CVS Benchmarking and Best Practices in Value Studies

Question 1

In a VM context, what is the PRIMARY purpose of benchmarking?

Accepted Answer

To establish best-in-class cost and performance references that define worth and identify value gaps

Answer

Benchmarking in VM identifies what top-performing alternatives achieve in cost and function performance. These references are used to set realistic 'worth' estimates and reveal how far the current design deviates from best practice, quantifying the value improvement opportunity.

Question 2

Which type of benchmarking is MOST useful when no direct industry competitor data is available for a VM study?

Accepted Answer

Functional benchmarking that compares the same function performed in a different industry

Answer

Functional benchmarking looks at how the same underlying function is performed in unrelated industries where superior methods may exist. For example, studying how aerospace achieves lightweight structures can inform automotive VM even without direct competitor data.

Question 3

A VM team discovers through benchmarking that a competitor achieves the same required function at 60% of the current design's cost. How should this finding MOST appropriately be used?

Accepted Answer

Use the benchmark cost as an input to establish the function's worth and set a target for creative idea generation

Answer

Benchmark data informs the worth estimate — if a competitor achieves the function at 60% of current cost, that figure represents a credible lower bound for worth. The team then targets creative ideas that approach or surpass that benchmark, rather than treating competitor designs as a plug-in solution.

Question 4

In VM best practices, what distinguishes a 'performance benchmark' from a 'cost benchmark'?

Accepted Answer

Performance benchmarks measure how well a function is executed; cost benchmarks measure how cheaply it is executed

Answer

A performance benchmark defines the target level of function execution (e.g., load transfer capacity, signal latency), while a cost benchmark defines what delivering that performance level should cost. Both are needed: improving cost without meeting performance benchmarks fails VM objectives.

Question 5

Which of the following is the MOST reliable source for establishing a cost benchmark during a VM Information Phase?

Accepted Answer

Published cost engineering databases, teardown analyses, or supplier quotes for equivalent function performance

Answer

Reliable cost benchmarks require objective, defensible data — published databases (RSMeans, PRICE Systems), physical teardown data, or competitive supplier quotes. Estimates based on opinion or internal budgets carry bias and reduce the credibility of the worth calculation.

CVS - Certified Value Specialist Practice Test

CVS - Certified Value Specialist Practice Test

CVS Benchmarking and Best Practices in Value Studies