SAVE International VMA Value Methodology Associate Exam Practice Test

The Value Methodology (VM) Job Plan, as outlined in the VMF 1 course (Core Competency #3: Value Methodology Job Plan), is a structured sequence of six phases designed to leverage bothdivergentandconvergentthinking. According to SAVE International’s Value Methodology Standard, “the VM Job Plan alternates between divergent thinking (to generate a wide range of ideas) and convergent thinking (to narrow down and refine those ideas).” Divergent thinking is used in the Creative Phase to brainstorm as many ideas as possible without judgment, while convergent thinking is applied in the Evaluation and Development Phases to analyze, select, and refine the best ideas into actionable proposals. This combination ensures a balance between creativity and practicality, maximizing value improvement.

Option A (Divergent and abstract) is incorrect because, while divergent thinking is used, “abstract” is not a specific type of thinking emphasized in the VM Job Plan.

Option B (Convergent and abstract) is incorrect because it omits divergent thinking, which is critical in the Creative Phase.

Option C (Critical and divergent) is incorrect because, while critical thinking is involved in Evaluation, the VM Job Plan specifically emphasizes convergent thinking to narrow down ideas.

Option D (Convergent and divergent) is correct, as it captures the dual thinking types leveraged across the VM Job Plan phases.

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). The function logic path in a FAST diagram is the horizontal sequence of functions, often referred to as the critical path (as identified in Question 3 with arrow Y). According to SAVE International’s Value Methodology Standard, “the function logic path in a FAST diagram follows a How-Why logic: moving to the right answers ‘how’ a function is performed, and moving to the left answers ‘why’ a function exists.” This logic helps trace the relationships between functions, starting from the higher-order function (e.g., Function E, as noted in Question 18) on the left to more specific functions on the right (e.g., Function O).

How: Moving right along the path (e.g., from E to F to G) explains how the preceding function is achieved.

Why: Moving left (e.g., from O to N to M) explains why the succeeding function is needed.

In the diagram, the critical path (E-F-G-J-L-M-N-O) follows this How-Why logic, as confirmed in earlier questions (e.g., Question 3). The “when” direction (vertical, as noted in Question 36) and “and-or” logic (used at junctions for concurrent or alternative functions) are not the primary logic of the function logic path.

Option A (When-Why logic) is incorrect because the “when” direction is vertical, indicating simultaneous functions, not the horizontal logic path.

Option B (How-Why logic) is correct, as it matches the standard logic of the function logic path in a FAST diagram.

Option C (How-When logic) is incorrect because the “when” direction does not apply to the horizontal logic path.

Option D (And-Or logic) is incorrect because “and-or” logic applies to junctions (e.g., gates for concurrent or alternative functions), not the main logic path.

The Development Phase of the Value Methodology (VM) Job Plan involves refining selected ideas into actionable proposals, as taught in the VMF 1 course (Core Competency #3: Value Methodology Job Plan). According to SAVE International’s Value Methodology Standard, “during the Development Phase, the VM team develops proposals by addressing technical feasibility, assessing time and schedule impacts, determining costs, identifying risks, and providing implementation plans.” These tasks ensure that proposals are practical, cost-effective, and ready for presentation to stakeholders.

A. Address technical feasibility: Correct, as the team must ensure the proposal can be implemented technically (e.g., does the design work?).

B. Assess time and schedule impacts: Correct, as the team evaluates how the proposal affects the project timeline (e.g., delays or accelerations).

D. Determine costs: Correct, as cost modeling is a key task (as noted in Question 9), providing stakeholders with financial impacts of the proposal.

C. State the disposition of the proposal: Incorrect, as stating the disposition (e.g., accepted, rejected) occurs after the Presentation Phase, when stakeholders decide on the proposal, not during Development.

E. Validate the proposal: Incorrect, as validation (e.g., testing or final confirmation) typically occurs during implementation or post-study, not during Development, which focuses on creating the proposal.

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 Value Methodology (VM) Job Plan consists of six phases, as taught in the VMF 1 course (Core Competency #3: Value Methodology Job Plan). According to SAVE International’s Value Methodology Standard, “the Function Analysis Phase is considered the heart of the Value Methodology because it establishes the foundation for value improvement by identifying, classifying, and analyzing the functions of the system, which drives all subsequent phases.” Function Analysis (the second phase) defines what the system does (e.g., using verb-noun combinations, FAST diagrams) and sets the stage for generating ideas (Creativity), evaluating them (Evaluation), and developing solutions (Development). Without understanding functions, the VM process cannot effectively improve value (function/cost), making this phase central to the methodology’s success. This was alluded to in questions like 37 (FAST diagram logic) and 44 (defining functions).

Option A (Implementation) is incorrect because Implementation is a post-study activity, not a formal phase of the VM Job Plan, and not the heart of VM.

