CPT Cost Analysis & Value Engineering 2 — Questions and Answers
Question 1: In value engineering, which technique uses a structured diagram to show functional relationships and the logic connecting basic, higher-order, and supporting functions?
- Pareto analysis
- FAST diagram (Correct answer)
- Fishbone diagram
- Value stream map
Correct answer: FAST diagram
A Function Analysis System Technique (FAST) diagram visually organizes functions using 'How?' and 'Why?' logic to clarify scope and function hierarchy.
Question 2: What is the key distinction between value analysis (VA) and value engineering (VE)?
- VA applies to services; VE applies to products only
- VA is applied to existing products; VE is applied during the design phase (Correct answer)
- VA focuses on cost only; VE focuses on performance only
- VA is performed by engineers; VE is performed by accountants
Correct answer: VA is applied to existing products; VE is applied during the design phase
Value analysis improves cost and function of an existing product, while value engineering applies the same principles proactively during initial design.
Question 3: A packaging engineer calculates the 'value index' of a function. A value index significantly less than 1.0 indicates:
- The function is performing above expectations
- Cost exceeds the worth assigned to that function, signaling improvement opportunity (Correct answer)
- The packaging is under-engineered and needs more material
- The function should be classified as a basic function
Correct answer: Cost exceeds the worth assigned to that function, signaling improvement opportunity
A value index (worth/cost) below 1.0 means the cost to perform a function exceeds its perceived worth, making it a prime VE target.
Question 4: During a VE study, the team identifies a packaging component whose only function is 'look attractive.' This would be classified as a:
- Basic function
- Required secondary function
- Aesthetic function (Correct answer)
- Unwanted function
Correct answer: Aesthetic function
Aesthetic functions relate to sensory appeal (appearance, feel, smell) and are distinct from use functions that make the product work.
Question 5: Which VE job plan phase involves generating creative alternatives without criticism or evaluation?
- Information phase
- Creative phase (Correct answer)
- Evaluation phase
- Development phase
Correct answer: Creative phase
The creative phase uses brainstorming and lateral thinking to generate as many alternative ways as possible to perform each function without judgment.
Question 6: A corrugated box costs $0.80 to produce and performs a 'protect product' function valued at $0.50. The best VE action is to:
- Increase the sales price to recover cost
- Investigate lower-cost alternatives that still protect the product (Correct answer)
- Eliminate the protection function entirely
- Add more features to increase the $0.50 worth
Correct answer: Investigate lower-cost alternatives that still protect the product
When cost exceeds worth, VE targets finding alternative ways to perform the same function at or below the worth figure.
Question 7: In a packaging VE workshop, 'should-cost' analysis is used primarily to:
- Determine historical average costs across the industry
- Estimate what a component ought to cost based on materials, labor, and overhead without supplier margin inflation (Correct answer)
- Calculate the cost of warranty claims
- Set the retail price of the packaged product
Correct answer: Estimate what a component ought to cost based on materials, labor, and overhead without supplier margin inflation
Should-cost analysis builds a bottom-up cost model from raw inputs so buyers and engineers can negotiate from a fact-based target rather than accepting quoted prices.
CPT Cost Analysis & Value Engineering 2
In value engineering, which technique uses a structured diagram to show functional relationships and the logic connecting basic, higher-order, and supporting functions?