CVS Information Gathering and Cost Modeling — Questions and Answers
Question 1: In the VM Information Phase, what is the primary purpose of constructing a cost model?
- To determine the salary of each VM team member
- To allocate total project or product cost to individual functions so high-cost areas can be targeted (Correct answer)
- To create a Gantt chart for the VM workshop schedule
- To compare the VM study budget against organizational benchmarks
Correct answer: To allocate total project or product cost to individual functions so high-cost areas can be targeted
A cost model distributes total cost across identified functions, making it visible which functions consume disproportionate resources. This function-cost mapping is the analytical foundation for targeting improvement efforts in later VM phases.
Question 2: Pareto analysis (80/20 rule) applied in the VM Information Phase is MOST useful for:
- Ensuring equal time is spent analyzing every system component
- Identifying the roughly 20% of functions or components responsible for ~80% of total cost (Correct answer)
- Prioritizing team members' personal development goals
- Determining which FAST diagram branch to draw first
Correct answer: Identifying the roughly 20% of functions or components responsible for ~80% of total cost
Pareto analysis helps the VM team rapidly identify the 'vital few' cost drivers among the 'trivial many.' By concentrating VM effort on the 20% of items driving 80% of cost, the team maximizes potential value improvement per unit of study time.
Question 3: A 'should-cost' analysis in VM is BEST described as:
- An estimate of what a project should cost based on historical bid averages
- An independent cost estimate based on required functions and efficient processes, used as a benchmark against actual costs (Correct answer)
- The minimum acceptable bid price in a procurement process
- A post-project audit comparing budgeted versus actual expenditures
Correct answer: An independent cost estimate based on required functions and efficient processes, used as a benchmark against actual costs
Should-cost analysis builds an estimate from the ground up — what would this cost if produced efficiently with no unnecessary functions or waste? Comparing should-cost to actual cost reveals the 'value gap' and quantifies the opportunity for improvement.
Question 4: During the VM Information Phase, which data-gathering technique is MOST effective for quickly revealing stakeholder priorities and project constraints?
- Anonymous written surveys distributed after the workshop
- Structured interviews with key stakeholders conducted before the workshop (Correct answer)
- Reviewing only the project's financial statements
- Observing competing products on the market
Correct answer: Structured interviews with key stakeholders conducted before the workshop
Structured pre-workshop stakeholder interviews allow the VM team to surface requirements, constraints, and priorities before the study begins. This prevents the team from spending workshop time on out-of-scope ideas and ensures the Information Phase data reflects real decision-making drivers.
Question 5: In a VM cost model for a manufactured product, costs are BEST allocated by:
- Dividing total cost evenly among all parts
- Assigning each part's cost to the basic or secondary function it primarily performs (Correct answer)
- Listing costs in alphabetical order by component name
- Using the vendor's list price without adjustment
Correct answer: Assigning each part's cost to the basic or secondary function it primarily performs
VM cost modeling requires linking each component's cost to the function it performs. This function-cost assignment — even when approximate — enables the team to calculate cost-per-function and identify where investment is misaligned with functional worth.
Question 6: Which document produced during the VM Information Phase provides the team with a comprehensive understanding of the project's technical performance requirements?
- The VM study budget spreadsheet
- The Function Analysis System Technique (FAST) diagram alone
- The project specification or performance requirements document (Correct answer)
- The team member skills matrix
Correct answer: The project specification or performance requirements document
The project specification or performance requirements document establishes what the deliverable MUST do and to what standard. Without this, the team cannot distinguish required functions from unnecessary ones, and cannot set performance measures for proposed alternatives.
CVS Information Gathering and Cost Modeling
In the VM Information Phase, what is the primary purpose of constructing a cost model?