Option B (Function Analysis) is correct, as it is the foundational phase that drives the entire VM process, per SAVE International’s standards.

Option C (Creativity) is incorrect because, while important, Creativity relies on the functions identified in Function Analysis to generate ideas.

Option D (Presentation) is incorrect because Presentation is the final phase, focused on communicating results, not the core of the methodology.

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, defined in broad, measurable terms. According to SAVE International’s Value Methodology Standard, “functions should be expressed at a level that captures the core purpose of the item, avoiding overly specific or secondary actions.” For a teacup, the basic function is the most fundamental action it performs. A teacup’s primary purpose is tocontain liquid, as this captures the essential role of holding a liquid (e.g., tea, water, or any beverage), which applies to all teacups regardless of the specific liquid or use.

Option A (Provide container) is incorrect because “provide container” is not a standard verb-noun function format and is too vague; the teacup itself is the container, and the function is what it does (contain liquid).

Option B (Allow drinking) is incorrect because allowing drinking is a secondary function or outcome; the teacup must first contain liquid before drinking can occur, and not all uses involve drinking (e.g., holding liquid for soaking).

Option C (Contain tea) is incorrect because, while a teacup often contains tea, this is too specific; a teacup can hold other liquids (e.g., coffee, water), so the basic function is broader.

Option D (Contain liquid) is correct, as it defines the basic function of a teacup in the most fundamental terms, encompassing all potential uses, similar to how a pen’s function was defined as “mark surface” in Question 38.

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. According to SAVE International’s Value Methodology Standard, “functions should be defined in broad, measurable terms (verb-noun format) to capture the core purpose.” For a pen or pencil, the basic function is the most fundamental action it performs. A pen or pencil mustmark surface, as this captures the essential action of leaving a visible trace (e.g., ink or graphite) on a surface (e.g., paper), which is the core purpose of both tools, regardless of their specific use (writing, drawing, etc.).

Option A (Write documents) is incorrect because writing documents is a specific application, not the basic function; a pen can also draw or mark without writing a document.

Option B (Color surface) is incorrect because coloring implies adding color, which is not the primary function of a standard pen or pencil (e.g., a pencil typically uses graphite, not color).

Option C (Mark surface) is correct, as it defines the basic function of a pen or pencil in the broadest, most fundamental terms, encompassing all uses (writing, drawing, marking).

Option D (Convey message) is incorrect because conveying a message is a higher-level outcome, not the basic function; a pen can mark a surface without conveying a message (e.g., a random scribble).

The Information Phase is the first phase of the Value Methodology (VM) Job Plan, as outlined in the VMF 1 course (Core Competency #3: Value Methodology Job Plan). According to SAVE International’s Value Methodology Standard, “the primary objective of the Information Phase is to obtain a thorough understanding of the subject of the VM study by gathering and analyzing data on project scope, costs, constraints, objectives, and stakeholder needs.” This phase establishes the foundation for the entire study by ensuring the team fully understands the project, its goals, and its constraints before proceeding to function analysis. While obtaining the voice of the customer (e.g., through focus panels, as noted in Question 34) and creating cost models are activities within this phase, the overarching objective is to understand the subject comprehensively.

Option A (Understand the subject) is correct, as it directly aligns with the primary objective of the Information Phase per VM standards (also noted in Question 14).

Option B (Obtain the voice of the customer) is incorrect because, while this is an activity within the Information Phase, it is not the primary objective; the broader goal is understanding the subject.

Option C (Create a cost model) is incorrect because cost modeling is a specific activity within the Information Phase, not the primary objective.

Option D (Transform information) is incorrect because transforming information occurs later (e.g., during Function Analysis or Development), not as the primary goal of the Information Phase.

In Value Methodology, cost analysis often involves financial metrics like the payback period 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 payback period is “the time required for the cumulative savings or benefits from an investment to equal the initial cost, calculated as Initial Investment ÷ Annual Savings.” Here, the organization invests $160,000 in a software system that saves $3,000 per year.

Payback Period = Initial Investment ÷ Annual Savings

Payback Period = $160,000 ÷ $3,000 = 53.333 years

Rounding to the nearest whole number, the payback period is approximately 53 years.

The question does not specify adjustments for the time value of money (e.g., discounting), which aligns with the simple payback method commonly used in VM for straightforward analysis.

Option A (45 years) is incorrect because 160,000 ÷ 3,000 = 53.333, not 45.

Option B (50 years) is incorrect because it underestimates the payback period (53.333 years).

Option C (53 years) is correct, as it matches the calculated payback period when rounded.

Option D (56 years) is incorrect because it overestimates the payback period.

