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SAVE International Value Methodology Associate Sample Questions (Q15-Q20):

NEW QUESTION # 15
When transforming the VM study subject's cost information, the potential for achieving major savings is:

A. Improved when costs are aligned with scope increases
B. Increased when the VM proposals improve performance
C. Greatest during the early phases of the project lifecycle
D. Enhanced when outputs are included in calculations

Answer: C

Explanation:
Transforming cost information in a Value Methodology (VM) study involves analyzing and optimizing costs to improve value, often through cost models or financial analysis, as taught in the VMF 1 course (Core Competency #1: Value Methodology Overview). According to SAVE International's Value Methodology Standard, "the potential for achieving major savings is greatest during the early phases of the project lifecycle, such as planning or conceptual design, when decisions about scope, design, and requirements are made." This principle is based on the "cost influence curve," which shows that the ability to influence costs is highest early in the project, before costs are locked in by detailed design or implementation. Applying VM early allows the team to make fundamental changes (e.g., rethinking functions or materials) that yield significant savings, whereas later phases (e.g., construction or operation) offer less flexibility and higher change costs.
* Option A (Greatest during the early phases of the project lifecycle) is correct, as it aligns with VM's emphasis on early intervention for maximum cost savings, as seen in Question 21.
* Option B (Increased when the VM proposals improve performance) is incorrect because, while performance improvements can enhance value, the greatest potential for savings is tied to timing, not performance.
* Option C (Enhanced when outputs are included in calculations) is incorrect because including outputs may improve analysis accuracy, but it does not directly address the timing of savings potential.
* Option D (Improved when costs are aligned with scope increases) is incorrect because scope increases often raise costs, whereas VM aims to reduce costs while maintaining or improving function.
:
SAVE International, "Value Methodology Standard and Body of Knowledge," available athttps://www.value- eng.org, emphasizing early application of VM for major savings.
SAVE International, VMF 1 Core Competency #1 (Value Methodology Overview), highlighting the cost influence curve and early intervention benefits.

NEW QUESTION # 16
Which of the following is most relevant to the Evaluation Phase?

A. Return on Investment
B. Cost Model
C. Constraints
D. Weighting

Answer: D

Explanation:
The Evaluation Phase of the Value Methodology (VM) Job Plan, as outlined in the VMF 1 course and SAVE International's Value Methodology Standard, involves assessing ideas generated during the Creative Phase to select the most viable ones for further development. According to VMF 1 Core Competency #7 (Evaluation and Selection of Alternatives), the Evaluation Phase focuses on "evaluating ideas based on criteria such as cost, performance, feasibility, and alignment with project goals, often using tools like weighted evaluation matrices."Weightingrefers to assigning weights to evaluation criteria (e.g., cost savings, quality, risk) to prioritize ideas systematically, making it the most relevant to this phase.
* Option A (Return on Investment) is incorrect because ROI is a financial metric typically calculated during the Development Phase when modeling the cost and benefits of selected ideas, not during Evaluation.
* Option B (Cost Model) is incorrect because cost models are developed in the Development Phase to detail the financial impact of selected ideas, though rough cost estimates may be considered in Evaluation.
* Option C (Weighting) is correct, as weighting criteria in tools like a weighted evaluation matrix is a key activity in the Evaluation Phase to rank and select ideas.
* Option D (Constraints) is incorrect because identifying constraints occurs primarily in the Information Phase, though they may be considered during Evaluation as part of feasibility analysis.
:
SAVE International, "Value Methodology Standard and Body of Knowledge," available athttps://www.value- eng.org, detailing the Evaluation Phase and the use of weighted evaluation matrices.
SAVE International, VMF 1 Core Competency #7 (Evaluation and Selection of Alternatives), emphasizing weighting criteria for idea selection.

NEW QUESTION # 17
Which of the following is a basic function of a bicycle?

