Pass the SAVE International Value Methodology VMA Questions and answers with ExamsMirror

Value Methodology (VM), as defined by SAVE International in the Value Methodology Fundamentals 1 (VMF 1) course, is a systematic, step-by-step approach to improve the value of a project, product, or process by optimizing the function-to-cost ratio. According to SAVE International’s Value Methodology Standard, VM is described as “a systematic and structured approach for improving projects, products, and processes… to achieve the optimum balance between function, performance, quality, safety, and cost.” The VM Job Plan, a core component of VM, involves a step-by-step process (six phases: Information, Function Analysis, Creative, Evaluation, Development, and Presentation) that can be likened to a design review because it evaluates and enhances the design or process to improve value.

Option A (suggestion program) is incorrect because VM is not merely about collecting suggestions; it is a structured methodology with defined phases and tools like function analysis.

Option B (cost reduction exercise) is incorrect because VM focuses on improving value, not just reducing costs—cost reduction may occur, but only if it does not compromise essential functions.

Option C (step-by-step design review) aligns with VM’s systematic nature, as the Job Plan reviews and improves designs or processes through structured phases, making it the best fit.

Option D (eight-phase process) is incorrect because the VM Job Plan has six phases, not eight, as established in SAVE International’s standards.

The original Value Methodology (VM) Job Plan, developed by Lawrence D. Miles in the 1940s, was rooted in a problem-solving approach inspired by the scientific method. As outlined in the VMF 1 course (Core Competency #1: Value Methodology Overview), Miles adapted a systematic problem-solving framework to create the VM Job Plan, which later evolved into the six-phase process used today (Information, Function Analysis, Creative, Evaluation, Development, Presentation). The original problem-solving approach, as described in SAVE International’s historical documentation of VM, follows the scientific method’s four steps: Observation, Hypothesis, Experimentation, and Conclusion.

Observation: Observe the problem or system (e.g., high costs, inefficiencies) to understand the current state, aligning with the Information Phase.

Hypothesis: Form a hypothesis about how to improve value (e.g., identifying key functions or alternatives), similar to Function Analysis and Creative Phases.

Experimentation: Test the hypothesis by developing and evaluating alternatives, akin to the Evaluation and Development Phases.

Conclusion: Draw conclusions and implement solutions, corresponding to the Presentation Phase.

This order—Observation, Hypothesis, Experimentation, Conclusion—is the standard sequence of the scientific method, which Miles used as the foundation for VM’s systematic approach to problem-solving.

Option A (Hypothesis, Observation, Experimentation, Conclusion) is incorrect because observation must come first to identify the problem.

Option B (Observation, Experimentation, Hypothesis, Conclusion) is incorrect because hypothesizing should precede experimentation.

Option C (Hypothesis, Experimentation, Observation, Conclusion) is incorrect because observation must come before forming a hypothesis.

Option D (Observation, Hypothesis, Experimentation, Conclusion) is correct, as it matches the scientific method’s order, which underpins the original VM Job Plan.

Value Methodology (VM) is a versatile methodology, as taught in the VMF 1 course (Core Competency #1: Value Methodology Overview). According to SAVE International’s Value Methodology Standard, “the unique aspect of the Value Methodology is its focus on function analysis, making it applicable to anything that performs a function—whether a product, process, system, or service.” VM’s core principle is to improve value (function/cost) by analyzing what something does (its functions) and finding better ways to achieve those functions at lower cost without sacrificing performance. This focus on functions (e.g., “mark surface” for a pen, Question 38; “contain liquid” for a teacup, Question 44) allows VM to be applied universally to anything with a definable function, distinguishing it from other methodologies like Lean or Six Sigma, which focus on process efficiency or quality.

Option A (includes an activity) is incorrect because, while activities describe how functions are performed, VM’s unique aspect is its focus on functions, not activities.

Option B (performs a function) is correct, as VM’s defining feature is its application to anything with a function, per SAVE International’s standards.

Option C (is goal-oriented) is incorrect because many methodologies are goal-oriented; VM’s uniqueness lies in its function-based approach.

Option D (is a subject of study) is incorrect because being a subject of study is too broad; VM specifically targets subjects that perform functions.

Function Analysis in Value Methodology involves identifying and classifying functions of a product, process, or system using verb-noun combinations, as taught in the VMF 1 course (Core Competency #2). Functions are categorized as basic (essential to the purpose), secondary (supporting), or unwanted (undesirable outcomes). For a hammer, the basic function is to “deliver force” to drive a nail, while secondary functions like “swing arm” or “apply force” support this purpose. An unwanted function is an unintended or negative outcome of the hammer’s use.

Option A (Swing arm) is a supporting function, describing the action of the user’s arm to generate momentum, and is not unwanted.

Option B (Apply force) is a secondary function, as it describes the action leading to delivering force, and is not unwanted.

Option C (Deliver force) is the basic function of a hammer, essential to its purpose, and not unwanted.

Option D (Transmit vibration) is correct because it represents an unintended and undesirable outcome—vibration transmitted to the user’s hand can cause discomfort or fatigue, making it an unwanted function.

