key demonstrations include:

• Converting technical drawings into cost-relevant data

• Automatically identifying cost drivers

• Detecting price deviations across large datasets

• Enabling procurement teams to define and enforce target costs

This is not about future potential.

It is about what is already working inside large industrial organizations today.

Why This Matters Now

The direction of the industry is becoming clear.

Future leaders will not be the companies that negotiate better.

They will be the ones that understand cost better.

The data already exists:

• Every component has a digital footprint

• Every drawing contains cost intelligence

The competitive advantage lies in turning that data into actionable decisions.

That is exactly what PartSpace enables.

A Shift in How Value Is Created

Value analysis has always followed one principle:

Maximize function. Minimize cost.

What is changing now is the ability to do this:

• Faster

• At scale

• Continuously

By combining engineering data with AI-driven analysis, companies can move from selective optimization to continuous cost intelligence.

And that is why this conversation at VDI matters.

It is no longer about whether value analysis works.

It is about how to apply it across entire organizations.