SAVE International VMA Value Methodology Associate Exam Practice Test

A Value Methodology (VM) study is a structured effort that applies the VM process to improve the value of a project, product, or process by optimizing the function-to-cost ratio. According to SAVE International’s Value Methodology Standard, a VM study is defined as “a systematic application of recognized techniques by a multi-disciplined team to identify the functions of a project or process, establish a worth for each function, and develop alternatives to achieve those functions at the lowest overall cost while maintaining performance.” The VMF 1 course emphasizes that a VM study follows the six-phase VM Job Plan (Information, Function Analysis, Creative, Evaluation, Development, and Presentation) to systematically improve value, making it a structured effort.

Option A (structured effort using the VM process) directly aligns with SAVE International’s definition of a VM study, focusing on the systematic application of the VM process to enhance value.

Option B (must be led by a Certified Value Specialist) is incorrect because, while a Certified Value Specialist (CVS) often leads VM studies, the VMF 1 course and VMA certification allow non-CVS team members to participate in and contribute to VM studies under guidance, meaning it’s not a requirement.

Option C (undertaken after the design is completed) is incorrect because VM studies can be conducted at various stages of a project lifecycle—concept, design, or implementation—not only after the design is completed. The VMF 1 course highlights that early application of VM yields the greatest benefits.

Option D (business improvement best practice) is a broader statement and not specific to the definition of a VM study, though VM can contribute to business improvements. It does not best describe a VM study compared to Option A.

The diagram provided is a Function Analysis System Technique (FAST) diagram, a key tool in Value Methodology’s Function Analysis phase, as taught in the VMF 1 course. FAST diagrams map the relationships between functions of a system, showing “how” and “why” relationships to identify the critical logic path (the primary sequence of functions that achieve the system’s basic function) and minor logic paths (supporting functions). In FAST diagramming, functions are represented by boxes (e.g., G, H, J, K), and their relationships are shown with arrows.

Yis a red arrow connecting function G to function J, running horizontally across the diagram. In FAST diagrams, the horizontal path from left to right represents thecritical logic path, which answers the question “how” each function is achieved to fulfill the system’s primary purpose. Here, the path from E to F to G to J to L to M to N to O is the main sequence of functions, indicating the critical logic path.

Z(another red arrow) points to a vertical connection between J and K, which represents a minor logic path—supporting functions that occur simultaneously or are secondary to the main path.

Option A ("AND" Gate) and Option D ("OR" Gate) are incorrect because FAST diagrams use logic gates to show relationships between functions (e.g., AND for concurrent functions, OR for alternatives), but Y is an arrow on the main path, not a gate. Gates are typically symbols (e.g., triangles or diamonds) at junctions, not arrows.

Option B (Minor Logic Path) is incorrect because minor logic paths are vertical connections in FAST diagrams (e.g., Z pointing to J-K), not the horizontal path that Y indicates.

Option C (Critical Logic Path) is correct because Y lies on the main horizontal path, which represents the critical sequence of functions in a FAST diagram.

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. For a bicycle, the basic function is the most general and essential action it performs. According to SAVE International’s Value Methodology Standard, functions should be defined in broad, measurable terms (e.g., verb-noun format) to capture the core purpose. The basic function of a bicycle is to “provide transportation,” as this encompasses its primary role of enabling movement for people or goods.

Option A (Transport Mass) is incorrect because “mass” is too vague and not specific to the bicycle’s purpose; it could apply to any object being moved.

Option B (Move People) is incorrect because, while a bicycle often moves people, this is a secondary function—bicycles can also transport goods (e.g., in cargo bikes), so it’s not the most fundamental function.

Option C (Provide Transportation) is correct because it captures the bicycle’s primary purpose in the broadest sense, covering both people and goods, aligning with VM’s focus on defining basic functions at a high level.

Option D (Transport Goods) is incorrect because transporting goods is a specific use case, not the bicycle’s primary function, which is broader.

The Miles Value Foundation, established to honor Lawrence D. Miles (the founder of Value Engineering/Value Methodology), focuses on advancing the field of Value Methodology. According to SAVE International’s documentation, the Miles Value Foundation’s primary purpose is to “promote education and research in Value Methodology to expand its application and understanding globally.” The Foundation supports initiatives like scholarships, educational resources, and outreach to increase awareness and knowledge of VM, aligning with its mission to promote VM education.

Option A (Improve VM programs) is incorrect because the Foundation’s focus is on education and research, not directly improving specific VM programs, which is more the role of organizations like SAVE International.

Option B (Manage VM certification) is incorrect because VM certification is managed by SAVE International, not the Miles Value Foundation.

Option C (Promote VM education) is correct, as it directly aligns with the Foundation’s mission to advance VM through education and research.