The VMF 1 course emphasizes identifying unwanted functions to target areas for value improvement, such as redesigning the hammer to reduce vibration.

Risk management is a critical aspect of Implementation Planning in Value Methodology (VM), as it ensures that VM proposals can be successfully executed, as taught in the VMF 1 course (Core Competency #8: Implementation Planning). According to SAVE International’s Value Methodology Standard, “risks associated with a project, product, or process typically impact schedule, cost, or performance.” This is often referred to as the “project management triangle” or “triple constraint,” a fundamental concept in project management that VM adopts when assessing risks during the Development and Presentation Phases.

Schedule: Risks that cause delays (e.g., late delivery of materials).

Cost: Risks that increase expenses (e.g., unexpected cost overruns).

Performance: Risks that affect quality or functionality (e.g., a proposed solution failing to meet requirements).

The VMF 1 curriculum emphasizes that VM teams must identify and mitigate risks in these three areas to ensure the feasibility of their recommendations, making this the most relevant framework for understanding risk impacts in a VM context.

Option A (Schedule, cost, or performance) is correct, as it directly aligns with the standard risk impact areas in VM and project management.

Option B (Cost, requirements, or results) is incorrect because, while cost is relevant, “requirements” and “results” are less specific than “schedule” and “performance” in the context of VM risk management.

Option C (Resources, regulations, or time) is incorrect because, while time (schedule) is relevant, resources and regulations are more specific factors that contribute to broader impacts on schedule, cost, or performance.

Option D (Time, function, or attributes) is incorrect because, while time (schedule) is relevant, “function” and “attributes” are not standard risk impact categories in VM; performance is the broader term used.

The Value Methodology (VM) Job Plan leverages both divergent and convergent thinking, as taught in the VMF 1 course (Core Competency #3: Value Methodology Job Plan). According to SAVE International’s Value Methodology Standard, “convergent thinking is used to narrow down and refine ideas, focusing on analysis, selection, and implementation, while divergent thinking generates a wide range of ideas.” The VM Job Plan’s six phases are: Information, Function Analysis, Creativity, Evaluation, Development, and Presentation. Convergent thinking is applied in:

Evaluation Phase: The team narrows down ideas using filters (Coarse, Medium, Fine, as in Question 33) and evaluation matrices, selecting the best ones.

Development Phase: The team refines selected ideas into actionable proposals, focusing on feasibility and cost.

Presentation Phase: The team consolidates proposals into a final recommendation, ensuring clarity and alignment with stakeholder needs.

Divergent thinking is primarily used in the Creativity Phase, while Information and Function Analysis involve analytical thinking but not necessarily convergent thinking in the same sense (they focus on understanding and defining, not narrowing down).

Option A (Creativity, Evaluation, Development) is incorrect because Creativity uses divergent thinking, not convergent.

Option B (Information, Function Analysis, Creativity) is incorrect because none of these phases primarily use convergent thinking; Creativity is divergent.

Option C (Evaluation, Development, Presentation) is correct, as these phases involve convergent thinking to narrow down, refine, and finalize ideas.

Option D (Function Analysis, Creativity, Evaluation) is incorrect because Function Analysis and Creativity do not primarily use convergent thinking.

Risk management is a critical aspect of Implementation Planning in Value Methodology (VM), ensuring that VM proposals are feasible and sustainable, as taught in the VMF 1 course (Core Competency #8: Implementation Planning). According to SAVE International’s Value Methodology Standard, risk management in the context of VM follows a standard process aligned with project management best practices, such as those in the Project Management Institute (PMI) framework, which VM adopts for implementation. The correct order of steps in risk management is:

Risk Management Planning: Define how risks will be managed, including methodologies, roles, and tools.

Risk Identification: Identify potential risks that could impact the VM study or its implementation (e.g., cost overruns, delays).

Risk Analysis: Analyze the likelihood and impact of identified risks (qualitative and quantitative analysis).

Risk Response Planning: Develop strategies to mitigate, avoid, transfer, or accept risks.

Risk Monitoring and Control: Monitor risks throughout implementation and control them as needed.

The VMF 1 course emphasizes this sequence in the Development and Presentation Phases, where risks associated with VM proposals are assessed and mitigated to ensure successful implementation. This order ensures a systematic approach, starting with planning, followed by identification and analysis, then response planning, and finally monitoring.

Option A (Risk Management Planning, Risk Analysis, Risk Identification, Risk Response Planning, Risk Monitoring and Control) is incorrect because Risk Identification must precede Risk Analysis— you cannot analyze risks before identifying them.

Option B (Risk Identification, Risk Management Planning, Risk Analysis, Risk Response Planning, Risk Monitoring and Control) is incorrect because Risk Management Planning must come first to establish the framework for the process.

Option C (Risk Management Planning, Risk Identification, Risk Analysis, Risk Response Planning, Risk Monitoring and Control) is correct, as it follows the standard risk management process.

