VMA Value Methodology Associate Questions and Answers

In Value Methodology’s Function Analysis, the concepts of functions and activities are distinct but related, as taught in the VMF 1 course (Core Competency #2: Function Analysis). According to SAVE International’s Value Methodology Standard, “a function is defined as what a product, process, or system does, expressed in a verb-noun format (e.g., ‘contain liquid’), while an activity is a task, action, or operation that describes how a function is performed.” For example, the function of a teacup might be “contain liquid,” and the activity to achieve that function could be “holding the liquid in a ceramic structure.” Activities are the actionable steps or processes that enable the function, often identified during the creation of a FAST diagram or Random Function Identification table (as noted in Question 19). The “how” aspect aligns with the How-Why logic of FAST diagrams, where activities detail the practical execution of a function.

Option A (A task, action, or operation that describes why a function is performed) is incorrect because “why” relates to the higher-order function or purpose (e.g., Question 20), not the activity, which focuses on “how.”

Option B (A specific task, action, or operation that is generic and changes viewpoints) is incorrect because activities are not about changing viewpoints; they are specific actions to perform a function.

Option C (A task, action, or operation that describes how a function is performed) is correct, as it aligns with the definition of an activity in VM.

Option D (A specific task, action, or operation with a high level of abstraction) is incorrect because activities are practical and specific, not abstract; functions are more abstract (e.g., verb-noun format).

The Creativity Phase (also known as the Creative Phase) of the Value Methodology (VM) Job Plan focuses on generating a large quantity of ideas, as taught in the VMF 1 course (Core Competency #6: Creative Thinking and Idea Generation). According to SAVE International’s Value Methodology Standard, “the Creativity Phase follows ground rules to foster divergent thinking, including: applying the Principle of Deferred Judgment (no criticism of ideas), establishing an ambitious goal for the number of ideas (to maximize quantity), and encouraging ‘Free-Wheeling’ of ideas (welcoming wild or unconventional ideas).” These rules were partially addressed in Question 10, where ground rules like encouraging openness, freewheeling, and recording good ideas were confirmed, aligning with the focus on quantity over quality during this phase.

A. Apply the "Principle of Deferred Judgment": Correct, as this ensures no ideas are criticized during brainstorming, fostering creativity.

B. Establish an ambitious goal for the number of ideas: Correct, as setting a high target (e.g., 100 ideas) encourages the team to generate many ideas, focusing on quantity.

C. Emphasize cost savings: Incorrect, as cost savings are considered in the Evaluation and Development Phases, not during Creativity, where the focus is on idea generation without judgment.

D. Encourage "Free-Wheeling" of ideas: Correct, as freewheeling (allowing wild, unconventional ideas) is a standard brainstorming rule in VM to maximize creativity.

E. Emphasize quality rather than quantity: Incorrect, as the Creativity Phase prioritizes quantity over quality; quality is assessed later in the Evaluation Phase (as noted in Question 49).

The Evaluation Phase of the Value Methodology (VM) Job Plan involves assessing ideas using a three-level filtering process, as taught in the VMF 1 course (Core Competency #7: Evaluation and Selection of Alternatives). According to SAVE International’s Value Methodology Standard, the three levels of filters are Coarse, Medium, and Fine (as confirmed in Question 33). The standard further specifies that “the Fine filter applies detailed evaluation techniques, such as an evaluation matrix, to select the best ideas for development by scoring them against weighted criteria.” An evaluation matrix (e.g., a weighted matrix, as noted in Question 11) is a tool where ideas are scored based on criteria like cost, performance, and risk, with weights reflecting their importance (as in Question 51). This detailed, quantitative approach is used in the Fine filter to make final selections after the Coarse (initial screening) and Medium (shortlisting) filters have narrowed down the ideas.

Option A (Fine) is correct, as the Fine filter uses an evaluation matrix technique for detailed idea selection.

Option B (Reasonable) is incorrect because “Reasonable” is not one of the three filter levels; the correct levels are Coarse, Medium, and Fine.

Option C (Medium) is incorrect because the Medium filter involves a more general assessment (e.g., comparing ideas against criteria), not the detailed matrix technique.

Option D (Coarse) is incorrect because the Coarse filter is for initial screening (eliminating unfeasible ideas), not detailed evaluation with a matrix.