Option D (Conduct VM training) is incorrect because, while the Foundation may support training indirectly, its primary role is promoting education, not directly conducting training programs.

The Value Methodology (VM) Job Plan is a structured, systematic process central to Value Methodology, as defined in the Value Methodology Fundamentals 1 (VMF 1) course and SAVE International’s Value Methodology Standard. According to these sources, the VM Job Plan consists ofsix phases: Information, Function Analysis, Creative, Evaluation, Development, and Presentation. These phases ensure a disciplined approach to analyzing functions, generating ideas, evaluating alternatives, and presenting value-enhancing recommendations.

Information Phase: Collect and analyze data on project scope, costs, constraints, and objectives to establish a baseline for the study.

Function Analysis Phase: Identify, classify, and analyze functions (e.g., basic, secondary) using tools like the Function Analysis System Technique (FAST) to understand their purpose and relationships.

Creative Phase: Generate a broad range of ideas to improve value through brainstorming or other creative techniques, focusing on alternative ways to perform functions.

Evaluation Phase: Assess the feasibility, cost impact, and benefits of ideas using criteria like performance, quality, and alignment with project goals.

Development Phase: Refine the most promising ideas into detailed, actionable proposals, including implementation plans and cost estimates.

Presentation Phase: Communicate recommendations to stakeholders through reports, presentations, or other deliverables to gain approval and facilitate implementation.

SAVE International’s VMF 1 course, which is a prerequisite for the VMA exam, explicitly teaches these six phases as part of Core Competency #3 (Value Methodology Job Plan). The standard is consistent across SAVE International’s documentation, including the Value Methodology Standard and certification guidelines. Options A (3), C (7), and D (8) do not match the official six-phase structure of the VM Job Plan.

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 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.

Risk management is a critical aspect of Implementation Planning in Value Methodology (VM), as it ensures that VM proposals can be successfully executed, as taught in the VMF 1 course (Core Competency #8: Implementation Planning). According to SAVE International’s Value Methodology Standard, “risks associated with a project, product, or process typically impact schedule, cost, or performance.” This is often referred to as the “project management triangle” or “triple constraint,” a fundamental concept in project management that VM adopts when assessing risks during the Development and Presentation Phases.

Schedule: Risks that cause delays (e.g., late delivery of materials).

Cost: Risks that increase expenses (e.g., unexpected cost overruns).

Performance: Risks that affect quality or functionality (e.g., a proposed solution failing to meet requirements).

The VMF 1 curriculum emphasizes that VM teams must identify and mitigate risks in these three areas to ensure the feasibility of their recommendations, making this the most relevant framework for understanding risk impacts in a VM context.

Option A (Schedule, cost, or performance) is correct, as it directly aligns with the standard risk impact areas in VM and project management.

Option B (Cost, requirements, or results) is incorrect because, while cost is relevant, “requirements” and “results” are less specific than “schedule” and “performance” in the context of VM risk management.

Option C (Resources, regulations, or time) is incorrect because, while time (schedule) is relevant, resources and regulations are more specific factors that contribute to broader impacts on schedule, cost, or performance.

Option D (Time, function, or attributes) is incorrect because, while time (schedule) is relevant, “function” and “attributes” are not standard risk impact categories in VM; performance is the broader term used.

Value Methodology emphasizes applying VM early in a project or product lifecycle to maximize its impact on costs and outcomes, as taught in the VMF 1 course (Core Competency #1: Value Methodology Overview). According to SAVE International’s Value Methodology Standard, “the greatest opportunity to influence a project’s impacts and costs occurs during the planning phase, when decisions about design, scope, and requirements are made.” Early intervention allows the VM team to optimize functions and reduce costs before they are locked in by detailed design or implementation. This principle is often illustrated by the “cost influence curve,” which shows that the ability to influence costs decreases as the project progresses, while the cost to make changes increases.

Option A (Operating) is incorrect because, during operation, most costs are already incurred, and changes are costly and limited in impact.

Option B (Planning) is correct, as it is the phase where VM can most effectively influence design and cost decisions, per VM standards.

Option C (Organizing) is incorrect because organizing is a management function, not a distinct lifecycle phase for applying VM.

Option D (Maintaining) is incorrect because maintenance occurs late in the lifecycle, when cost influence is minimal.

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.

