A reduction of development costs will have a significant impact on the total cost of the vacuum electron devices. Experimental testing cycles can be reduced or eliminated through the use of simulation‐based design methodology, thereby reducing the time and cost of development. Moreover, by use of modern optimization tools for automating the process of seeking specific solution parameters and for studying dependencies of performance on parameters, new performance capabilities can be achieved, without resorting to expensive cycles of hardware fabrication and testing. Simulation‐based‐design will also provide the basis for sensitivity studies for determining the manufacturing tolerances associated with a particular design. Since material properties can have a critical effect on the performance of the vacuum electron devices, the design tools require precise knowledge of material characteristics, such as dielectric properties of the support rods, loss profile etc. Sensitivity studies must therefore include the effects of materials properties variation on device performance. This will provide insight for choosing the proper technological processes in order to achieve these tolerances, which is of great importance for achieving cost reduction. A successful design methodology depends on the development of accurate and efficient design tools with predictive capabilities. These design tools must be based on realistic models capable of high fidelity representation of geometry and materials, they must have optimization capabilities, and they must be easy to use. © 2003 American Institute of Physics