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| Section | Objectives |
|---|---|
| Topic 1: Value Methodology Core Competencies | - Function Analysis - Advanced VM Practice (Leadership-level application) - VM Study Execution and Team Management - Value Methodology Foundations
- Value Methodology Job Plan Application - Value Concept
|
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NEW QUESTION # 31
Pareto's law of distribution can be applied to
Choose 4 answers.
Answer: B,D,E,F
Explanation:
The correct answers are A, C, D, and E . Pareto's law of distribution, often expressed as the 80/20 principle , is used in Value Methodology to focus team attention on the "vital few" items that create the greatest effect.
In a VM study, this principle helps the team avoid spreading effort equally across all issues and instead concentrate on the limited number of elements that drive most of the project impact.
It can be applied to time , because a small number of activities often consume most of the schedule or create major delay exposure. It can be applied to quality , because a limited group of defects, failures, or performance gaps may account for most quality problems. It can be applied to risk , because a small number of risk events often carry the largest probability-impact burden. It is also highly applicable to costs , because VM studies commonly use cost models and cost distribution to identify high-cost elements for function analysis and value improvement.
Standards are not normally treated as Pareto-distributed variables; they are requirements or constraints.
Performance is important in VM, but Pareto application is more directly tied to measurable distributions such as cost, time, quality problems, and risk exposure.
References/topics: Information Phase; Pareto Analysis; Cost Modeling; Risk Identification; Quality Drivers; Schedule Drivers.
NEW QUESTION # 32
Match each Phase with its correct question:
Answer:
Explanation:
Explanation:
The correct matching follows the logic of the SAVE Value Methodology Job Plan. The Information Phase establishes factual understanding of the study subject, so its controlling question is "What is it?" The SAVE VM Standard describes this phase as reviewing current project conditions and identifying study goals. The Function Analysis Phase asks "What does it do?" because the team defines the project's functions in active verb/measurable noun form and analyzes which functions require improvement, elimination, or creation. The Creativity Phase asks "What else will do it?" because the team identifies alternative ways to perform the required functions. The Evaluation Phase asks "Will it work?" because ideas are screened against value potential, performance requirements, and resource limits. The Development Phase asks "What are the details?" because selected ideas are expanded into documented alternatives or proposals. Finally, the Presentation Phase aligns with "What if?" because decision makers must understand the implications, adequacy, risks, and value improvement opportunity before approving implementation. SAVE identifies these six phases as sequential and states that each phase provides the information needed for successful execution of the next phase.
References/topics: Value Methodology and Job Plan; Information Phase; Function Analysis Phase; Creativity Phase; Evaluation Phase; Development Phase; Presentation Phase.
NEW QUESTION # 33
What is the most appropriate description of the Information Phase?
Answer: B
Explanation:
The most appropriate description of the Information Phase is to gather, organize, review, and transform data collected . In the Value Methodology Job Plan, the Information Phase begins the formal Value Study and is used to complete the data package that was initiated during the Pre-Study/Preparation work. The SAVE Value Methodology Standard identifies the Information Phase under the Value Study and lists its immediate output as completing the data package and modifying the scope when needed. ( UW Courses ) This phase is not merely administrative scheduling or management approval. Its purpose is to ensure the team has a clear factual basis before moving into Function Analysis. The project sponsor or designer may brief the team, the team asks questions based on prior data research, site visits may be completed, improvement targets such as value, cost, performance, and schedule are agreed, and the scope is reviewed based on new information. ( UW Courses ) Option A and B are mainly Pre-Study/Preparation activities. Option D is partially related, but too narrow because the Information Phase supports the entire study, not only Function Analysis.
References/topics: Information Phase; Value Methodology Job Plan; Data Package; Scope Review; Study Targets.
NEW QUESTION # 34
Who typically relates value directly to the functions they are trying to acquire?
Answer: C
Explanation:
The correct answer is D. Customers . In Value Methodology, value is not judged mainly by the design team, facilitator, or internal decision makers. It is judged from the perspective of the party seeking or acquiring the needed function. The SAVE International Study Guide defines value as a relationship between function and resources , where the function is measured by the performance requirements of the customer , and the resources are the materials, labor, price, time, and other inputs required to accomplish that function. ( cdn..
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This means customers directly connect value with the functions they want to obtain. They are not buying materials, drawings, specifications, or technical complexity for their own sake; they are acquiring useful functions such as support load, move people, protect asset, reduce risk, or provide comfort. Users may experience the function, and decision makers may approve funding, but the customer is the party whose performance expectations define whether the function provides acceptable value.
Therefore, in CVS terms, customer requirements are central to value determination because function must satisfy customer expectations while resources are minimized or optimized.
References/topics: Function Analysis Phase; Value Definition; Customer Requirements; Function/Resources Relationship; VM Fundamentals.
NEW QUESTION # 35
When a higher discount rate is used to calculate life cycle costs, which change occurs to the value of money over time?
Answer: C
Explanation:
The correct answer is D. The life cycle cost is reduced . In Value Methodology, life cycle cost analysis is used to compare alternatives over the full ownership period, not just by initial cost. Future costs such as operation, maintenance, replacement, repair, and disposal are converted to present value using a discount rate. When the discount rate is higher, future costs are discounted more heavily, meaning their present value becomes smaller.
This does not mean the actual future cash payment disappears; it means that, in present-value terms, money spent in the future is worth less today. Therefore, increasing the discount rate reduces the present value of future cost streams and normally lowers the calculated present-value life cycle cost, especially for alternatives with large costs occurring later in the study period.
Option A is incorrect because discounting is essential when costs occur at different times. Option B is incorrect because changing the discount rate directly changes present-value calculations. Option C is incorrect because a higher discount rate does not increase the present value of future costs; it reduces them.
References/topics: Development Phase; Life Cycle Costing; Economic Analysis; Present Value; Discount Rate; VM Proposal Development.
NEW QUESTION # 36
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