The diagram provided is a Function Analysis System Technique (FAST) diagram, a key tool in Value Methodology’s Function Analysis phase, as taught in the VMF 1 course (Core Competency #2). FAST diagrams map the relationships between functions of a system, with the horizontal axis showing the “how-why” logic (critical path) and the vertical axis showing supporting functions. Functions are classified as basic, secondary, required secondary, or higher-order based on their position and role in the diagram. According to SAVE International’s Value Methodology Standard, “the basic function is the primary purpose of the system, typically found on the critical path; higher-order functions are the reasons why the basic function exists, located to the left of the basic function; secondary functions support the basic function and are often vertical; and required secondary functions are necessary to achieve the basic function.”

In the FAST diagram:

The critical path (horizontal, marked by Y in an earlier question) runs from E to F to G to J to L to M to N to O, representing the main sequence of functions.

Scope lines (B and D) define the study’s boundaries, as identified in Question 15.

Function E is positioned at the far left of the critical path, just inside the left scope line (B).

In FAST diagramming:

Thebasic functionis the primary purpose of the system, typically located near the center or right of the critical path within the scope lines. Here, it would likely be a function like J or L, which is central to the system’s purpose.

Thehigher-order functionis the reason “why” the basic function exists and is located to the left of the basic function, often at or near the left scope line. Function E, being the leftmost function on the critical path, answers “why” the subsequent functions (F, G, etc.) exist, making it the higher-order function.

Secondary functions(e.g., S, T, U, K) are vertical, supporting the critical path, and are not on the main horizontal sequence.

Required secondary functionsare secondary functions essential to the basic function, but E is on the critical path, not a vertical supporting function.

Thus, Function E, as the leftmost function on the critical path, is thehigher-order function, representing the overarching objective or need that the system fulfills.

Option A (Secondary Function) is incorrect because secondary functions are off the critical path (e.g., S, T, K), while E is on the critical path.

Option B (Required Secondary Function) is incorrect because E is not a secondary function; it is on the main path, not a supporting vertical function.

Option C (Basic Function) is incorrect because the basic function is typically more central on the critical path, not at the far left.

Option D (Higher Order Function) is correct, as E’s position at the left of the critical path indicates it is the higher-order function, answering “why” the system exists.

In Value Methodology (VM), gathering input from customers and stakeholders is a key activity, particularly during the Information Phase of the VM Job Plan, as taught in the VMF 1 course (Core Competency #3: Value Methodology Job Plan). According to SAVE International’s Value Methodology Standard, various techniques are used to collect stakeholder input, including interviews, questionnaires, surveys, and focus panels. The standard defines these as follows:

Interviews: One-on-one discussions with individual stakeholders to gather detailed insights.

Questionnaires: Written sets of questions distributed to stakeholders, typically completed individually.

Surveys: Similar to questionnaires, often distributed to a larger group, with responses collected individually.

Focus panels: Group discussions involving multiple customers and stakeholders simultaneously, designed to capture collective input and foster dialogue.

The question specifies a technique that involves capturing input “at the same time” from multiple customers and stakeholders, which aligns with the definition offocus panels. Focus panels (or focus groups) bring together diverse stakeholders in a single session to discuss needs, preferences, and concerns, allowing for real-time interaction and consensus-building, which is particularly useful in VM studies to understand project objectives and constraints.

Option A (Interviews) is incorrect because interviews are typically conducted one-on-one, not with multiple stakeholders simultaneously.

Option B (Questionnaires) is incorrect because questionnaires are completed individually, not in a group setting at the same time.

Option C (Surveys) is incorrect because surveys are also completed individually, often asynchronously, not at the same time.

Option D (Focus panels) is correct, as it involves capturing input from multiple stakeholders simultaneously in a group setting.

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.

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 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). FAST diagrams map the relationships between functions, with the horizontal axis showing the “how-why” logic (critical path) and vertical lines called scope lines defining the study’s boundaries. According to SAVE International’s Value Methodology Standard, “the left vertical line in a FAST diagram is a scope line, and the function immediately to its right is typically the higher-order function, which represents the overarching goal or need for the system.” The functionto the leftof the left scope line is outside the study’s scope and often represents an even broader objective or external assumption that drives the higher-order function. However, in standard FAST diagramming, thehigher-order functionis the closest function to the left scope line within the scope, and functions to the left of the scope line (e.g., P in the diagram from Question 30) are external.

In the context of the VMA exam and VMF 1, the question likely tests the understanding of the higher-order function’s position relative to the scope line. As established in Question 18, Function E (just inside the left scope line B) is the higher-order function. Functions to the left of the left scope line (e.g., P) are typically external assumptions or broader objectives, but the options provided (A, B, C, D) refer to standard function classifications within the FAST framework. Thehigher-order function(C) is the most relevant choice, as it is the function closest to the left scope line within the study’s scope, and the question may be interpreted as asking for the function type associated with that position.

Option A (Basic Function) is incorrect because the basic function is typically more central on the critical path, not at the far left.

