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| Section | Objectives |
|---|---|
| Value Methodology Core Competencies | - Value Methodology Foundations
- Advanced VM Practice (Leadership-level application) - VM Study Execution and Team Management - VM Facilitation and Leadership - Function Analysis - Value Concept
|
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NEW QUESTION # 119
Which of the following are outcomes of function framing?
Choose 2 answers.
Answer: B,D
Explanation:
Function framing is an essential Value Methodology discipline because it changes the team's viewpoint from things and solutions to functions and purposes . The correct outcomes are that it defines reality in terms of what things do and why they do them and allows maximum potential for divergent thinking . In VM, a function is expressed in an active verb and measurable noun format, which forces the team to describe the required performance rather than defend the current design. This helps the team understand the real need behind a product, process, project, or service.
Option B is incorrect because function framing does not focus on existing solutions; it deliberately moves the team away from solution fixation. Option C is close, but it is more directly associated with the Creativity Phase, where ideas are generated to satisfy required functions. Function framing prepares the ground for that later solution generation, but its direct outcome is clearer functional understanding and broader thinking freedom. By defining the problem functionally, the team avoids premature judgment and opens a wider solution space.
References/topics: Function Analysis Phase; Function Framing; Function Definition; Divergent Thinking; Creativity Phase Linkage.
NEW QUESTION # 120
Which of the following are specific VM facilitator tasks to be completed prior to the VM study workshop?
Choose 2 answers.
Answer: A,C
Explanation:
The correct answers are A and B because both are facilitator responsibilities performed during the Pre- Workshop / Preparation Phase . The SAVE study guide defines this stage as the point where the team must
"Plan and organize the Value Study" and asks the fundamental question: "What has to be done to prepare for a Value Study?" Its listed activities include obtaining project data, collecting key documents such as scope definitions, drawings, specifications, reports, estimates, gathering customer/user information, distributing information to team members, developing the study schedule, and determining dates, times, location, and logistical needs. ( cdn..com ) Therefore, compiling information for use in the Information Phase is a proper facilitator task. Likewise, developing a high-level agenda or schedule and reviewing it with the client for concurrence is consistent with the preparation requirement to establish scope, objectives, timing, logistics, roles, responsibilities, and management expectations before the workshop begins.
Option C is incorrect because Implementation occurs after the workshop when accepted alternatives are reviewed, action plans are assigned, and changes are tracked. ( cdn..com ) Option D is incorrect because identifying project functions is principally a Function Analysis Phase team activity, not a facilitator pre- workshop decision. ( cdn..com ) References/topics: Preparation Phase; Pre-Workshop Activities; Information Phase Readiness; VM Facilitation and Team Dynamics.
NEW QUESTION # 121
Which of the following are typically included in a VM study report?
Choose 3 answers.
Answer: C,D,E
Explanation:
A VM study report is the formal documentation of the value study process, findings, alternatives, and supporting rationale. The correct inclusions are workshop agenda and team members , summary of the VM Job Plan , and the ideas generated with their evaluation . The SAVE VM Standard identifies the Job Plan as the structured framework for a valid study, and the Presentation Phase requires the team leader or facilitator to develop a report and/or presentation that documents and conveys the alternatives and value improvement opportunity. ( cdn..com ) A report should therefore preserve the administrative record of the study, including agenda, attendance, team composition, and study process. It should also summarize how the Job Plan was followed, because the Job Plan is the disciplined sequence that gives the study validity. The creative and evaluation outputs are also reportable because ideas are generated in the Creative Phase and then screened through a structured Evaluation Phase to identify value-improvement potential.
Design plans and specifications are source information used during preparation/information gathering, but they are not normally reproduced as core VM study-report content. The VM presentation may be related to the report, but it is not the best answer as a typical internal report section.
References/topics: Presentation Phase; VM Study Report; VM Job Plan; Creative Phase; Evaluation Phase; Study Documentation.
NEW QUESTION # 122
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: A
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 # 123
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 kilometers per liter .
Car C: Paid $60,000 , needs tires every two years at $4,000 , fuel efficiency = 20 kilometers per liter .
What is the total life cycle cost - initial, replacement costs, and annual costs - of Car A for the service life of the vehicle without considering the discount rate?
Answer: C
Explanation:
The correct answer is A. $480,000 . In the CVS Value Methodology context, life-cycle cost includes the initial cost, recurrent annual costs, and discrete future replacement expenditures over the defined service period. SAVE's VM Dictionary defines life-cycle cost as the sum of initial cost, recurrent annual cost, single expenditures, and disposal or salvage value over a specified period. It also defines recurrent annual cost as operation and maintenance cost occurring throughout each year, and single expenditure as a future replacement outlay occurring at discrete times during service life.
For Car A , the initial cost is $40,000 . Annual fuel use is calculated as:
40,000 km ÷ 10 km/liter = 4,000 liters per year
4,000 liters × $9 = $36,000 per year
$36,000 × 12 years = $432,000
Replacement costs occur every two years during the 12-year service period, excluding a replacement at the end of year 12 because the vehicle's service life ends. Therefore, replacements occur at years 2, 4, 6, 8, and 10
:
5 × ($600 batteries + $1,000 tires) = 5 × $1,600 = $8,000
Total LCC = $40,000 + $432,000 + $8,000 = $480,000 .
References/topics: Evaluation Phase; Life-Cycle Cost; Initial Cost; Recurrent Annual Cost; Single Expenditure; Cost Analysis.
NEW QUESTION # 124
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