The Evaluation Phase of the Value Methodology (VM) Job Plan involves assessing ideas generated during the Creative Phase to select the most viable ones for further development, as taught in the VMF 1 course (Core Competency #7: Evaluation and Selection of Alternatives). According to SAVE International’s Value Methodology Standard, the Evaluation Phase uses a three-level filtering process to systematically narrow down ideas: “Ideas are evaluated using a coarse, medium, and fine filter approach to progressively refine the list of alternatives.”

Coarse Filter: Initial screening to eliminate clearly unfeasible ideas (e.g., those that violate constraints or are impractical).

Medium Filter: More detailed evaluation using criteria like cost, performance, and risk to shortlist ideas with potential.

Fine Filter: In-depth analysis, often using tools like weighted evaluation matrices (as noted in Question 11), to select the best ideas for development.

This order—Coarse, Medium, Fine—ensures a logical progression from broad elimination to detailed selection, aligning with the VMF 1 curriculum’s focus on systematic evaluation.

Option A (Medium, Coarse, Fine) is incorrect because starting with a medium filter skips the initial broad screening.

Option B (Coarse, Medium, Fine) is correct, as it matches the standard three-level filtering process in VM.

Option C (Medium, Fine, Coarse) is incorrect because it reverses the logical progression of filtering.

Option D (Coarse, Fine, Medium) is incorrect because the fine filter should be the last step, not followed by a medium filter.

The Evaluation Phase of the Value Methodology (VM) Job Plan involves assessing ideas using established criteria, as taught in the VMF 1 course (Core Competency #7: Evaluation and Selection of Alternatives). According to SAVE International’s Value Methodology Standard, “establishing evaluation criteria follows a logical sequence: first, identify the context of the study (e.g., project goals, constraints); then define the criteria (e.g., cost, performance, risk); next, determine the importance of each criterion (e.g., weighting, as noted in Question 11); and finally, determine the range or scale for measurement (e.g., 1-5 scale for scoring).” This process ensures that criteria are relevant, prioritized, and measurable, enabling systematic evaluation (e.g., using coarse-medium-fine filters, as in Question 33).

Identify context: Understand the study’s goals and constraints (e.g., budget limits).

Define criteria: List specific criteria (e.g., cost savings, quality).

Determine importance: Assign weights to criteria (e.g., cost is 40% of the score).

Determine range/scale: Set a measurement scale (e.g., 1-10 for each criterion).

Option A (Identify context, define criteria, determine importance, determine range/scale) is correct, as it follows the logical sequence for establishing evaluation criteria.

Option B (Identify context, define criteria, determine range/scale, determine importance) is incorrect because determining importance (weighting) should precede setting the range/scale to ensure the scale reflects the criteria’s relative importance.

Option C (Define criteria, identify context, determine range/scale, determine importance) is incorrect because the context must be identified first to ensure criteria are relevant.

Option D (Define criteria, identify context, determine importance, determine range/scale) is incorrect because defining criteria before identifying the context risks missing the study’s specific needs.

The original Value Methodology (VM) Job Plan, developed by Lawrence D. Miles in the 1940s, was rooted in a problem-solving approach inspired by the scientific method. As outlined in the VMF 1 course (Core Competency #1: Value Methodology Overview), Miles adapted a systematic problem-solving framework to create the VM Job Plan, which later evolved into the six-phase process used today (Information, Function Analysis, Creative, Evaluation, Development, Presentation). The original problem-solving approach, as described in SAVE International’s historical documentation of VM, follows the scientific method’s four steps: Observation, Hypothesis, Experimentation, and Conclusion.

Observation: Observe the problem or system (e.g., high costs, inefficiencies) to understand the current state, aligning with the Information Phase.

Hypothesis: Form a hypothesis about how to improve value (e.g., identifying key functions or alternatives), similar to Function Analysis and Creative Phases.

Experimentation: Test the hypothesis by developing and evaluating alternatives, akin to the Evaluation and Development Phases.

Conclusion: Draw conclusions and implement solutions, corresponding to the Presentation Phase.

This order—Observation, Hypothesis, Experimentation, Conclusion—is the standard sequence of the scientific method, which Miles used as the foundation for VM’s systematic approach to problem-solving.

Option A (Hypothesis, Observation, Experimentation, Conclusion) is incorrect because observation must come first to identify the problem.

Option B (Observation, Experimentation, Hypothesis, Conclusion) is incorrect because hypothesizing should precede experimentation.

Option C (Hypothesis, Experimentation, Observation, Conclusion) is incorrect because observation must come before forming a hypothesis.