Option B (Secondary Function) is incorrect because secondary functions are vertical (supporting the critical path), not on the main path near the left scope line.

Option C (Higher Order Function) is correct, as the higher-order function is located just to the right of the left scope line (e.g., Function E), and the question may be interpreted in this context based on standard FAST conventions.

Option D (Lower Order Function) is incorrect because lower-order functions are to the right of the basic function, representing more specific outcomes, not near the left scope line.

The Value Methodology (VM) Job Plan, as outlined in the VMF 1 course and SAVE International’s Value Methodology Standard, consists of six phases: Information, Function Analysis, Creative, Evaluation, Development, and Presentation. This was established in Question 1, where the VM Job Plan was confirmed to have six phases. The last four phases, therefore, are: Creative, Evaluation, Development, and Presentation. However, the options include “Implementation,” which is not a formal phase in the standard VM Job Plan but is often considered a post-study activity (e.g., in the post-study phase, where recommendations are implemented). For the purposes of the VMA exam, which focuses on the VMF 1 curriculum, Implementation is sometimes treated as an extension of the Presentation Phase, where the team ensures stakeholder buy-in and facilitates the transition to implementation.

Thus, the correct sequence of the last four phases, interpreting Implementation as the post-Presentation activity, is:

Creative(third phase, but the first of the last four).

Evaluation(fourth phase): Assess ideas for feasibility and value improvement.

Development(fifth phase): Refine selected ideas into actionable proposals.

Presentation(sixth phase): Present recommendations to stakeholders for approval and implementation.

Implementation: Follows Presentation as a post-study activity to execute the recommendations.

Option A (Development, Presentation, Evaluation, and Implementation) is incorrect because Evaluation must precede Development—ideas are evaluated before being developed into proposals.

Option B (Evaluation, Development, Presentation, and Implementation) is correct, as it follows the VM Job Plan’s sequence and includes Implementation as the post-study step.

Option C (Evaluation, Development, Implementation, and Presentation) is incorrect because Presentation (delivering recommendations) must occur before Implementation.

Option D (Development, Evaluation, Presentation, and Implementation) is incorrect because Development cannot precede Evaluation in the VM Job Plan.

Risk management in Value Methodology (VM) includes strategies for both threats and opportunities, particularly during the Implementation Planning phase, as taught in the VMF 1 course (Core Competency #8: Implementation Planning). According to SAVE International’s Value Methodology Standard, which aligns with project management best practices (e.g., PMI’s PMBOK, as noted in Question 28), risk response strategies for opportunities include:

Exploit: Ensure the opportunity is realized by taking actions to make it certain (e.g., assigning the best resources).

Share: Partner with others to increase the likelihood or benefit of the opportunity (e.g., joint ventures).

Enhance: Increase the probability of the opportunity occurring and/or the magnitude of its beneficial results (e.g., by improving conditions or amplifying benefits).

Accept: Take no action to influence the opportunity.

The question specifically asks for the strategy that seeks to “increase the probability of an opportunity occurring and/or the magnitude of results being beneficial,” which directly matches the definition ofEnhance. For example, in a VM study, enhancing an opportunity might involve marketing a new feature to increase its adoption rate (probability) or improving its design to maximize savings (magnitude).

Option A (Exploit) is incorrect because exploiting ensures the opportunity happens, not necessarily increasing its probability or magnitude.

Option B (Share) is incorrect because sharing involves collaboration, not directly increasing probability or magnitude.

Option C (Mitigate) is incorrect because mitigation applies to threats, not opportunities.

Option D (Enhance) is correct, as it focuses on increasing the probability and/or magnitude of an opportunity’s benefits.

In Value Methodology’s Function Analysis, functions are classified based on their characteristics, as taught in the VMF 1 course (Core Competency #2: Function Analysis). According to SAVE International’s Value Methodology Standard, “all-the-time functions are those that occur continuously or are always active during the operation of the system.” In a FAST diagram, all-the-time functions are often shown vertically (e.g., “when” direction) alongside the critical path, indicating they are ongoing while the main functions are performed. For example, in a car, “provide safety” (e.g., through seatbelts) is an all-the-time function because it is always active when the car is in use. This aligns with the FAST diagramming convention of showing simultaneous functions.

Option A (Outside the study scope) is incorrect because all-the-time functions are within the scope if they are part of the system’s operation, though they may be supporting functions.

Option B (A drain on resources) is incorrect because all-the-time functions are not necessarily resource-intensive; they are simply continuous.

Option C (Continuous) is correct, as it matches the definition of all-the-time functions in VM.

Option D (Undesirable) is incorrect because all-the-time functions are not inherently undesirable; they may be essential (e.g., “provide safety”).