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

Cost analysis in Value Methodology often involves financial techniques to evaluate the economic feasibility of alternatives, as taught in the VMF 1 course (Core Competency #4: Cost Analysis). According to SAVE International’s Value Methodology Standard, “the time value of money is essential in costing techniques that account for costs and benefits over time, such as Life Cycle Cost (LCC).”Life Cycle Costis defined as “the total cost of a system or product over its entire life, including acquisition, operation, maintenance, and disposal, discounted to present value using the time value of money.” The time value of money ensures that future costs and benefits are adjusted to their present value using a discount rate (as noted in Questions 6 and 7), making LCC a comprehensive method for comparing alternatives in VM studies.

Option A (Return on Investment) is incorrect because, while ROI can consider the time value of money in some calculations, it is not essential; ROI is often calculated as a simple percentage (Profit ÷ Investment).

Option B (Life Cycle Cost) is correct, as LCC inherently requires the time value of money to discount future costs to present value, ensuring a fair comparison over the project’s life.

Option C (Simple Payback) is incorrect because simple payback (as calculated in Question 26) does not account for the time value of money; it simply divides the initial investment by annual savings.

Option D (Break-even point) is incorrect because the break-even point (similar to payback) typically does not incorporate the time value of money; it focuses on the point where costs equal revenues.

The Function Analysis System Technique (FAST) diagram is 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, with the horizontal axis showing the “how-why” logic (critical path) and the vertical axis showing supporting functions. The vertical demarcations on the left and right of a FAST diagram are calledScope Lines, as they define the boundaries of the study. According to SAVE International’s Value Methodology Standard, “Scope Lines indicate the limits of the system or project being analyzed, separating the functions within the study’s scope from external functions or assumptions.” In the FAST diagram provided earlier, these lines are the dashed vertical lines labeled B and D, marking the boundaries of the study’s focus.

Option A (Subject Lines) is incorrect because this term is not used in FAST diagramming.

Option B (Scope Lines) is correct, as it matches the official terminology for the vertical demarcations in a FAST diagram.

Option C (When Direction Lines) is incorrect because the “when” direction refers to vertical connections within the diagram (simultaneous functions), not the boundary lines.

Option D (Function Logic Lines) is incorrect because function logic refers to the arrows connecting functions, not the boundary demarcations.

The Creativity Phase (also known as the Creative Phase) of the Value Methodology (VM) Job Plan focuses on generating a large quantity of ideas, as taught in the VMF 1 course (Core Competency #6: Creative Thinking and Idea Generation). According to SAVE International’s Value Methodology Standard, “the Creativity Phase follows ground rules to foster divergent thinking, including: applying the Principle of Deferred Judgment (no criticism of ideas), establishing an ambitious goal for the number of ideas (to maximize quantity), and encouraging ‘Free-Wheeling’ of ideas (welcoming wild or unconventional ideas).” These rules were partially addressed in Question 10, where ground rules like encouraging openness, freewheeling, and recording good ideas were confirmed, aligning with the focus on quantity over quality during this phase.

A. Apply the "Principle of Deferred Judgment": Correct, as this ensures no ideas are criticized during brainstorming, fostering creativity.

B. Establish an ambitious goal for the number of ideas: Correct, as setting a high target (e.g., 100 ideas) encourages the team to generate many ideas, focusing on quantity.

C. Emphasize cost savings: Incorrect, as cost savings are considered in the Evaluation and Development Phases, not during Creativity, where the focus is on idea generation without judgment.

D. Encourage "Free-Wheeling" of ideas: Correct, as freewheeling (allowing wild, unconventional ideas) is a standard brainstorming rule in VM to maximize creativity.

E. Emphasize quality rather than quantity: Incorrect, as the Creativity Phase prioritizes quantity over quality; quality is assessed later in the Evaluation Phase (as noted in Question 49).

The Value Methodology (VM) Job Plan is a structured, systematic process central to Value Methodology, as defined in the Value Methodology Fundamentals 1 (VMF 1) course and SAVE International’s Value Methodology Standard. According to these sources, the VM Job Plan consists ofsix phases: Information, Function Analysis, Creative, Evaluation, Development, and Presentation. These phases ensure a disciplined approach to analyzing functions, generating ideas, evaluating alternatives, and presenting value-enhancing recommendations.

Information Phase: Collect and analyze data on project scope, costs, constraints, and objectives to establish a baseline for the study.

Function Analysis Phase: Identify, classify, and analyze functions (e.g., basic, secondary) using tools like the Function Analysis System Technique (FAST) to understand their purpose and relationships.

Creative Phase: Generate a broad range of ideas to improve value through brainstorming or other creative techniques, focusing on alternative ways to perform functions.

Evaluation Phase: Assess the feasibility, cost impact, and benefits of ideas using criteria like performance, quality, and alignment with project goals.

Development Phase: Refine the most promising ideas into detailed, actionable proposals, including implementation plans and cost estimates.

Presentation Phase: Communicate recommendations to stakeholders through reports, presentations, or other deliverables to gain approval and facilitate implementation.

SAVE International’s VMF 1 course, which is a prerequisite for the VMA exam, explicitly teaches these six phases as part of Core Competency #3 (Value Methodology Job Plan). The standard is consistent across SAVE International’s documentation, including the Value Methodology Standard and certification guidelines. Options A (3), C (7), and D (8) do not match the official six-phase structure of the VM Job Plan.

The Value Methodology (VM) Job Plan, as outlined in the VMF 1 course and SAVE International’s Value Methodology Standard, consists of six phases, one of which is the Evaluation Phase, where the VM team selects viable ideas. In the Evaluation Phase, the team assesses ideas generated during the Creative Phase to determine their feasibility, cost impact, and alignment with project goals. According to the VMF 1 Core Competency #3 (Value Methodology Job Plan), the Evaluation Phase involves “evaluating the ideas for their potential to improve value, using criteria such as cost savings, performance, quality, and feasibility, to select the most viable alternatives for further development.” Tools like weighted evaluation matrices may be used to rank ideas systematically.

Option A (Function Analysis) is incorrect because this phase focuses on identifying and analyzing functions, not selecting ideas.

Option B (Presentation) is incorrect because this phase involves communicating recommendations to stakeholders, after ideas have already been selected and developed.

Option C (Evaluation) is correct, as it is the phase where the VM team filters and selects viable ideas based on defined criteria.

Option D (Development) is incorrect because this phase involves refining selected ideas into actionable proposals, which happens after the Evaluation Phase.

In Value Methodology’s Function Analysis, functions are classified based on their characteristics, as taught in the VMF 1 course (Core Competency #2: Function Analysis). According to SAVE International’s Value Methodology Standard, “all-the-time functions are those that occur continuously or are always active during the operation of the system.” In a FAST diagram, all-the-time functions are often shown vertically (e.g., “when” direction) alongside the critical path, indicating they are ongoing while the main functions are performed. For example, in a car, “provide safety” (e.g., through seatbelts) is an all-the-time function because it is always active when the car is in use. This aligns with the FAST diagramming convention of showing simultaneous functions.

Option A (Outside the study scope) is incorrect because all-the-time functions are within the scope if they are part of the system’s operation, though they may be supporting functions.

Option B (A drain on resources) is incorrect because all-the-time functions are not necessarily resource-intensive; they are simply continuous.

Option C (Continuous) is correct, as it matches the definition of all-the-time functions in VM.

Option D (Undesirable) is incorrect because all-the-time functions are not inherently undesirable; they may be essential (e.g., “provide safety”).

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.

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.