A. Transport Mass
B. Transport Goods
C. Provide Transportation
D. Move People

Answer: C

Explanation:
Function Analysis in Value Methodology involves identifying and classifying functions using verb-noun combinations, as taught in the VMF 1 course (Core Competency #2). The basic function of an item is its primary purpose-what it must do to fulfill its intended use. For a bicycle, the basic function is the most general and essential action it performs. According to SAVE International's Value Methodology Standard, functions should be defined in broad, measurable terms (e.g., verb-noun format) to capture the core purpose.
The basic function of a bicycle is to "provide transportation," as this encompasses its primary role of enabling movement for people or goods.
* Option A (Transport Mass) is incorrect because "mass" is too vague and not specific to the bicycle's purpose; it could apply to any object being moved.
* Option B (Move People) is incorrect because, while a bicycle often moves people, this is a secondary function-bicycles can also transport goods (e.g., in cargo bikes), so it's not the most fundamental function.
* Option C (Provide Transportation) is correct because it captures the bicycle's primary purpose in the broadest sense, covering both people and goods, aligning with VM's focus on defining basic functions at a high level.
* Option D (Transport Goods) is incorrect because transporting goods is a specific use case, not the bicycle's primary function, which is broader.
:
SAVE International, VMF 1 Core Competency #2 (Function Analysis), which includes defining basic functions using verb-noun combinations.
SAVE International, "Value Methodology Standard," section on Function Analysis, emphasizing the identification of basic functions as the core purpose of an item.

NEW QUESTION # 18
In SWOT analysis:

A. Strengths and opportunities are internal attributes.
B. Strengths and weaknesses are helpful attributes.
C. Threats and strengths are harmful attributes.
D. Opportunities and threats are external attributes.

Answer: D

Explanation:
SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a tool sometimes used in Value Methodology, particularly during the Information Phase or Evaluation Phase, to assess the context of a project or product, as taught in the VMF 1 course (Core Competency #3: Value Methodology Job Plan). According to SAVE International's Value Methodology Standard, "SWOT analysis evaluates internal and external factors:
Strengths and Weaknesses are internal attributes of the system or organization, while Opportunities and Threats are external attributes from the environment."
* Strengths: Internal, helpful attributes (e.g., strong design team).
* Weaknesses: Internal, harmful attributes (e.g., high production costs).
* Opportunities: External, helpful attributes (e.g., market demand).
* Threats: External, harmful attributes (e.g., regulatory changes).
This framework helps the VM team identify factors that could impact the study's success, such as external opportunities to leverage or threats to mitigate.
* Option A (Strengths and opportunities are internal attributes) is incorrect because opportunities are external, not internal.
* Option B (Threats and strengths are harmful attributes) is incorrect because strengths are helpful, not harmful.
* Option C (Strengths and weaknesses are helpful attributes) is incorrect because weaknesses are harmful, not helpful.
* Option D (Opportunities and threats are external attributes) is correct, as both are external factors in SWOT analysis.
:
SAVE International, VMF 1 Core Competency #3 (Value Methodology Job Plan), noting the use of SWOT analysis to assess internal and external factors.
SAVE International, "Value Methodology Standard," section on analytical tools, defining SWOT analysis and its categories.

NEW QUESTION # 19
Which type of value is the sum of labor, material, and other resources required to produce the subject?

A. Exchange Value
B. Cost Value
C. Esteem Value
D. Use Value

Answer: B

Explanation:
In Value Methodology, value is defined as the relationship between function and cost (value = function/cost), and different types of value are analyzed to assess worth, as taught in the VMF 1 course (Core Competency
#4: Cost Analysis). According to SAVE International's Value Methodology Standard, the types of value include:
* Cost Value: "The sum of labor, material, overhead, and other resources required to produce the subject." It represents the actual cost to create or deliver the product or system.
* Use Value: The value of the functions the subject performs (e.g., what it does for the user).
* Esteem Value: The value associated with prestige, aesthetics, or desirability (e.g., brand value).
* Exchange Value: The value of the subject in terms of what it can be exchanged for (e.g., market value).
The question asks for the type of value that is the sum of labor, material, and other resources, which directly matches the definition ofCost Value. For example, the cost value of a car includes the costs of its parts, labor to assemble it, and overhead expenses.
* Option A (Esteem Value) is incorrect because esteem value relates to subjective desirability, not production costs.
* Option B (Exchange Value) is incorrect because exchange value is the market value, not the cost to produce.
* Option C (Use Value) is incorrect because use value reflects the functional utility, not the resource costs.
* Option D (Cost Value) is correct, as it is defined as the sum of resources required to produce the subject.
:
SAVE International, "Value Methodology Standard and Body of Knowledge," available athttps://www.value- eng.org, defining Cost Value as the sum of production resources.
SAVE International, VMF 1 Core Competency #4 (Cost Analysis), explaining types of value, including Cost Value, in the context of VM studies.

NEW QUESTION # 20
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