CVS Information Gathering and Cost Modeling

Question 1

In the VM Information Phase, what is the primary purpose of constructing a cost model?

Accepted Answer

To allocate total project or product cost to individual functions so high-cost areas can be targeted

Answer

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:

Accepted Answer

Identifying the roughly 20% of functions or components responsible for ~80% of total cost

Answer

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:

Accepted Answer

An independent cost estimate based on required functions and efficient processes, used as a benchmark against actual costs

Answer

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?

Accepted Answer

Structured interviews with key stakeholders conducted before the workshop

Answer

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:

Accepted Answer

Assigning each part's cost to the basic or secondary function it primarily performs

Answer

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.

CVS - Certified Value Specialist Practice Test

CVS - Certified Value Specialist Practice Test

CVS Information Gathering and Cost Modeling