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| Section | Objectives |
|---|---|
| Topic 1: Value Methodology Overview | - Principles of Value Engineering / Value Analysis
|
| Topic 2: Professional Practice Requirements | - Project documentation and reporting - Value study facilitation |
| Topic 3: Job Plan Phases | - Development Phase
|
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NEW QUESTION # 18
Subject information:
Service Life = 12 years
Fuel = $9.00 per liter
Annual kilometers driven = 40,000 kilometers
Car A: Paid $40,000 , needs batteries every two years at $600 , needs tires every two years at $1,000 , fuel efficiency = 10 kilometers per liter .
Car B: Paid $50,000 , needs tires every two years at $2,000 , fuel efficiency = 15 kilometer per liter .
Car C: Paid $60,000 , needs tires every two years at $4,000 , fuel efficiency = 20 kilometer per liter .
What is the annual cost for Car C for the service life of the vehicle?
Answer: C
Explanation:
The correct answer is B. $216,000 . The question is asking for the annual operating cost for Car C across the full 12-year service life , not the one-year annual fuel cost alone. In life-cycle cost analysis, SAVE defines life-cycle cost as the sum of initial cost, recurrent annual cost, single expenditures, and disposal cost or salvage value over a specified period. It also defines recurrent annual cost as the operation and maintenance cost that occurs throughout each year of service life.
For Car C , annual fuel use is calculated from the annual driving distance and fuel efficiency:
40,000 km per year รท 20 km per liter = 2,000 liters per year
Fuel costs $9.00 per liter , so the annual fuel cost is:
2,000 liters ร $9 = $18,000 per year
The service life is 12 years , so the annual cost over the service life is:
$18,000 ร 12 years = $216,000
Option A. $18,000 is only the annual cost for one year. Option C. $198,000 has no valid basis from the stated data. Option D. $36,000 would match neither Car C's annual fuel use nor its service-life total. Tire replacement cost is excluded because the question asks for annual cost, not repair and replacement cost.
References/topics: Evaluation Phase; Life-Cycle Cost; Recurrent Annual Cost; Fuel Operating Cost; Service Life Costing.
NEW QUESTION # 19
When selecting VM study team members, which of the following are preferable?
Choose 2 answers.
Answer: B,D
Explanation:
The preferable qualities are expertise in their field and availability to attend . In the Preparation or Pre- Workshop stage, the Value Study must be properly planned, organized, staffed, and scheduled before the formal Job Plan begins. The SAVE Study Guide identifies Pre-Workshop activities such as identifying Value Team members , obtaining their commitment to project objectives, and determining study dates, times, location, and other logistical needs. ( ) Technical capability is essential because VM team members must gather and analyze information, identify functions, contribute ideas, evaluate ideas using their experience and expertise, develop alternatives, and present results. The guide specifically describes technical champions as team members selected because of their technical expertise. ( ) Availability is equally important because team members are expected to participate in all meetings, and timely attendance is listed as a responsibility. ( ) Option C is not preferred because VM requires collaborative idea generation, not personal advocacy or forcing individual solutions. Option D is directly contrary to VM team behavior, since the guide stresses open- mindedness and avoiding roadblocks.
References/topics: Preparation Phase; Pre-Workshop Activities; Value Team Member Selection; Team Member Responsibilities; VM Facilitation and Team Dynamics.
NEW QUESTION # 20
After reviewing the VM study results, the decision-makers take no action. What strategies could the VM facilitator use to engage the group?
Choose 2 answers.
Answer: A,C
Explanation:
The correct answers are A and D . When decision-makers review VM study results but take no action, the facilitator is dealing with a change-response problem, not simply a technical presentation problem. In VM implementation guidance, this behavior aligns with the early "shock" response to change, where people may mentally shut down because the proposed change feels uncertain, risky, or disruptive. The recommended coping strategy is to create safety, structure, and visible support around the change.
Therefore, discussing allocation of time and resources is appropriate because implementation cannot move forward without clear commitment, staffing, schedule allowance, and management attention. The VM Guide identifies proper allocation of time and resources as a way to provide safety during change. It also states that shock and stress can be reduced by building a support network through a detailed implementation plan . ( pdfcoffee.com ) Option B is incorrect because the guidance emphasizes visible upper management support, not merely lower- level involvement. Option C is incorrect because limiting information increases uncertainty; the recommended approach is to provide broad, clear, and consistent information about the change.
References/topics: Implementation Phase; Change Management Strategies; Implementation Plan; Resource Allocation; Decision-Maker Engagement.
NEW QUESTION # 21
There is resistance to a new VM program in an organization. What should a VM program coordinator focus on to increase acceptance of VM?
Answer: D
Explanation:
The correct answer is D. Identify a few subjects that would benefit from change and recommend a VM study through dialogue with staff . When an organization resists a new VM program, the coordinator should build acceptance through participation, relevance, and early demonstrated value-not by forcing compliance or emphasizing deficiencies.
SAVE's Study Guide describes VM as a systematic process used by a multidisciplinary team to improve value through function analysis, with value improvement achieved by identifying alternate ways to accomplish required functions. ( ) This means VM acceptance is strongest when people see how the method applies to real organizational problems. The Study Guide also emphasizes that management should support resources and implementation, while affected parties should be involved early to gain maximum benefit from a Value Study. ( ) Option A may help education, but it does not directly overcome resistance. Option B can sound accusatory and may increase defensiveness. Option C creates top-down compliance, not genuine acceptance. Option D is best because it uses dialogue, selects practical pilot opportunities, and allows staff to experience VM as useful rather than imposed.
References/topics: VM Programs; Program Acceptance; Value Manager Role; Stakeholder Engagement; Organizational Change; Value Study Selection.
NEW QUESTION # 22
What are typical examples of evaluation criteria used for a business process study during the Evaluation Phase?
Choose 2 answers.
Answer: C,D
Explanation:
The correct answers are A. Efficiency and D. Scalability . In the Evaluation Phase, the VM team uses structured criteria to screen and rank creative ideas based on their ability to improve value while still delivering the required functions. SAVE's Value Methodology Standard defines VM as a systematic process used by a multidisciplinary team to improve value through function analysis, and it confirms that VM applies not only to products and construction projects but also to business procedures, services, manufacturing processes, and business plans . ( ) For a business process study , typical evaluation criteria focus on how well an alternative improves process performance. Efficiency is a primary criterion because business-process alternatives are commonly judged by cycle time, resource use, duplication reduction, workflow simplification, and productivity. Scalability is also typical because the improved process should remain effective as transaction volume, users, locations, or organizational complexity increase.
Environmental impact may be valid in sustainability-driven studies, construction, or product/process engineering, but it is not a typical core criterion for a general business-process VM study. Maintenance is more typical for physical assets, facilities, equipment, or technical systems. The Evaluation Phase specifically selects ideas that offer value improvement while considering performance requirements and resource limits. ( ) References/topics: Evaluation Phase; Business Process Study; Evaluation Criteria; ; Scalability; Value Improvement.
NEW QUESTION # 23
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