CCC Value Engineering & Value Management 2 — Questions and Answers
Question 1: In the creative phase of the VE job plan, which technique is most commonly used to generate a large number of alternatives?
- Critical Path Method scheduling
- Monte Carlo simulation
- Brainstorming (Correct answer)
- Earned Value Analysis
Correct answer: Brainstorming
Brainstorming is the primary technique in the creative phase, generating the maximum number of ideas without judgment or criticism before evaluation begins.
Question 2: Life Cycle Cost (LCC) analysis in Value Engineering is used primarily to:
- Determine contractor overhead and profit margins
- Compare total costs of alternatives over their entire useful life (Correct answer)
- Calculate construction contingency reserve amounts
- Establish bid bonds for procurement contracts
Correct answer: Compare total costs of alternatives over their entire useful life
LCC analysis compares total ownership costs — including initial, operating, maintenance, and disposal costs — over the useful life of alternatives to support objective VE decisions.
Question 3: The value ratio in Value Engineering is expressed as:
- Function divided by Cost (Correct answer)
- Cost divided by Quality
- Worth divided by Function
- Schedule divided by Budget
Correct answer: Function divided by Cost
Value in VE is the ratio of Function (performance) to Cost; value improves by increasing function, reducing cost, or both simultaneously.
Question 4: A Value Engineering Change Proposal (VECP) is best described as:
- A contractor's request for additional compensation beyond the contract
- A formal proposal to modify design or methods to reduce cost while maintaining function (Correct answer)
- A change order for owner-requested scope additions
- A request for information submitted to the design engineer
Correct answer: A formal proposal to modify design or methods to reduce cost while maintaining function
A VECP is a formal contractor-initiated proposal to modify design, specifications, or methods to reduce costs while meeting all performance requirements, with savings typically shared between owner and contractor.
Question 5: During the evaluation phase of the VE job plan, the creative ideas are typically assessed using:
- Network scheduling diagrams and float analysis
- Weighted evaluation criteria matrices or screening tools (Correct answer)
- Statistical regression and trend analysis
- Work breakdown structure decomposition
Correct answer: Weighted evaluation criteria matrices or screening tools
The evaluation phase uses weighted criteria matrices or screening tools to objectively rank and filter creative ideas based on feasibility, savings potential, and technical merit.
Question 6: A FAST (Function Analysis System Technique) diagram is primarily used in VE to:
- Schedule project activities and milestones
- Identify and relate project functions in a logical 'How/Why' hierarchy (Correct answer)
- Calculate earned value cost and schedule metrics
- Document procurement and specification requirements
Correct answer: Identify and relate project functions in a logical 'How/Why' hierarchy
A FAST diagram visually organizes project functions in a hierarchical structure using 'How/Why' logic, helping the team understand functional relationships and identify unnecessary cost.
Question 7: In the development phase of the VE job plan, the VE team's primary activity is to:
- Generate as many alternative ideas as possible without filtering
- Present all findings and alternatives to project stakeholders for decision
- Develop promising alternatives with sufficient technical and cost detail to evaluate feasibility (Correct answer)
- Identify and classify all project functions using verb-noun descriptions
Correct answer: Develop promising alternatives with sufficient technical and cost detail to evaluate feasibility
The development phase elaborates on the most promising VE alternatives with full technical analysis, life cycle cost estimates, and implementation considerations to support formal recommendations.
CCC Value Engineering & Value Management 2
In the creative phase of the VE job plan, which technique is most commonly used to generate a large number of alternatives?