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| Section | Objectives |
|---|---|
| Value Methodology Core Competencies | - Function Analysis - Value Methodology Foundations
- Value Concept
- Value Methodology Job Plan Application - Advanced VM Practice (Leadership-level application) |
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NEW QUESTION # 49
Which type of cost is calculated for study items by multiplying the unit cost by the number of units produced per year?
Answer: D
Explanation:
The correct answer is D. Annualized costs . In VM cost analysis, when a study item has a known unit cost and a known annual production quantity , multiplying the two gives the cost impact over one year. That makes the result an annualized cost , because the calculation converts a per-unit value into a yearly cost basis.
This distinction is important in manufacturing or repetitive-process VM studies. A component may appear inexpensive on a unit basis, but if it is used thousands or millions of times per year, its annualized cost may become a major value-improvement target. SAVE's VM Glossary defines cost as the monetary valuation of resources consumed in the production or delivery of a project, product, or process, and it also recognizes annualized cost as a cost expression used in life-cycle cost measurement. ( ) Option A, total costs , is too broad because it may include many cost categories and periods. Option B, life- cycle costs , covers acquisition, operation, maintenance, replacement, and disposal over time. Option C, incremental unit costs , concerns the cost of an additional unit, not annual volume impact.
References/topics: Information Phase; Cost Data; Cost Modeling; Annualized Costs; Manufacturing Study Items.
NEW QUESTION # 50
Which of the following are strategies for successful implementation of change?
Choose 3 answers.
Answer: B,C,D
Explanation:
The correct answers are B, C, and D . In the Implementation Phase, accepted VM proposals must be converted into controlled organizational or project changes. The VM Guide identifies implementation as the phase where the team reviews VM proposals, resolves their disposition, develops an implementation plan, and documents, tracks, and audits results. It also defines an implementation plan as the schedule and action structure needed to implement VM study results, including milestones, tasks, resources, and responsible parties. ( pdfcoffee.com ) For successful change implementation, the guide specifically identifies the appointment of a steering or oversight committee to monitor the change, provide leadership, and resolve conflicts. It also identifies contingency plans to address unanticipated costs, delays, risks, or unforeseen resistance to change. A third required strategy is strong top management commitment to the implementation plan, because leadership support protects the change effort from internal and external challenges and ensures resources remain available through completion. ( pdfcoffee.com ) Option A is related to stakeholder awareness, but the stated implementation strategy is participation and involvement, not merely evaluating concerns. Option E is incorrect because broad large-group decision- making can slow resolution; VM emphasizes key stakeholder involvement and controlled governance.
References/topics: Implementation Phase; Change Management; Implementation Plan; Steering/Oversight Committee; Resistance to Change.
NEW QUESTION # 51
What are key factors that cause VM programs to fail?
Choose 2 answers.
Answer: B,D
Explanation:
The correct answers are A and B . A VM program can fail when it is placed too narrowly inside one department because Value Methodology must operate as an organization-wide management process, not as the property of a single functional group. When VM is positioned inside one department, other departments may view it as that department's agenda rather than as a neutral, cross-functional decision-support process.
This weakens participation, reduces ownership of recommendations, and limits executive visibility.
An undefined implementation and change management process is also a major failure factor. VM studies produce recommendations, but the program succeeds only when those recommendations are reviewed, approved, assigned, tracked, and integrated into normal project or business controls. Without a defined implementation path, even technically strong VM proposals can remain unused. Change management is necessary because VM recommendations often alter scope, design, delivery approach, cost allocation, or stakeholder expectations.
By contrast, management support and tracking VM study results are success factors, not failure factors.
Executive support gives authority and resources, while tracking verifies savings, value improvement, and accountability.
References/topics: VM Programs; Program Organization; Management Support; Implementation Process; Change Management; Tracking VM Results.
NEW QUESTION # 52
Which of the following are the purposes of function analysis?
Choose 4 answers.
Answer: B,C,D,F
Explanation:
The correct answers are B. Stimulate communication, C. Change viewpoints, D. Expand knowledge, and E.
Identify opportunities . Function Analysis is the central differentiator of the Value Methodology because it forces the team to define what the project, product, process, or service must do , rather than defending existing solutions. SAVE's Study Guide states that Function Analysis is the foundation of VM and that functions are identified within the study scope using active verb/measurable noun descriptions. It further explains that naming functions enables clear thinking, helps multidisciplinary teams build shared understanding, and allows the team to identify where value-improvement opportunities exist. ( ) Function Analysis therefore stimulates communication by giving different disciplines a common functional language. It changes viewpoints by shifting discussion from components and preferred solutions to required purposes. It expands knowledge because team members learn how functions, resources, cost, worth, and performance relate. It also identifies opportunities by exposing inefficient, high-cost, unnecessary, or poorly performed functions.
Option A is less precise because Function Analysis does not primarily "communicate ideas"; idea communication occurs more strongly in Creativity, Development, and Presentation. Option F is incorrect because opportunities are identified in Function Analysis, while new alternatives are created in the Creativity Phase.
References/topics: Function Analysis Phase; Function Definition; Shared Understanding; Value Improvement Opportunities; FAST/Function Modeling.
NEW QUESTION # 53
What is the role of the VM facilitator during the Development Phase?
Choose 2 answers.
Answer: A,C
Explanation:
The correct answers are A. Review VM proposals and C. Rewrite VM proposals . During the Development Phase, selected ideas are converted into formal VM proposals with enough documentation for decision makers to determine whether implementation is justified. SAVE's VM Standard Reference states that, in this phase, the VM study team develops selected ideas into VM proposals with sufficient documentation for implementation decisions.
The facilitator's role is not to become the technical author or researcher for each proposal. Instead, the facilitator manages the process, maintains consistency, reviews proposal quality, checks clarity, confirms that required elements are included, and helps revise or rewrite proposal narratives so they are understandable, complete, and decision-ready. This aligns with the facilitator's broader duty to lead the multidisciplinary VM process, keep the team disciplined within the Job Plan, and ensure outputs support value-based decisions.
SAVE describes VM as a systematic process used by a multidisciplinary team led by a qualified VM facilitator.
Option B is incorrect because proposal preparation is primarily the responsibility of assigned team members or technical specialists. Option D is incorrect because background research is normally performed by the proposal owner or subject-matter experts, not by the facilitator as a primary role.
References/topics: Development Phase; VM Proposal Development; VM Facilitator Role; Proposal Review and Revision; VM Job Plan.
NEW QUESTION # 54
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