Option D (Risk Management Planning, Risk Identification, Risk Response Planning, Risk Analysis, Risk Monitoring and Control) is incorrect because Risk Analysis must precede Risk Response Planning to inform the response strategies.

The diagram provided is a Function Analysis System Technique (FAST) diagram, a key tool in Value Methodology’s Function Analysis phase, as taught in the VMF 1 course (Core Competency #2). FAST diagrams map the relationships between functions of a system, with the horizontal axis showing the “how-why” logic (critical path) and the vertical axis showing supporting functions. Functions are classified as basic, secondary, required secondary, or higher-order based on their position and role in the diagram. According to SAVE International’s Value Methodology Standard, “the basic function is the primary purpose of the system, typically found on the critical path; higher-order functions are the reasons why the basic function exists, located to the left of the basic function; secondary functions support the basic function and are often vertical; and required secondary functions are necessary to achieve the basic function.”

In the FAST diagram:

The critical path (horizontal, marked by Y in an earlier question) runs from E to F to G to J to L to M to N to O, representing the main sequence of functions.

Scope lines (B and D) define the study’s boundaries, as identified in Question 15.

Function E is positioned at the far left of the critical path, just inside the left scope line (B).

In FAST diagramming:

Thebasic functionis the primary purpose of the system, typically located near the center or right of the critical path within the scope lines. Here, it would likely be a function like J or L, which is central to the system’s purpose.

Thehigher-order functionis the reason “why” the basic function exists and is located to the left of the basic function, often at or near the left scope line. Function E, being the leftmost function on the critical path, answers “why” the subsequent functions (F, G, etc.) exist, making it the higher-order function.

Secondary functions(e.g., S, T, U, K) are vertical, supporting the critical path, and are not on the main horizontal sequence.

Required secondary functionsare secondary functions essential to the basic function, but E is on the critical path, not a vertical supporting function.

Thus, Function E, as the leftmost function on the critical path, is thehigher-order function, representing the overarching objective or need that the system fulfills.

Option A (Secondary Function) is incorrect because secondary functions are off the critical path (e.g., S, T, K), while E is on the critical path.

Option B (Required Secondary Function) is incorrect because E is not a secondary function; it is on the main path, not a supporting vertical function.

Option C (Basic Function) is incorrect because the basic function is typically more central on the critical path, not at the far left.

Option D (Higher Order Function) is correct, as E’s position at the left of the critical path indicates it is the higher-order function, answering “why” the system exists.

The Information Phase is the first phase of the Value Methodology (VM) Job Plan, where the team gathers and understands data about the study subject, as taught in the VMF 1 course (Core Competency #3: Value Methodology Job Plan). According to SAVE International’s Value Methodology Standard, “an effective Information Phase kickoff meeting sets the stage for the VM study by outlining the goals for the study subject and the VM study objectives, ensuring alignment among team members and stakeholders.” This involves clarifying the purpose of the study, the project’s goals (e.g., reduce costs, improve performance), and the specific objectives of the VM study (e.g., achieve 20% cost savings while maintaining function). This aligns with the primary objective of the Information Phase—to understand the subject—and ensures the team starts with a clear direction.

Option A (Discusses the challenges of the proposed VM study approach) is incorrect because, while challenges may be acknowledged, the primary focus of the kickoff is to set goals and objectives, not discuss challenges.

Option B (Outlines goals for the study subject and VM study objectives) is correct, as it matches the purpose of an effective Information Phase kickoff meeting.

Option C (Indicates the VM solutions desired by decision makers) is incorrect because solutions are developed later (e.g., in the Creativity and Development Phases), not during the Information Phase kickoff.

Option D (Describes how functions have normally been accomplished) is incorrect because this level of functional detail is addressed in the Function Analysis Phase, not the Information Phase kickoff.

In the context of Value Methodology, cost analysis often involves financial concepts to evaluate the economic impact of alternatives, including understanding the time value of money. The VMF 1 course, under Core Competency #4 (Cost Analysis), includes basic financial metrics relevant to value studies, such as discounting cash flows to assess long-term value. The nominal rate of increase in the value of money over time, after subtracting for inflation, refers to thereal discount rate. In financial terms, as per standard economic principles taught in VMF 1, the discount rate is the rate used to discount future cash flows to their present value, and thereal discount rateis the nominal discount rate adjusted for inflation (i.e., real discount rate = nominal discount rate − inflation rate). This measures the true increase in the value of money over time, excluding inflationary effects.

Option A (Simple Payback or Breakeven Point) is incorrect because payback measures the time required to recover an investment, not the rate of increase in money’s value.

Option B (Return on Investment or ROI) is incorrect because ROI measures the profitability of an investment as a percentage, not the rate of increase in money’s value over time.

Option C (Discount Rate) is correct because the real discount rate, after subtracting inflation, defines the nominal rate of increase in the value of money over time, as used in financial analyses within VM studies.

Option D (Present Worth or Net Present Value) is incorrect because NPV is the result of discounting future cash flows to their present value using a discount rate, not the rate itself.