Value Methodology (VM) is defined by SAVE International in its Value Methodology Standard as “a systematic process that uses a structured Job Plan to improve the value of projects, products, or processes by analyzing their functions and identifying opportunities to achieve required functions at the lowest total cost without compromising quality or performance” (as noted in Question 23). The VMF 1 course (Core Competency #1: Value Methodology Overview) highlights three main characteristics that define VM:

Systematic process: VM follows a methodical, step-by-step approach (the VM Job Plan) to ensure consistency and effectiveness.

Multidisciplinary team: VM studies are conducted by a diverse team with varied expertise to bring different perspectives (as emphasized in Question 24).

Qualified VM facilitator: A facilitator trained in VM (often, but not always, a Certified Value Specialist) ensures the process is applied correctly and the team achieves optimal results.

While a Certified Value Specialist (CVS) is often involved, the broader characteristic is a qualified VM facilitator, as not all studies require a CVS (as noted in Question 4).

Option A (Systematic process, function analysis, CVS) is incorrect because, while systematic process and function analysis are key, a CVS is not a defining characteristic; a qualified facilitator is more broadly applicable.

Option B (Function Analysis, brainstorming, teamwork) is incorrect because these are components or activities within VM, not the main characteristics that define the methodology.

Option C (Systematic process, multidisciplinary team, qualified VM facilitator) is correct, as it captures the three core characteristics of VM per SAVE International’s standards.

Option D (Multidisciplinary team, cost reduction, function improvement) is incorrect because cost reduction and function improvement are outcomes of VM, not defining characteristics; the systematic process and facilitation are more fundamental.

The Pareto Principle, often referred to as the 80/20 rule, is a concept used in Value Methodology to focus efforts on the most impactful areas during cost analysis. In the context of VM, as taught in the VMF 1 course (Core Competency #4: Cost Analysis), the Pareto Principle is applied to identify high-cost areas that offer the greatest potential for value improvement. According to SAVE International’s Value Methodology Standard, “the Pareto Principle in VM states that approximately 20% of the elements (components, functions, or items) typically account for 80% of the total cost.” This allows the VM team to prioritize their efforts on the small number of elements that drive the majority of the cost, thereby maximizing value improvement (function/cost). For example, in a project, a few components (like a specialized motor in a machine) might represent the bulk of the cost, and optimizing those components can yield significant savings.

Option A (20% of risks impact 80% of elements) is incorrect because the Pareto Principle in VM focuses on cost distribution, not risk impact.

Option B (20% of elements represent 80% of the cost) is correct, as it directly aligns with the application of the Pareto Principle in VM cost analysis.

Option C (80% of functions represent 20% of components) is incorrect because it reverses the principle and does not reflect the cost-focused application in VM.

Option D (80% of the whole includes 20% of the resources) is incorrect because it misapplies the principle and is too vague for VM’s specific use of Pareto in cost analysis.

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.

Value Methodology (VM) is defined by SAVE International in its Value Methodology Standard as “asystematic processthat uses a structured Job Plan to improve the value of projects, products, or processes by analyzing their functions and identifying opportunities to achieve required functions at the lowest total cost without compromising quality or performance.” The term “systematic” emphasizes the methodical, disciplined approach of VM, which follows a defined sequence of phases (the VM Job Plan) and uses specific tools like Function Analysis and cost modeling to ensure consistency and effectiveness.

Option A (Structured process) is partially correct, as VM is structured, but “systematic” is the precise term used by SAVE International to describe the methodology’s comprehensive and methodical nature.

Option B (Specialized process) is incorrect because VM is a general methodology applicable across industries, not limited to a specific domain.

Option C (Systematic process) is correct, directly matching SAVE International’s definition of VM.

Option D (Sequential process) is incorrect because, while the VM Job Plan is sequential, the definition of VM focuses on its systematic nature, not just the sequence.

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 role in the system, as taught in the VMF 1 course (Core Competency #2). According to SAVE International’s Value Methodology Standard, thehigher-order function“represents the specific goals or needs for which the subject scope exists—it answers ‘why’ the system or project is needed.” In a FAST diagram, the higher-order function is located to the left of the basic function, just inside the left scope line, as seen in Question 18 (Function E). It defines the overarching objective or customer need that justifies the existence of the system (e.g., for a car, the higher-order function might be “provide mobility,” while the basic function is “transport passengers”).

Option A (Basic) is incorrect because the basic function is the primary purpose of the system within the scope (e.g., “transport passengers”), not the overarching goal.

Option B (Lower Order) is incorrect because “lower-order” is not a standard term in VM; it may refer to functions to the right of the basic function, which are more specific, not goal-oriented.

Option C (Higher Order) is correct, as it represents the specific goals or needs for which the subject scope exists, per VM standards.

Option D (Secondary) is incorrect because secondary functions support the basic function and do not represent the overarching goals.

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 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.

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.