Option D (Observation, Hypothesis, Experimentation, Conclusion) is correct, as it matches the scientific method’s order, which underpins the original VM Job Plan.

Creative Thinking and Idea Generation is a key focus of the Creative Phase in the Value Methodology (VM) Job Plan, as taught in the VMF 1 course (Core Competency #6). SAVE International’s Value Methodology Standard outlines that the Creative Phase involves “generating a large quantity of ideas through brainstorming, encouraging creativity without judgment.” The ground rules for effective brainstorming, as per VMF 1, include: encouraging openness to all ideas (no criticism), promoting freewheeling (wild ideas are welcome), and recording good ideas to ensure they are captured for later evaluation. These rules are designed to maximize idea quantity and foster a creative environment.

Option A (Encouraging openness to ideas, freewheeling, and recording good ideas) is correct, as it directly aligns with VMF 1’s brainstorming ground rules for the Creative Phase.

Option B (Focusing on prioritized functions, deferring judgment, and improving ideas) is partially correct—deferring judgment is a rule, but focusing on prioritized functions and improving ideas occurs in the Evaluation Phase, not during brainstorming.

Option C (Focusing on quality ideas, discussing their merits, and maintaining momentum) is incorrect because focusing on quality and discussing merits involves judgment, which is discouraged during brainstorming.

Option D (Requesting idea clarification, discussing cost impacts, and considering performance) is incorrect because these actions involve evaluation and analysis, which occur in the Evaluation Phase, not during Creative brainstorming.

SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a tool sometimes used in Value Methodology, particularly during the Information Phase or Evaluation Phase, to assess the context of a project or product, as taught in the VMF 1 course (Core Competency #3: Value Methodology Job Plan). According to SAVE International’s Value Methodology Standard, “SWOT analysis evaluates internal and external factors: Strengths and Weaknesses are internal attributes of the system or organization, while Opportunities and Threats are external attributes from the environment.”

Strengths: Internal, helpful attributes (e.g., strong design team).

Weaknesses: Internal, harmful attributes (e.g., high production costs).

Opportunities: External, helpful attributes (e.g., market demand).

Threats: External, harmful attributes (e.g., regulatory changes).

This framework helps the VM team identify factors that could impact the study’s success, such as external opportunities to leverage or threats to mitigate.

Option A (Strengths and opportunities are internal attributes) is incorrect because opportunities are external, not internal.

Option B (Threats and strengths are harmful attributes) is incorrect because strengths are helpful, not harmful.

Option C (Strengths and weaknesses are helpful attributes) is incorrect because weaknesses are harmful, not helpful.

Option D (Opportunities and threats are external attributes) is correct, as both are external factors in SWOT analysis.

The Creativity Phase (also known as the Creative Phase) is the third phase of the Value Methodology (VM) Job Plan, as taught in the VMF 1 course (Core Competency #6: Creative Thinking and Idea Generation). According to SAVE International’s Value Methodology Standard, “the objective of the Creativity Phase is to generate a large quantity of improvement ideas through brainstorming and other creative techniques, focusing on alternative ways to perform the functions identified in the Function Analysis Phase.” This phase emphasizes divergent thinking to produce as many ideas as possible without judgment, as supported by the ground rules discussed in Question 10 (e.g., encouraging openness, freewheeling, and recording ideas). The generated ideas are then evaluated in the next phase (Evaluation Phase).

Option A (Develop improvement ideas) is incorrect because development occurs in the Development Phase, where selected ideas are refined into actionable proposals, not in the Creativity Phase.

Option B (Select improvement ideas) is incorrect because selection occurs in the Evaluation Phase, not Creativity.

Option C (Prioritize improvement ideas) is incorrect because prioritization also occurs in the Evaluation Phase (as noted in Question 33 with the coarse-medium-fine filters).

Option D (Generate improvement ideas) is correct, as it matches the primary objective of the Creativity Phase in the VM Job Plan.

Transforming subject scope information occurs during the Information Phase of the Value Methodology (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, “when transforming subject scope information, the VM study team must have a clear understanding of the subject’s purpose (what it does and why it exists) and the objectives of the VM study (e.g., reduce costs by 15%, improve performance).” This understanding ensures that the team aligns the study with the project’s goals and the VM process’s aims, setting the foundation for effective function analysis and value improvement. This aligns with the primary objective of the Information Phase—to understand the subject—and the focus of the kickoff meeting on outlining goals and objectives. While stakeholder interests and other data are important, the most critical understanding is of the subject’s purpose and study objectives.

Option A (value improvement ideas and performance attributes) is incorrect because value improvement ideas are developed later (Creativity Phase, Question 49), and performance attributes are a subset of the broader purpose.

Option B (the subject's purpose and the objectives of the VM study) is correct, as it captures the most important understanding needed during the Information Phase.

Option C (the Pareto chart, risk data, and quality expectations) is incorrect because these are specific tools or data points, not the most critical understanding; Pareto charts apply later.

Option D (the interests and influence of customers, users, and stakeholders) is incorrect because, while important, this is a subset of understanding the subject’s purpose and study objectives, which are more fundamental.

The Value Methodology (VM) Job Plan, as outlined in the VMF 1 course and SAVE International’s Value Methodology Standard, consists of six phases, starting with the Information Phase. According to VMF 1 Core Competency #3 (Value Methodology Job Plan), the Information Phase is where the VM team works to “obtain a thorough understanding of the subject of the study by gathering and analyzing data on project scope, costs, constraints, objectives, and stakeholder needs.” This phase involves collecting all relevant information—such as drawings, specifications, cost data, and performance requirements—to establish a baseline for the study, ensuring the team fully understands the project before proceeding to function analysis.

Option A (Information Phase) is correct, as it is explicitly defined as the phase for gaining a thorough understanding of the VM study’s subject.

Option B (Creativity Phase) is incorrect because this phase focuses on generating ideas, not gathering information.

Option C (Evaluation Phase) is incorrect because this phase involves assessing ideas, which occurs after the subject is already understood.

Option D (Presentation Phase) is incorrect because this phase involves communicating recommendations, not studying 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.

The Value Methodology (VM) Job Plan leverages both divergent and convergent thinking, as taught in the VMF 1 course (Core Competency #3: Value Methodology Job Plan). According to SAVE International’s Value Methodology Standard, “convergent thinking is used to narrow down and refine ideas, focusing on analysis, selection, and implementation, while divergent thinking generates a wide range of ideas.” The VM Job Plan’s six phases are: Information, Function Analysis, Creativity, Evaluation, Development, and Presentation. Convergent thinking is applied in:

Evaluation Phase: The team narrows down ideas using filters (Coarse, Medium, Fine, as in Question 33) and evaluation matrices, selecting the best ones.

Development Phase: The team refines selected ideas into actionable proposals, focusing on feasibility and cost.

Presentation Phase: The team consolidates proposals into a final recommendation, ensuring clarity and alignment with stakeholder needs.

Divergent thinking is primarily used in the Creativity Phase, while Information and Function Analysis involve analytical thinking but not necessarily convergent thinking in the same sense (they focus on understanding and defining, not narrowing down).

Option A (Creativity, Evaluation, Development) is incorrect because Creativity uses divergent thinking, not convergent.

Option B (Information, Function Analysis, Creativity) is incorrect because none of these phases primarily use convergent thinking; Creativity is divergent.

Option C (Evaluation, Development, Presentation) is correct, as these phases involve convergent thinking to narrow down, refine, and finalize ideas.

Option D (Function Analysis, Creativity, Evaluation) is incorrect because Function Analysis and Creativity do not primarily use convergent thinking.

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.

In the context of Value Methodology, cost analysis often involves financial concepts to evaluate the economic impact of alternatives, including understanding the time value of money. The VMF 1 course, under Core Competency #4 (Cost Analysis), includes basic financial metrics relevant to value studies, such as discounting cash flows to assess long-term value. The nominal rate of increase in the value of money over time, after subtracting for inflation, refers to thereal discount rate. In financial terms, as per standard economic principles taught in VMF 1, the discount rate is the rate used to discount future cash flows to their present value, and thereal discount rateis the nominal discount rate adjusted for inflation (i.e., real discount rate = nominal discount rate − inflation rate). This measures the true increase in the value of money over time, excluding inflationary effects.

Option A (Simple Payback or Breakeven Point) is incorrect because payback measures the time required to recover an investment, not the rate of increase in money’s value.

Option B (Return on Investment or ROI) is incorrect because ROI measures the profitability of an investment as a percentage, not the rate of increase in money’s value over time.

Option C (Discount Rate) is correct because the real discount rate, after subtracting inflation, defines the nominal rate of increase in the value of money over time, as used in financial analyses within VM studies.

Option D (Present Worth or Net Present Value) is incorrect because NPV is the result of discounting future cash flows to their present value using a discount rate, not the rate itself.